Saturday, August 25, 2012
The markets remained under pressure for the entire day on account of weak global cues. The Sensex ended 67 points lower while the Nifty fell 29 points in trade today. Major Headlines for the day: India's oil import bill zooms by 43% at Rs726,386 cr in FY12 2G Scam: SC gives green signal to Chidambaram SBI expects Rs4K crore capital infusion IFCI hits monthly low after govt raises stake to 55.57%
The market edged higher for the fourth consecutive week as world stocks rose on speculation policy makers in the US and China will ease monetary policy to boost growth in the world's two biggest economies. However, gains were capped as rally in the global markets fizzled out on Friday, 24 August 2012, after a US Federal Reserve official threw cold water on the notion that another round of stimulus from the Federal Reserve is on its way. The BSE Sensex rose 92.13 points or 0.52% to 17,783.21. The 50-unit S&P CNX Nifty rose 20.40 points or 0.38% to settle at 5,386.70. The BSE Mid-Cap index fell 0.63% and the BSE Small Cap index fell 0.61%. Both these indices underperformed the Sensex. '
Key benchmark indices edged lower in choppy trade to reach one-week closing lows as investors grew gloomy about the health of the global economy and after a Federal Reserve official threw cold water on the notion that another round of stimulus from the Federal Reserve is on its way. The barometer index, BSE Sensex, lost 67.01 points or 0.38%, off close to 40 points from the day's high and up about 60 points from the day's low. The market breadth was negative. Reliance Power (RPower) edged higher after the company signed an initial agreement with China Datang Corporation to develop and operate power and other energy projects in India and overseas. The Sensex has gained 547.03 points or 3.17% in this month so far (till 24 August 2012). The Sensex has jumped 2,328.29 points or 15.06% in calendar 2012 so far (till 24 August 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,647.35 points or 17.49%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 740.57 points or 3.99%.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near-month August 2012 series to September 2012 series. The August 2012 derivatives contracts expire on Thursday, 30 August 2012. The quantum and distribution of rains towards the close of the crucial month of August, Q1 June 2012 GDP data, news out of Greece, a speech of Federal Reserve Chairman Ben Bernanke, and outcome of the monthly policy meetings of European Central Bank (ECB) and Bank of England in early September 2012 will determine the near term trend on the bourses.