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Thursday, 1 March 2012

Intraday Summary- Market Synopsis- 29 February, 2012


The key Indian stock indices retreated from session highs after the Government data showed lowest GDP growth in 10 quarters during the third quarter of FY11. Though the lower-than-anticipated GDP data of 6.1% vs. estimates of 6.3% raises expectations of a rate cut by the RBI, but the same may not materialize as inflation too remains elevated. Also, there are reports of an impending fuel price hike next month, which could worsen the situation on inflation. Thus, a stubbornly high inflation may prompt the RBI to postpone its planned unwinding of tight monetary policy. Another cause for concern could be the tight liquidity conditions prevailing in the banking system for quite some time and widening twin deficits (current account and budget).
Currently, the Sensex is trading near the level of 17750 and the Nifty is hovering around the level of 5380. The midcap and the small-cap counters have dived down from morning levels and are trading positive by less than half a percentage point each. On the sectoral front, the indices are trading mixed. Oil&Gas and PSU indices are leading the list of gainers with gains of nearly one and a half percentage points each, whereas, Capital Goods index is leading the list of losers with losses of over a percentage point. Further, the market breadth is slightly positive as four stocks are seen advancing for every three declines.
(Pic. Source- bseindia.com)

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