MARKET EKES OUT SMALL GAINS IN OPENING TRADE
DATE: 19/04/2012
The market opened slightly higher on selective buying in index pivotal. Asian markets were trading mixed. The BSE Sensex was up 12.23 points or 0.07% to 17,404.62. The market breadth, indicating the overall health of the market, was positive. Index heavyweight Reliance Industries (RIL) was marginally higher.
At 09:30 IST, the BSE Sensex was up 12.23 points or 0.07% to 17,404.62. The index gained 56.05 points at the day's high of 17,448.44 in early trade. The index lost 21.04 points at the day's low of 17,371.35 in early trade.
The S&P CNX Nifty was up 5.20 points or 0.10% to 5,305.20. The Nifty hit a high of 5,320.65 and a low of 5,300.40 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 772 shares gained and 496 shares fell. A total of 52 shares were unchanged.
The total turnover on BSE amounted to R 203 crore by 09:25 IST
From the 30-share Sensex pack, 16 declined while the rest gained. Tata Power Company (up 1.64%), Sun Pharmaceutical Industries (up 1.25%), and Infosys (up 1.21%), edged higher from the Sensex pack.
Bhel (down 1.59%), L&T (down 0.88%), and ICICI Bank (down 0.73%), edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.09% to R 750 ahead of its earnings on Friday, 20 April 2012. Marketmen doubt about how much natural gas can be extracted from RIL's KG D6 blocks, and worries over its refining margins, as well as its usage of cash.
Meanwhile, RIL bought back 52.61 lakh shares for R 396.04 crore as of 17 April 2012. The average buyback price per share works out to R 752.77. RIL's board had approved buyback of up to 12 crore shares or 7.22% on 20 January 2012. It had capped the buyback price at R 870 per share. RIL will pay out a maximum of R 10440 crore for this buyback. The buyback opened on 1 February 2012 and the last date is 19 January 2013.
India received $2.21 billion in foreign direct investment in February, showing an annual growth of 74%, taking cumulative inflows to $28.40 billion for the April-February period of the last fiscal.
The Reserve Bank of India (RBI) in its annual monetary policy for 2012-13 on Tuesday, 17 April 2012 cut repo rate, by a sharper-than-expected 50 basis points to give a boost to flagging economic growth. The RBI, however, warned that there is limited scope for further rate cuts. The RBI left unchanged the cash reserve ratio (CRR), the share of deposits that banks must hold with the central bank, at 4.75%, in line with expectations, after cutting it by 125 basis points since January 2012 to ease tight market liquidity. The RBI said its baseline expectation for GDP growth in the fiscal year that ends in March 2013 is 7.3%, compared with an expected 6.9% in the year ended March 2012. It expects headline inflation to end the year at 6.5%, with little deviation expected during the year. The RBI had raised rates 13 times between March 2010 and October 2011 as it struggled to contain price pressures.
Retail inflation spurted to 9.47% in March 2012 because of higher prices of milk, vegetables, protein-based items and edible oil products, as per the government data released on Tuesday, 18 April 2012. Retail inflation, based on the Consumer Price Index (CPI), was 8.83% in February. Inflation rates for rural and urban areas were 8.79% and 10.30% respectively in March 2012. According to the revised data, the inflation rates for rural and urban areas were 8.36% and 9.45% respectively in February 2012.
Data released on Monday, 16 April 2012 showed wholesale price index (WPI) inflation for March 2012 rose a faster-than-expected 6.89% from 6.95% in February 2012, on higher food prices. The inflation for food articles came in at 9.94% from 6.07% in February. The WPI data for the month of January was revised upwards to 6.89% from 6.55% earlier.
Foreign institutional investors (FIIs) bought shares worth R 221.63 crore on Wednesday, 18 April 2012, as per provisional data from the stock exchanges.
Investors are closely watching India Inc's Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Focus is on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook.
Cairn India reports FY 2012 results on 20 April 2012. RIL announces Q4 results on 20 April 2012. TCS unveils FY 2012 results on 23 April 2012. Sesa Goa unveils Q4 results on 24 April 2012. Wipro and Sterlite Industries India unveil their Q4 results on 25 April 2012.
ICICI Bank unveils FY 2012 results on 27 April 2012. Axis Bank Jindal Steel & Power and Siemens unveil quarterly results on the same day. Maruti Suzuki India unveils FY 2012 results on 28 April 2012. FMCG giant Hindustan Unilever unveils FY 2012 results on 1 May 2012. Housing finance major HDFC announces FY 2012 results on 7 May 2012. Ranbaxy Laboratories will declare its Q1 March 2012 results on 9 May 2012. Dr Reddy's Laboratories announces FY 2012 results on 11 May 2012.
Finance minister Pranab Mukherjee was quoted by media on Tuesday as saying that the monetary policy announcement should help revive investment and strengthen business sentiment. He also promised that in coming weeks additional steps would be taken to reinforce the focus on growth. But, Mukherjee vowed there would be no slippage on the fiscal deficit front.
Asian markets were mixed on Thursday ahead of a key Spanish bond sale that would test the market's risk appetite. Key benchmark indices in China, Japan, Indonesia, and South Korea were down by between 0.14% to 0.61%. Key benchmark indices in Singapore, Taiwan and Hong Kong were up by between 0.05% to 0.38%.
Spain sold 3.2 billion euros worth of 12- and 18-month bills on Tuesday, 17 April 2012, above the target of 3 billion euros due to good demand from domestic banks, helping ease some concerns about the country's refinancing ability. However, Spain faces a far more significant challenge today, 19 April 2012 when it tests investor demand in an auction of two- and 10-year bonds.
The International Monetary Fund (IMF) offered a cautiously optimistic view on global growth and raised its 2012 global growth forecast to 3.5% from 3.3%, citing improved activity in the United States and receding worries about Europe's sovereign debt crisis. But it said on Tuesday, 17 April 2012 risks remain high and the situation is very fragile. The IMF also warned it did not see Spain meeting its deficit goals this year or next.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell on Thursday, 19 April 2012. US stocks declined on Wednesday after earnings from IBM and Intel failed to cheer the market. Risk appetite faded as concerns about the financial health of Spain pushed up demand for US treasuries. The Dow Jones Industrial Average declined 82.79 points, or 0.63%, at 13,032.75. The Standard & Poor's 500 Index fell 5.64 points, or 0.41%, at 1,385.14 and the Nasdaq Composite index lost 11.37 points, or 0.37%, at 3,031.45.
POWERED BY: CAPITAL MARKET NEWS
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