Buoyant SBI announces solid earnings; helps Sensex trim losses

Stock markets in India, which reeled under severe selling pressure for most part of morning trades, seem to have taken a turn for the better in Friday afternoon trades. The benchmark equity indices that were trading with about two percent cuts in mid morning trades have gone on to trim most of it and have made fresh highs for the day. Pessimistic cues from Asian markets remained the major sentiment dampener for the local markets. Investors’ morale got undermined as disconcerting reports from both sides of Atlantic prompted investors to flee from riskier asset classes like equities. Apart from lingering Euro-zone woes, sentiments were also pressured by a series of disappointing economic reports from the US where jobless claims held steady amid expectations of a decline, manufacturing in Philadelphia region surprisingly decelerated in May for the first time in eight months and US April leading economic index declined 0.1%. However, the unexpectedly better than expected fourth quarter earnings from banking bellwether State Bank of India lifted investors’ morale and not only persuaded investors to open fresh positions in the banking sector shares but also in some defensive FMCG names. The frontline equity indices pared speedily cutting losses and cruised skywards towards the important psychological 16,000 (Sensex) and 4,850 (Nifty) levels. Moreover, the European market got off to a disappointing opening as trouble in the single currency region seemed to be aggravating every passing day as fresh worries emerged from Spain where global rating agency Moody's downgraded 16 leading banks’ credit rating. Moreover, concerns from the money market showed little signs of dying down as the rupee drifted to fresh historically low levels in session. On the BSE sectoral space, buying was evident in the rate sensitive Bankex index which advanced over a quarter percent led by SBI. On the flipside, the falls in heavyweight Auto sector by around three percent and Capital Goods index by about two percent, weighed down the bourses.

Moreover, the broader markets too came off the lows of the day but still traded with significant losses of around a percent, in tandem with their larger peers. The bourses plunged on high volumes of over Rs 0.7 lakh crore while the market breadth on BSE was in favor of declines in the ratio of 1618:753 while 94 scrips remained unchanged.

The BSE Sensex is currently trading at 15,924.87 down by 145.61 points or 0.91% after trading as high as 15,924.87 and as low as 15,809.71. There were 4 stocks advancing against 26 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index plunged 1.03% and Small cap index sank 0.93%.

On the BSE sectoral space there were no gainers, while Auto down 3.10%, Capital Goods down 1.97%, Metal down 1.76%, Realty down 1.46% and TECk down 1.19% were the major laggards in the space.

SBI up 1.54%, HUL up 1.05%, NTPC up 0.81% and Sun Pharma up 0.13% were the only gainers on the Sensex, while Tata Motors down 5.24%, Maruti down 3.73%, Tata Steel down 3.20%, Bajaj Auto down 2.99% and BHEL down 2.58% were the major losers in the index.

Meanwhile, according to the Central Statistics Office (CSO) data on Consumer Price Indices (CPI) for all-India and States/UTs retail inflation shot up to the double digit mark at 10.32 percent in April on account of substantial increase in vegetable, edible oils and milk prices.

The General Indices for rural, urban and combined are 118.1, 116.1 and   117.2 respectively. Provisional annual inflation rate based on all India general CPI (Combined) for April 2012 on point to point basis (April 2012 over April 2011) is 10.36% as compared to  9.38% (final) for the previous month of March 2012. The corresponding provisional inflation rates for rural and urban areas for April 2012 are 9.86 % and 11.10% respectively. Inflation rates (final) for rural and urban areas for March 2012 are 8.70% and 10.30 % respectively.

Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals being maintained by the National Informatics Centre. Meanwhile, inflation based on Wholesale Price Index also rose to 7.32 per cent in April on account of steep spurt in vegetables as they turned costlier by 60.97 per cent during April as per the WPI data released earlier this week.

The S&P CNX Nifty is currently trading at 4,823.50, lower by 46.70 points or 0.96% after trading as high as 4,829.20 and as low as 4,788.95. There were 8 stocks advancing against 42 declines on the index.

The top gainers on the Nifty were SBI up 2.09%, NTPC up 1.27%, Kotak Bank up 0.87%, HUL up 0.83% and Grasim up 0.60%.

Tata Motors down 5.03%, Maruti down 3.68%, Siemens down 3.25%, Bajaj Auto down 3.20% and Tata Steel down 3.03% were the major losers on the index.

In the Asian space, Shanghai Composite plunged 1.62%, Hang Seng sank 1.97%, KLSE Composite shrank 0.96%, Nikkei 225 got butchered by 2.99%, Straits Times Index gut pounded by 1.91%, KOSPI Composite got obliterated by 3.40% and Taiwan Weighted plummeted 2.79%.

Stock markets in Indonesia remained closed on Friday owing to a public holiday.

The European markets got off to a negative start as France’s CAC 40 fell 0.78%, Germany’s DAX sank 1.2% and United Kingdom’s FTSE dropped 0.91%.

Moreover, the broader markets too came off the lows of the day but still traded with significant losses of around a percent, in tandem with their larger peers. The bourses plunged on high volumes of over Rs 0.7 lakh crore while the market breadth on BSE was in favor of declines in the ratio of 1618:753 while 94 scrips remained unchanged.

The BSE Sensex is currently trading at 15,924.87 down by 145.61 points or 0.91% after trading as high as 15,924.87 and as low as 15,809.71. There were 4 stocks advancing against 26 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index plunged 1.03% and Small cap index sank 0.93%.

On the BSE sectoral space there were no gainers, while Auto down 3.10%, Capital Goods down 1.97%, Metal down 1.76%, Realty down 1.46% and TECk down 1.19% were the major laggards in the space.

SBI up 1.54%, HUL up 1.05%, NTPC up 0.81% and Sun Pharma up 0.13% were the only gainers on the Sensex, while Tata Motors down 5.24%, Maruti down 3.73%, Tata Steel down 3.20%, Bajaj Auto down 2.99% and BHEL down 2.58% were the major losers in the index.

Meanwhile, according to the Central Statistics Office (CSO) data on Consumer Price Indices (CPI) for all-India and States/UTs retail inflation shot up to the double digit mark at 10.32 percent in April on account of substantial increase in vegetable, edible oils and milk prices.

The General Indices for rural, urban and combined are 118.1, 116.1 and   117.2 respectively. Provisional annual inflation rate based on all India general CPI (Combined) for April 2012 on point to point basis (April 2012 over April 2011) is 10.36% as compared to  9.38% (final) for the previous month of March 2012. The corresponding provisional inflation rates for rural and urban areas for April 2012 are 9.86 % and 11.10% respectively. Inflation rates (final) for rural and urban areas for March 2012 are 8.70% and 10.30 % respectively.

Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals being maintained by the National Informatics Centre. Meanwhile, inflation based on Wholesale Price Index also rose to 7.32 per cent in April on account of steep spurt in vegetables as they turned costlier by 60.97 per cent during April as per the WPI data released earlier this week.

The S&P CNX Nifty is currently trading at 4,823.50, lower by 46.70 points or 0.96% after trading as high as 4,829.20 and as low as 4,788.95. There were 8 stocks advancing against 42 declines on the index.

The top gainers on the Nifty were SBI up 2.09%, NTPC up 1.27%, Kotak Bank up 0.87%, HUL up 0.83% and Grasim up 0.60%.

Tata Motors down 5.03%, Maruti down 3.68%, Siemens down 3.25%, Bajaj Auto down 3.20% and Tata Steel down 3.03% were the major losers on the index.

In the Asian space, Shanghai Composite plunged 1.62%, Hang Seng sank 1.97%, KLSE Composite shrank 0.96%, Nikkei 225 got butchered by 2.99%, Straits Times Index gut pounded by 1.91%, KOSPI Composite got obliterated by 3.40% and Taiwan Weighted plummeted 2.79%.

Stock markets in Indonesia remained closed on Friday owing to a public holiday.

The European markets got off to a negative start as France’s CAC 40 fell 0.78%, Germany’s DAX sank 1.2% and United Kingdom’s FTSE dropped 0.91%.