DAILY MARKET REPORT – 13 JULY 2012

The week ends with the markets closing flat in a listless session of trade on the back of flatter global cues. HDFC Bank‘s 1Q12 numbers rose 30 percent, but were in line with expectations, hence, it didn’t have much of an effect. LIC provided a small boost to the investors as the insurance giant on news that it would infuse a total of INR 60,000 cr in Indian equities. It should be noted that the firm previously bailed out ONGC as part of the government’s divestment programme.

The Sensex closed 18.85 points or 0.11 percent lower at 17213.70 points. Sensex touched an intraday high of 17342.88 and a low of 17182.29 in trade today. The Nifty closed 8 points lower at 5227.25 points after touching highs of 5267.15 and a low of 5216.85 points today.

On the news from the global cues, Asia closed marginally higher on China’s GDP data, which failed to give a direction to the markets. Europe, however, opened higher in trade.

Economy:

  • There also was some GDP action today with Singapore also giving out 2Q12 numbers.
  • Bond auctions in Italy saw yields decline over previous auction’s data as the investors ignored Moody’s rate cut on the country.
  • India’s trade deficit for June narrowed, on data released by the Commerce Secretary.

On the sectoral indices for the BSE index, the Midcap Index closed 0.23 percent lower; SmallCap Index declined 0.12 percent, Realty Index was down 1.58 percent, the Metal Index was lower by 1.24 percent, the Power Index slipped 0.7 percent and the IT Index was down 0.49 percent.

On the individual stock front, HDFC Bank came up with its 1Q12 numbers. R Software rose 16 percent to INR 98.15 a share on its consolidated profit rising almost twice to INR 9.58 cr for its 1Q12 results. IT Firm IGate also rose in trade as it reported a 217.5 percent rise in 1Q12 profit which came in at USD 12.7 m.

There was some news on the FII front as well. FII’s reduced their stake in ICICI Bank and Axis Bank while stake in HDFC Ltd and HDFC Bank. FII’s also divested some of their stake in Yes Bank, Indus Ind Bank and Union bank of India during the quarter.

On the currency front, the rupee closed near the 56 levels at 55.93, up 0.41 points. Commodities traded higher during the session with WTI at USD 87.18 up 1.28% and Brent trading at USD 102.06 up 0.98%.

Things to watch out for:

Inflation data (that scheduled for July 16), which will decide the Reserve Bank of India’s move on July 31 (a day of first quarter monetary policy review).

Analysts on average expect June inflation in the range of 7.5%-7.8% as against 7.55% in previous month and core inflation around 4.9%-5.5% versus 4.8% in May. Therefore they feel the RBI may not consider rate cut.

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

(Bloomberg, Business Standard, Economic Times and Moneycontrol)



Categories: General News

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