Bear hug costs Sensex 1392 pts in 8 days

The mood on Dalal Street has not improved yet after the key rates hike and hawkish tone set by the RBI governor Duvvuri Subbarao in a policy meeting on May 3. The Sensex shed nearly 259 points on Thursday, with continuing downtrend for eighth consecutive session.

Experts see earnings downgrade in the quarter ended June 2011 after the 50 basis points hike in repo and reverse repo rate. Interest cost of the companies will increase going ahead as banks have slowly been increasing their lending rates.

Shares & Securities feels that people basically want to sit on cash for a simple reason that there is a kind of possibility of earning downgrade happening going forward once this particular oil price hike is announced.

Bharti tumbles on disappointing Q4 earnings

Equity benchmarks were extremely choppy in early trade on Thursday - the Nifty was hovering around the 5550 level. Oil & gas, financial and capital goods companies' shares were supporting the markets. However, cement, healthcare, FMCG, telecom and select technology stocks were pulling the markets down.

Bharti Airtel plunged 4% as India's largest telecom operator has reported fourth quarter FY11 net profit of Rs 1,401 crore on consolidated basis as against street expectations of Rs 1,740 crore, up 7.5% versus Rs 1,303 crore on QoQ basis.

Ranbaxy Labs lost 8% in initial trade after Goldman Sachs said there would be potential fine of USD 1 billion to settle FDA charges relating to Lipitor.

Today's Result

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	AP Paper Mills  04-May-2011
	BKV Industries  04-May-2011
	Brigade Enterp  04-May-2011
	Broadcast  04-May-2011
	Dai-Ichi Karkar  04-May-2011
	Essel Propack  04-May-2011
	Hero Honda  04-May-2011
	Kennametal  04-May-2011
	Nandan Exim  04-May-2011
	Narbada Gems  04-May-2011
	NELCO  04-May-2011
	Nitco  04-May-2011
	PNB  04-May-2011
	Rexnord Electro  04-May-2011
	Sadhana Nitro  04-May-2011
	Singer India  04-May-2011
	Sterling Holida  04-May-2011
	Store One  04-May-2011
	Surat Textile  04-May-2011
	Technocraft Ind  04-May-2011
	Teledata Tech  04-May-2011
	Torrent Power  04-May-2011
	TTK Prestige  04-May-2011
	Universal Starc  04-May-2011
	Wintac  04-May-2011

Equity Slipped In Opening Trade

Equity slipped further in opening trade on Wednesday, with the Nifty beginning the trade below 5550 level. Auto, cement, private banking and technology companies' shares were seeing further correction. Weak Asian cues too weighted on Indian equities.

Some negative sentiment of 50 basis points hike in key rates by RBI yesterday and increased in savings bank rate to 4% from 3.5% is still weighed on the market. Especially rate sensitives were taking beating.

Among frontliners, Bajaj Auto, M&;M, Hero Honda, Maruti Suzuki, ICICI Bank, PNB, Axis Bank, HDFC Bank, Reliance Capital, Infosys, TCS, HCL Tech, Jaiprakash Associates, Hindalco, Sesa Goa, Sterlite Industries and ACC were pulling the markets down.

RBI's aggressive stand

The Reserve Bank of India on Tuesday raised its repo and reverse repo rates by 50 basis points each in a bid to control mounting inflation, while lowering the economic growth projection to 8% for the current fiscal.

FIIs were taken aback to see a greater-than-expected hike in the interest rates as there were concerns that it may affect India's investment cycle. Jim Walker, managing director of Asianomics Limited, in an interview with CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee, said that a hike of 50 basis points has come like a surprise.

RBI's credit policy: How will it impact India Inc?