Sensex, Nifty to see further lows: Friday Closing Report

The Nifty may be headed to the level of 5,045 and then to 5,000

Concerns about the proposed tax issues, the depreciating rupee and weakening macro picture led the market sharply lower today. Yesterday we had mentioned in that the Sensex and the Nifty may be headed down again. We also said that the Nifty may reach the level of 5,150, which it did in the morning session itself. The Nifty went on to hit a low of 5,071 in the afternoon session, which is the lowest low since 24 January 2012. We may now see the index falling to the level of 5,045 and then to 5,000. However, if on any day the benchmark closes above previous day's high, we may see a change in the direction.  The National Stock Exchange (NSE) saw a higher volume of 65.95 crore shares.   

The market opened lower following lacklustre movement in the Asian bourses in morning trade. Tepid services sector growth and the retail sector missing April sales forecasts led the US markets lower in overnight trade, which also had a bearing on Asia today. Negative domestic news also weighed on the investors. The Nifty opened 21 points lower at 5,167 and the Sensex shaved off 81 points from its previous close to resume trade at 17,067.

The market hit its intraday high in initial trade with the Nifty touching 5,177 and the Sensex rising to 17,121. However, intense selling pressure in subsequent trade resulted in all sectoral indices trading in the negative and the benchmarks slipping below their psychological levels.

News reports suggesting that the Indian government is likely to review its double taxation avoidance treaty with Mauritius in order to boost revenues led the market further southwards in post-noon trade.

The benchmarks fell to their lows in late trade with the Nifty falling to 5,071 and the Sensex tumbling to 16,777. The market closed marginally off the lows. The Nifty finished 102 points down at 5,087 and the Sensex settled at 16,831, a drop of 320 points.

The advance-decline ratio on the NSE was 310:1424.

Among the broader indices the BSE Mid-cap index declined 2.15% while the BSE Small-cap index dropped 1.81%.

The lone gainer in the sectoral indices was, BSE Health Care which rose 0.24%. The losers were led by BSE Capital Goods (down 3.74%); BSE Bankex (down 3.17%); BSE Metal (down 2.51%); BSE PSU (down 2.49%) and BSE Realty (down 2.46%).

Cipla (up 2.46%); Wipro (up 0.63%); Hindustan Unilever (up 0.30%); Sun Pharmaceutical (up 0.15%) and Tata Motors (up 0.02%) were the top gainers on the Sensex. The top losers were BHEL (down 4.93%); Hero MotoCorp (down 4.42%); State Bank of India (down 4.39%); Larsen & Toubro (down 4.30%) and Bajaj Auto (down 3.76%).

The Nifty toppers were Cipla (up 2.85%); Wipro (up 0.64%); Sun Pharmaceutical (up 0.58%); Asian Paints (up 0.40%) and Tata Motors (up 0.22%). The main laggards were Bank of Baroda (down 6.34%); Punjab National Bank (down 5.19%); Axis Bank (down 4.95%); Larsen & Toubro (down 4.94%) and BHEL (down 4.82%).

The Asian pack closed mostly lower investors were concerned about the slowing pace of global economic growth on the back of weak economic indicators. On the other hand, the Chinese market settled higher on news that the government is likely to announce new initiatives for brokerages.

The Hang Seng declined 0.77%; the Jakarta Composite fell by 0.17%; the Straits Times dropped 0.34% and the KOSPI Composite slipped 30%.  On the other hand, the Shanghai Composite gained 0.49%; the KLSE Composite rose 0.50% and the Nikkei 225 advanced 0.31%. At the time of writing, the key European indices were down between 0.66% and 0.97% and the US stock futures were in the negative.

Back home, foreign institutional investors were net buyers of shares totalling Rs73.74 crore on Thursday while domestic institutional investors were net sellers of equities amounting to Rs347 crore.

Bank of India (BoI) announced reduction in its home loan rates by up to 0.75% as well as a 0.25% drop in the base rate to 10.50%.Accordingly, the new rates will be 10.50% for loans up to Rs 30 lakh, 10.75% for over Rs 30 lakh but less than Rs 75 lakh and 11.25% for those above Rs 75 lakh. The rates are floating ones and are linked to the bank's base rate which at present is 10.50%. The stock fell 1.62% on the BSE to close at Rs 328.20


Tata-owned JLR to build new Jaguar F-type sports car

JLR intends to invest around 200 million pounds on expanding the facility by 50%

London: India's Tata-owned Jaguar Land Rover is planning to expand its plant at Castle Bromwich to build new Jaguar models and overhaul the brand, reports PTI.

According to The Telegraph, JLR intends to invest around 200 million pounds on expanding the facility by 50%.

The company will manufacture the new Jaguar F-Type sports car, the successor to the historic E-type, at the Castle Bromwich plant.

The investment plans come just three years after the factory was threatened with closure as JLR considered cutting its UK workforce in order to cope with a sharp drop in sales, the newspaper said.

It is understood the investment in Castle Bromwich has been discussed with trade unions ahead of a vote on a new pay deal at JLR, it said.

The expansion of the factory is a boost for the coalition government, which is seeking to increase British exports and rebalance the economy, the Telegraph said.

JLR is benefiting from booming demand for its premium cars in emerging markets such as China.

The company has invested in its Solihull site and earlier this year it kicked off a search for 1,000 new workers in Halewood, Merseyside, to increase production of the popular Range Rover Evoque, the report said.

So far the turnaround at the company has been led by Land Rover.

In the first quarter of 2012 JLR sales in Europe rose 24.9% to 20,734.

But Jaguar sales rose by 7% to just 4,164, while Land Rover sales increased 30% to 16,570 during the period.

To kickstart the growth of Jaguar, the company wants a convertible version of the F-Type to go on sale next year, followed by the launch of a coupe.

JLR is investing 1.5billion pounds a year on research and development and wants to launch 40 new models or variants of new models in the next five years, the newspaper said.

The company is on course for record pre-tax profits this year of around 1.5 billion pounds, thanks to demand for the Range Rover Evoque, the Telegraph added.




2 years ago

Dad just bought one of the F type devilish machines. It is a little on the heavy side weighing in at 1594kg. But what a ride. I got thrown back in my seat when we took off on the freeway. Its sexy. You should here the engine I have never heard anything like it whooping, pops, bangs listen over here

Aventis Pharma Q1 net profit dips 21% to Rs40 crore

Net sales of the company rose to Rs322.5 crore for the first quarter ended 31 March 2012, as compared to Rs276.3 crore in the corresponding period of last year.

New Delhi: Aventis Pharma said its net profit declined by 20.75% to Rs40.1 crore for the first quarter ended 31 March 2012, over the same period previous year, reports PTI.

The pharmaceutical company reported a net profit of Rs50.6 crore in the same period of previous year, Aventis Pharma said in a BSE filing.

"The profit of the quarter has been impacted due to the amortisation costs relating to the brands and technical know how acquired in 2011 from Universal Medicare and lower interest income as a result of the above investment," it said.

Net sales of the company rose to Rs322.5 crore for the first quarter ended 31 March 2012, as compared to Rs276.3 crore in the corresponding period of last year.

The company's board recommended a final dividend of Rs29 per share of a face value of Rs10 for the year ended 31 December 2012.

At 10:51 a.m., Aventis Pharma shares were trading at Rs2100 per share, down 1.78%, on the Bombay Stock Exchange, while the benchmark Sensex was marginally lower at 17,022.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)