Thursday, February 16, 2012
Key benchmark indices snapped a three-day winning streak as weak global stocks weighed on sentiment. The barometer index, BSE Sensex, was down 48.42 points or 0.27%, off close to 30 points from the day's high and up about 110 points from the day's low. Index heavyweight Reliance Industries (RIL) dropped nearly 3%, with the stock falling for the second day in a row on reports of a likely decline in gas output from the company's D6 block. Auto and banking stocks were mixed.
From a recent low of 17,748.69 on 10 February 2012, the Sensex rose 453.72 points or 2.55% in three trading sessions to a more than 28 weeks closing high of 18202.41 on 15 February 2012. The Sensex has jumped 960.44 points or 5.58% in February 2012 so far. The barometer index has surged 2,699.07 points or 17.46% in calendar 2012 so far. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 3,018.13 points or 19.94%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 1,657.15 points or 8.36%.
(Rs. 1 Lac
(Rs. 2 Lac
2.50 to 3 (Seller)
15 to 16 (Buyer)
215 to 225
3600 to 3700
The Indian markets are likely to start lower inline with negative global cues as optimism was dashed by another delay in cementing a crucial bailout for stricken Greece.
Headlines for the day
Marico buys personal care business from Reckitt
Coal India to sign FSAs with pvt power cos by Mar 31
Telenor, Unitech brace for fresh legal battle
Wyeth slaps $960-mn damage suit on Sun Pharma
Oil cos cut jet fuel prices by Rs 350 a kl
Tata Motors launches Sumo Gold
The market is likely to decline in opening trade on negative Asian cues. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 21.50 points at the opening bell. Telecom stocks will be in focus after Kapil Sibal announced new telecom policy after market hours on Wednesday.
Telecom stocks may see action after the government on Wednesday announced the new telecom policy (NTP) allowing operators to hold higher spectrum, pay uniform license fee across services besides permitting liberal merger and acquisition, with a view to provide quality services at affordable prices. Announcing a part of policy, Telecom Minister Kapil Sibal said that "the prescribed limit on spectrum assigned to a service provider will be 2x8 MHz (paired spectrum) for GSM technology for all service areas other than Delhi and Mumbai where it will be 2x10 MHz (paired spectrum)." Current prescribed limit is 6.2 MHz of GSM spectrum. However, players would be free to acquire additional frequency beyond the prescribed limit, in the open market, should there be an auction of spectrum subject to the limits prescribed for merger of licenses.
Telenor wants to drop its partner Unitech after the Supreme Court revoked their mobile licences in the country and is seeking a new local partner. (BS)
PSL Ltd said it has bagged orders worth Rs7.42bn so far in this quarter from infrastructure firms in India and abroad. (BS)
NIIT Technologies said it has bagged a deal Rs3bn to implement a Union Home Ministry project which will be part of the proposed Natgrid. (BS)
P&G has filed a complaint with Advertising Standards Council of India against advertisement by HUL for its detergent Rin. (BS)
The Indian market continued its upsurge in the new year on Wednesday with a magnificent rally. The BSE Sensex eased past 18,000 in early trade while the NSE Nifty surged past 5500 for the first time since August 1, 2011. For yet another day, we saw buying on dips which propelled the benchmark indices to day's high towards the close of trade. A gap-up opening in today’s trading session confirmed the resumption of a fresh uptrend with immediate resistance on the Nifty seen at ~5580.
After opening 44 points higher, the Nifty climbed further up amid sustained strength in rate sensitive sectors such as Realty, Capital Goods, Banking and Auto. If it wasn't for the weakness in index bellwether RIL, the gains for the day could have been much fatter.
"Those that are the loudest in their threats are the weakest in their actions." Charles Caleb Colton.
The new year rally could be in danger, as the Iran-linked worries mount and Greece struggles to get much-needed aid amid fears of default. The start today is likely to be lower due to weakness in US and Asian markets. European stocks too came off session highs amid escalating geopolitical tensions and lingering concerns over Greece.
Crude prices have climbed on worries about possible supply disruptions. The euro slid to a one-week low despite encouraging comments from China’s central bank chief. Wall Street appeared to be disappointed by lack of consensus on QE3 among Federal Reserve officials.