Market mood was negative on account of Japan Earthquake and ongoing unrest in Libya and middle east region and constant threat of spike in crude oil prices.
In the week closing 11 March 2011, the Indian stock Index S&P CNX Nifty traded in a tight range of 5560-5410. Nifty closed in red in three out of five trading days. Week-on-week basis, the Sensex was down by 312 points or -1.7%, to close at 18174.39 levels. The Nifty also closed in the red down by 93 points, or 1.7%, to close at 5445 for the week. Metals, Capital Goods and Banking stocks were the major losers, with heavy weights like Tata Steel, L&T, BHEL, State Bank faced selling pressure, where as Reliance Industries and Reliance Capital were the major gainers. Food inflation for the week ended Feb 26, 2011 was 9.52% (v/s 10.39% last week). IIP numbers were positive in India. In Feb 2011, exports were $23.6 bn (49.8% growth YoY) while imports were $31.7 bn (21.2% gr wth YoY). IIP nos for Jan 2011 came at 3.7% (street estimates: 2.7%) while the December IIP was revised from 1.6% to 2.5%. Continue reading Stock Market Analysis – 12 March 2011→
Our analysis says we are likely to see positive moves in most of the global stock markets in the first half of 2011. The first half of 2011 will be volatile with upwards bias, and the second half will have a downward bias.
The benchmark interest rate in China was last reported at 5.81 percent. In China, interest rates decisions are taken by The Peoples’ Bank of China Monetary Policy Committee. The PBC administers two different benchmark interest rates the benchmark lending rate, which is the one year PBC lending rate and the benchmark rate of central bank lending that is the rediscount rate.
This increase in interest is a good sign that China’s economy is poised for more growth and they want to control inflation that will accompany that growth. This interest rate should be seen positively for all global commodities even if there is a downward reaction in short term.
“These policy moves could be front-loaded in coming months, as headline inflation figures remain high and economic growth faces overheating risks early next year,” said Wang Qian, the brokerage’s Hong Kong-based chief China economist.