On Wednesday 20 July 2011,Brushing aside the positive global leads, local bourses reacting to the slew of disappointing earnings reports reversed all its morning gains on Wednesday. Although the benchmark indices started on an optimistic note spurred by the firming trend in Asian stocks which in turn took cue from the overnight gains of the US street. But soon the release of India's No. 3 software services exporter- Wipro-Q1 number stained the trade at Dalal Street. The nation’s third-biggest software services provider -Wipro-plunged the most in three months on the reports that the company sees headwinds to its profit margins in its fiscal second quarter due to wage hikes and a $150 million acquisition it did in April. On Consolidated basis, the Group‘s net profit has registered a gain of just 1.24% at Rs 1334.90 crore. Not that indices did not break out in green after this, as the benchmarks paring all the losses, turned positive in the mid-morning trade with several blue chips standing tall giving up some support. But soon the slew of the disappointing results posted by the biggies thwarted the investor’s which preferred taking profits off the table, thereby sending the benchmark indices below the psychological 5,600(Nifty) and 18,600(Sensex) levels. However, positive opening of the European markets coupled with covering up of the pending shorts, made the benchmark indicesrecover from their low points of the day. On the global front, US stocks posted their best day since March on Tuesday after strong corporate results and as renewed hope for an agreement on thorny budget issues boosted investor confidence, thereby leading to an up move.
The BSE Sensex lost 171.28 points or 0.92% and settled at 18,482.59. The index touched a high and a low of 18,765.60 and 18,473.90 respectively. 4 stocks advanced against 26 declining ones on the index. The BSE Mid-cap index lost 0.94% while Small-cap index was down 0.45%. On the BSE Sectoral front, FMCG up 0.17% was the only gainers. On the flip side, Health Care down 1.94%, Power down 1.81%, Capital Goods down 1.68%, Bankex down 1.46% and Auto down 1.45% were the top losers.
India VIX,a gauge for market short term expectation of volatility lost 0.72% at 19.11 from its previous close of 19.25 on Tuesday. The S&P CNX Nifty lost 51.15 points or 0.91% to settle at 5,562.40. The index touched high and low of 5,645.40 and 5,555.10 respectively. 6 stocks advanced against 43 declining ones while 1 stock remained unchanged on the index. (Provisional)
All the Asian equity indices barring shanghai composite finished the day’s trade in the positive territory on Wednesday following strong gains on Wall Street overnight as progress in US debt ceiling negotiations boosting investor sentiment. Japanese Nikkei surged over a percent in the trade, with technology shares were lifted by stellar earnings results from US titans IBM and Apple while, benchmarks in South Korea and Taiwan too rose 1.16 percent and 2.13 percent respectively as makers of tablet and smart phone components posted strong gains.
