Saturday, 21 July 2012
Sensex: 17,158.44 -120.41 (-0.70%)
Nifty: 5,205.10 -37.60 (-0.72%)
Indian market * Indian equity markets down 0.72%
* Nifty down 37.60 pts and settle at 5205.10
* Sensex down 120.41 pts at 17158.44 * Bank Nifty down 140.45 pts at 10481.60
MARKET ANALYSIS (July 20, 2012)
The Indian equities closed on a weak note. Banks, capital goods, power remained the major laggards on the bourses. Banking stocks tumbled further after a Reserve Bank of India committee recommended tightening regulations on loan restructuring, including setting aside higher provisions.
Refinery major Reliance closed down 0.70% at Rs 722.65 ahead of its numbers today. It is likely to post a 3% sequential rise in profits, GRMs likely to be slightly higher than USD 7 per barrel. In today’s entire trading session, the NSE Nifty struggled at around 5,200 mark and closed above that level. Stocks like ITC, Reliance, HDFC Bank, Infosys, ONGC and SBI were the negative contributors to the bourses. The Sensex was down 120.41 points or 0.70% at 17158.44, and the Nifty was down 37.60 points or 0.72% at 5205.10. Top losers on the Sensex were Dr Reddys Labs at Rs 1,611.20 down 2.68%, BHEL at Rs 228.85 down 2.47%, ICICI Bank at Rs 935 down 1.58%, Cipla at Rs 327 down 1.52% and Wipro at Rs 363.20 down 1.47%.
Top gainers on the Sensex were Bajaj Auto at Rs 1,590.60 up 2.67%, Maruti Suzuki at Rs 1,144.55 up 2.43%, TCS at Rs 1,223.05 up 1.86%, Coal India at Rs 360.95 up 0.38% and Tata Steel at Rs 415.80 up 0.28%.
EXPERT OPINION
NIFTY * Nifty looks bearish * Strategy: Sell on rise * Support:5165 * Resistance:5240
BANK NIFTY * Bank Nifty looks bearish * Strategy: Sell on rise * Support: 10420 * Resistance:10540 HEADLINES
* Government sets aside Rs 30,000 crores for startups in IT hardware, electronics.
* Government approves SAIL divestment through auction; may fetch Rs 4000 crore.
* LIC, Singapore Government hike stake in Mukesh Ambani-led Reliance Industries.
* RIL Q1 profit at Rs 4473 crore, down 21%.
WEEKLY NEWS
* RIL Q1 net slumps 21 per cent
Reliance Industries' quarterly net profit fell 21% as natural gas output dropped and the slowdown in Europe and China squeezed refining margins, but earnings beat market expectations and the company signaled that the numbers would bounce back as new investments in Jamnagar bear fruit.
* Rupee falls on global risk aversion; policy reforms key.
The partially convertible rupee closed at 55.32/33 per dollar, as per the SBI closing rate, weaker than its close of 55.12/13 on Thursday. The local currency fell 0.3 percent during the week.
* HSBC raises Jet rating to overweight; target price Rs 550/share
HSBC has raised its rating on Jet Airways to overweight from neutral citing strong earnings recovery led by robust operating performance and upward fare revisions as the reason.
* Microsoft reports first quarterly loss since going public
Microsoft Corp reported its first quarterly loss as a public company on Thursday as it took a previously announced hit for writing down the value of its ailing online unit, but held up better than expected in the face of stagnant computer sales.
WEEKLY FOREX REPORT
RBI REFERENCE RATE (As on 20th July 2012)
UNDERLYING | RATE | USDINR | 55.1515 | EURINR | 67.6030 | GBPINR | 86.5768 | JPYINR | 70.2200 |
DAILY USD/INR CHART
HEADLINES (FOREX)
* Indian rupee falls on global risk aversion; policy reforms key:
The Indian rupee fell on Friday, snapping three successive weeks of gains, as risk aversion pummeled global risk assets such as the euro, though buying of the local unit ahead of an auction of debt limits to foreign investors kept losses in check.
* FOREX-Euro again drops broadly on new Spain fears:
The euro slumped broadly on Friday, setting a two-year low against the dollar after Spain's Valencia region said it would seek central government help to repay it debts, raising concerns the euro zone's fourth largest economy may be forced to seek a full scale international bailout.
* Spain worries propel sterling to 3-1/2 yr high:
Sterling struck its highest level against the euro in more than 3-1/2 years on Friday due to growing worries about Spain, which encouraged investors to seek alternatives to the euro and ignore further evidence of a weak UK economy. 