Equity market -24.4.2012

April 24, 2012 by sknlakshmi

Market review – 23.3.2012

Market declined on weak European and US markets.  Sensex declined 1.6% to 17096.68 and Nifty declined by 1.71% to 5200.60.  Asian stocks edged lower amidst volatility on Monday after a preliminary reading of China's manufacturing activity showed further contraction in April, although at a slower pace. China's manufacturing activity contracted further in April, although the sector improved from levels seen in March. HSBC's so-called "flash" Purchasing Managers' Index rose to 49.1 in April, compared with a final reading of 48.3 in March. A reading below 50 shows contraction, while one above 50 indicates an expansion.

Metal stocks declined as global commodity prices dropped.  Reliance Industries trimmed intraday gains.  Infosys, fell on reports that the company is under scrutiny from US authorities for likely errors in employer eligibility documents of its staff. Capital goods pivotals fell for the fourth straight day. DLF fell more than 4% after the Bombay Stock Exchange (BSE) said that pharma major Dr Reddy's Laboratories will replace realty major DLF in the benchmark 30-share Sensex. Telecom stocks fell across the board on reports telecom regulator Telecom Regulatory Authority of India has proposed high 2G spectrum auction base price.

Market outlook – 24.3.2012

The market may open higher tracking gains in Asian shares.  However, volatility may remain high as traders roll over positions from the near-month April 2012 series to May 2012 series. The April 2012 derivatives contracts expire on Thursday, 26 April 2012. Most Asia markets rose on Tuesday. US stocks fell on Monday as political turmoil in Europe cast doubts on the euro zone's ability to push through measures to end its debt crisis and as Wal-Mart sank following a report it stymied a bribery probe.

TCS would be focused as the company reported 3.3% growth in consolidated net profit at Rs 2895 crore on 0.4% growth in revenue at Rs 13259 crore in fourth quarter ended March 2012 over third quarter ended December 2011. IT stocks will be in focus as the rupee posted its sharpest single session fall in nearly a month on Monday hit by deepening worries over capital inflows, and keeping traders on guard for possible intervention from the Reserve Bank of India.  . A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.