Weak global cues and RBI Governor’s negative hints on inflation and a possible rate cut virtually pulled the Indian stock market from its peak and end the day’s trading well below the dotted line. Expectations of a rate cut by RBI had gathered momentum this week after headline inflation slowed to its lowest level in three years and IIP data indicated a negative growth, but RBI chief Subbarao’s remark that the inflation is "still quite high" dampen the market sentiment.
The BSE Sensex shed 169.19 points to close at 19,817.63 while the broader NSE Nifty slipped 54.75 points to end at 6001.85, closing marginally above the psychologically important 6,000 level. The Sensex opened at 19978, touched a day's high of 20009 and a day's low of 19783. The Nifty opened at 6,049, touched a day’s high of 6,055 and a day’s low of 5992.
Shares of Reliance Industries, Dr Reddys Lab, TCS, NTPC, ITC, Sterlite Inds, Gail India, Cipla were among gainers in Sensex and Nifty. While shares of Hindalco Indus., JP Associates, Maruti Suzuki, Tata Motors, Reliance Infra, Jindal Steel, Maruti Suzuki, Mahindra & Mahindra, SBI, Tata Steel were among losers in Sensex and Nifty.
All but 1 of the 13 sectoral indices closed in the red zone. BSE Oil&Gas was the only gaining sector up by 0.43%. Top losers are, BSE Auto down by 2.40%, BSE Metal down by 2.10%, BSE Bankex down by 1.66%. The BSE Small-Cap index and BSE Mid- Cap index was down by nearly 1%.
The market breadth stood in favor of declines. Of the 3067 stocks traded on the BSE, 938 (30.58%) rose, 2001 (65.24%) fell and 128 (4.17%) stocks remained unchanged.
Most of the Asian shares fell today as cautious investors waited for crucial economic data from China later this week, while the yen's extended gains spurred profit taking in Japanese equities after their recent rally. Nikkei shed 2.6% at 10,600, while Shanghai Composite was down around 1.7%, and Taiwan Weighted has slipped 0.7% in today's trading session.
European markets are lower with shares in London off the most. The FTSE 100 is down 0.49% while France's CAC 40 is down 0.26% and Germany's DAX is lower by 0.25%. European stocks are weighed down by German economic data, released yesterday and concerns about the looming battle over the U.S. debt ceiling. US markets are trading lower when this report is being prepared.
Concern about global economic growth was weighing on the markets, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois. A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 per cent from an earlier forecast of 3.0 per cent.
For the domestic market, RBI’s move on 29th January will be the key in deciding the future market movement. RBI Governor Subbarao has today rained on the rally in Indian stock markets with his remark that inflation is "still quite high" though off its peak, and there is "no room for stimulus" on both monetary and fiscal fronts. This will probably see more selling pressure on the market in coming few days, unless some positive hints by the RBI.
However, investment bank, Macquarie raised BSE Sensex target to 22,200 points versus 21,600 earlier and Nifty target to 6,900 points as against 6,600 previously. Macquarie says Indian 'elephant' to turn 'tiger' in 2013. The Investment bank expects reforms push would take India to 8 per cent per annum growth over the next three years, improving to 6.7 per cent in FY14 from 5.6 per cent projected in FY13.A survey of fund managers by BofA Merrill Lynch also said that Emerging market investors have adopted "a modest overweight" position on Indian shares for the first time since July 2010.
Thus the Indian market may see some negative trend in short term but the underlying sentiment is very much positive and the Indian growth story is very much intact.
The BSE Sensex shed 169.19 points to close at 19,817.63 while the broader NSE Nifty slipped 54.75 points to end at 6001.85, closing marginally above the psychologically important 6,000 level. The Sensex opened at 19978, touched a day's high of 20009 and a day's low of 19783. The Nifty opened at 6,049, touched a day’s high of 6,055 and a day’s low of 5992.
Shares of Reliance Industries, Dr Reddys Lab, TCS, NTPC, ITC, Sterlite Inds, Gail India, Cipla were among gainers in Sensex and Nifty. While shares of Hindalco Indus., JP Associates, Maruti Suzuki, Tata Motors, Reliance Infra, Jindal Steel, Maruti Suzuki, Mahindra & Mahindra, SBI, Tata Steel were among losers in Sensex and Nifty.
All but 1 of the 13 sectoral indices closed in the red zone. BSE Oil&Gas was the only gaining sector up by 0.43%. Top losers are, BSE Auto down by 2.40%, BSE Metal down by 2.10%, BSE Bankex down by 1.66%. The BSE Small-Cap index and BSE Mid- Cap index was down by nearly 1%.
The market breadth stood in favor of declines. Of the 3067 stocks traded on the BSE, 938 (30.58%) rose, 2001 (65.24%) fell and 128 (4.17%) stocks remained unchanged.
Market outlook for tomorrow
Most of the Asian shares fell today as cautious investors waited for crucial economic data from China later this week, while the yen's extended gains spurred profit taking in Japanese equities after their recent rally. Nikkei shed 2.6% at 10,600, while Shanghai Composite was down around 1.7%, and Taiwan Weighted has slipped 0.7% in today's trading session.
European markets are lower with shares in London off the most. The FTSE 100 is down 0.49% while France's CAC 40 is down 0.26% and Germany's DAX is lower by 0.25%. European stocks are weighed down by German economic data, released yesterday and concerns about the looming battle over the U.S. debt ceiling. US markets are trading lower when this report is being prepared.
Concern about global economic growth was weighing on the markets, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois. A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 per cent from an earlier forecast of 3.0 per cent.
For the domestic market, RBI’s move on 29th January will be the key in deciding the future market movement. RBI Governor Subbarao has today rained on the rally in Indian stock markets with his remark that inflation is "still quite high" though off its peak, and there is "no room for stimulus" on both monetary and fiscal fronts. This will probably see more selling pressure on the market in coming few days, unless some positive hints by the RBI.
However, investment bank, Macquarie raised BSE Sensex target to 22,200 points versus 21,600 earlier and Nifty target to 6,900 points as against 6,600 previously. Macquarie says Indian 'elephant' to turn 'tiger' in 2013. The Investment bank expects reforms push would take India to 8 per cent per annum growth over the next three years, improving to 6.7 per cent in FY14 from 5.6 per cent projected in FY13.A survey of fund managers by BofA Merrill Lynch also said that Emerging market investors have adopted "a modest overweight" position on Indian shares for the first time since July 2010.
Thus the Indian market may see some negative trend in short term but the underlying sentiment is very much positive and the Indian growth story is very much intact.
Yes, you are right, because of these news & reviews stock & nifty market is down. It will also effect the inflation of India. Although this is for short time but it will be cover soon.
ReplyDeleteRegards
Profit.biz