Post Session Market Analysis for Nov 14, 2011

Today, the domestic bourses ended on a bearish note, as the benchmarks continued to decline for a third straight session amid disappointing inflation data. Realty and Metal stocks showed maximum weakness.

BSE SENSEX closed at 17118.74 down by 74.08 points or by 0.43 % and then NSE Nifty ended at 5148.35 down by 20.5 points or by 0.4 %. The BSE MIDCAP closed at 6063.75 down by 98.6 points or by 1.6 %, while the BSE SMLCAP ended at 6645.49 down by 119.23 points or by 1.76 %. The BSE Sensex touched intraday high of 17391.99 and intraday low of 17094.43 The NSE Nifty touched intraday high of 5228.9 and intraday low of 5140.55.

The positive closing of the US markets on Friday boosted domestic sentiment during morning trade. On Friday, the Dow Jones Industrial gained 259.89 points and closed at 12153.68. The S&P 500 gained 24.16 points and closed at 1263.85. NASDAQ closed at 2677.21, gaining 53.60 points over the previous day"s closing. Soon after witnessing a gap up opening, the benchmarks rallied amid positive global cues. Easing concerns over the Eurozone debt crises lifted investor sentiment amid optimism that the newly appointed regimes in Greece and Italy will be able to implement austerity measures and tackle the debt contagion. Moreover, a rebound in the Japanese economy in the third quarter also added to optimism. The domestic benchmarks continued to trade range bound in the positive terrain during afternoon trade before slipping below the baseline after the release of the inflation numbers. India"s inflation exceeded 9 percent for the 11th straight month in October 2011, leaving little room for the RBI to ease monetary policy. Investors are concerned that another interest rate hike by the RBI may weigh heavily on the country"s growth in the near-term. The benchmarks extended their losses in the final couple of hours of trading and plunged to their lowest point towards the end of the session. Finally, the benchmarks closed on a negative note, with the Sensex and Nifty shedding over 0.4% each. Among the sectoral indices, BSE Realty and BSE Metal closed lower by 2.56% and 2.16 % respectively.

Among the Sensex stocks, Mahindra and Mahindra, Tata Steel, Maruti Suzuki, State Bank of India and DLF fell by 5.73%, 4.03%, 2.96%, 2.48% and 2.3%, respectively. Among the 30 Sensex stocks, there were 9 advances and 21 declines. On BSE out of total shares traded 2992, shares advanced were 893 while 2012 shares declined and 87 were unchanged.

On the economic front, India"s inflation stood above the 9 percent mark for the 11th straight month. The benchmark wholesale-price index rose 9.73 percent in October 2011 from the same month last year.

On the global front, The Japanese economy rebounded in the third quarter, 2011 as gross domestic product (GDP) expanded for the first time in four quarters, boosted by domestic consumption and overseas shipments, a report by the Cabinet Office said on Monday. This lifted sentiment across Asian stock markets.

On the Asian front, Nikkei 225 advanced by 1.05%, Shanghai Composite closed higher by 1.92%, while Hang Seng gained 1.94% on Monday.

On the European front, FTSE100 fell by 0.10%, DAX was down by 0.31% and CAC40 was trading lower by 0.94% on Monday.

On the Corporate front, Mahindra and Mahindra reported a 2.77 percent decline in Q2,2011-12 net profit at Rs 7.37 billion, compared to the same period last year. The stock ended lower by 5.73% at Rs 790.40 on the BSE.

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