Sensex closes 2011 in the red
Vidrum / 30 Dec 2011
Post-closing commentary 30 December 2011
Indian Markets had a volatile trading day. After trading in the green for most of the part of the day, Indian stock markets gave up all their gains in the last hour of trade.
The last trading day of 2011 ended in the red zone. Among the sectoral indices, PSU, Health care, Tech traded higher in the range of 0.43% to 0.98 per cent while Oil and Gas, Metals, Realty dragged the market down.
In 2011, broader markets plunged more than 24 per cent, on the back of rising Interest rate, rampant inflation and an uncertain macro environment, (particularly U.S and Europe) which resulted in a slowdown in economic growth. Sensex shed over 5000 points while Nifty closed the year with a loss of 1500 points. FMCG index increased gained over 20 per cent in 2011.
In stock specific activity, HUL was the leading index gainer with a gain of 32 per cent in 2011. ITC also closed the year 16 per cent higher. Other gainers include Bajaj Auto and Sun Pharma with gains of 7 and 2 per cent respectively in 2011.
On the other hand, the 2011 losers list is quite very big. Metals heavyweight Sterlite Industries and Hindalco took the worst beating down almost 53 per cent each. Other stocks like L&T, BHEL, Tata Steel, Jaiprakash Asso crashed about 50 per cent in 2011. Banking majors SBI and ICICI Bank were also down more than 40 per cent. It seems 2011 was definitely a forgettable year.
| Benchmark Indices | ||
| Index | Closing | % Change |
| SENSEX | 15454.92 | -0.57 |
| NIFTY | 4624.3 | -0.47 |
| Hang Seng | 18470.1 | 0.39 |
| Nikkei | 8455.35 | 0.67 |
| Shanghai | 2199.42 | 1.19 |
| Live | ||
| FTSE | 5560.18 | -0.12 |
| DAX | 5840.08 | -0.15 |
| CAC | 3124.83 | -0.09 |
Asian markets also closed the day in the green. Shanghai closed 1.19 per cent higher after investor focused on the gains in the US markets and ignored the contraction in Chinese manufacturing activity. European markets are trading within an extremely narrow range in the negative territory.
The Dow Jones Futures is currently trading 19 points or 0.16 per cent down at 12198, indicating a negative sentiment in the US markets.
| Sectoral Indices | |||
| Category/Index | Close | Change(Pts) | Change (%) |
| Broad | |||
| MIDCAP | 5,135.05 | 16.06 | 0.31 |
| SMLCAP | 5,550.14 | 5.15 | 0.09 |
| BSE-100 | 7,927.94 | -37.64 | -0.47 |
| BSE-200 | 1,850.89 | -7.2 | -0.39 |
| BSE-500 | 5,778.68 | -19 | -0.33 |
| Sectors | |||
| PSU | 6,364.89 | 62 | 0.98 |
| HC | 5,870.52 | 26.2 | 0.45 |
| TECk | 3,380.25 | 14.45 | 0.43 |
| IT | 5,751.93 | 21.3 | 0.37 |
| CD | 5,284.33 | -0.14 | 0 |
| CG | 8,067.63 | -8.28 | -0.1 |
| POWER | 1,795.95 | -3.38 | -0.19 |
| FMCG | 4,035.31 | -11.8 | -0.29 |
| AUTO | 8,143.65 | -26.71 | -0.33 |
| METAL | 9,293.17 | -63.37 | -0.68 |
| BANKEX | 9,153.39 | -67.53 | -0.73 |
| REALTY | 1,375.65 | -15.36 | -1.1 |
| OIL&GAS | 7,529.27 | -112.69 | -1.47 |
Back home, RIL weighed heavily on the markets, closing with a loss of 2.86 per cent at Rs 692.50. The metal pack also showed lackluster performance with stocks like Jindal Steel, Tata Steel, Hindalco etc closing the day in red (down anywhere between 1.45% to 2.16 per cent). ICICI Bank, SBI, Sun Pharma, TCS, NTPC, L&T also closed marginally down.
On the other hand, BHEL, Bharti Airtel, and Infosys closed with a gain of over 0.50 per cent. Stocks like ITC, Hero Motocorp and Wipro also closed marginally up.
Assam Company was up 1.56 per cent to Rs 7.14, after the company redeemed its Foreign Currency Convertible bonds (FCCBs). Steel Strips Wheel surged 8.18 per cent to Rs 191.10, after news broke that the company will now be exporting to auto giant, Audi.
DLF closed with a loss of 2.06 per cent at Rs 182.95, after Crisil downgraded DLF to A - from A+, raising concerns over the company 's debt position.
| Advance-Decline Table | |||
| Index | Advances | Declines | Unchanged |
| BSE 30 | 7 | 23 | 0 |
| BSE 100 | 45 | 54 | 1 |
| BSE 200 | 96 | 102 | 2 |
| BSE 500 | 244 | 250 | 6 |
| Others | 1096 | 1181 | 135 |
The market breadth, indicating the overall health of the market, was negative. Out of 3242 stocks traded, 1610 declined while 1488 stocks advanced. A total of 144 stocks remained unchanged.
In conclusion, we at DSIJ are not very optimistic about the new year. The Indian stock markets continues to trade at rich valuations with hardly any growth visible in corporate earnings. So, play your cards cautiously. Finally we at DSIJ, wish all our readers a Happy and a Prosperous 2012.
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