The Sensex 30 and Nifty 50 tanked in trade on inflation, Europe, and global cues.  The Sensex closed at 16677.88, down 202.63 points (-1.20%).  The Index touched an intraday high of 16,921.49 and a low of 16,765.36 points in trade today. The Nifty Index ended at 5054.75, down 66.70 points (-1.30 %) with an intraday high of 5130.00 and a low of 5082.45 in trade. The Nifty closed below its 200 daily moving average of 5070.  It is expected to range between 4800 – 5300 by market participants.

Inflation data was awaited and it came higher over the previous reading along with a higher core inflation number but lower than expectations. Rate sensitive companies declined in trade as hopes of a cut in the interest rates so anticipated by the markets fell on rising inflation. The RBI would now look to balance growth vs rising inflation.  On concerns of slowdown in growth, it may seem that the central bank would cut interest rates inspite of rising inflation.

Exports for May 2012 declined by 4.16 percent (y/y)to USD 25.7 b according to government sources, on a provisional basis. Imports declined 7.36 percent  (y/y) to USD 41.9 b leaving a trade deficit of USD 16.3 b. Deficit in April was USD 13.9 b.  Greece and Spain, and Europe in general will always be watched for the next major outlook on the markets.

Asian markets closed in the negative on concerns about Italy and Europe in general. The indices declined by 1 percent on average.  European indices also declined in trade as Spanish bond yields hit 7 percent.

Commodities dip with WTI at USD 82.48 down 0.17% and Brent trading at USD 96.96 down 0.18%. On the weather front, severe storms are expected over Omaha, Nebraska, Sioux Falls, South Dakota, and the Twin Cities of Minneapolis and St. Paul, Minnesota.

Kindly check the Market Summary tab for further information on stock-related data.

(Bloomberg, Moneycontrol, Economic Times)

Categories: General News

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