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Markets fall on global concerns
The Indian stock market fell during the week on the back of global concerns,
with the Sensex and Nifty shedding 1.7% of their value each. Investors were
nervous during the week as crude prices continued to remain firm on
uncertainties in Libya and the massive earthquake and tsunami in Japan.
The tragedy in Japan on Friday caused a sell-off in the Indian markets, as
investors feared that the calamity would cause further strain on the world's
third biggest economy. On the domestic front, there was positive news, as
January IIP numbers came in at 3.7%, above street estimates. Further, food
inflation fell to 9.5%, but was still too high for concern. BSE mid-cap and
small-cap indices outperformed the large-cap counterparts during the week,
losing only 1.0% and 1.2%, respectively. BSE capital goods (CG) index was
the worst hit amongst major sectoral indices, losing 3.0%, followed by the
BSE metal index, which was down by 2.9%. BSE realty index fared better
than the others, gaining 1.3% during the week.
BSE CG index underperforms the Sensex
BSE CG index was the major loser during the week, declining 3% as
compared to the 1.7% fall in the Sensex. Sluggish IIP growth coupled with
the continuing decline in the CG index over the past few months has
adversely affected CG stocks. For January 2011, IIP numbers came in at
3.7% and the CG index reported an 18.6% decline compared to a 9.3%
decline in December 2010. The decline can be largely attributed to
lower-than-expected capex, which has negatively affected companies such
as BHEL and L&T. CG majors are currently struggling to achieve the order
inflow guidance for FY2011 and have cited various concerns related to
delays in land acquisition and environmental clearances, among others,
which could potentially hamper the investment climate in India. Moreover,
hardening interest rates are likely to raise the borrowing cost for industries,
which may adversely affect their growth. Factoring the above negatives,
CG stocks such as Gammon India, Areva T&D, BHEL, L&T and Punj Lloyd
corrected sharply during the wee
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Markets fall on global concerns
The Indian stock market fell during the week on the back of global concerns,
with the Sensex and Nifty shedding 1.7% of their value each. Investors were
nervous during the week as crude prices continued to remain firm on
uncertainties in Libya and the massive earthquake and tsunami in Japan.
The tragedy in Japan on Friday caused a sell-off in the Indian markets, as
investors feared that the calamity would cause further strain on the world's
third biggest economy. On the domestic front, there was positive news, as
January IIP numbers came in at 3.7%, above street estimates. Further, food
inflation fell to 9.5%, but was still too high for concern. BSE mid-cap and
small-cap indices outperformed the large-cap counterparts during the week,
losing only 1.0% and 1.2%, respectively. BSE capital goods (CG) index was
the worst hit amongst major sectoral indices, losing 3.0%, followed by the
BSE metal index, which was down by 2.9%. BSE realty index fared better
than the others, gaining 1.3% during the week.
BSE CG index underperforms the Sensex
BSE CG index was the major loser during the week, declining 3% as
compared to the 1.7% fall in the Sensex. Sluggish IIP growth coupled with
the continuing decline in the CG index over the past few months has
adversely affected CG stocks. For January 2011, IIP numbers came in at
3.7% and the CG index reported an 18.6% decline compared to a 9.3%
decline in December 2010. The decline can be largely attributed to
lower-than-expected capex, which has negatively affected companies such
as BHEL and L&T. CG majors are currently struggling to achieve the order
inflow guidance for FY2011 and have cited various concerns related to
delays in land acquisition and environmental clearances, among others,
which could potentially hamper the investment climate in India. Moreover,
hardening interest rates are likely to raise the borrowing cost for industries,
which may adversely affect their growth. Factoring the above negatives,
CG stocks such as Gammon India, Areva T&D, BHEL, L&T and Punj Lloyd
corrected sharply during the wee
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