MARKET OUTLOOK (mid-session :14/06/2011 )



Dt : 14/06/2011

Today , our market is trading positive but off intraday highs as the inflation data for the month of May turned out to be above street estimates. Back on the domestic front, inflation for the month of May rose a higher-than-expected 9.06% as against 8.66% on a month on month basis (mom). The CBI is scrutinising the oil ministry’s role in dealing with energy companies, including Reliance Industries Ltd, and may register a case after the country’s top auditor submits its final report. Besides, the broader market indices are trading positive as BSE Mid Cap rose by 0.4% while BSE Small Cap down by 0.4%. The key benchmark indices are trading at BSE 30-share Sensex above 18,300 mark, while Nifty is above the 5,495 mark.

At 12:27PM BSE SENSEX was at 18308.75 up by 42.72 points or by 0.23 % and then NSE Nifty was at 5499.65 up by 16.85 points or by 0.31 %.

The BSE MIDCAP was at 6948.78 up by 31.13 points or by 0.45 % while the BSE SMLCAP was at 8347.41 up by 34.09 points or by 0.41 %.

The BSE Sensex touched intraday high of 18380.19 and intraday low of 18276.78 The NSE Nifty touched intraday high of 5520.15 and intraday low of 5484.2

On the economic front, the initial progress of monsoon has led the government to expect a record of 102 million tonnes rice production in the 2011-12 crop yearsThe progress of the southwest monsoon has been perfect till date. Therefore, with a hope for the perfection to continue, the areas under paddy and other Kharif crops are expected to give a good yield this year. However, no concrete estimation could be provided before analyzing the rain shower in July, when Kharif crops are sown. Although the agriculture minister aims at yielding a target of 102 million tones, the increase in minimum support price (MSP) could pose to be an issue. However, to this, Basu claimed that the hike would now help the farmers to strictly decide for the crops to be plant in the current season. With up to 16% hike in MSP of Kharif crop, MSP of paddy (common) has been fixed at Rs 1,080 per quintal, while that of cotton (long length staple) at Rs 3,300 per quintal.

On the corporate front, Idea Cellular has reported net profit of Rs 275 crore in the quarter ended March 2011, a growth of 13% as compared to Rs 243.1 crore in previous quarter.

Air India Ltd is estimated to have posted a record loss of Rs 7000 crore for the year ended March, undermining the carrier’s turnaround plan based on which the cash-strapped company is to get further cash infusions.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2,664, shares advanced were 1,513 while 1,031 shares declined and 120 were unchanged.

The top gainers of the BSE Sensex pack were Reliance Infrastructure Ltd. (Rs. 553.80,+2.04%), Tata Power Company Ltd. (Rs. 1254.10,+1.58%), Bajaj Auto Ltd. (Rs. 1363.15,+1.57%), DLF Ltd. (Rs. 232.15,+1.24%), Larsen & Toubro Ltd. (Rs. 1727.65,+1.16%), among others.

In BSE, BSE_CGS index was at 13472.7 up by 116.09 points or by 0.87%. Praj Industries Ltd. (Rs. 75.50,+2.58%), Alstom Projects India Ltd. (Rs. 578.80,+1.36%), Larsen & Toubro Ltd. (Rs. 1727.40,+1.14%), Suzlon Energy Ltd. (Rs. 52.95,+1.05%), Lakshmi Machine Works Ltd. (Rs. 2120.05,+0.97%),.

In BSE, BSE_PSU index was at 8546.3 up by 73.39 points or by 0.87%. MMTC Ltd. (Rs. 972.85,+7.25%), HMT Ltd. (Rs. 61.00,+5.26%), Punjab & Sind Bank (Rs. 104.00,+2.56%), Central Bank of India (Rs. 119.45,+1.96%), State Trading Corporation Of India Ltd. (Rs. 224.55,+1.84%),.

The leading Asian bourses are trading positive as Hang Seng, Nikkei 225 and Shanghai Composite trading up by 0.36%, 1.05% and 1.08% respectively.


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