In spite negative global cues, Indian equity market managed to end today’s trading with marginal gains. As expected, Indian market opened the session on a weak note but the pendulum kept swinging between the green and red zone. However in latar part of the trading session, Indian indices staged a smart recovery to end in positive terrain. Though market participants indicate a bout of short-covering may have taken place in select counters, but the underlying strength of the market is also evident from this smart intra-day recovery.
The benchmark BSE Sensex closed at 19742.52, up by 51.10 points and the Nifty rose 13.30 points to settle at 6001.70 in today’s trade. Sensex earlier touched a day's high of 19761 and a day's low of 19632, before opening at 19681. The Nifty touched a day’s high of 6,007 and a day’s low of 5964 before opening at 5,983.
The stocks that propelled the Sensex and Nifty higher include TCS, Sun Pharma, HDFC Bank, Tata Power, ONGC, Tata Motors, Bajaj Auto, Coal India, Dr Reddys Lab, ITC, BHEL. While RIL, Infosys, Wipro, Tata Steel, Maruti Suzuki, Hero MotoCorp, Hindalco Inds, L&T, HUL are among losers in Sensex and Nifty.
The BSE Small-Cap index was trading down 0.27%, while BSE Mid- Cap index was trading flat. Among the 13 BSE sectoral indices, six sectors closed in the red zone while remaining seven sectors closed in the green zone. Top gainers were BSE Realty up by 1.22%, BSE FMCG rising by 1.07%, BSE Healthcare surging by 0.73%. Top losers were BSE CD down by 2.01%, BSE Metal falling by 0.96% and BSE CG down by 0.71%.
The market breadth stood in favor of bears. Of the 3071 stocks traded on the BSE, 1451 (47.25%) rose, 1478 (48.13%) fell and 142 (4.62%) stocks remained unchanged.
Under the above scenario, Indian markets will also be under pressure tomorrow. Moreover, Fitch Ratings reiterating its 'negative' outlook on India's sovereign credit rating, citing concerns about slowing economic growth, persistent inflationary pressures and an uncertain fiscal outlook, will certainly have its negative impact on the market sentiment.
However, Prime Minister Dr. Manmohan Singh’s firmness on raising the price of diesel, kerosene, and cooking gas, must show the government’s intent of hard fiscal measures, which the market wants so much. Dr. Manmohan Sing went on to hint that government may consider hiking diesel prices by Rs 2 to 3 per litre and LPG by Rs 50 to Rs 75. Markets are now awaiting fresh impetus from the government as it tries to contain the ballooning fiscal deficit and meet its disinvestment target.
Third-quarter earnings would be a key focus in the near term. Earnings outcome of blue chip companies such as Infosys on Friday and Tata Consultancy Services on Monday will set the tone for the coming week.
The benchmark BSE Sensex closed at 19742.52, up by 51.10 points and the Nifty rose 13.30 points to settle at 6001.70 in today’s trade. Sensex earlier touched a day's high of 19761 and a day's low of 19632, before opening at 19681. The Nifty touched a day’s high of 6,007 and a day’s low of 5964 before opening at 5,983.
The stocks that propelled the Sensex and Nifty higher include TCS, Sun Pharma, HDFC Bank, Tata Power, ONGC, Tata Motors, Bajaj Auto, Coal India, Dr Reddys Lab, ITC, BHEL. While RIL, Infosys, Wipro, Tata Steel, Maruti Suzuki, Hero MotoCorp, Hindalco Inds, L&T, HUL are among losers in Sensex and Nifty.
The BSE Small-Cap index was trading down 0.27%, while BSE Mid- Cap index was trading flat. Among the 13 BSE sectoral indices, six sectors closed in the red zone while remaining seven sectors closed in the green zone. Top gainers were BSE Realty up by 1.22%, BSE FMCG rising by 1.07%, BSE Healthcare surging by 0.73%. Top losers were BSE CD down by 2.01%, BSE Metal falling by 0.96% and BSE CG down by 0.71%.
The market breadth stood in favor of bears. Of the 3071 stocks traded on the BSE, 1451 (47.25%) rose, 1478 (48.13%) fell and 142 (4.62%) stocks remained unchanged.
Tomorrow’s market outlook
Most of the Asian markets were down today. Nikkei, Hang Seng, Kospi, Shanghai, Taiwan were all down today. Only Jakarta ended on positive territory. European markets are also mostly down after an unexpected slump in German exports set a negative tone. FTSE 100, DAX were down, CAC however were trading in positive. In US, Dow Jones and NASDAQ are both down by more than 0.5%.Under the above scenario, Indian markets will also be under pressure tomorrow. Moreover, Fitch Ratings reiterating its 'negative' outlook on India's sovereign credit rating, citing concerns about slowing economic growth, persistent inflationary pressures and an uncertain fiscal outlook, will certainly have its negative impact on the market sentiment.
However, Prime Minister Dr. Manmohan Singh’s firmness on raising the price of diesel, kerosene, and cooking gas, must show the government’s intent of hard fiscal measures, which the market wants so much. Dr. Manmohan Sing went on to hint that government may consider hiking diesel prices by Rs 2 to 3 per litre and LPG by Rs 50 to Rs 75. Markets are now awaiting fresh impetus from the government as it tries to contain the ballooning fiscal deficit and meet its disinvestment target.
Third-quarter earnings would be a key focus in the near term. Earnings outcome of blue chip companies such as Infosys on Friday and Tata Consultancy Services on Monday will set the tone for the coming week.
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