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Wednesday 29 February 2012

Markets Down

1st March 2012,Thursday

The National Stock Exchange's Nifty was witnessing profit booking as sentiments turned bearish after the US Federal Reserve chairman Ben Bernanke did not signal further stimulus package. According to dealers, the market is likely to move in a broader range for most part of the month.

While the ECB's second LTRO auction has seen robust demand, its counterpart across the Atlantic is not keen on additional stimulus. Federal Reserve Chairman Ben Bernanke has refused to play ball when it comes to QE3. He has not given any indication of further monetary support for the US economy. Stock indices in the US and Europe erased gains and closed lower following the disappointing commentary from Bernanke.

Asian markets are trading mixed and indecisive. However, the Chinese market is holding up following better-than-expected manufacturing PMI. Markets will also react to manufacturing PMI data from across the globe today.

The start is likely to be subdued as investors digest the disappointing GDP report. It is high time the 'powers that be' in New Delhi came up with substantial dose of tonic for the Indian economy. Though external environment and RBI's tightening have played a role in growth deceleration, policy inertia is as much to blame.

Keep an eye on monthly auto and cement volumes apart from the latest trade data," said IIFL report.

At 10:00 am; the Nifty was at 5320.65, down 64.55 points or 1.20 per cent. The broader index touched a high of 5372.45 and low of 5310.30 in trade so far.

The Bombay Stock Exchange's Sensex was at 17548.31, down 204.37 points or 1.15 per cent. It touched intraday high of 17717.53 and low of 17513.76.

BSE Midcap Index was down 0.66 per cent and BSE Smallcap Index moved 0.40 per cent lower.

Amongst the sectoral indices, BSE Realty Index fell 2.59 per cent, BSE Bankex slipped 1.95 per cent, BSE Capital Goods Index moved 1.80 per cent lower and BSE IT Index moved 1.58 per cent lower. BSE Healthcare Index gained 0.45 per cent,

BHEL (-3.38%), Axis Bank (-3.35%), ICICI Bank (-3.01%), DLF (-3%) and Infosys Technologies (-2.35%) were the major Nifty losers.

Sun Pharma (1.87%), Maruti Suzuki (1.81%), Hero MotoCorp (1.36%), Tata Power (1.31%) and Reliance Communications (0.95%) were the major gainers.

ONGC has launched its share sale auction today with a floor price of Rs 290 per share. The government plans to raise over Rs 12000 crore through this auction.

Market breadth was negative on the NSE with 441 gainers against 907 losers

As per the provisional data, Foreign Institutional Investors bought shares worth Rs 579.63 crore on Wednesday. FIIs bought shares worth Rs 25075.21 crore so far in the month of February against investment of Rs 10357.70 crore in January 2012.

Meanwhile, the Asian markets were witnessing a mixed session. Nikkei 225 was up 0.07 per cent, Hang Seng was 0.49 per cent lower and Strait Times edged 0.08 per cent higher.

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