Markets recover on retail FDI news
Chandrakant / 06 Jan 2012
After witnessing negative trade for most of the day, the Indian markets ended with marginal gains, with both indices up by 0.07%. Markets rebounded in the last hour of trade on the back of news that the ruling govt. will bring in multi-brand retail FDI through back -channel talks.
Other Asian markets closed on a negative note today amid concerns coming in from China on the falling property market and a tighter liquidity situation. Investors are now hoping for a rate cut, failing which, the growth of the economy will be impacted.
The European markets continue to trade on a positive note ahead of the US jobs report, which is expected to provide some evidence on the recovery of the biggest economy.
Dow Jones Futures is currently trading 9 points or 0.07% down at 12340, indicating a positive sentiment in the US markets.
| Benchmark Indices | ||
| Index | Closing | % Change |
| Sensex | 15867.73 | 0.07 |
| Nifty | 5754.1 | 0.09 |
| Hang Seng | 18593.06 | -1.19 |
| Nikkei | 8390.35 | -1.17 |
| Shanghai | 2163.39 | 0.69 |
| Live | ||
| FTSE | 5637.62 | 0.24 |
| DAX | 6129.39 | 0.54 |
| CAC | 3168.76 | 0.75 |
Back home, among the sectoral indices FMCG, Oil & Gas, Bankex and Pharma ended with marginal gains between 0.31%-1.05%. FMCG stocks also went up in the last session on back of news that multi-brand FDI may be brought back. All the other sectoral indices have ended in the negative territory, with losses between 0.26% -1% each.
| Sectoral Indices | |||
| Category/Index | Close | Change(Pts) | Change (%) |
| Broad | |||
| MIDCAP | 5,259.24 | -4.93 | -0.09 |
| SMLCAP | 5,704.32 | 1.10 | 0.02 |
| BSE-100 | 8,141.59 | 1.14 | 0.01 |
| BSE-200 | 1,901.81 | -0.10 | -0.01 |
| BSE-500 | 5,934.40 | -0.37 | -0.01 |
| Sectors | |||
| OIL&GAS | 7,688.49 | 80.38 | 1.06 |
| FMCG | 4,032.07 | 34.67 | 0.87 |
| BANKEX | 9,736.04 | 47.73 | 0.49 |
| HC | 5,971.04 | 3.49 | 0.06 |
| AUTO | 8,174.39 | -25.74 | -0.31 |
| IT | 5,878.21 | -21.77 | -0.37 |
| METAL | 9,775.19 | -38.31 | -0.39 |
| PSU | 6,675.88 | -31.45 | -0.47 |
| CD | 5,379.17 | -32.65 | -0.60 |
| POWER | 1,837.73 | -12.79 | -0.69 |
| TECk | 3,427.78 | -26.80 | -0.78 |
| REALTY | 1,388.61 | -12.19 | -0.87 |
| CG | 8,546.71 | -86.03 | -1.00 |
Of the Sensex shares, Maruti Suzuki, HDFC Bank, RIL and Hindalco have ended with leading gains of 1.76%, 2.25%, 2.52% and 2% respectively. Stocks like Cipla, HDFC, HUL, ICICI Bank, ITC, M&M, Sterlite and Tata Motors have ended with marginal gains between 0%-1%. All the other scrips have ended negatively, with losses between 0.10%-5%.
The market breadth, which indicates the overall health of the market, was positive. On the BSE, 1592 shares rose and 1469 shares fell. 116 shares remained unchanged.
| Advance-Decline Table | |||
| Index | Advances | Declines | Unchanged |
| BSE 30 | 14 | 16 | 0 |
| BSE 200 | 92 | 106 | 2 |
| BSE 100 | 49 | 51 | 0 |
| BSE 500 | 238 | 252 | 10 |
| Others | 1199 | 1044 | 104 |
In conclusion, we expect the markets to remain volatile, as investors are jittery about investing in markets that fail to provide any concrete direction. We advise our readers to stay cautious.