S&P revises India outlook to negative, markets recover by end of the day, all eyes on the FOMC meet…

Nifty began on a weak note due to a correction in technology stocks.  Interest rate sensitives saw buying and markets saw a recovery.  High fiscal deficit, heavy debt burden and slowdown in investment & economic growth forced the foreign rating agency Standard & Poor’s (S&P) to revise Indian outlook to negative. This led to a sell-off and markets went below the 5200 level. However European markets trimmed their losses as did the markets in India.  The Nifty closed at 5202 down 20 points.

Wipro, third largest software company in India tanked about 7% after its muted guidance for Q1FY13. The net profit for the January-March quarter went up 1.7% QoQ to Rs 1,481 crore while revenues fell 0.45% to Rs 9,836 crore. However, company said its IT services revenues would be around USD 1.52-1.55 billion for April-June quarter, which is just 0.6% higher than Q4FY12.

Rpower, Gail, IDFC, Siemens, BHEL and Rcom were other prominent losers down between 3.81%-2%.

Hero Motorcorp led the gainers up 2.3%. Sterlite, Sesa Goa and Bharti Airtel also gained about 2% each in a day of lackluster trade.

Sasken Communications shot up 6.5% as the company decided to buy back shares at maximum price of Rs 180/share. While United Spirits was up 8.9% on back of reports that Diageo is in talks to buy a stake.

The support for Nifty is at 5155 and the resistance at 5224 – this evening the FOMC will meet in the US and all market participants will closely watch the commentary from the meeting.  Tomorrow may therefore prove to provide more volatility and excitement.

Comments

  • Hi Sharmila

    S&P has also put a negative outlook on PFC. Whats your view on PFC ? I was optimistic on PFC as Govt seems to be in mood to solve power sector issues now !!! What can be expected out of PFC in medium term?

    Regards
    Shahid

    ShahidApril 26, 2012

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