Outlook on markets today
The Sensex closed at 17924, down 154.93 points or 0.86% and the Nifty ended at 5429 down 54 points or 0.98%. It was first weekly collapse for markets in 2012. Among the 13 sectoral indices, five bunged superior. Top Gainers - BSE Metal up by 1.08%, BSE TECK up by 0.56% and BSE IT stirring by 0.55%. Top Losers - BSE CG down by 2.96%, BSE Realty down by 2.28% and BSE Bankex down by 1.95%. Profit booking appear after current gains as concerns increase over the state of the universal financial system, including rising oil prices. India’s widening financial shortage also added to obscurity. Volatility was high owing to F&O expiry for Feb 2012 this week. There was also a lot of uncertainty ahead of events like the upcoming financial statement.
ICICI Bank and HDFC Bank were among the big losers as market potential for a rate cut in March was tempered by the rally in world oil prices, which could make it difficult for the central bank to relieve strategy. Housing Development Finance Corp fell as much as 6.2% after Citigroup Inc sold its entire chance in the company for about $1.9 billion.
Market cinch was weak at ~0.60x as investor sold large cap stocks. On temporary origin FIIs bought equity of Rs.8955.30Cr while domestic institutions sold equity of Rs.836.71Cr.
Many chief Asian markets slip but Japanese stocks rise as the yen weakens against the euro on trust of a larger euro-zone bailout package.
We expect a flat opening for the Indian markets today following the mixed nod from the Asian markets.
Monetary and Mutual Developments
The Centre has asked fertilizer firms not to lift imported nutrients, especially potash and DAP, planned to reach ports in February and March, due to poor command, a move that could save up to Rs 1,000 crore in the subsidy bill of this monetary.
A Group of Ministers (GoM) today accepted a new asset policy for the urea sector, to make the nation independent in the input soil nutrient.
Vibrant Stocks
Oil and Natural Gas Corporation (ONGC) is spending Rs 26,000 crore to enlarge 10 oil and gas bunch in western and eastern offshore, to enlarge crude production by up to 4 million tonne per annum by 2013-14.
NTPC to invest Rs 24,000 cr in Andhra plant.
The Karnataka government has completed land acquirement for Tata Steel and Tata Metallic’s incorporated scheme at Haveri district, an official of the corporation said on Saturday.
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