Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Economic woes weigh on indices
Thu, 1 Mar Closing

Profit booking in realty, auto, banking and power stocks led the indices in Indian stock markets deeper into the negative territory after a cautious start today. Selective buying in index heavyweights failed to help the indices recover. While the BSE-Sensex closed lower by around 168 points (down 0.9%), the NSE-Nifty closed lower by around 45 points (up 0.8%). The BSE Mid cap and the BSE Small cap indices were not spared either and they lost around 0.5% each. Barring healthcare, stocks across sectors witnessed profit booking today.

As regards global markets, Asian indices closed in the positive today while most European indices have opened higher. The rupee was trading at Rs 49.07 to the dollar at the time of writing.

Auto major, Mahindra & Mahindra Ltd. (M&M) reported dismal number for tractor sales for the month of February. The Farm Equipment division has reported a fall of 19.6% YoY in tractor sales to 15,316 units in February 2012 as against 19,041 units for the same period last year. Domestic sales in February 2012 stood at 14,341 units, down by 20.92% as against 18,134 units during February 2011. Exports for the month stood at 975 units, having registered a growth of 7% YoY. For the period April 2011 to February 2012, the domestic sales stood at 205810 units, having registered a growth of 12% YoY. Most auto stocks remained under pressure in a choppy session today on concerns over possibility of excise duty hike and slowing economic growth impacting demand.

Meanwhile, Indian banks too are facing pressure on their asset quality given the slowdown in economic growth. In a meeting with the Reserve Bank Of India (RBI), Indian bankers have complained over the policies concerning restructured accounts. At present every restructured is seen as equivalent to non performing asset (NPA). This in turn is impacting banks' asset quality and provisioning requirements.

Loans worth Rs 500 bn were referred for corporate debt restructuring (CDR) during the April-December 2011 period. Currently, total outstanding loans referred for restructuring are worth Rs 1.4 trillion, according to CDR forum data. With a share of 26.8%, the iron and steel sector accounts for most of these, followed by infrastructure (12%) and textiles (8%). Axis Bank and ICICI Bank featured amongst the top losers in banking sector today.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Economic woes weigh on indices". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.