Mid Session Market Analysis for May 04, 2011

Mid Session Market Analysis for May 04, 2011
On Wednesday, the Indian benchmark indices remain under pressure as investors booked profits on concerns that hike in interest rates is likely to negatively impact growth.

Throughout the trading session the markets were trading range-bound just below the baseline. Back on the domestic front, the microfinance sector received a huge leg up, first from the finance minister's budget speech and most recently, the RBI's acceptance of the Malegam Committee recommendations where it has re-affirmed priority sector status for microfinance.

RBI has capped bank investments into liquid schemes to 10% of the bank's net worth as of March 31 of the previous fiscal. Also, the broader market indices are trading lower as BSE Mid Cap fell by 0.8% and BSE Small Cap was down 0.7% respectively. The key benchmark indices are trading at BSE 30-share Sensex above 18,440 mark, while Nifty is above the 5,525 mark.

At 12:30PM BSE SENSEX was at 18444.68 down by -90.01 points or by -0.49 % and then NSE Nifty was at 5528 down by -37.25 points or by -0.67 %.

The BSE MIDCAP was at 6845.44 down by -51.9 points or by -0.75 %. while the BSE SMLCAP was at 8375.77 down by -60.2 points or by -0.71 %.

The BSE Sensex touched intraday high of 18558.33 and intraday low of 18339.53 The NSE Nifty touched intraday high of 5567.7 and intraday low of 5503.

On the economic front, India is targeting to more than double its merchandise exports in three years, it said Tuesday, adding it would step up a drive to diversify its markets to achieve the goal. "This (target) is achievable, with a determined effort," Commerce Minister Anand Sharma said in a strategy paper released in New Delhi.

India's exports in the last fiscal year hit a record $245.9 billion as demand for made-in-India goods picked up following a slump due to the global financial crisis. The performance beat the government's target of $225 billion with the surge propelled by demand mainly from the United States, some western European markets and new destinations in Latin America and Africa.

On the corporate front, Dabur India Ltd. has entered into an agreement with Mumbai-based Ajanta Pharma Ltd. to acquire its over-the-counter '30-Plus' brand for an undisclosed amount.

IDBI Bank on Tuesday raised lending and deposit rates by up to 50 basis points soon after RBI's monetary policy action. The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2,674, shares advanced were 831 while 1,742 shares declined and 101 were unchanged.

The top losers of the BSE Sensex pack were Bajaj Auto Ltd. (Rs. 1314.45,-3.84%), Hero Honda Motors Ltd. (Rs. 1611.30,-2.96%), Housing Development Finance Corporation Ltd. (Rs. 668.15,-2.38%), Hindalco Industries Ltd. (Rs. 202.00,-2.18%), Reliance Infrastructure Ltd. (Rs. 642.00,-2.10%), among others.

In BSE, BSE Auto index was at 8944.22 down by -164.76 points or by -1.81%. Amtek Auto Ltd. (Rs. 151.90,-3.95%), Bajaj Auto Ltd. (Rs. 1314.45,-3.84%), Hero Honda Motors Ltd. (Rs. 1611.30,-2.96%), Maruti Suzuki India Ltd. (Rs. 1247.45,-2.07%), Mahindra & Mahindra Ltd. (Rs. 694.10,-1.94%).

In BSE, BSE_IT index was at 5984.67 down by -95.64 points or by -1.57%. Patni Computer Systems Ltd. (Rs. 371.25,-6.64%), MphasiS Ltd. (Rs. 445.80,-4.77%), HCL Technologies Ltd. (Rs. 500.30,-2.84%), Infosys Technologies Ltd. (Rs. 2867.00,-1.50%), Tata Consultancy Services Ltd. (Rs. 1121.00,-1.43%).

The leading Asian bourses are trading negative as Hang Seng, Seoul Composite, Straits Times and Shanghai Composite trading down by 1.36%, 0.91%, 1.41% and 2.00% respectively.

Read more about: bse, nse, sensex, nifty
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