11:30 am The markets continue to trade lower as both the BSE and NSE are down 0.4 percent. The BSE Sensex, the barometer of the Indian economy, is trading at 16,163, off 45 points from the day’s low and 50 points off from the day’s high. Meanwhile the NSE struggles to keep above the 4,900 level.
The midcap and the small cap index are up marginally by 0.4 percent. The market breadth is positive. On the BSE, there are 1,207 stocks have advanced while 978 declined.
Markets reversed Thrusday’s gain after the government came under pressure to roll back a petrol price hike, casting doubt about whether it would take the bolder step of raising other fuel prices. ONGC, which was the star performer yesterday, has fallen 1 percent.
While the Indian markets are acting stubborn, there are some sectors you can bet on. Vineet Bhatnagar, MD of MF Global feels that autos, metals and banks may lead in to a recovery.
Another issue impacting markets is the series of downgrades. According to Reuters, analysts at Goldman Sachs and Bank of America-Merrill Lynch cut their growth forecasts for India. Goldman Sachs has cut the c product forecast to 6.6 percent from 7.2 percent for the fiscal year ending in March 2013, citing a weaker investment outlook on the back of domestic policy uncertainties.
While Merrill Lynch also downgraded to 6.5 percent from 6.8 percent previously for fiscal 2012-13, though it cited the fallout from the euro zone crisis as its main rationale.
This follows up from Morgan Stanley’s downgrade which cut its fiscal 2012-13 growth forecast to 6.3 percent citing the the government’s expansionary policy of supporting consumption while investment slows as a key reason.
Stock specific news:
•TVS Motor Company jumped 3.29% to Rs 34.50 as the company’s profit after tax rose 28% to Rs 249 crore.
•Jet Airways fell 2.5% at Rs 313 after the company reported net loss to Rs 298.12 crore in Q4 March 2012.
•Hindalco Industries fell 1.5% at Rs 109 after the company’s US unit Novelis posted a quarterly loss, hurt by lower average aluminum prices and sales.
•Man Industries gained 3.6% to Rs 101 after net profit rose 35% to Rs 25 crore.
Among the BSE 200, Voltas (8 percent), Adani Enterprises (4.6 percent) and Indiabulls Fin (2.5 percent) are some of the gainers.
(With inputs from Reuters)
