Markets Wary On WPI Numbers, L&T Results
Vidrum / 14 May 2012
The Indian markets have extended their morning losses on the back of weak global cues and the Wholesale Price Index (WPI) numbers announcement, which fueled negative sentiments among investors.
The Indian markets have extended their morning losses on the back of weak global cues and the Wholesale Price Index (WPI) numbers, which fueled negative sentiments among investors. The WPI for Apr 2012 stood at 7.23%, against 6.89% for Mar 2012. A rise of 34 basis points in the WPI further indicates that inflationary pressures will continue to hover above the economy. Among the sectors, Bankex, Oil & Gas, Metals, Power and Realty are trading lower by more than 1% each, while others like Healthcare, FMCG and Consumer Durables are trading in the green zone.
The other Asian markets are trading in a mixed bag, with Shanghai and Hang Seng trading in the negative territory, which Nikkei is trading marginally in the gains.
The major European indices like CAC, DAX and FTSE are trading lower on weak cues from the region. This is after the German Chancellor, Angela Merkel's party lost a state election. There were also speculations of Greece's possible exit from the Euro.
Back home, the Metals heavyweights showed a lacklustre performance. Jindal Steel and Hindalco were the leading index losers, down by almost 2.25% each. Others like ONGC, Tata Motors, BHEL and HDFC Bank are all trading lower by more than 2%. Stocks like Hero MotoCorp, TCS, Sterlite Industries, Tata Power, etc. are trading marginally in the red zone.
On the other hand, L&T is the leading gainer, up 2.02% to Rs 1161.80 after the company reported a good set of Mar 2012 quarter numbers. Its net profit grew by 31.6% to Rs 1920 crore on a YoY basis. Other stocks like Maruti Suzuki, Sun Pharma, Infosys, Wipro, etc. are trading higher in the range of 0.35%-0.70%.
Jain Irrigation is trading higher by 1.85% at Rs 76.90 on news that the company has signed an agreement with Kibbutz Naan to acquire the remaining 50% of the jointly-owned company, NaanDanJain Irrigation. MTNL is down 3.3% to Rs 21.95, making a new low after reporting a bad set of numbers yet another time. The company reported a loss of Rs 1374 crore for Q4FY12 against a loss of Rs 1100 crore in the similar period last year.
The overall market strength is very weak, with 1614 stocks declining, 948 advancing and 116 stocks remaining unchanged.
In conclusion, we expect the markets to be volatile with a negative bias.
| Benchmark Indices | ||
|---|---|---|
| Index | Rate | % Change |
| FTSE | 5472.43 | -1.85 |
| DAX | 6433.03 | -2.23 |
| CAC | 3053.8 | -2.43 |
| Hang Seng | 19735 | -1.15 |
| Nikkei | 8974 | 0.23 |
| Shanghai | 2493 | -0.6 |
| SENSEX | 16184.38 | -0.67 |
| NIFTY | 4890.2 | -0.79 |
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