On Friday 08 July 2011,Local bourses entered the correction phase and lost more than half of their previous session gains. Investigation related to the telecom scams coupled with GoM approved Draft Mines & Minerals Development & Regulation Bill were the issues that rocked the markets today. Further, even bottom line pressure woes marred the sentiment at Dalal Street, thereby leading profit booking well before the corporate earnings season formally kicks in. However, HDFC and IndusInd bank were the stocks that caught investor's eye on reported their Q1FY12 numbers. HDFC lost over 1% on reporting lower than estimated earnings. The company reported 22% in its profit after tax for the quarter ended June 30, 2011 at Rs 844.53 crore as compared to Rs 694.59 crore for the quarter ended June 30, 2010. On the other hand, IndusInd Bank's stocks rose over 0.50%; amusing the street with its number. The bank's net profit for the quarter ended June 30, 2011 surged by 51.99% at Rs 180.18 crore as compared to Rs 118.55 crore for the quarter ended June 30, 2010.
1) The BSE Sensex lost 220.16 points or 1.15% and settled at 18,858.04 and NSE Nifty also lost 68.30 points or 1.19% and closed at 5660.65. Other two BSE broader indices BSE Mid-cap index lost 0.61% while Small-cap index was down by 0.86%. On the BSE Sectoral front, Realty up 2.08% was the only gainers. On the flip side, Metal down 2.99%, PSU down 1.72%, FMCG down 1.14%, Oil&Gas down 1.13% and Capital Goods down 0.93% were the top losers.
2) On the global front, US stocks marched higher on Thursday, as encouraging news about both US employment and retail sales drove investors into risky assets. Investors were heartened by June private-sector jobs gains that comfortably outstripped economists' forecasts. Meanwhile, Asian shares too tailing the upbeat US employment data ended mostly higher on improved risk appetite. The European shares were on the track for a ninth gain in 10 sessions, boosted by Wall Street and Asia stocks, and ahead of key US labour data that may confirm the strength of the recovery in the world's biggest economy.
3) On Friday, the group of ministers headed by Finance Minister Pranab Mukherjee gave a go ahead to the draft bill for the mining sector, which makes it mandatory for coal miners to share 26% of their net profits with project-affected people. The bill also proposed companies mining other resources to pay 100% of the royalty on their production to the original inhabitants of the project site. On the other hand, Meanwhile, on the back of increased demand from western markets India's exports for June increased by 46.4% to $29.2 billion, on the other hand, imports too registered a growth of 42.4% to $36.9 billion, leaving a trade deficit of $7.7 billion for the month of June. In the first quarter of current financial year, exports grew by 45.7% to $79 billion and imports increased by 36.2 % to 110.6 billion, however, trade deficit for the first quarter stood at $31.6 billion.
