Sensex Falls Below 17,000 After A Sudden Slide

A sudden sell-off following a strong rebound in intraday trading early afternoon, dragged the barometer index BSE Sensex below the psychological 17,000 in the business of the afternoon. The Sensex fell 200.93 points or 1.17%, out of about 247 points high day. Pivotal Reliance Industries, Infosys, ICICI Bank, State Bank of India declined. The size of the market was almost the same, to have weakened over a wide strong early trading session NRI online trading account.

The market has declined slightly in the middle initial volatility, reversing gains after opening more than one caused by the equity firm in Asia and the U.S. gains index futures. The barometer index BSE Sensex retreated after hitting 4-week high. The market hit a fresh intraday low in morning trade. The market extended losses in midmorning to trade Asian stocks reversed early gains. The market pared losses in early afternoon trade. A sudden liquidation after a sharp rise in intraday trading in the afternoon the barometer BSE Sensex below 17,000 in psychological operations in the afternoon.

Investors will be eager to see the data for the second quarter of September 2011 companies withholding tax payment due on September 15, 2011, which can give signals of Q2 September 2011 results NRI Demat account .

At 13:19 IST, the BSE Sensex fell 200.93 points, or 1.17% at 16,964.61. The index fell 201.29 points to 16,964.25 at the day low in afternoon trade, its lowest since September 7, 2011. The index rose 46.26 points the day’s highest 17,211.80 at the beginning of trading, the highest level in recent 12 August 2011.

S & P CNX Nifty fell 64.65 points or 1.25% at 5088.60. The Nifty hit a minimum of 5086.45 in intraday trading, its lowest level since September 7, 2011.

The BSE Mid-Cap was down 0.19%. BSE Small Cap was up 0.14%. Both indices outperformed the Sensex.

Extension of the market, shows the general health of the market, it was almost up. BSE, 1330 shares, 1313 shares rose and fell. A total of 99 shares remained unchanged. Width was strong at the beginning of trade during the day.

Among the Sensex stake 30, 24 decreased, while the rest of them have increased PAN Card for NRI .

Index heavyweight Reliance Industries (RIL) fell 1.70% to Rs 839 on profit-taking after soaring recently. From a recent low of Rs 719.50 August 26, 2011, the population had increased 18.62% to 853.50 rupees, Thursday, September 8, 2011. The stock had gained 2.62% Thursday, September 8, 2011, after the company said it has set a global standard for project completion and cost efficient and competitive capital KG D6 block gas production under the circumstances more difficult. EIR issued the statement during trading hours on Thursday after the Comptroller and Auditor General of India or the CAG said in its final report submitted to parliament Thursday, September 8, 2011, as initially estimated capital costs RIL D-1 and D-3 gas discovery in $ 2.4 million, later revised to 8.8 million.

The report said that the EFI has begun to implement plans for capital expenditures revised before they were approved by the government. The report also found that the EFI does not give up certain areas of lower priority in the KG D6 block, which the government could give to other companies for further exploration.

RIL has said it will not be able to comment on the final report of CAG, the company has not seen the contents of the final report. RIL has said that he was already in his detailed comments and views of international experts on the proposal of a CAG report to the ministry of petroleum and natural gas (MOPNG), Directorate General of Hydrocarbons (DGH) and the CAG. RIL said, hopes that the detailed answers and advice from experts in the field is properly taken into account in developing the audit report by the CAG.

RIL said it reiterates that the contractor is still required to comply with PSC (Production Sharing Contract) Rules and Procedures, including the adoption of international best practice in the oil industry (GIPIP) in his work. Like many comments on the draft report had raised issues that were technical in nature, the company had offered the CAG a complete and thorough interaction with subject matter experts, RIL said. RIL also said he remains open to such interaction at any time. RIL also said it would continue to cooperate with the Indian Government for consideration under the provisions of the PSC.

Europe’s second largest oil company BP Plc, last month completed the acquisition of a 30% interest in 21 blocks of oil and gas RIL operates in India. BP will pay a total consideration of RIL $ 7.2 billion, subject to closing adjustments for the interest to be acquired during the 21 production sharing contracts, both companies said in a joint statement last month. Additional performance payments up to $ 1.8 billion could be paid based on exploration success, leading the development of commercial discoveries, the two companies said.

Hindalco Industries (down 2.80%), Sterlite Industries (down 2.56%), Tata Steel (down 2.31%), Infosys (down 2.03%), Sun Pharmaceuticals Industries (down 1, 83%), DLF (down 1.64%), Jaiprakash Associates (down 1.48%) and Tata Motors (down 1.48%), down slightly from Sensex pack. ICICI Bank (down 1.23%) and State Bank of India (down 2.05%) also declined.

The company HDFC India’s largest mortgage market capitalization has increased from 1% to 665.20 rupees.

The largest manufacturer of two wheelers in India by sales rose 2.21% to 2218.50 rupees hero MotoCorp shares through a record high today of 2231.70 rupees in intra-day September 9 2011. The company’s sales grew 19% to 5.03 lakh units in August 2011 to August 2010.

Bharti Airtel, India’s largest mobile operator, rose 0.65% to RS 401.80 after the company said it has received a license to offer the second generation and third generation mobile services in Rwanda, in its operations in Africa to 17 countries. Bharti Airtel plans to invest $ 100 million in its operations in Rwanda over the next three years. Rwanda is among the most dynamic markets of telecommunications in Africa, with mobile penetration of 38.4% in July 2011, Bharti said. The company said it will provide affordable and innovative products and expand the network to wireless broadband in all major cities in Rwanda.

Largest tractor manufacturer Mahindra and Mahindra in India sales (M & M) rose 0.54% in the RS 795 Mahindra & Mahindra on Thursday, 8 In September 2011, has introduced a new version of Bolero expensive SUVs. The company expects to sell more than one lakh Bolero vehicles this fiscal year to March compared to 83,112 last year. M & M’s car sales rose 30.38%, and 37,684 units in August 2011 to August 2010. XYLO Producer, Scorpio and Bolero models exported cars in 1928, an increase of 18% per year.

India, the second largest two-wheeler maker Bajaj Auto sales rose to 0.09% in RS 1627. Available reached a record high of Rs 1694.90 in intra-day trading September 6, 2011. Total sales of the company increased by 16% to a record level of 3.82 lakh units in August 2011 on August 2010. Motorcycle sales jumped 17% to a record level of 3.38 lakh units in August 2011 to August 2010.

FMCG stocks rose slightly on crop prospects improved with good rains. FMCG companies derive substantial sales from rural India. Hindustan Unilever (up 2.85%), Dabur India (up 1.94%), Godrej Consumer Products (up 1.82%), Tata Global drinks (up to 1.16 %), United Breweries (up 0.32%), Ruchi Soya Industries (up 0.23%) and United Spirits (up 0.08%), increased slightly. Good monsoon could increase farmers’ incomes and consumer spending.

But cigarette company the biggest in India by sales of ITC fell 0.53%.

Winners of the BSE Mid-Cap index was the GTL (up 37.10%), GTL Infrastructure (up 18.93%), Arvind (up 6.81%) IL & FS Transportation Networks (up 6.32% ) and Sujan towers (up 6.20%).

The first winners in the BSE Small-Cap index was Hotels in Asia (West) (up 15.27%), Ruchi Infrastructure (up 11.96%), drugs dish (up to 11.43 %), Allied Digital Services (up 10%) and Lakshmi Energy & Foods (up 9.90%).

Foreign institutional investors (IIE) bought shares worth Rs 14.14 crore Thursday, September 8, 2011, according to preliminary data scholarships. FII inflows amounted to Rs 1999.71 crore in the first days of this month until September 8, 2011, according to data from stock exchanges.

The six-week session of parliament long monsoon ended Thursday, September 8, 2011, with the passage of only 14 bills in the Lok Sabha, and only nine in the Rajya Sabha because of frequent interruptions and forced adjournments.

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.

Although the total rainfall plays an important role in determining agricultural production, the timing and distribution of rainfall is also important to ensure a good harvest. The unusual pattern of rainfall this year could delay the harvest, which affects the yield of summer crops important as rice, oilseeds, sugarcane and cotton. Rice area from 2 September 2011 was 12% from 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.

Annual inflation in food articles group declined to 9.55% for the week ended August 27, 2011, from 10.05% the previous week, the latest data show. Was 14.76% for the same period last year. However, inflation in the major group rose to 13.34% in the week in review articles of 12.93% for the week ended August 20, 2011. Was 15.24% in the period last year. Inflation in fuel and electricity group was 12.55% in the week ended August 27, unchanged from the previous week, the latest data show. Was 12.61% in the corresponding week last year.

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. Data on September 12, 2011 in industrial production in July 2011 and September 14, 2011 on inflation in August 2011 will give clues about the position of the central bank’s policy probably mid-quarter review of monetary policy September 16, 2011. The Reserve Bank of India raised its key rate 11 times in the last 18 months to control high inflation.

Growth of industrial production is up 6.2% in July 2011 increased 8.8% in June 2011, according to the median estimate of 15 economists surveyed by the capital market. Inflation based on wholesale prices is estimated at 9.6% in August 2011, more than a reading of 9.22% in July 2011, according to the median estimate of 13 economists surveyed by the capital market. Eleven of the twelve economists polled by Capital Markets expected 25 basis points (bps) increase in the repo rate, the interest of key policy in the short term, the Reserve Bank of India in its review of the medium-term policy the September 16, 2011.

Montek Singh Ahluwalia, vice president of the Planning Commission, Thursday, September 8, 2011, said he agrees with the opinion of the Minister of Finance on a break from the tight monetary policy in India.

Moody Investors Service affirmed its Baa3 rating for India foreign currency debt of the government and its rating to Ba1 local currency debt in an annual credit analysis published earlier this week. The firm’s ratings a positive outlook for India’s rupee-denominated bonds, says he will consider an overall rating of Baa3 for all obligations, if India improves its financial position and its willingness to strengthen the internal market. The outlook for foreign currency debt 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.

Debt ratio of 71% is worrisome, because the interest on this debt eats 25% of annual sales in India. However, Moody’s expects continued growth and gradual fiscal consolidation reduces the debt / GDP of the government, the report said.

Services sector in India grew at its slowest pace in over two years in August 2011, nipped in the expansion of the weakness in new business areas, such as a faltering global economy and tight monetary conditions taken into consideration, a survey showed Monday, September 5, 2011. HSBC Markit activity index, based on a survey of 400 companies fell to 53.8 in August against 58.2 in July, the largest decline in the index of a month since January 2009. It was also the lowest growth since June 2009, but the index was above the 50 threshold separating growth from contraction for 28 consecutive months.

The new business sub-index fell to its lowest level in three months in August to 54.9 from 59.3 in July, as the global economic situation sinks hit orders. Expectations of new businesses have also been revised down in August. The survey also showed reduced levels of employment in the services sector for the second consecutive month, the growth of new businesses has decreased while the input costs and output prices continued to march ahead.

Manufacturing activity in India in August 2011 dropped to a lowest level in 29 months as exports took a beating amid continuing uncertainty in global economic environment, a survey showed last week. The total seasonally adjusted purchasing managers HSBC, compiled by Markit, fell to 52.6 in August against 53.6 in July. The pace of new order flows in August fell to its slowest in 29 months as export orders contracted at the fastest rate since the series began, HSBC said.

Arrears production fell for the first time since March 2010 working pressures subsided. In addition, inflationary pressures have increased both the input and output prices rose.

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 pace, Commerce said Rahul Khullar Friday, September 9, 2011. 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.

European stocks slid Friday, September 9, 2011, after a weak end of the previous session on Wall Street after the Federal Reserve, Ben Bernanke, offered no concrete proposals to boost economic growth in the U.S. closely followed a speech. The key benchmark indices in UK, France and Germany were down 0.21% to 0.70%.

Asian stocks fell Friday, September 9, 2011, with producers and stocks of goods among the hardest hit, as the initial optimism on inflation cooling in China and plan a new American jobs evaporated in the commerce of the afternoon. The key benchmark indices in China, Japan, Hong Kong, South Korea and Singapore were down 0.05% to 1.83%. The key benchmark indices in Taiwan and Indonesia increased from 0.24% to 0.82%.

Consumption of China and the producer price index showed inflation is cooling in August 2011, and the index of consumer prices by 6.2% over the previous year, from July to facilitate a three-year high rate inflation of 6.5%.

Japan lowered its April-June gross domestic product Friday, registering a 0.5% contraction in the fourth quarter compared to a 0.3% decline in first reading.

The U.S. index futures suggest the Dow could rise by 35 points at the opening bell Friday, September 9, 2011. US President Barack Obama, Thursday, September 8, 2011, said the current situation in the U.S. economy is a national crisis. Obama has presented a complete set of jobs with tax breaks and other incentives designed to give the economy a jolt.

U.S. stocks abruptly closed on Thursday after the Federal Reserve, Ben Bernanke gave no indication of stimulus measures to boost the faltering economy, a highly anticipated speech. An increase in jobless claims reported earlier in the day highlighted the weakness of the U.S. economy. Moreover, the government said the U.S. trade deficit fell significantly in July, a positive sign for economic growth in the third quarter after a sluggish first half.

Bernanke on Thursday said the U.S. central bank to increase its maximum weak growth, but to the dismay of investors with little money to dive on a large scale economic assistance. Bernanke has given way to tell or a central bank could ease the cost of borrowing even more. Bernanke said consumer prices this year are likely to be temporary.

Federal Open Market Committee (FOMC) is scheduled to conduct a policy review of US two-day yields of 20 and 21 September 2011.


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