It was a volatile start for the markets as they closed in the red after a slight revival post inflation numbers. Both the Sensex and the Nifty fell 0.64 percent and 0.57 percent, respectively. The BSE Sensex fell 110.39 points to close at 17,103 while the Nifty fell 30 points and closed below 5,200 at 5,197.25.
The fall in markets could be attributed to two reasons. First is over doubt that whether RBI will cut rates and the second, after Met department said that the monsoon may miss forecast in July and may be deficient in September.
Reuters
The IT index was the biggest lower led by a sharp fall in Infosys which tanked by 2.8 percent, still reeling from disappointment over its earnings forecast last wee.
The June headline inflation rose a lower-than-expected 7.25 percent from a year ago, but core inflation was estimated at 4.85 percent, unchanged from levels in May.
However, it looks like foreign investors are taking advantage of the dips and are buying into Indian equities.
Foreign institutional investors have bought shares worth Rs 281.13 crore on Friday, 13 July 2012, as per provisional data released by the stock exchanges. Earlier, FIIs bought shares worth a net Rs 3363.10 crore in eight trading sessions from 3 July – 12 July 2012.
Stock specific news:
•While Tata Motors fell 2.84 percent, its global vehicles sale rose six percent in June from a year earlier helped mainly by a 39 percent rise in sales of luxury Jaguar Land Rover vehicles.
•Andhra Pradesh Paper Mills declined 6.3 percent to Rs 300 per share after it reported a net loss of Rs 15.8 crore for the June 2012 quarter against a net profit of Rs 16.3 crore in the year-ago corresponding quarter.
•Shanthi Gears gained 5 percent after Tube Investments announced on Friday that it plans to acquire a 44.1 percent stake in the company to enter the value added services market.
•Shares in telecom operator Bharti Airtel gained 3.8 percent on expectations for a favourable decision as the telecom ministry is scheduled to meet on Wednesday to decide on which prices to charge for 2G radio airwaves at an upcoming auction.
(With inputs from Reuters)
