Tuesday, July 16, 2013

Nifty closed at 5955; Oil & gas and FMCG lend support

Markets snapped three-day winning streak to end lower on Tuesday after the central bank's move to reduce rupee liquidity and an increase in short-term rates dashed hopes of rate cut in the near term thereby raising growth concerns. The 30-share Sensex provisionally ended down 147 points at 19,887 and the 50-share Nifty closed 68 points lower at 5,963.

The midcap index suffers too, smaller banks shed anywhere between 5 to 10 percent.

The surprise and aggressive move by the RBI makes big brokerages nervous about India's growth prospects. Morgan Stanley expects a 75 to 100 bps downside to their GDP estimate of 6 percent, Bank of America Merrill Lynch cuts its FY14 GDP growth forecast to 5.5 percent.
Index heavyweights ITC and Reliance Industries gained 2 percent and 0.4 percent, respectively.

Bharti Airtel shares rallied 2.5 percent on the hopes the government may approve a 100 percent foreign direct investment in telecom.

Tata Motors and Tata Power too rebounded in afternoon trade, rising one percent each.
Meanwhile, ONGC , Hindustan Unilever , TCS and Sun Pharma gained 0.7-1.8 percent.

NIIT Technologies , after its first quarter earnings, says that the good signs of recovery is expected in the US and also strong traction is seen in domestic market. Its first quarter consolidated net profit fell to Rs 53.2 crore from Rs 56.6 crore reported in previous quarter.

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