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Market review: Sensex slips 120 pts after 2 weeks of gains, IT stocks shine

Jan 12 2013, 15:41 IST
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The market moved downwards after a two-week of gaining string. (Reuters) The market moved downwards after a two-week of gaining string. (Reuters)
SummaryThe market moved downwards after a two-week of gaining string.

Stock: The market moved downwards after a two-week of gaining string as wary investors opted to book profits after recent gains ahead of the start of corporate earning season amid tail-end weak macroeconomic factors.

The BSE benchmark Sensex moved down by over 120 points to end to 19,663.64.

Capital goods, consumer durable, FMCG, power, metal and realty stocks were at the receiving end of selling, while IT stocks flared up after India's second largest software services exporter, Infosys, declared better-than-expected Q3 results on Friday and also raised its annual revenue guidance.

Second-line stocks attracted heavy profit-booking by retail investors and underperformed the 30-share Sensex.

The BSE Midcap and Smallcap indices dropped by over 2 per cent.

The Sensex resumed the week on a firm note and immediately touched a fresh two-year high of 19,856.43. It, however, could not maintain the tempo and turned negative as cautious operators and investors went on offloading ahead of Infosys' Q3 results.

The key BSE index later dipped to settle the week at 19,663.64, a fall of 120.44 points, or 0.61 per cent. The Sensex had spurted by 542.08 points, or 2.81 per cent, in the last two weeks.

Similarly, the wide-based 50-issue Nifty of the NSE initially logged a two-year high of 6,042.15. But it succumbed to selling and fell below the 6,000-mark to end at 5,951.30, displaying a loss of 64.85 points, or 1.08 per cent.

Sharp gains registered on Friday in the morning trade due to good Q3 numbers by Infosys were later washed out after the poor industrial production data and fall in exports.

The index of industrial production (IIP) contracted to a four-month low of 0.1 per cent in November as against a robust 8.3 per cent in October (due to a lower base effect and a strong festive season-driven rebound in the manufacturing segment), triggered a bout of profit-booking on Friday.

The sentiment got a further eroded after data showed that India's exports contracted by 1.9 per cent in December, leaving a trade deficit of USD 17.6 billion versus USD 14.7 billion in the same month of previous year.

Tension between India and Pakistan following brutal killing of two soldiers by Pakistani troops along the Line of Control (LoC) in Poonch also had a negative impact on the market.

According to market participants, the Sensex seems to be consolidating near the 20,000-level and Nifty at 6,000-mark before making any

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