Nifty Falls Below 5000 The Market Shaken

Volatility ruled the roost key benchmark indices cut losses in moving to its lowest intraday trade fresh morning. 50-unit, S & P CNX Nifty fell below the psychological 5000. BSE barometer index Sensex declined 110.81 points or 0.66%, close to 55 points for the day and off a low of about 250 points higher than today. Index heavyweight Reliance Industries (RIL) has extended its early losses. FMCG stocks fell and the capital. IT stocks have profit-taking after recent rally, which began with a weaker rupee.

The market was swinging from the start of the trading session. The market opened on a firm note, with sentiment supported by guarantees from France and Germany as Europe stand behind Greece that the nation is struggling to reduce its debt pile. The market quickly relative gains. The market is out of the bottom later. Intraday volatility continued as the market pared losses after sliding into the red to hit fresh intraday low trading morning. The market again trimmed losses after slipping to fresh intraday low in mid-morning trading.

State-owned Oil Exploration major ONGC around Rs 11 000 crore post-graduate public offering (FPO) absorbs liquidity from the secondary stock market in the near future. As for interviewing market, the FPO will be launched this month. ONGC has lodged a prospectus with the Freedom Party with the Securities & Exchange Board of India (SEBI) earlier this month. The government sells 5% stake in ONGC through the provision as part of his plan to raise Rs 40,000 crore through the sale of shares in state enterprises for the current financial year in March to fund programs in the social sector.

Investors are looking deeply the September data in the payment of taxes in the second quarter 2011, due before today, September 15, 2011, which could give clues Q2 September 2011 results.

At 11:20 CET, the BSE Sensex fell 110.81 points, or 0.66% to 16,598.79. The index rose 134.38 points to 16,843.98 on the day high in early trading, its highest level since September 9, 2011. The index fell 164.03 points to 16,545.57 on the day of small to mid-morning trade.

S & P CNX Nifty fell 21.05 points, or 0.42% at 4991.50. Nifty has hit its highest 5,062.35 in intraday trading to its highest level since September 9, 2011. Nifty has hit the lowest intraday trading 4,967.45.

The size of the market, indicating the overall health of the market was positive. On BSE, 1,114 shares rose and 1063 shares declined. A total of 90 shares remained unchanged. Bank alternately fluctuated between positive and negative zone in morning trading.

Among the Sensex pack 30-share fell by 23 and the rest is past. Associates Jaiprakash, Jindal Steel & Power and DLF rose between 0.73% to 2.47%. Maruti Suzuki India, HDFC Bank and Hindalco Industries paid by between 1.17% to 2.22%.

Index heavyweight Reliance Industries (RIL) fell 0.9% to 817.90 rupees, off-day high of Rs 833.05. The oil ministry would soon consider RIL 1.52 billion dollars to develop satellite fields in its KG-D6 block, which can provide about 10 million metric standard cubic meters per day (MMSCMD) of natural gas in five years. The plan, if approved, will allow RIL reverse the decline in production from the bottom of the sea block and help consumers, particularly in the areas of fertilizer and power who suffer at the output of Block D-6 is fell below 50 MMSCMD instead of rising to 80 MMSCMD Due to technical problems.

RIL had last week denied inflating the cost of its D6 gas field in Krishna Godavari-(KG) basin. RIL made after the CAG report said that the final report to Parliament on Thursday 8 In September 2011, the RIL is initially estimated capital costs for gas-D 1 and D-3 in the discovery of $ 2.4 billion, later revised to $ 8.8 billion.

India’s largest FMCG company Hindustan Unilever sales were down 1.67% RS 346.70. Warehouse was on Wednesday, September 14 In 2011, a record high of Rs 354 Recent studies have suggested that the company has raised prices of coffee brand Bru in the wake of rising raw material for the last several quarters.

Other titles FMCG, ITC and United Breweries paid from 0.43% and 0.94%.

Marico has fallen from 7.26% after the company warned of lower than expected profits in the coming quarters. Marico said higher prices of copra (dried kernel of coconut), which represents 40% of the total cost of materials for the group may increase its costs. Marico said that the company will have some areas to measure changes in the right way and strategies change accordingly. More recently, we made several increases in retail prices of many of our products. However, he continued to input costs, in some cases even led to gaps in coverage of the surge in costs, Marico said.

Given the magnitude of the absolute price increase applied general, the company may stop gap as it is. This could affect operating margins in the short term, Marico, said.

Capital goods stocks also declined. BEML, Thermax, Larsen & Toubro, Praja Industries, ABB, Siemens, Punj Lloyd paid between 0.07% and 1.59%.

IT stocks fell on profit taking after recent rally, triggered by a weak rupee. India’s third largest software services exporter Wipro shed 0.53%.

The second largest software exporter Infosys services India fell 0.65%, reversing early gains. The company is reportedly close to acquiring the health care business of Thomson Reuters in a transaction 700 to $ 750 million. If the operation goes ahead, will be the largest acquisition by Infosys. Business of Thomson Reuters provides health care information, analysis and solutions to benchmark performance and services to companies, government agencies and health professionals.

The largest exporter of software services in India TCS fell 0.35%. TCS S. Vice Ramadorai said in a press interview Tuesday, September 13, 2011, the demand for technology outsourcing services continues to be good. But he added that the economic uncertainty in Europe is still the biggest concern for high technology. Ramadorai said TCS is cautiously optimistic about the demand for outsourcing services as customers remain cautious about spending in an uncertain economic environment.

TCS had earlier said that none of his current projects that are not so urgent in nature, are cut, and he has not seen concrete delays in decision making.

Rupee weaker income increased from IT companies in the rupee as the area receives the lion’s share of export revenues received. Rupee weakened the ninth consecutive session on Thursday as the dollar demand for oil refineries compensated by the internal parts. Rupee has been partially replaced 47.74/75 per dollar, weaker than 47.62/63 late Wednesday, when he was hit 48.02, its lowest since September 29, 2009.

Mahindra & Mahindra rose 0.61% after the company announced during market hours today that the Board of Directors of the Company approved the sale of up to 8.09% participation in its Mahindra Holidays & Resorts subsidiary in India (MHRIL) are held by the Company in one or more tranches, for the best price possible through a recognized stock exchange in June 2013 to increase public participation and MHRIL floating on the stock market . M & M currently owns 83.09% stake in MHRIL. MHRIL leaped actions of 4.65%.

Gokaldas Exports jumped 15.79% from 4.07% today, equity changed hands in three bulk deals on BSE in early trade

Foreign institutional investors (IIE) has sold shares worth Rs 45.82 million rupees, Wednesday, September 14, 2011, according to provisional figures. FIIs unloaded shares worth a net of R 1876.64 crore in four trading sessions 9 to 14 September 2011, according to the bag. Prior to the sale of two days, FII had bought shares worth net Rs 2986.81 crore seven working days of 29 AG 2011 hasta September 8, 2011, according to the bag.

A recent survey of investors prepared by JP Morgan India Asset Management benchmark Sensex ValueNotes expected to trade between 20,000 and 22,000 later this year. According to the report, the investment sentiment is affected by problems such as recession, increases the frequency of interest rates and volatility in the domestic investment environment. Despite seeing a decrease of 4.2 points from last quarter, the index of optimism among retail investors, “the highest levels of 137.5 points. The activity of small investors in mutual funds has increased by 11% from last quarter, according to the survey. The survey was conducted from July 22 to August 4, 2011.

The study also shows that investors are still cautious to preserve capital, increase investment strategy popular among small investors (40%). However, 40% for investors, compared to 57% in March 2011, is expected to become a little ‘aggressive in their investment strategy over the next six months.

An indicator of risk appetite of the Bank of America Merrill Lynch declined to major financial levels not seen since March 2009, according to a survey of global fund manager of the company. However, fund managers remain overweight in emerging markets, according to a survey of fund manager emerging markets at Bank of America Merrill Lynch has published on Tuesday, September 13, 2011.

The proportion of fund managers are bullish on emerging markets grew 27% last month to 30% today, according to the report written by Michael Hartnett, Kate Moore and Brian Leung. However, if the banking crisis in Europe out of control, emerging market stocks will be vulnerable to new assignments, the survey report said. The global fund managers have reduced their level of underweight in India, according to the survey.

Finance Minister Pranab Mukherjee on Tuesday 13 In September 2011, said the central banks of emerging countries have been forced to raise interest rates several times, as they battle high inflation, exposing them to volatile capital flows. The question of immediate interest to emerging economies, is the management of large inflows of capital, he said. Large capital flows and volatility of emerging markets can be volatile, because they lead to large fluctuations in exchange rates and in some cases, make a consolidated maintain high foreign currency reserves in case of sudden and large capital flight international.

Secretary for Economic Affairs R. Gopalan Tuesday, September 13, 2011, said that the government will review the loan ceiling of foreign companies at the end of September 2011. The government currently allows foreign loans of up to $ 30 billion. However, the border should be reached quickly that companies are reluctant to the high cost of domestic borrowing costs. United States and other European countries have interest rates close to zero in an attempt to support weak economic growth.

Given the government’s slow initial response FII sharp increase in the ceiling for FII investment in long-term bonds issued by companies in the infrastructure sector in March 2011, the government Monday, September 12, 2011, has also relaxed the rules FII investment in such bonds. The Ministry of Finance said in a statement that FIIs can now invest in long-term links below to a limit of $ 5 billion limit, which has an initial term of five years old at the time of issuance and maturity of one year from the date of purchase for the first IFI. These investments are subject to a retention period of one year. FIIs can trade in these bonds, but can not sell to domestic investors during the holding period of one year.

FIIs can invest up to a maximum of $ 17 billion in long-term bonds below which a maturity of five years or older at time of issuance and expiration of three years at its original purchase by FII. These investments are subject to a grace period of three years. During the period of three years of blockade, FIIs can change, but can not sell to investors. The Securities and Exchange Board of India (SEBI) is expected to deliver notifications to incorporate these changes in the schedule for October 15, 2011.

SEBI had, in early August 2011 has allowed qualified foreign investors (QFIs) to endorse the plan’s debt mutual funds that invest in the sector subject to a maximum cumulative total of infrastructure $ 3 billion in the overall ceiling of 25 billion dollars.

On the macro front, the recent steep slide, the rupee against the dollar has led to concern that high inflation, imports from India’s largest crude oil needs. Lower the rupee pushes up costs for imports, which could worsen the current account deficit. Indian government to reveal information on certain indices of wholesale prices, ie. food price index, the index of primary articles, and the index of fuel prices for the year through September 3, 2011 Today, September 15, 2011.

Inflation measured by wholesale price index (WPI) rose 9.78% in August 2011 from the previous month’s preliminary reading of 9.22%, data released by the government Wednesday, September 14 2011 showed. The reading of inflation exceeded market expectations. The government also revised upwards the inflation rate for June 2011 to 9.51% of the initial increase of 9.44% mentioned above.

Eleven of the twelve economists polled by Capital Markets expected 25 basis points (bps) increase in the repo rate, the key policy interest in the short term, the Reserve Bank of India in its review of the medium-term policy , Friday, September 16, 2011. The Reserve Bank of India (RBI) said that a change in the anti-inflationary monetary policy is based on signs of a lasting slowdown in inflation. The Reserve Bank of India raised its key rate 11 times in the last 18 months to control high inflation.

Will the Commission Deputy Chairman Montek Singh Ahluwalia on Monday 12 In September 2011, the conference said that private funding is half the form of $ 1 trillion in infrastructure investment envisaged for a period of five years from 2012 to 2017. Prime Minister Manmohan Singh said during the meeting that the winning fund crunch for infrastructure projects, the government proposed to establish a fund of $ 11 billion to help finance infrastructure projects. We also formed a high-level committee to suggest measures needed to fund the ambitious infrastructure development, Mr. Singh said.

In the long-term rainfall in the second half of the season helped to alleviate concerns that the monsoon this year could fall below their long-term average, after a brief pause in July, when the country usually receives one third of monsoon rains. Monsoon was 3% above average until September 7, 2011, as per the latest information on the Indian Meteorological Department (IMD). A large part of the country were the average of the average rainfall this year, but the season has been characterized as well as cradle and periods of torrential rains in some parts of western and eastern.

While overall precipitation plays a key role in determining agricultural production, the timing and distribution of rainfall are also important to ensure a good harvest. The unusual shape of rainfall this year could delay the harvest, which affects the yields of major crops grown in the summer as rice, oilseeds, sugarcane and cotton. Rice acreage of September 2, 2011 increased 12% last year to 35.75 million hectares.

A good monsoon season can often be improved farm incomes and the impact on the wider economy by increasing consumption and a reduced price of food. But food prices are not necessarily, if the delays and excessive rains in some areas, affecting hundreds.

Moody’s Investors Services confirmed its rating of Baa3 foreign currency debt rating of India and the Ba1 local currency debt annual credit analysis published last week. Votes for the company given the positive outlook for bonds denominated in Indian rupees, saying it is considering a rating of Baa3 uniform for all bonds if India is to improve the fiscal position and its commitment to strengthen the market inside. Currency debt outlook is stable.

Report optimistic about India’s ability to overcome the global economic crisis. Although not immune to the slowdown in international, domestic demand and prepare for the diversity of economic slowdown in the world are exposed to the fields, the report said. He noted that India’s foreign currency reserves than four times the foreign debt.

A debt to GDP ratio of 71% is a concern that the interest on this debt eats 25% of revenues from India every year. But Moody expects continued growth of GDP and further fiscal consolidation efforts will continue to reduce the public debt / GDP, the report said.

India, exports of goods grew by 44.2% in August 2011 over the previous year, for a total of $ 24.3 billion, a sharp slowdown from the previous rate, Rahul Khullar Commerce, said last week. Imports account for just over a month increased by 41.8% year on year and 38.4 billion U.S. dollars, which increased the trade deficit of $ 14.1 billion from $ 11.1 billion in July.

Most Asian stocks rose Thursday, September 15, 2011, with sentiments supported by guarantees from France and Germany as Europe stand behind Greece that the nation is struggling to reduce its debt pile. The key benchmark indices in China, Singapore, Japan, South Korea, Taiwan and Hong Kong increased from 0.07% to 1.77%. Indonesia Jakarta Composite fell 1.61%.

On a conference call, Prime Minister of Greece had said on Wednesday 14th September 2011, the country is determined to meet all its obligations and that the recent tightening measures will help Athens meet its 2011-2012 fiscal targets.

Adding to aid investors, the Italian Prime Minister Silvio Berlusconi, Wednesday, September 14, 2011, won a vote of confidence in an austerity plan for Italy in third place in the euro zone’s largest economy.

However, the debt situation in the euro area remains highly uncertain, with the focus is becoming a meeting of European leaders of the Union’s finances to be held on weekends, which also will feature U.S. . UU. Treasury Secretary Timothy Geithner.

The U.S. index futures said the Dow could fall 42 points at the opening bell Thursday, September 15, 2011. U.S. stocks rose Wednesday, helped by reports of the leaders of France and Germany expressed their support to help Greece in the euro area remain. On the macroeconomic front, growth in retail sales stagnated in August, while business inventories rose less than expected in July, suggesting caution in the application business early in the third quarter.

The Federal Open Market Committee (FOMC) is scheduled for a two-day policy review of U.S. interest rates 20:21 September 2011. It remains to be seen whether the Federal Reserve announced further measures to boost the U.S. economy. Among the options that the Fed may also consider a second round of quantitative easing, or QE3, Operation Twist to buy long term securities sold short-term ways to reduce long-term yields and reduce the rate of excess reserves held by banks the Fed to increase the monetary aggregates.


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