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Today, the domestic bourses ended on a disappointing note as the Realty and Healthcare space took the biggest hit. The market started off the session mildly on the higher side tracking strength in the Asian front. Asian stocks traded higher during early trade after the Federal Reserve maintained efforts to stimulate the U.S. economy and new-home sales topped estimates, boosting confidence in a global recovery, whereas domestic participants are not seemed to be encouraged by the news. Further, the Japanese market surged on speculation that corporate earnings will improve in the coming quarters.
Soon after the positive start, the benchmark indices dipped into the negative terrain and started trading sideways in a tight narrow range. No attempt of recovery was seen throughout the session and in the second half market gradually started dragging further.
The 5,600 level on Nifty, which acted as a good support during the month of January was breached during intraday. Unencouraging food inflation data negated the sentiment during today’s trade with the Realty space facing the major sell-off.
In the sectorial front, the Realty and Healthcare space plunged the most, declining by 3.57% and 2.61% respectively. Further, the Metal, Banking and Oil&Gas stocks also faced hefty selling pressure and plunged by 1.98%, 1.85% and 1.61% respectively. Both the Nifty and Sensex witnessed extreme weakness throughout the session and finally closed near their respective session lows. The flat to positive closing for the overnight US markets had limited impact on the domestic front during morning trade. The Dow Jones Industrial Average (DJIA) closed with a gain of 8.25 points or 0.07% at 11,985.44, while NASDAQ index finished higher by 20.25 points or 0.74% to 2,739.5. The S&P 500 (SPX) closed up by 5.45 points or 0.42% to 1,296.63.
Among the Sensex pack, 28 stocks ended in negative while 2 ended in the positive terrain. The overall market breadth reflected similar weakness, as out of total 2,375 stocks traded on BSE, 940 stocks advanced whereas 1,883 stocks declined and 152 stocks remained unchanged.
The BSE Sensex closed down by 285.02 points or (1.5%) at 18,684.43 and NSE Nifty ended lower by 83.1 points or (1.46%) at 5,604.3. BSE Midcap closed with a loss of 135.63 points or (1.88%) at 7,087.16 while BSE Smallcap closed lower by 120.91 points or (1.35%) at 8,864.23. The BSE Sensex touched intraday high of 19,086.69 and intraday low of 18,656.05.
Gainers from the BSE Sensex pack were – Tata Motors (2.48%) and TCS (0.62%).
Losers from the BSE Sensex pack were – DLF (5.42%), Sterlite Inds (5.28%), M&M (4.87%), Rel Comm (3.88%) and HUL (3.78%).
On the macroeconomic front, the government data stated that the country’s food price index and the fuel price index rose 15.57 per cent and 10.87 per cent, respectively in the year to January 15, 2011 against 15.52 per cent and 11.53 per cent, respectively in the previous week. The primary articles price index was up 17.26 per cent in the year to January 15, 2011 against an annual rise of 17.03 per cent a week earlier. The wholesale price index rose 8.43 per cent in December from a year earlier, compared with 7.48 per cent in November.
The State government has started a programme ‘public enterprise reforms programme’, under the same, the government will be preparing the list of the industries that are financially sound for further action or not. As a result government has decided to shut down three PSU’s along with disinvesting 10 loss making PSU’s. “The exercise is part of government strategy to track and rate their performance on a regular basis. We will now look at devising a plan of action for such chronically ill companies,’’ said V P Baligar, principal secretary, department of commerce and industries. The department of public enterprises under the revised format has shortlisted around 42 PSU’s as sick and loss-making. The revised format applicable from 2011-2012 includes classification of the firms under 12 categories. “There is no alternative for the state than to go ahead with public enterprise reforms involving restructuring and disinvestments,’’ said a senior official, indicating the hurry the government is in disinvesting loss-making companies.
Regards,
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