DAILY MARKET REPORT – 12 JULY 2012

The Indices closed lower on account of Infy’s results, its disappointing earnings guidance, global cues which offset the better than expected May IIP numbers. With TCS’s results awaited today, investors dumped their shares in trade today.  The Sensex 30 index closed lower by 256.59 points at 17232.55 points (-1.47%). The Nifty 50 closed lower at 5235.25, down 71.05 points (-1.34%) in trade today.

On the global scenario, we saw rate setters events at Bank of Japan and Bank of Korea in early trade. BoJ kept rates and asset purchasing programmes unchanged.  Meanwhile, Bank of Korea, lowered interest rates to stimulate the economy which showed early signs of slowdown. China’s 2Q12 GDP forecast, due Friday, saw analysts forecast a lower number from their previous one, showing that a slowdown was evident in the second-largest economy in the world. Deficient rainfall still remains a matter of concern, as Kerala saw a 30 percent shortfall. Its hydel power projects could get affected if such a scenario continues.

For the global markets today, Asia ended lower on worries about economic recovery over the world. Europe also has opened lower in trade today with an eye on the stimulus package, if proposed, by the United States.

Coming back to the Indian markets, on the sectoral indices front on the BSE, the MidcapIndex closed 0.67 percent lower in trade today while the SmallCap Index ended 0.69 percent lower. The IT Index dropped 5.31 percent, mainly on Infosys and TCS’s earnings related news, the Teck Index also declined in tandem with the IT Index by 4.62 percent. The Consumer Durable Index was down 2.02 percent in trade today.

On the individual stock front, SBI, Infosys and TCS were top volume drivers. BPCL gained 1 percent and Videocon gained 0.5 percent as their joint venture co. Brasil Petroleo Ltda announced the discovery of an oil reserve off the Brazilian coast. Airline shares rose in trade today on news of foreign direct investments which could be permitted after the Presidential elections in this month. SpiceJet and Kingfisher Airlines gained 1.9 percent and 3.4 percent respectively.SAIL saw its divestment plans get postponed after the CCEA deferred its decision. Shriram City Union rose 10 percent to INR 747 on news that one of its promoters will purchase 17.9 m shares at INR 803 a share.

For Carrefour, the French retailer, the co.’s operating results and sales for 2Q12 period declined below expectations on austerity measures affecting consumer’s discretionary spending patterns and hampering their sales.

The Indian Rupee gained 0.23 points to close at 55.62 to the US Dollar.

Commodities traded lower during the session with WTI at USD 84.96 down 0.99% and Brent trading at USD 98.86 down 1.37%. During the day a Platt’s survey showed that OPEC crude oil output (June) declined to 31.72 m versus a previous of 31.75 m barrel.

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

(Bloomberg, Business Standard, Economic Times and Moneycontrol)



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