January 12, 2011 / 12:02 IST
At 11:18 hours IST - the benchmark Nifty erased all its early trade gains after disappointing industrial output data. Auto, oil & gas and healthcare companies' shares along with L&T, Tata Steel, Wipro, NTPC, Reliance Communications, HUL, Tata Power and DLF were dragging the markets down.
Industrial output growth has slowed down to 2.7% in the month of November as against 10.8% in previous month. According to a CNBC-TV18 poll it was expected to be at 6.29% (YoY). MS Unnikrishnan, MD of Thermax said he did not surprise by these numbers. "High deposit rates will pressurise lending rates and consumer consumption will come down due to inflation," he said.There was also a slow down in some sectors in the same month. Manufacturing sector growth came in at 2.3% as against 12.3%, mining at 6% versus 10.7% and consumer durable goods at 4.3% as against 36.3% (YoY). Capital goods growth improved at 12.8% as against 11% in November 2009 and electricity at 4.6% versus 1.8% (YoY). Overall growth momentum likely is to be affected next fiscal, says Parul J Saini, Executive Director at RBS Asia Securities. "Interest rates are going up across all categories, which will affect growth. 50 bps hike not required by RBI," he said.However, indices were getting support from TCS, Tata Motors, ICICI Bank, SBI, Infosys, Sterlite, Bharti, BHEL and Kotak Mahindra Bank. The 30-share BSE Sensex was trading at 19,112, down 84 points and the 50-share NSE Nifty fell 21 points to 5,733. Overall indices were quite volatile in trade.Tata Steel was down close to 3% - could be ahead of follow-on public offer. The company will come out with 5.7 crore equity shares FPO soon. Among largecaps, Tata Motors, TCS, ICICI Bank, Sterlite Industries, Suzlon Energy and Cairn India jumped 1.6-3%. SBI was up just 0.8%. However, Reliance Communications, L&T, Bajaj Auto, ONGC and Dr Reddy's Labs tumbled 2.5-3.3%.In midcap space, Shriram City, Pfizer, Amtek Auto, Gujarat NRE Coke and Techno Elect gained 3.4-5.7% while HCC, Glodyne Tech, Kirloskar Oil, Money Matters and IVRCL Infrastructure lost 3.6-5.7%.In smallcap space, Kama Holdings, Polyplex Corp, Balaji Telefilm, ITD Cementation and SEL Manufacturing rallied 5-8.9% whereas Fame India, SE Investments, Ruchinfra, Symphony and Newtime Infra fell 5-12.5%.New listing - Shekhawati Poly-Yarn was trading at Rs 55.20, with a premium of 84% over issue price of Rs 30 a share.Breadth was also in favour of declines; about 516 shares advanced as against 725 shares declined on National Stock Exchange._PAGEBREAK_Sensex choppy; L&T, Tata Steel, HUL, Rel Comm slipAt 10:32 hours IST - equity benchmarks were trading with moderate gains amid extreme volatility today. Indices rebounded after a fall in previous six sessions - the Nifty has been trying to get back above 5800 level.Deven Choksey of KR Choksey Securities says, the Nifty is likely to see strong support at 5690. "Banks would lead the rally."IT majors TCS and Infosys gained 2% & 1.1%, respectively - especially ahead of Infosys numbers tomorrow. "Infosys results are likely to be inline but it's priced in," Choksey said.Financial (barring HDFC Bank), power, oil & gas and select metal companies' shares along with BHEL, Bharti and ITC were quite supportive to the markets. However, consistent selling in L&T, Tata Steel, Tata Power, HUL, Maruti, Bajaj Auto, Reliance Communications, Hindalco and SAIL limited gains to major extent.The 30-share BSE Sensex was trading at 19,240, up 44 points and the 50-share NSE Nifty rose 20 points to 5,774.Among frontliners, Tata Motors, TCS, Sterlite Industries, ICICI Bank, SBI, Suzlon Energy, Cairn India and Kotak Mahindra Bank were up 1.2-3.5%.However, Tata Power, Tata Steel, L&T, Bajaj Auto and Reliance Communications declined 1.2-2.4%.New listing - Shekhawati Poly-Yarn was trading at Rs 41.20, a premium of 37.33% over issue price of Rs 30 a share.Tata Steel, SBI, L&T, Tata Motors, ICICI Bank and Infosys were most active shares on exchanges.In midcap space, Shriram City, M&M Financial, Gujarat NRE Coke, Syndicate Bank and Opto Circuits were up 3-5.7% while Money Matters, Jubilant Life, HCC and Madras Cements lost 2.6-5%.In smallcap space, Simplex Project shot up 16%. Kama Holdings, Rollatainers, Polyplex Corp and ITD Cementation gained 6.4-10.4% whereas Fame India, Newtime Infra, Binny, SVC Resources and Urja Global lost 5-9%.Breadth was in favour of advances; about 1688 shares advanced as against 682 shares declined on Bombay Stock Exchange._PAGEBREAK_Nifty bounces back; ONGC, RIL, TCS, Infy, SBI, Bharti leadThe benchmark Nifty bounced back sharply in early trade today led by buying in financial, metal, telecom, realty, technology and select infrastructure companies' shares. Index was hovering around 5800 level amid a bit of volatility.Among frontliners, Tata Motors, ICICI Bank, Bharti Airtel, DLF, TCS, HCL Tech, Hindalco, Sterlite Industries, Kotak Mahindra Bank, HDFC, Infosys (ahead of numbers tomorrow), Reliance Industries, Reliance Infrastructure, Suzlon, Siemens, Jaiprakash Associates and Reliance Communications were witnessing buying interest in early trade.However, Tata Steel fell 1.4% Hero Honda and L&T were on sellers' radar.At 9:17 hours IST, the 30-share BSE Sensex was trading at 19,362, up 166 points and the 50-share NSE Nifty rose 54 points to 5,808.The CNX Midcap gained 72 points at 8,332. The BSE Smallcap Index went up 44 points to 9,063 and Nifty Junior shot up 99 points to 11,421. Breadth was strong; about 707 shares advanced as against 144 shares declined on National Stock Exchange.
Midcap & Smallcap space:Dena Bank, IndusInd Bank and Syndicate Bank were up 2-3.5%.Gujarat NRE Coke, Delta Corp and Educomp Solutions gained 1.8-2.6%.Praj Industries and Firstsource Solutions went up 2.5%.Shree Renuka and Bajaj Hindusthan were up 1.6-2.2%. Dhampur Sugar rose 0.4%.Pfizer was up 2.8% as its Q4 net profit jumped to Rs 43.6 crore versus Rs 25.4 crore (YoY). Wyeth was up 4.6%.However, Jupiter Bioscience fell 1.8%.Global cues:Asian markets were witnessing buying interest. Hang Seng, Nikkei and Taiwan Weighted were up 0.5-0.7%. Shanghai and Kospi rose 0.2%.European markets gained after Portuguese Premier Socrates says Portugal won
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