Sunday, June 05, 2011
(Upper Price Band)
-3 to -5
54 to 63
4 to 4.50
36 to 40
2.50 to 3
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A global selloff in equities coupled with jitters over the ongoing 2G scam marred a good week for the Indian markets. Below par Q4 GDP numbers, and disappointing reports on the core sector and manufacturing also weighed on Dalal Street. However, a drop in food inflation and steady inflows from the FIIs lent good support to the Indian indices. Finally, the BSE Sensex rose 0.6% to close at 18,376 and the NSE Nifty gained 0.7% to close at 5,517 for the week.
Indian markets ended its two-week loosing streak by pulling the shutters down in green witnessing a roller-coaster ride throughout the week. Sensex ended at 18,376, up 110 points and Nifty at 5516, up 40 points.
Major news for the week:
Q4FY2011 GDP at 7.8% vs 8.3% in Q3FY2011
April exports up 34.42%, imports up 14.13%
Food inflation at 8.06% vs 8.55%
Economy may grow by 8.5% in FY12
Bank credit grows 22.3% in May
The annual rate of inflation in the food space decreased in the third week of May but stayed above the 8% mark, data released by the Government showed on Thursday. Inflation in the Fuel & Power space climbed during the week under review while that in Non-Food category declined, the data revealed.
Annual inflation in Food Articles fell to 8.06% in the week ended May 21 from 8.55% in the preceding week, the Commerce & Industry Ministry said in a statement. With this, food inflation has remained under the much-dreaded double digit mark for the tenth straight week.
Reliance Industries Ltd. (RIL) will become debt free at the end of the current financial year (2011-12), according to Chairman Mukesh Ambani. He made this remark while addressing the Annual General Meeting (AGM) of RIL in Mumbai. The enterprise value of RIL is at US$75bn, he added. The market capitalisation of RIL has grown at 77% CAGR over the last 33 years, Mukesh Ambani said. RIL has free cash of Rs. 42,393 crores on its balance sheet, he said.
Shares of Sun TV Network Ltd. and SpiceJet Ltd. were pummeled on Thursday amid media reports that the CBI probe into the multi-billion-dollar 2G scam could be extended to the Maran family. Apparently, a PIL was filed to direct the CBI to probe alleged irregularities committed by Textiles Minister and DMK leader Dayanidhi Maran when he was the Telecom Minister in the UPA's first term. The application was filed by advocate Prashant Bhushan for NGO 'Centre for Public Interest Litigation'. CBI said that the agency was already investigating the matter.
The Indian market continues to witness zigzag movements without any clear bias and sense of direction. It is seeing alternating bouts of buying and selling based on certain news flow. Though FII flows have improved slightly, the influx is still not strong enough to lift the key indices substantially. At the same time, macroeconomic landscape remains challenging and the Centre is still grappling with issues of corruption, leaving policy making in a limbo.