Wednesday, July 20, 2011

Morning Note - Market Insight By Mansukh - 20th July, 2011

On Tuesday 19 July 2011, Stalling two consecutive sessions' declining trend, local bourses emerged victorious on Tuesday comforted by some good earnings reports coupled with the positive opening of the European markets that temporarily eased investor's qualms over wobbly financial health of the US and the Euro zone. India's benchmark stock indices climbed the most in a week as lenders rallied after the third biggest bank-HDFC Bank- reported earnings that beat estimates. The local bourses which wandered up till the afternoon deals showcased awe-inspiring performance during the mid-afternoon deals, thereby turning around losses to profits, shrugging of the rate hike fears which dominated the morning trade at Dalal Street, investor's indulged in bargain buying at lower levels encouraged by the positive leads from Europe. On the global front, US stocks ended lower on Monday as bank shares bore the brunt of investor frustration over governments' inability to solve debt crises in the United States and Europe. Meanwhile, the European shares edged up on Tuesday, in a slight rebound after a sharp fall in the previous session, with tech shares gaining after an upbeat statement from IBM. It reported that signings of new business at its services division surged 16 percent in the second quarter, trouncingexpectations and signaling strong spending on technology by corporations. However, investors werestill cautious ahead of a key meeting to address the euro zone debt crisis on Thursday. However,investors were still cautious ahead of a key meeting to address the euro zone debt crisis on Thursday

The BSE Sensex gained 130.00 points or 0.70% and settled at 18,637.04. The index touched a high and a low of 18,690.42 and 18,481.83 respectively. 23 stocks advanced against 7 declining ones on the index . The BSE Mid-cap index gain 0.39% while Small-cap index was up 0.76%. On the BSE Sectoral front, Consumer Durables up 1.32%, Realty up 1.14%, IT up 1.07%, TECk up 1.02% and Metal up 0.90% were the top gainers. On the flip side, Power down 0.46%, Auto down 0.40% and Capital Goods down 0.39% were the top losers.

India VIX, a guage for market's short term expectation of volatility lost 4.70% at 19.25 from its previous close of 20.20 on Monday. The S&P CNX Nifty gained 39.70 points or 0.71% to settle at 5,606.75. The index touched high and low of 5,627.65 and 5,557.20 respectively. 41 stocks advanced against 8 declining ones while 1 stock remained unchanged on the index. (Provisional)

Most of the Asian equity indices finished the day's trade in the negative terrain on Tuesday tracking weak global cues as the euro-zone debt crisis roared on while lawmakers in Washington remained deadlocked on an agreement to avoid a US default. Japanese Nikkei fell over 0.80 percent as banks were sold on growing investor frustration with governments' inability to solve debt crises in the United States and Europe while, Chinese Shanghai eased 0.70 percent on Tuesday, weighed down by a pull-back in financial issues following news of China Merchants Bank's fundraising plans.


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