BROADER MARKET CONTINUES TO PARTY WHILE NIFTY EXTENDS CONSOLIDATION

BROADER MARKET CONTINUES TO PARTY WHILE NIFTY EXTENDS CONSOLIDATION

WORLD MARKETS                             

Most of the world markets were shut yesterday for New Year's Day.

Data released yesterday showed that China's official purchasing managers' index (PMI) slipped to 50.1 in December from 50.3 in the previous month.

AT HOME

After falling nearly half a percent in the initial trade, benchmark recouped all the losses by the end of the trade to end almost flat. Sensex gained 8 points to settle at 27505 while Nifty finished at 8284, up 1 point. BSE mid-cap and small-cap indices gained 0.6% and 1.2% respectively. BSE Metal and Teck indices gained the most among the sectoral indices, rising 1.1% and 0.5% respectively while FMCG and Healthcare indices fell 0.3% and 0.1% respectively.

FIIs net bought stocks and stock futures worth Rs 18 cr and 20 cr respectively but net sold index futures worth Rs 29 cr. DIIs were net buyers to the tune of Rs 20cr.

Rupee tumbled 32 paise to end at 63.35/$.

Maruti Suzuki reported 20.8% y-o-y rise in December sales at 1.1 lac units. That of M & M fell 8.3% to 36328 units. Hero MotoCorp reported 0.2% rise at 5.26 lac units. TVS reported 20% jump at 1.92 lac units.

Government yesterday raised excise duty on petrol and diesel by Rs 2 per litre each. The third excise duty hike since November will help raise additional Rs. 6,000 crore during remaining three months of the current fiscal."Allocation of these resources to the roads sector will spur economic activity and employment generation in this sector,” said an official statement.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

For Nifty and Sensex it was yet another day of consolidation while broader market continued to party. Nifty and Sensex are up just about a percent this week while the CNX Small-cap index is up 4.4% and the mid-cap index is up 2.5%.

8373, the 61.8% retracement level of the entire 8627-7961 fall, continues to be important hurdle to eye while 8150-8115 continues to be the support area.

A two day retreat for PSU Banks, Public sector insurance companies and financial institution, named "Gyan Sangam", starts in Pune today to find out "what has gone wrong and what should be done both by banks as well as by the government to improve and consolidate the position of PSBs." At the retreat, there will be sessions by prominent experts, group discussions, sharing and demonstration of best practices and technologies. The retreat will end with presentation of a draft action plan to Prime Minister Narendra Modi on the second day.

India's HSBC Manufacturing PMI for December will be released today. In November the figure had risen to 53.3 from October's 51.6 reading.