Post Session Market Analysis for Nov 16, 2011

Posted By: Religare
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Today, the domestic bourses ended on a bearish note, as the benchmarks continued their losing streak and declined for a fifth straight session amid weak global cues. The Capital goods and Power spaces showed maximum weakness.

BSE SENSEX closed at 16775.87 down by 106.8 points or by 0.63 % and then NSE Nifty ended at 5030.45 down by 38.05 points or by 0.75 %.The BSE MIDCAP closed at 5851.92 down by 55.27 points or by 0.94 %, while the BSE SMLCAP ended at 6374.79 down by 86.59 points or by 1.34 %.The BSE Sensex touched intraday high of 16878.3 and intraday low of 16641.65 The NSE Nifty touched intraday high of 5065.2 and intraday low of 4989.

The positive closing of the US markets on Tuesday failed to boost sentiment during morning trade. On Tuesday, the Dow Jones Industrial gained 17.18 points and closed at 12096.16. The S & P 500 gained 6.03 points and closed at 1257.81. The NASDAQ closed at 2684.66, gaining 28.98 points over the previous day"s closing. Soon after witnessing a gap down opening, the benchmarks slipped further as weak cues from the Asian markets weighed on sentiment. Asian markets fell on Wednesday amid worries that rising borrowing costs may severely impact France and the country could soon lose its prized AAA rating. Sentiment weakened further after the Bank of Japan cut the country"s growth outlook, citing risks stemming from the Eurozone debt crises. The benchmarks continued to trade below the baseline as sentiment remained subdued during afternoon trade. Thereafter, the benchmarks pared off some losses, before falling to the lowest point. However, the benchmarks recovered slightly from the day"s low towards the end of the session on supportive cues from the European markets. Finally, the benchmarks closed on a negative note, with the Sensex and Nifty shedding over 0.6% each. Among the sectoral indices, BSE Capital Goods and BSE Power fell by 3.88% and 2.02%, respectively.

Among the Sensex stocks, Jaiprakash Associates, Bharat Heavy Electricals, Larsen and Toubro, Sun Pharmaceuticals and Hero Motor Co fell by 4.49%, 4.15%, 4.04%, 3.03% and 2.73%, respectively. Among the 30 Sensex stocks, there were 11 advances and 19 declines. On BSE out of total shares traded 2997, shares advanced were 928 while 1967 shares declined and 102 were unchanged.

On the economic front, the government has cleared the changes in the PFRDA bill while approving 26 percent FDI in the pension sector.

On the global front, The Bank of Japan decided on Wednesday to keep its benchmark interest rate unchanged at near zero until price stability is in sight, while it warned that the slowdown in the US economy and Eurozone debt crises have increased the downside risks to Japan"s economic growth.

On the Asian front, Shanghai Composite fell by 2.48%, Hang Seng lost 2 % and Nikkei 225 closed down by 0.92% on Wednesday.

On the European front, FTSE100 was down by 0.44%, DAX fell by 0.66% and CAC40 was trading lower by 0.11 % on Wednesday.

On the corporate front, Steel Authority of India Ltd has signed a pact with Oman Oil Company to set up a 3-mt gas-based steel plant in Oman for an estimated investment of around Rs 150 billion. The share of the company closed lower by 5.2% at Rs 93.85 on the BSE on Wednesday.

Read more about: bse, nse
Story first published: Wednesday, November 16, 2011, 18:20 [IST]
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