On Monday 11 July 2011, Benchmark indices snapped the first day of the fresh week on negative note, tailing sluggish global cues ahead of the European leaders meet on Italy concerns, which led to the choppiness into the Indian equity markets too. A cautious approach adopted by participants ahead of the flow of the first quarter earnings announcements by corporate, mainly dented the sentiment at Dalal Street. Investors will be closely watching the Q1 results of companies to gauge the future outlook for the market. Hefty losses in Realty and Bankex counters coupled with the plunge of the Metal and Information Technology space, played the malice behind the downfall in the trade. Since Investor's squared off hefty positions from the rate sensitive on the fears that another potential rate hike by RBI in its monetary policy review will crimp the demand for property and loans, thereby sending the Realty and IT index lower by 1.5%. Moreover, Metal and mining stocks extended Friday's slide after a panel of ministers approved the draft Mining Bill, which calls for coal miners to share 26 per cent of their profits and other non-coal mineral miners to pay 100 per cent royalty to project-affected people.
1) The BSE Sensex lost 136.65 points or 0.72% and settled at 18,721.39 and NSE Nifty closed at 5616.10 with the loss of 44.55 points or 0.79%. Other two vital indices BSE Mid-cap index lost 0.31% while Small-cap index lost 0.42%. On the BSE Sectoral front, FMCG up 0.52%, Consumer Durables up 0.50%, % and Oil & Gas up 0.13% were the only gainers. On the flip side, Realty down 2.54%, IT down 1.73%, Teck down 1.58%, Metal down 1.54% and Bankex down 1.39% were the top losers.
2) On the global front, US stocks fell on Friday as a weak jobs report dashed optimism that the economy was emerging from a soft patch, leaving investors to hope earnings season would revive an appetite for buying. The Asian stocks too finished the trade in red on concerns about the region's exports after a dismal US jobs report on Friday and European indices too failed to provide a fillip to the Indian equity markets as the major share markets opened lower on Monday.
3) Meanwhile, India's domestic passenger car sales grew by 1.62% for June, this is the slowest pace of growth in more than two years, the second-fastest growing auto market is experiencing moderation in growth due to the increased interest rates by RBI, increasing fuel prices and increased cost of raw materials. Car sales grew by 1.62% to 143,370 units in June from 141,087 units in same month previous year, however, commercial and motorcycles registered a growth of 17.83% to 62,009 units and 14.97% to 934,975 units respectively. Motorcycle sales in the country grew by 14.97% during the month to 825,323 units from 717,859 units in the corresponding month last year. Total two-wheeler sales increased by 14.59% to 10,71,425 units last month from 934,975 units in June, 2010.
