Post Session-Lackluster Friday for markets as Sensex ends flat Analysis for Jul 06, 2012

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The key domestic benchmarks ended on a flat note, with a negative bias on Friday as weak cues from Asia and Europe dampened sentiment. The decision by Chinese and European officials to cut interest rates on Thursday failed to cheer markets across Asia as investors worried that the latest policy action may not be enough to change the fortunes of the global economy. The European Central Bank (ECB) cut its key benchmark rate by 25 basis points to a record low of 0.75 per cent, but warned that the interest rate cuts may only have a limited impact on the euro area economy, which is slipping into a recession. China cut interest rates for the second straight month. Investors were also cautious ahead of the US jobs data today.

On the domestic front, investors remained on the sidelines ahead of the inflation and industrial output numbers due next week, which may influence the course of the RBI policy action over the near-term. After opening on a downbeat note, the Sensex slipped lower amid weak Asian cues. However, the benchmarks pared losses amid a pickup in buying in banking stocks. However, weak European cues accelerated selling pressure in domestic indices in late trade as the Sensex closed the day with marginal losses.

The BSE SENSEX closed at 17,521.12, down by 17.55 points or by 0.10 per cent and the NSE Nifty ended at 5,316.95, down by 10.35 points or by 0.19 per cent.

The BSE Sensex touched intraday high of 17,554.55 and intraday low of 17,425.47. The NSE Nifty touched intraday high of 5,327.2 and intraday low of 5,287.75.

Meanwhile, the BSE MIDCAP closed at 6,313.9, down by 35.36 points or by 0.56 per cent, while the BSE SMLCAP ended at 6,822.52, down by 14.02 points or by 0.21 per cent.

On the domestic front, Realty and Metal lost 1.20 per cent and 1.09 per cent, respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3574, shares advanced were 1359 while 1563 shares declined and 652 were unchanged.

The top losers of the BSE Sensex pack were Jindal Steel & Power Ltd. (Rs. 455.15,-3.17%), Sterlite Industries (India) Ltd. (Rs. 107.55,-2.00%), Tata Power Company Ltd. (Rs. 103.45,-1.99%), Maruti Suzuki India Ltd. (Rs. 1216.70,-1.93%), Hero MotoCorp Ltd. (Rs. 2084.65,-1.74%), among others.

Among the Asian markets, Shanghai Composite ended up 1.01 per cent, Hang Seng ended down 0.04 per cent and Nikkei 225 closed down 0.65 per cent today.

Among the European markets, CAC 40 was down 0.42 per cent, DAX was down 0.32 per cent and FTSE 100 was trading lower by 0.05 per cent at 16:34 PM IST.

Story first published: Friday, July 6, 2012, 18:20 [IST]
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