We might see some sort of consolidation
FIRST LIGHT HEADINGS
Gujarat NRE Coke launches $50 million worth convertible bonds issue FIIs stood as net buyers in equities on June 9, 2011: SEBI Shopper’s Stop to up the prices of private labels by 10-12% from July 1, 2011 MMTC likely to invest Rs 240 crore in wind energy sector India’s domestic car sales growth rises at slowest rate in two years in May Tata Metaliks terminates agreement with Global Coke IndusInd Bank allots 6,600 equity shares under ESOS
MARKET INSIGHT
On Thursday 09 June 2011, Local equity markets dropped further on Thursday in sync with other Asian equities, as apprehensions over global economic recovery led to a reduction in risk appetite among investor's for the second straight day. Further, bounce back in weekly food inflation data to a nine week high level too led the investor's trim their position anticipating that the rate hike would be in offing in the RBI's next monetary policy review on June 16,2011. As per the official data, India's food inflation rose to a two month high at 9.01% for week ended May 28 as compared to 8.06% for week ended May 21, 2011. The trade at Dalal Street for the third straight session was range struck as the bourses gyrated around in the range of 30-40 points. Meanwhile, the broader indices too showcased signs of fatigue as the midcap Index succumbing to the selling pressure extended its losing streak for the second straight session, however, the smallcap index managed to ended in green. Sluggish performance of the global equities has mainly impacted the Indian equity markets as on the global front, US markets ended down for the sixth straight session after Federal Reserve chairman Ben Bernanke confirmed a gloomy picture of economic growth. Meanwhile, Asian shares too ended in red with steep losses of Chinese banks weighing on the Hong Kong and Shanghai markets. The European markets too turned negative on Thursday as mining stocks pared early gains, tracking a decline in metals prices, while banks fell ahead of a rate decision from the European Central Bank.
The BSE Sensex lost 8.79 points or 0.05% and settled at 18,385.50. The index touched a high and a low of 18,449.64 and 18,327.01 respectively. 8 stocks advanced against 21 declining ones while 1 stock remain unchanged on the index. The BSE Mid-cap index lost 0.12% while Small-cap index was up by 0.10% respectively. On the BSE Sectoral front, Consumer Durables advanced 1.71%, Capital Goods up 1.03%, Power up 0.23%, Realty up 0.06% and FMCG up 0.03% were the only gainers.On the flip side, Auto down 0.62%, Health Care down 0.35%, IT down 0.18%, Bankex slipped by 0.17% and Teck down 0.16% were the losers.
India VIX, a gauge for market's short term expectation of volatility remained unchanged at 18.58 from its previous close of 18.58 on Wednesday. The S&P CNX Nifty lost 5.85 points or 0.11% to settle at 5,521.00. The index touched high and low of 5,540.10 and 5,502.05, respectively.16 stocks advanced against 34 declining ones on the index. (Provisional)
All the Asian equity indices barring Nikkei ended the day's trade in the negative terrain on Thursday amid persistent worries about the US and global economic outlook. Chinese index Shanghai Composite remained the major loser among the Asian peers losing over 0.70 percent, with financials and property shares weak, as sentiment was hurt on worries over further monetary policy tightening while, the shortage of liquidity also weighed on the sentiments in the region. Moreover, Jakarta Composite and Seoul Composite too ended the day's trade with a cut of over half a percent in the trade.
Read more about Indian Equity Research Report By Mansukh
