MAJOR HEADLINES: Economy may cross 9% by March.
The Sensex and the Nifty crossed their psychological levels of 20000 and 6000 respectively in the opening trade but could not hold for rest of the day.
The BSE 30-share Sensex was down 46.67 points, up close to 110 points from the day's low and off close to 75 points from the day's high. Index heavyweight Larsen & Toubro reversed initial losses while another index heavyweight Reliance Industries (RIL) pared intraday gains. Metal and auto stocks bucked the weak market.
The market breadth was weak as declining shares outpaced the gaining ones over two times. Of the 3,029 stocks on the BSE, 2,037 fell while 881 rose. Hundred and eleven stocks traded unchanged.
Foreign Institutional Investors (FIIs) were net sellers in the equity segment worth Rs 5.23 billion on both the BSE and the NSE on Dec 7, as per provisional data available at NSE. They bought equities worth Rs 29.14 billion and sold equities worth Rs 34.37 billion.
Domestic Institutional Investors (DIIs include banks, DFIs, Insurance and MFs) were net sellers in the equity segment worth Rs 4.28 billion on both the BSE and the NSE on Dec 7. as per provisional data available at the NSE. They bought equities worth Rs 12.40 billion and sold equities worth Rs 16.68 billion.
Reports that the introduction of the nationwide Goods and Services Tax (GST), a major indirect tax reform proposal, could be delayed further, marred sentiment. World stocks rose as risk appetite improved after US President Barack Obama announced an extension of Bush-era tax cuts.
Going ahead market would keep a vigil on the IIP numbers that are slated to be announced on Dec 11 and advance tax numbers to gauge the profitability of the corporate, which falls due on Dec 15 2010. The advance tax figures will provide a cue on Q3 December 2010 corporate earnings.
FOR TODAY: WATCH FOR 5955 LEVEL WHICH IS CRUCIAL. IF HOLDS 5958-5960, WE MAY SEE A SMALL BOUNCE TOWARDS 6030.
