Finalaya daily wrap_12dec2012
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On December 12, 2012, Indian markets closed in the red due to rising retail inflation, which increased to 9.90% in November, overshadowing a positive surprise in industrial production (IIP) growth of 8.2% for October. The BSE Sensex fell by 31.88 points to end at 19,355.26, while the Nifty decreased by 10.80 points to settle at 5,888.00, with sectors such as consumer durables and automobiles seeing gains, while capital goods and metals suffered losses. Concerns over inflation are expected to hinder the Reserve Bank of India’s interest rate cut plans, despite optimistic growth forecasts from Moody's.
Finalaya daily wrap_12dec2012
- 1. Markets end in red; inflation shock overpowers IIP surprise Market Summary 12-Dec-2012 Following a firm opening on positive global cues, markets traded in a range about yesterday’s closing mark. The positive sentiments generated on higher than expected October IIP numbers faded soon on rising retail inflation for the month of November. Rate cut hopes were dashed as RBI’s preference for low inflationary environment for interest rate cut is well known. Markets ended flat (in red) yet again. Due to the higher costs of sugar and vegetables, India’s retail inflation, consumer prices index (CPI), rose at the fastest pace in three months to 9.90 percent in November, 2012 as against 9.75 percent in Oct 2012. Food inflation in the CPI increased by 11.81 percent in November as compared to 11.43 percent in October 2012. (News) As per the govt data release, Index of Industrial Production (IIP) for the month of October 2012 stands at 171.3, which is 8.2% higher as compared to the level in the month of October 2011. Powered by good performance of the Manufacturing and electricity sectors, the IIP growth rate of 8.2% is 16 month high and has beaten the street expectation by a good margin. On sovereign rating front, while global rating agency Moody’s expects India’s growth prospects to improve in 2013, Standard & Poor's once again warned that there is a significant chance of India's credit rating cut due to its deteriorating external position, worse political climate and slow fiscal reforms. T h e market breadth on the BSE closed in negative. Advancing and declining stocks were 1415 and 1508 respectively, while 128 scrips remained unmoved. The BSE Sensex ended at 19355.26, down 31.88 points or 0.16%. The 30 share index touched a high and a low of 19478.79 and 19317.23 respectively. 9 stocks advanced against 20 declining ones on the benchmark index. The S&P CNX Nifty lost 10.80 points or 0.18% to settle at 5888.00. The index touched high and low of 5924.60 and 5874.25 respectively. 17 stocks advanced against 33 declining ones on the index. Sensex Nifty The BSE Mid-cap index moved up to 7039.07 and gained 0.06% while Small-cap index jumped up by 0.24% to 7420.17. The broader BSE 500 index decreased to 7528.79 (down 0.09%) and S&P CNX 500 index declined to 4709.85 (down 0.14%). The volatility as denoted by INDIA VIX lost 1.09% at 14.51 from its previous close of 14.67 on Tuesday. Sectors in action On the BSE Sectorial front, Consumer Durables (up 0.95%), Automobile (up 0.94%) and Information Technology (up 0.38%) were the top gainers. Capital Goods (down 0.99%), Metals (down 0.71%) and Power (down 0.65%) were the top losers. The Angels and the Devils Bajaj Auto Ltd (up 2.57%), Mahindra and Mahindra Ltd (up 2.20%), Hero MotoCorp Ltd (up 1.92%), Reliance Industries Ltd (up 1.53%) and Sun Pharmaceutical Industries Ltd (up 1.35%) were the top gainers on the Sensex. Hindustan Unilever Ltd (down 2.65%), Bharat Heavy Electricals Ltd (down 1.98%), GAIL (India) Ltd (down 1.67%), Jindal Steel and Power Ltd (down 1.55%) and Oil and Natural Gas Corporation Ltd (down 1.44%) were the top losers on the Sensex. Benchmark Drivers Reliance Industries Ltd (26.63 points), Housing Development Finance Corporation Ltd (-20.18 points), Hindustan Unilever Ltd (-18.52 points), ITC Ltd (14.72 points) and ICICI Bank (-13.24 points) were the major Sensex drivers today. On the other end Reliance Industries Ltd (6.71 points), Housing Development Finance Corporation Ltd (-6.69 points),
- 2. On the other end Reliance Industries Ltd (6.71 points), Housing Development Finance Corporation Ltd (-6.69 points), Hindustan Unilever Ltd (-4.91 points), ITC Ltd (4.37 points) and Larsen And Toubro Ltd (-3.32 points) were the major Nifty movers today. Pivot, Supports and Resistance Levels S&P CNX Nifty is now pivoted at 5896 for next session. The next support is at 5867 and on upside it has a resistance at 5917 levels. S&P CNX Nifty Eff. Date S3 S2 S1 PIVOT R1 R2 R3 Actual Close 13-Dec-2012 5816 5845 5867 5896 5917 5946 5967 - 12-Dec-2012 5755 5810 5854 5910 5954 6010 6054 5888.00 11-Dec-2012 5860 5874 5891 5906 5923 5938 5955 5898.80 Sensex has a pivot at 19384 with first level of support and resistance at 19289 and 19450 respectively. Sensex Eff. Date S3 S2 S1 PIVOT R1 R2 R3 Actual Close 13-Dec-2012 19127 19222 19289 19384 19450 19545 19612 - 12-Dec-2012 18917 19101 19244 19428 19571 19755 19898 19355.26 11-Dec-2012 19240 19301 19355 19417 19471 19532 19587 19387.14 Follow us on This content is generated at www.finalaya.com and is governed by the Terms of Use.