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Although, market was able to overcome the resistance around 5700 on Nifty and 19000 on the Sensex, it was unable to sustain above these psychological levels.
The 50-share Nifty closed at 5660.65 (+0.58% for the week) while Sensex closed at 18858.04 (+0.51% for the week). On a weekly basis, the major sectoral gainers were BSE Realty (+7% for the week) and BSE CD (+4.15% for the week) while BSE metal (-1.22%) was the major sectoral loser for the week.
Sustenance above the psychological mark can take the market to 5900 levels. The near term triggers for the market are the Q1 FY-12 numbers and the RBI policy meeting later during the month.
Looking ahead, market could witness increase in volatility due to announcement of IIP numbers and Infosys Q1 FY12 results on 12th July 2011.
On the earnings front, consensus estimates show that the aggregate earnings growth for the Sensex companies is likely to be limited to high single digits in Q1 FY-2012 in spite of the expectations of a strong 20 pc plus growth in the aggregate revenues during the same period.
On the domestic market front, food inflation for the week ended 25th June, eased to seven week low, at 7.6 pc compared to 7.8 pc in the previous week which also supported the upbeat sentiment in the market.
The new mining Bill, was approved by a 10-member Group of Ministers (GoM) that indicated that coal companies will have to share 26 pc profit with the local population had a negative bearing on mining companies although its full implications if implemented will be felt from FY13.
On the Global market front, this week saw China raising interest rates again. The week, also witnessed Moody's downgraded Portugal's debt. Interest rates in Italy and Spain rose to a new high for the year and this could be a concern.
In the US markets, the ISM services numbers came in below expectations at 53.5. The number is still above the critical 50 level and it indicates economic expansion. The ADP employment showed that 157,000 jobs were added to the private sector in June.
This was 100,000 jobs more than analysts had expected. Next week, FOMC meeting minutes, Retail Sales
(MoM), CPI (MoM) should provide direction to the US markets. For the US markets, earnings season officially kicks off next week, but the big earnings announcements are still two weeks away.
Keywords: STOCK MARKETS |
INDIAN STOCK MARKETS |
EQUITY MARKETS
9:46 AM | 0
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According to experts, the market is likely to take a breather for next few sessions as investors would take cues from quarterly results and macro economic factors for direction. Meanwhile, there is likely to be some relief for the investors as inflation and interest rate cycle seem to be close to peak.
"In our view, various indicators are increasingly signaling that inflation and interest rates are close to peak levels, with respite likely from the second half.
With the RBI hiking rates 10 times since March 2010 and, more importantly, with demand-supply factors pushing up the broader interest rates by ~200bp, the demand momentum in the economy has slowed, as can be observed from the recent incremental credit offtake, monthly cement and auto sales numbers and almost stagnant capital formation during 4QFY2011," said Angel Broking note.
National Stock Exchange's Nifty closed at 5632.10, down 18.40 points or 0.33 per cent. The broader index touched a high of 5659.85 and low of 5612.30 in trade today.
Bombay Stock Exchange's Sensex ended at 18744.56, down 69.92 points or 0.37 per cent. The 30-share index hit a high of 18837.88 and low of 18694.05 intraday.
"Nifty has a strong support around 5600 levels, sustaining below which the Index can see some pressure towards 5550 levels. And on upside Nifty finds its resistance around 5700 levels sustaining which it can move towards its 200 Days Simple Moving Average of 5760 levels," said Ashish Chaturmohta, Vice President - Derivatives and Technical Analyst, IIFL Private Wealth Management.
"Stocks which are looking positive are Apollo Tyres, Tata Chemicals, Voltas whereas Reliance and JSW Steel are weak," Chaturmohta added.
BSE Midcap Index was down 0.09 per cent and BSE Smallcap Index moved 0.20 per cent higher.
Amongst sectoral indices, BSE Oil&gas Index was down 1.60 per cent, BSE FMCG Index declined 1.29 per cent and BSE Realty Index moved 1.29 per cent lower. BSE Auto Index moved 0.88 per cent higher, BSE IT Index gained 0.37 per cent and BSE Bankex edged 0.33 per cent higher.
BHEL (-5.01%), Cairn India (-3.38%), Reliance Industries (-2.65%), Hindalco Industries (-1.97%), ITC (-1.53%) and IDFC (-1.41%) were the major Nifty losers.
Shares of Bharat Heavy Electricals were under pressure following reports that government may approve disinvestment of 5 per cent stake in the company.
Ranbaxy Laboratories (3.11%), Grasim (2.98%), M&M (2.62%), Reliance Capital (2.46%) and SAIL (2.34%) were amongst the top gainers.
Market breadth was positive on the NSE with 1538 gainers against 1338 losers.
10:00 AM | 0
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The BSE benchmark Sensex resumed higher at 18,837.88, but declined immediately to 18,721.56 before quoting at 18,765.35 at 1015 hours, showing a net loss of 49.13 points, or 0.26 per cent, from its last close.
The NSE's 50-share Nifty index also moved down by 16.80 points, or 0.30 per cent, to 5,633.70 at 1015 hours.
Realty stocks fell on worries that higher interest rates could dent demand for residential and commercial properties. DLF, HDIL, Indiabulls Real Estate and Unitech shed between 0.3 per cent and 1.69 per cent in early trade.
Among the 30-member Sensex pack, 22 stocks fell, while the remaining rose.
The major losers were BHEL (down 2.33 per cent,) RCom (1.79 per cent), Reliance Infra (1.31 per cent), Bharti Airtel (0.95 per cent) and Jaiprakash Associates (0.91 per cent).
Most Asian stocks reversed their initial losses today. The key benchmark indices in Hong Kong, Japan, South Korea and Taiwan rose between 0.03 per cent and 0.53 per cent, while indices in China and Singapore were down between 0.1 per cent and 0.58 per cent.
3:09 AM | 0
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