Crisis in stock market

After the decline of  sensex index in trading of stock market i.e., sensex was down by 723 points, NIFTY down by 228 points, Gold up by 45 points. But yesterday almost R.S 2.89 lakh crore  evopourated in a day. So now its good time to enter the trading market by getting a through analysis of market and then invest. Because  analysts believe stocks with good earning prospects  are at cheap valuation. Inspite of  of the downtrend of market since 3 weeks by 2400 points, there was flash sale.

There  was almost 17 lakhs NIFTY trading  within 2 minutes  which is known as flash sale

ICICI bank earning was down , BHEL, Bata india, Crompton Greaves and L&T finance was down by 30%

There was a little rise in Bharati Airtel

SENSEX ends day slightly higher

The benchmark BSE Sensex rose 0.07 percent, or 13.09 points, to end at 19,255.09.The broader Nifty rose 0.14 percent, or 8.05 points, to end at 5,855.75.

The BSE Sensex edged slightly higher on Monday as Tata Motors extended its recent rally on hopes of improved sales at its key unit Jaguar Land Rover, while short-covering helped technology shares such as Infosys advance.

Volumes were thin, with global shares steady, as the holiday mood set in across markets despite tensions over the U.S. budget dispute.

The thin volumes could exacerbate the volatiliy expected later this week ahead of the monthly derivatives expiry on Thursday.

“Indian shares are adopting a wait-and-watch policy to await the outcome of the U.S. fiscal cliff and not moving in a tangible manner,” said Kaushik Dani, fund manager at Peerless Mutual Fund.On the domestic front, third-quarter earnings will also start and developments on earnings will determine the direction of the market, Dani added.

Tata Motors Ltd ended 2.52 percent higher, extending a rally on hopes of improved sales at its key unit Jaguar Land Rover and as the company planned investment into passenger vehicles.

The auto-maker’s shares have gained 9.5 percent so far this month, as of Friday’s close.

Technology shares gained on short-covering as the recent underperformance was seen as overdone. Infosys Ltd rose 1.1 percent after falling 5.75 percent this month, as of Friday’s close.

Tata Consultancy Services Ltd was up 0.6 percent.

Analysts expect the technology sector to see some pick-up in outsourcing activity as the sector has been beaten down in 2012 due to the eurozone crisis and unfavorable election rhetoric in the U.S.

Glenmark Pharmaceuticals gained 4.23 percent after a unit entered into a development pact with Forest Laboratories, which will make an upfront payment of $6 million to the Indian drugmaker.

Loss-making Kingfisher Airline rose 5 percent, its maximum daily limit, after TV news channels reported it had submitted a revival plan to the civil aviation authorities, without citing sources.

Oil & Natural Gas Corp shares fell 1.9 percent after the stock went ex-dividend on Monday. The explorer had offered a dividend of 5 rupees for 2012/13.

Shares in Tata Steel fell 0.5 percent after the company reported a clash between contract workers and security guards at its main Jamshedpur plant in eastern India on Monday.

Maruti Suzuki Ltd shares ended 1.73 percent lower on concerns about its domestic passenger car sales outlook.

Angel Broking says Maruti Suzuki expects “muted” volume growth of around 6 percent in fiscal 2013 and 6-7 percent in fiscal 2014, according to a note on Monday, citing the automaker’s management.

Sensex closed at 19091, losing 296 points

• Indian shares provisionally closed 1.5 percent lower on Monday led by losses in Infosys  and financial stocks, as worries over quarterly earnings and further interest rate increases dampened investor sentiment.
•  Selling pressure in the afternoon took its toll on the markets and forced both the benchmark indices to lose about 1.5% in a single trading session. IT along with interest rate sensitive sectors like realty, banking and capital goods remained the worst performers and auto and a few FMCG counters were only a few stocks that performed a bit better. Selling pressure primarily came from hedge funds and FIIs. The Sensex closed at 19091, down 296 points from its previous close, and Nifty shut shop at 5729, down 95 points. The CNX Midcap index was down 1.5% and the BSE smallcap  index was down 0.8%. The market breadth was negative with advances at 335 against declines of 965 on the NSE. The top Nifty gainers were HUL,Hero Honda, Bajaj Auto and ONGC and prime losers included DLF,HCL tech, Sesa goa and TCS.
•  The Indian rupee erased early gains to trade weaker on Monday afternoon as local shares turned negative and the euro fell sharply.At 2:39 p.m., the partially convertible rupee was at 44.3350/3400 per dollar, almost steady from Friday’s close of 44.3250/3350, but down from Monday’s high of 44.2550.
• World finance leaders must find a way to bring down debt while creating jobs and watching over their shoulders for the threat of inflation, the head of the Organisation for Economic Cooperation and Development said on Saturday.
•  China’s banking regulator will launch a thorough examination this year of loans extended over the past few years, and will tighten the issuance of banking licenses in response to global easing of liquidity, the Shanghai Securities News reported on Monday.
• China still has room to further tighten monetary policy, the official China Securities Journal said in a front-page editorial on Monday.
•  China and India reported higher-than-expected inflation readings on Friday, giving fresh ammunition to central bankers and investors alike who are worried about mounting price pressures in the global economy.
•  India’s food price index rose 8.28 percent and the fuel price index climbed 12.97 percent in the year to April 2, government data on Friday showed.
• The euro sank on Monday and European stocks fell into the red for the year as the rise of a euro-skeptic party in Finland and growing unease about Greek debt battered investor sentiment in the single currency zone.
• Brent crude oil fell $1 a barrel on Monday to below $123 after a cut in output from the world’s top exporter Saudi Arabia raised concern that high prices were hurting demand.
• Spot gold hit a record high and silver rose to a 31-year high on Monday, fueled by concerns of rising inflation globally, while a lingering euro zone sovereign debt crisis continued to boost safe-haven demand in precious metals.
• The euro extended its losses on Monday after repeated attempts to break above a resistance level failed yet again and on renewed worries about euro zone debt problems, giving the dollar a much needed reprieve after the recent sell-off.
• Europe’s debt crisis weighed on financial stocks on Monday, dragging Britain’s top share index lower, while analysts said short-term macro pressures present an attractive longer-term buying opportunities on the FTSE.
• General Motors Co plans to team up with its partners to introduce light commercial vehicles to India, the head of its international operations said on Monday.
• High oil prices represent a potentially major burden for importers with global economic recovery still fragile, leading OPEC ministers said on Monday.

15 points were less in overall sensex

• The markets were quite volatile today and both the benchmark indices closed flat. Textile, brokerage, midcap banks and sugar remained the star performers of today’s trade and infra stocks also registered strong buying. The Sensex closed at 19687, down 15 points from its previous close, and Nifty shut shop at 5910, up 2 points.
• From the Sensex stocks on the losing side, Tata Power declined by 1.77 per cent, M&M (1.49 %), HUL (1.45 %), L&T (1.34 %), HDFC (1.03 %), Bajaj Auto (1.02 %), REL Infra (1 %), ICICI Bank (0.83 %), RIL (0.47 %) and ITC (0.38 %).However, gainers were Sterlite Ind rose by 2.83 %, REL Com (2.79 %), TCS (2.30 %), Tata Motors (2.04 %), BHEL (1.64 %), Hero Honda (1.61 %) and SBI (1.14 %).Among sectoral indices, BSE-CD firmed up 1.72 per cent, BSE-Metal by 1.33 per cent and BSE-Realty by 0.74 per cent.
• The total market breadth remained strong as 1,985 stocks closed in the green, while 994 ended in the red on the BSE. The total turnover improved further to Rs 3,698.77 crore from Rs 3,212.45 crore yesterday.
• The Indian rupee raced to a five-month high on Tuesday, the first trading session of the new fiscal year, driven by robust dollar inflows, but gains were capped by weakness in most regional peers.
• High oil prices have raised concerns about a higher subsidy bill for the government, inflationary pressures and high interest rates, marketmen said.
• For May delivery, crude oil settled yesterday at the highest level since September 22, 2008 and was close to USD 109 a barrel in New York.
• Selling in heavyweights like L&T, ICICI Bank, HDFC, RIL, M&M, HUL, Tata Power and ITC weighed on the market.
• A recent increase in U.S. inflation is driven primarily by rising commodity prices globally, and is unlikely to persist, Federal Reserve Chairman Ben Bernanke said on Monday.
• The Supreme Court lifted a ban on iron ore shipments from Karnataka on Tuesday, freeing up about a quarter of supplies from the world’s third-largest exporter as strong demand from China keeps prices firm.
• The United States will hit the legal limit on its ability to borrow no later than May 16, Treasury Secretary Timothy Geithner said on Monday, ramping up pressure on Congress to act to avoid a debt default.
• Had there not been a rise in TCS, Tata Motors, SBI, Sterlite Ind and BHEL, the fall in the Sensex would have been much more pronounced.
• “The subdued price action in today’s session was in sync with the lacklustre global cues as investors turned a little wary over rising crude oil prices,” said Amar Ambani, Head of Research (India Private Clients) – IIFL.
• Portugal’s biggest banks will stop buying government bonds and are urging the caretaker administration to seek a short-term loan to secure financing until a June 5 election, business daily Jornal de Negocios reported on Tuesday.
• In Asian markets, China, Hong Kong and Taiwan were closed for public holiday. The key indices from Japan ended down by 1.06 per cent, although Singapore and South Korean markets finished better.
• European stocks, however, were trading lower in their mid-sessions. The CAC was down 0.61 per cent, the DAX and the FTSE by 0.31 per cent each.
• The prospect of a good winter harvest is likely to bring down food inflation in India to about 8 percent by end-March, a senior government adviser said on Monday.
• Sales of small cars raced ahead in March as buyers flocked to more fuel-efficient vehicles, a trend major U.S. automakers expect to persist if gasoline prices continue to rise.
• The United States will hit the legal limit on its ability to borrow no later than May 16, Treasury Secretary Timothy Geithner said on Monday, ramping up pressure on Congress to act to avoid a debt default.
• U.S. inflation is likely to remain low for now, but policymakers will keep a close eye on potentially self-fulfilling consumer expectations for higher prices, a top Federal Reserve official said.
• Japan’s nuclear crisis is likely to lead to one of the country’s largest and most complex ever set of claims for civil damages, handing a huge bill to the fiscally strained government and debt-laden plant operator, Tokyo Electric Power Co.
• Credit rating agency Fitch downgraded Portugal on Friday saying the debt-laden country needed a bailout, while rival agency S&P cut Ireland’s rating after bank stress tests revealed another black hole.
• Nasdaq OMX and IntercontinentalExchange bid $11.3 billion for NYSE Euronext in an effort to trump Deutsche Boerse’s deal, and pushed their case with an appeal to U.S. patriotism.
• European banks heavily supported by the U.S. Federal Reserve at the height of the financial crisis have since weaned themselves off these loans, even as the struggle for funding in Europe gets tougher.
• Standard & Poor’s stripped Ireland of its last major ‘A’ rating on Friday, citing future risks to bondholders, but the 1 notch cut and stable outlook was less severe than feared and gave the thumbs up to the state’s bank bill.

sensex rose 623 points, measures proposed in the Union Budget 2011-12 would attract foreign inflows

• The Sensex closed at 18475 (provisional), up 651 points from its previous close, and Nifty closed at 5532 (provisional), up 199 points.
• The markets registered robust growth today with all sectoral indices closing in the green. Auto was the biggest gainer of today’s trade followed by capital goods, banking and realty.
• Indian shares provisionally rose 0.7 percent on Monday, after the annual budget announced incentives for private investment in infrastructure.
• Indian shares were up more than 1 percent in early trade on Tuesday tracking firm Asian equities, and after the finance minister said he expects the economy to grow by nearly 9 percent in the next fiscal year.

• Finance Minister Pranab Mukherjee on Monday presented to parliament the budget for the coming financial year beginning in April.

Following are the highlights of the budget:
BORROWING
* Gross market borrowing for 2011-12 seen at 4.17 trillion rupees.
* Net market borrowing for 2011-12 seen at 3.43 trillion rupees.
* Revised gross market borrowing for 2010-11 at 4.47 trillion rupees.
FISCAL DEFICIT
* Fiscal deficit seen at 5.1 percent of GDP in 2010-11
* Fiscal deficit seen at 4.6 percent of GDP in 2011-12
* Fiscal deficit seen at 3.5 percent of GDP in 2013-14
SPENDING
* Total expenditure in 2011-12 seen at 12.58 trillion rupees.
* Plan expenditure seen at 4.41 trillion rupees in 2011-12, up 18.3 percent.
REVENUE
* Gross tax receipts seen at 9.32 trillion rupees in 2011-12.
* Corporate tax receipts seen at 3.6 trillion rupees in 2011-12.
* Tax-to-GDP ratio seen at 10.4 percent in 2011-12; seen at 10.8 percent in 2012-13.
* Customs revenue seen at 1.52 trillion rupees in 2011-12.
* Factory gate duties seen at 1.64 trillion rupees in 2011-12.
* Non-tax revenue seen at 1.25 trillion rupees in 2011-12.
* Service tax receipts seen at 820 billion rupees in 2011-12.
* Revenue gain from indirect tax proposals seen at 113 billion rupees in 2011-12.
* Service tax proposals to result in net revenue gain of 40 billion rupees in 2011-12.
SUBSIDIES
* Subsidy bill in 2011-12 seen at 1.44 trillion rupees.
* Food subsidy bill in 2011-12 seen at 605.7 billion rupees.
* Revised food subsidy bill for 2010-11 at 606 billion rupees.
* Fertiliser subsidy bill in 2011-12 seen at 500 billion rupees.
* Revised fertiliser subsidy bill for 2010-11 at 550 billion rupees.
* Petroleum subsidy bill in 2011-12 seen at 236.4 billion rupees.
* Revised petroleum subsidy bill in 2010-11 at 384 billion rupees.
* State-run oil retailers to be provided with 200 billion rupee cash subsidy in 2011-12.
GROWTH, INFLATION EXPECTATIONS
* Inflation seen at 5 percent in 2011-12.
* Economy expected to grow at 9 percent in 2012, plus or minus 0.25 percent.
TAXES
* Standard rate of excise duty held at 10 percent.
* Service tax rate kept at 10 percent.
* To widen scope of service tax.
* To raise minimum alternate tax to 18.5 percent from 18 percent.
* Iron ore export duty raised to 20 percent.
* Personal income tax exemption limit raised to 180,000 rupees.
* To reduce surcharge on domestic companies to 5 percent.
DISINVESTMENT
* Disinvestment in 2011-12 seen at 400 billion rupees.
POLICY REFORMS
* Foreign direct investment policy to be liberalised further in 2011-12.
* To create infrastructure debt funds.
* To boost infrastructure growth with tax-free bonds of 300 billion rupees.
* Raised foreign institutional investor limit in 5-year corporate bonds for investment in infrastructure by $20 billion.
* Food security bill to be introduced this year.
* To permit Securities and Exchange Board of India (SEBI) registered mutual funds to access subscriptions from foreign investments.
* Public debt bill to be introduced in parliament soon.
SECTOR SPENDING
* To allocate more than 1.64 trillion rupees to defence sector in 2011-12.
* Corpus of rural infrastructure development fund raised to 180 billion rupees in 2011-12.
* To provide 201.5 billion rupees capital infusion in state-run banks in 2011-12.
* To allocate 520.5 billion rupees for the education sector.
* To raise health sector allocation to 267.6 billion rupees.
AGRICULTURE
* To focus on removal of supply bottlenecks in the food sector in 2011-12.
* To raise target of credit flow to agriculture sector to 4.75 trillion rupees.
* Gives 3 percent interest subsidy to farmers in 2011-12.
* Cold storage chains to be given infrastructure status.
* Capitalisation of National Bank for Agriculture and Rural Development (NABARD) of 30 billion rupees in a phased manner.
* To provide 3 billion rupees for 60,000 hectares under palm oil plantation.
* Actively considering new fertiliser policy for urea.
FINANCE MINISTER ON THE STATE OF THE ECONOMY
* “Fiscal consolidation has been impressive. This year has also seen significant progress in those critical institutional reforms that will pave the way for double digit growth in the near future.”
* “At times the biggest reforms are not the ones that make headlines, but the ones concerned with details of governance which affect the everyday life of aam aadmi (common man). In preparing this year’s budget, I have been deeply conscious of this fact.”
* Food inflation remains a concern.
* Current account deficit situation poses some concern.
* Must ensure that private investment is sustained.
* “The economy has shown remarkable resilience.”
FINANCE MINISTER ON GOVERNANCE
* “Certain events in the past few months may have created an impression of drift in governance and a gap in public accountability … such an impression is misplaced.”
* Corruption is a problem, must fight it collectively.

• ASSOCHAM cheers budget proposals aimed at reducing fiscal deficit. Apex chamber ASSOCHAM described the proposals of Union Budget for 2011-12 as positive and encouraging which attempt at reducing the fiscal deficit down to 5.1 per cent from the earlier estimate of 5.6 per cent for the current fiscal year and 4.6 per cent for the next.

• NASSCOM today expressed its disappointment on the Union Budget Proposals 2011-12 that chartered a roadmap on sustaining a high growth trajectory for the country, but missed the relevant thrust for business to enable this growth.MAT imposed on SEZ; 10A/10B tax incentives withdrawn.Policies announced for service tax refunds; transfer pricing – need to ensure implementation.
• The three key macroeconomic concerns before Union Budget 2011-12 were high inflation, high current account deficit (CAD), and fiscal consolidation. Additionally, there was an expectation that the government would restart the reform process. The Budget has made an attempt to address all these issues, albeit through small steps. Despite the strong performance of the economy in 2010-11, the outlook for 2011-12 is clouded by stubborn and persistently high inflation, and rising external risks. The Budget factors in a GDP growth target of 9 per cent, which is on the optimistic side. CRISIL expects GDP growth to moderate to 8.3 per cent in 2011-12.