Market Slips: Eyes On Inflation Data- Feb 26, 2009

The key benchmark indices are trading negative on account of monthly derivative expiry and weak sentiments across the global markets. Going ahead, the inflation data, which is to be announced in a short while, has also kept the traders away from taking any fresh positions. Besides, today the eyes will be on Commerce and Industry minister Kamal Nath, who is likely to announce a special package for exporters in the foreign trade policy. The package is targeted to bring down the operation cost for exporters who have been hit badly by the global slowdown. Among the sectoral indices, the BSE Bankex is down by 2.77% and the BSE CD has declined over 2.6%. On the other hand, the Realty index and yesterday''s gainer Metal index on the BSE are trading down by 1.49% and 1.02% respectively. Overall the market breadth is negative as 1016 stocks are trading in red while 646 stocks are in green.

At 11.30 AM, the BSE Sensex declined by 74.26 points at 8,828.29 and NSE Nifty down by 20.4 points at 2,742.1. The BSE Mid Cap and Small Cap are trading lower by 12.8 points and 21.07 points at 2,744.18 and 3,113.62 respectively.

Losers from the BSE Sensex Pack are Ranbaxy Lab down by (14.21%) to Rs. 177.8, along with ICICI Bank by (4.61%) to Rs. 324.8, Housing Development Finance Corporation Ltd by (4.14%) to Rs. 1202.5, DLF Ltd by (2.68%) to Rs. 150.45, Jaiprakash asso by (2.01%) at Rs.65.7 and BHEL by (1.49%) at Rs.1359.1.

Losers from the NSE Nifty Pack are Ranbaxy Ltd by (14.38%) at Rs. 177.45 along with ICICI Bank Ltd by (4.90%) at Rs. 323.9, PNB by (4.54%) at Rs. 325.9, Housing Development Finance Corporation Ltd by (4.16%) at Rs. 1202.5 and BPCL by (3.57%) at Rs.387.6.

BSE Bankex is trading lower by (2.77%) or 118.64 points at 4,158.39. The major losers are Canara Bank trading down by (7.37%) at Rs. 150.10, along with ICICI Bank by (4.61%) at Rs. 324.8, PNB by (4.13%) at Rs. 327.35, Axis Bank by (4.05%) at Rs. 351.40, followed by Bank of Baroda by (3.55%) to Rs.209.25.

BSE Consumer Durables is trading down by (2.62%) or 41.25 points at 1,534.82. The top losers in the index are Gitanjali GE down by (3.58%) to Rs. 40.35 along with Titan Industries by (2.90%) to Rs. 758, Blue Star by (2.74%) to Rs. 136.60, Videocon Ind by (1.50%) to Rs. 85.40, followed by Rajesh Exports by (1.04%) to Rs. 23.75.

Market Is Positive Eyes On Inflation Data- Feb 19, 2009

The benchmark indices have managed to trade about the line with marginal gain. Lack of specific news in the domestic arena has kept the sentiments low as the intensity of movement is weak. The inflation data to come in a short while has also kept the traders away from taking any fresh positions. The lower volumes of trade is still a major concern for the markets. Among the sectoral indices, the BSE realty index is up by 1.86% and the BSE CD has gained 1.51%. On the other hand, the FMCG index on the BSE has down by 0.31% while the BSE HC index declined by 0.06%. Overall the market breadth is positive as 1067 stocks are trading in green while 657 stocks are in red.

At 11.30 AM, the BSE Sensex up by 46.18 points at 9,061.37 and NSE Nifty surged by 16.8 points at 2,792.95. The BSE Mid Cap and Small Cap are trading higher by 21.61 points and 18.59 points at 2,865.91 and 3,244.66 respectively.

Gainers from the BSE Sensex Pack are Mahindra & Mahindra up by (3.60%) to Rs. 294.8, along with Wipro Ltd by (3.56%) to Rs. 216.5, Grasim Industries by (2.97%) to Rs. 1381.1, Housing Development Finance Corporation Ltd by (2.17%) to Rs. 1393.85, Maruti Suzuki by (2.06%) at Rs.630 and DLF by (1.70%) at Rs.161.4.

Gainers from the NSE Nifty Pack are Suzlon Energy Ltd by (4.32%) at Rs.43.5 along with Wipro Ltd by (3.51%) at Rs. 216.55, Mahindra & Mahindra by (3.42%) at Rs. 294.65, Zee Entertainment by (2.99%) at Rs. 115.4 and Grasim Industries by (2.71%) at Rs.1381.

BSE Realty is trading higher by (1.86%) or 27.77 points at 1,519.43. The major gainers are Akruti City trading up by (4.97%) at Rs. 1039.80, along with Housing Dev by (2.78%) at Rs. 81.40, Orbit Co by (2.71%) at Rs.45.55, Omaxe Ltd by (2.03%) at Rs. 45.20, followed by DLF by (1.70%) at Rs.161.4.

BSE Consumer Durables is trading up by (1.51%) or 23.61 points at 1,587.49. The top gainers in the index are Gitanjali GE surged by (3.13%) to Rs.46.20 along with Titan Industries by (1.90%) to Rs. 779.40, Blue Star by (1.88%) to Rs. 138, Rajesh Exports by (0.83%) to Rs. 24.20, Videocon Ind by (0.34%) to Rs. 89.85.

Bond yields hold at lows, rate cut debated

MUMBAI: Federal bond yields crawled near one-year lows on Tuesday as traders speculated on the likelihood of a rate cut at the central bank's policy review on Jan. 29. At 9:25 a.m., the 10-year bond yield was at 7.54 percent, steady from Monday's close. It fell to 7.51 percent on Friday, its lowest since January 2006. Total volume was a 4.95 billion rupees ($126 million) on the central bank's electronic platform.

"Yields are moving sideways around these levels as a 25 basis point repo rate cut is factored in at these levels," said Vikas Anand Naik, senior manager at Mumbai-based Dena Bank. "If the rate cut is around 50 basis points, then we may see bond yields rallying more," he said.

The 10-year bond yield fell 16 basis points last week and is now 36 basis points down from mid-December. Bonds have rallied as cash conditions in the banking system improved and as speculation grew of a likely rate cut due to low inflation and economic data.

Traders said a robust pipeline of supplies this week was helping keep bond yields in a tight range. The central bank will auction 65 billion rupees of treasury bills on Wednesday and will sell 40 billion rupees of market stabilisation scheme bonds on Thursday, the first MMS bond sales since early November.

It sold 208 billion rupees worth of bonds and bills last week. ICICI Bank expects the 10-year yield to remain within the 7.50-7.60 percent band with yields on an upward bias due to the fresh supplies. Spreads between the 1-year and 10-year bonds contracted to 24 basis points on Monday from 26 basis points on Friday, according to IDBI Gilts.