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Reversal of course? - Jan 18, 2012

January 18th, 2012

The markets closed flat today after a stellar rally yesterday. The SENSEX closed at 16451.50 down 14.55 (-0.09%) while the NIFTY closed at 4955.80 slipping 11.50 (-0.23%). Much of the damage was in midcap and smallcap stocks with the CNX Midcap closing at 6647.50 down 77.80 (-1.16%) while BSE Smallcap closed at 6195.70 down 62.75 (-1%).

It appeared that the markets have already lost stream and the short term peak was already approached. Experts however say that considering that some renewed buying interest was seen, it is too early to say that the revesal of course is on charts.

While Reliance Industries closed up, TCS which announced good numbers yesterday took a beating today. Experts believe the current stock price already is factoring its potential near-future growth and that a target of Rs. 1200 is max for the script, atleast in the next 12 months time frame.

Reliance is considering a share buyback on January 20 when it will be announcing its results. This moved the script which closed at Rs. 779.75 up 37.70 (5.08%) with a volume of 9.25m shares traded.

The Supreme Court of India Essar Oil is not eligible for sales tax benefit and that the company will have to pay sales tax to Gujarat State Government of approximately Rs 6300 cr. The script closed at 51.15 slipping 7.05 (-12.11%) with 24.8m shares traded.

Lenders may infuse USD 250 mn equity in Kingfisher Airlines. The script closed at Rs. 25.35 gaining 0.25 (1%) with a volume of 14.49m shares traded.

Entry Filed under: Equity Markets, Oil & Petro Chemicals, Closing Bell, Aviation