Search Now

Recommendations

Wednesday, February 29, 2012

Sensex, Nifty ends flat…GDP disappoints


The Sensex ended at 17,752, up 22 points or 0.12% from the last close. It earlier touched a day's high of 18,001 and day's low of 17,919. The Nifty settled at 5,385, up 10 points or 0.2%.
The market took a breather on Wednesday after surging past the 5450 mark initially. Some profit booking in the Capital Goods, FMCG and Banking space halted the upmove.

Sentiment was hit after the Government data showed lowest GDP growth in ten quarters during the third quarter. Though the lower-than-anticipated GDP data raises expectations of a rate cut by the RBI, the same may not materialise as inflation too remains elevated. In addition, there are reports of an impending fuel price hike next month, which could worsen the situation on inflation. A stubbornly high inflation may prompt the RBI to postpone its planned unwinding of tight monetary policy.



Finally, the Sensex ended at 17,752, up 22 points or 0.12% from the last close. It earlier touched a day's high of 18,001 and day's low of 17,919.

The Nifty settled at 5,385, up 10 points or 0.2%. It hit a day’s high of 5,459 and day’s low of 5,352.

Among the BSE sectoral indices, BSE Oil & Gas index was the top gainer, the index gained 2.5%, BSE PSU index was up 1.5%, BSE Metal index gained 1.4% and BSE Realty index rose 1.1%.

The BSE Mid-Cap index and the BSE Small-Cap index gained 1.1% and 0.6% respectively.

The Indian VIX ended at 26.93; the index shot up 4.2% today. It hit an intra-day high of 27.09 and an intra-day low of 24.69.

Technically, a breakout on the monthly bar chart reinforces bullish stance on the market and the trough of Bullish Harami appearing on Tuesday trading session should act as a critical stoploss for long positions on closing basis.

Globally, barring China, most Asian indices ended up, fueled by the overnight gains in US stocks. The Dow Jones Industrial Average closed above 13,000 as consumer confidence increased and oil prices fell. European markets were trading higher as well.