Post Session - Sensex ends down 0.12% in special trading session Analysis for Jan 07, 2012

The domestic benchmarks ended a special trading session today on a bearish note as weak global cues weighed on sentiment. The Banking and FMCG space led the decline.

BSE SENSEX closed at 15848.8 down by 18.93 points or by 0.12 % and then NSE Nifty ended at 4746.9 down by 7.2 points or by 0.15 %.The BSE MIDCAP closed at 5297.62 up by 38.38 points or by 0.73 %. while the BSE SMLCAP ended at 5761.61 up by 57.29 points or by 1 %.The BSE Sensex touched intraday high of 15900.3 and intraday low of 15835.29 The NSE Nifty touched intraday high of 4759.4 and intraday low of 4743.05.

The negative closing of the US markets on Friday impacted domestic sentiment during morning trade. On Friday, the Dow Jones Industrial Average index closed down by 0.45% or 55.78 points at 12,359.92, the S&P 500 ended down 0.25% or 3.25 points at 1,277.81 and the Nasdaq ended up by 0.16% or 4.36 points at 2,674.22. Soon after opening on a flat note, the domestic benchmarks traded volatile as traders booked profits ahead of the corporate earnings season beginning next week. Moreover, weak cues from the US and the European markets on Friday also weighed on sentiment. Sentiment weakened after Italy's borrowing costs surged past the 7 per cent mark and the Euro fell to a 16-month low against the dollar amid concerns that the debt crises is deepening . A sharp slump in German factory orders in November 2011 added to fears that the Euro zone's largest economy is slipping into a recession amid a decline in overseas demand. German factory orders fell at the sharpest rate in almost three years in November 2011, dropping by 4.8 per cent from October 2011. Moreover, a decline in Eurozone economic confidence in December 2011 and a drop in Euro area retail sales in November 2011 weighed on sentiment .A positive US jobs data report on Friday failed to lift sentiment. The US economy added 2,00,000 jobs in December 2011 while the jobless rate fell to 8.5 per cent in December 2011 from 8.6 per cent in November 2011. After trading choppy for most of the session, the domestic benchmarks slumped to the day's low amid subdued investor sentiment. Finally, the benchmarks ended on a slightly lower note, with the BSE Sensex and the NSE Nifty shedding over 0.10% each. Among the BSE Sectoral indices, the BSE Bankex and the BSE FMCG index ended down by 0.33% and 0.22% respectively.

Among the 30 Sensex stocks, Jaiprakash Associates, ICICI Bank, Bajaj Auto, Hindalco Industries and Sterlite Industries closed lower by 2.35%, 0.79%, 0.76%, 0.67% and 0.58% respectively. Among the Sensex stocks, there were 15 advances and 15 declines. On BSE out of total shares traded 2343, shares advanced were 1590 while 678 shares declined and 75 were unchanged.

On the economic front, Finance Minister Pranab Mukherjee said on Friday that the nation's fiscal deficit for 2011-12 may be more than estimated and insisted that the worsening global economic outlook is having an impact on the Indian economy.

On the global front, leading global credit rating agency Fitch ratings downgraded the sovereign credit rating of Hungary to junk status on Friday amid further deterioration in the country's fiscal and external financing environment and a worsening growth outlook.

On the Corporate front, according to reports, Capital market regulator SEBI has imposed a Rs 60 lakh fine on Jaiprakash Associates' senior management for alleged insider trading in the company's shares. The stock of Jaiprakash Associates closed down 2.35% at Rs 51.90 on the BSE on Saturday.

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