Markets Lose Day's Gains, Close Negative
Chandrakant / 02 May 2012
After opening on a positive note today, the Indian markets lost their early gains in the afternoon trade and finally closed in the negative territory. This was despite the positive opening of the European markets. The Sensex and Nifty closed with losses of 0.10% and 0.17% respectively.
After opening on a positive note today, the Indian markets lost their early gains in the afternoon trade and finally closed in the negative territory. This was despite the positive opening of the European markets. The Sensex and Nifty closed with losses of 0.10% and 0.17% respectively. The weakening rupee and the poor Mar 2012 quarter numbers, especially from the Auto sector, dragged the markets into the lower side today.
The European markets continue to trade on a positive note. However, the London market, FTSE, has lost its gains with a loss of 0.41%. The Euro zone markets opened in the green today, after stronger-than-expected US manufacturing data gave a lift to the global growth hopes. The ECB will be meeting on Thursday, and investors will look forward to easy money from the ECB in the form of a rate cut or more LTRO.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17301.91 | -0.10 |
| NIFTY | 5329.41 | -0.17 |
| Hang Seng | 21309.08 | 1.01 |
| Nikkei | 9380.25 | 0.31 |
| Shanghai | 2438.44 | 1.73 |
| Live | ||
| FTSE | 5787.03 | -0.44 |
| DAX | 6790.64 | 0.43 |
| CAC | 3239.38 | 0.82 |
Among the rate sensitive sectors, the Auto index closed with leading gains of 2.05%. The rate cut by the RBI will lead to lower interest rates offered by banks on car loan, resulting in higher sales volumes. On the other hand, Pharma, FMCG, Metals and Bankex are up with gains of 1.18%, 0.96%, 0.80% and 0.57% respectively. Here again, the RBI's rate cut will lead to higher liquidity in the system and will boost the investment cycle of the industrial sector in the country.
Of the BSE sectoral indices, defensive sectors like Consumer Durables and FMCG moved higher by 2.41% and 0.21% respectively, while Auto, Power and Capital Goods closed down with losses of 1.72%, 1.25% and 0.94% respectively.
| Sectoral Indices | |||
|---|---|---|---|
| Category/Index | Close | Change(Pts) | Change (%) |
| Broad | |||
| MIDCAP | 6,298.95 | -16.90 | -0.27 |
| SMLCAP | 6,777.94 | 13.32 | 0.20 |
| BSE-100 | 9,066.58 | -16.89 | -0.19 |
| BSE-200 | 2,133.30 | -3.52 | -0.16 |
| BSE-500 | 6,687.94 | -10.57 | -0.16 |
| Sectors | |||
| CD | 6,750.75 | 158.83 | 2.41 |
| TECk | 3,358.47 | 32.38 | 0.97 |
| IT | 5,746.08 | 41.77 | 0.73 |
| BANKEX | 11,860.29 | 31.66 | 0.27 |
| FMCG | 4,782.21 | 10.14 | 0.21 |
| REALTY | 1,693.29 | 0.72 | 0.04 |
| HC | 6,797.99 | 2.4 | 0.04 |
| METAL | 11,026.33 | -40.22 | -0.36 |
| PSU | 7,208.58 | -40.38 | -0.56 |
| OIL&GAS | 7,918.62 | -46.01 | -0.58 |
| CG | 9,320.86 | -88.23 | -0.94 |
| POWER | 1,987.36 | -25.1 | -1.25 |
| AUTO | 10,462.90 | -182.62 | -1.72 |
Auto stocks closed lower today after the sales volume data for Apr 2012 was released, which remained subdued. The shares of Tata Motors, Bajaj Auto and Maruti Suzuki are trading lower in the range of 1%-3%. Tata Motors skid today after reporting poor sales figure in April 2012. The company's exports also took a major hit. Two-wheeler major, TVS Motors, also posted flat sales in Apr 2012.
Mahindra & Mahindra closed with gains of 0.68% at Rs 714.95 on the BSE after auto sales rose 27% to 40,719 units in Apr 2012 as compared to the same period last year.
VIP Industries lost 4.42% and closed at Rs 93 on the BSE after it reported a 52.14% decline in net profits to touch Rs 7.8 crore. The company saw an 8% rise in total income to Rs 180.9 crore in Q4 FY2012 over the same period last year.
Bharati Airtel closed with gains of 2.47% at Rs 317 after reporting decent Mar 2012 quarter results. Its consolidated revenue grew by 15% on a YoY basis to Rs 18729 crore. The revenue growth in Q4 was fuelled by increased customer additions and strong minutes growth in India.
Investors should watch out for stocks like Aventis Pharma, Marico and Piramal Health, which are some of the big counters due to post their Mar 2012 quarter results. These stocks may see a price movement.
The market breadth, which indicates the overall health of the market, was negative today. Out of the 3263 stocks traded on the BSE, 1449 declined, 1673 advanced and 141 remained unchanged.
| Advance-Decline Table | |||
|---|---|---|---|
| Index | Advances | Declines | Unchanged |
| BSE 30 | 12 | 18 | 0 |
| BSE 200 | 73 | 123 | 4 |
| BSE 100 | 37 | 63 | 0 |
| BSE 500 | 194 | 294 | 12 |
| Others | 1133 | 1175 | 125 |
We expect the markets to remain negative, as the Mar 2012 quarter numbers have not been good so far. Further result announcements will keep the markets on the edge. We advise investors to remain cautious.
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