11:30 am Markets are trading at their intra day high. The Sensex is up by 123 points to 16,339, up 216 points from the day’s low. Meanwhile, the Nifty continues to hover above the 4,900 level. The market breath is negative.
The market outlook seems negative. According to Jai Bala, chief market technician at Cashthechaos.com, the Nifty could be headed towards 4800 soon and that the rupee, is headed towards 57-58 a dollar soon.
The rupee strengthened sharply today from a near record low against the dollar after the Reserve Bank of India (RBI) stepped in with what dealers called “massive” intervention, signalling an intent to defend the beleaguered domestic currency, as per Reuters. Meanwhile, Finance Minister Pranab Mukherjee, expressing his concern over rise in food inflation has said that the prices could be kept under check through institutional reforms in agricultural marketing and he would discuss the issue with states.
Meanwhile, Moody’s Investors Service downgraded the long-term debt and deposit ratings for 26 Italian banks on Monday, citing the country’s recession and rising bad debt levels, as per Reuters.
Reuters
Among sectoral indices, capital goods and IT are the top gainers while autos and the public sector companies have shed gains. In the 30-share Sensex pack, 16 are in the green. Larsen and Toubro is the biggest gainer with a jump of 4.3 percent, extending Monday’s gains triggered by strong Q4 results.
Reliance Inds continues to be in the lime light as the stock is trading at Rs 681 per share, close to the March 2009 levels.
Eicher Motors is up 1.6 percent. The company reported an almost 50 percent jump in net profit.
Ashok Leyland fell 3 percent after net profit fell by 10 percent to Rs 565 crore.
KS Oils has fallen 1.7 percent after it reported a net loss of Rs 106 cr.
Orchid Chemicals is extending yesterday’s losses as the stock is down 8 percent. The company’s March quarter profits fell 75 percent and the management attributed this to repayment of Foreign Currency Convertible Bonds (FCCB).
