FIRST LIGHT HEADINGS
FIIs stood as net sellers in equities on June 16, 2011: SEBI
Solar power to relieve the burden of power-starved states soon
RBI to continue its tight monetary policy against the rampant inflation in coming months Redington (India) allots 58,435 equity shares under ESOP Odyssey Corporation to incorporate wholly owned subsidiary Amtek Auto redeems FCCB’s
Solar power to relieve the burden of power-starved states soon
RBI to continue its tight monetary policy against the rampant inflation in coming months Redington (India) allots 58,435 equity shares under ESOP Odyssey Corporation to incorporate wholly owned subsidiary Amtek Auto redeems FCCB’s
MARKET INSIGHT
On Thursday 16 June 2011, Slew of negative reports amidst global jitters owing to heightened tension over Greece’s worsening fiscal health and increasing evidence of a slowdown in the US economy pulverized the trade at Dalal Street. It was not the 10th rate hike since March 2010 that affected the markets but the RBI’s hawkish comments that dented the sentiment as the market’s had already factored in 25 bps hike in the key policy rate. The central bank said in its mid-quarter policy review, “Against this backdrop, the monetary policy stance remains firmly anti-inflationary, recognizing that, in the current circumstances, some short-run deceleration in growth may be unavoidable in bringing inflation under control”, thereby giving no indication that this is end of the tightening cycle and leaving the investor’s guessing that there would be more rate hikes in the offing. RBI in its mid-quarter Monetary Policy Review hiked repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 per cent to 7.5 per cent with immediate effect. Consequent to the increase in the repo rate, the reverse repo rate under the LAF automatically stood adjusted to 6.5 per cent and the marginal standing facility (MSF) rate to 8.5 per cent. Adding to the equity markets woes were the disturbing monsoon reported that India’s monsoon rains, vital for the farm-dependent economy, were 9 percent below normal in the week to June 15, with rice and cotton growing regions in the south and east suffering the lowest rainfall.
The market breadth on the BSE ended in negative; advances and declining stocks were in a ratio of 1092:1724 while 119 scrips remained unchanged. The BSE Sensex lost 136.38 points or 0.75% and settled at 17,995.86. The index touched a high and a low of 18,155.10 and 17,958.94 respectively. 9 stocks advanced against 21 declining ones on the index (Provisional). The BSE Mid-cap index lost 0.73% while Small-cap index shed 0.57%. On the BSE Sectoral front, there was no gainer. While , IT down 1.62%, Capital Goods down 1.36%, Teck down 1.34%, Metal down 1.12% and Oil & Gas down by 1.04% were the top losers.
India VIX, a gauge for market’s short term expectation of volatility gained 2.71% at 19.66 from its previous close of 19.14 on Wednesday. The S&P CNX Nifty lost 48.90 points or 0.90% to settle at 5,398.60. The index touched high and low of 5,447.50 and 5,389.80 respectively. 15 stocks advanced against 35 declining ones on the index. (Provisional)
Asian markets witnessed a dismal trading day with all the major indices suffering sharp cut in the range of 1.5-2 percent each. Tailing their US counterparts the regional markets remained under deep pressure from the very beginning and in latter trade the selling intensified as investors reacted to fresh developments on Greece’s sovereign-debt crisis. Greek Prime Minister George Papandreou said he will reshuffle his cabinet and seek a confidence vote.
Read more about Indian Equity Research morning report by Mansukh
