Sensex ended at down by 18 points on April 25, 2011

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The 30-share Bombay Stock Exchange moved most of the day in the positive territory, but at the end heavy selling pulled the sensex down to settle the day at 19,584.31, a fall of 17.92 points or 0.09%.

In the previous three straight sessions, it had shot up 511.06 points or 2.68%.

The NSE 50-issue Nifty also eased by 10.20 points or 0.17% to end at 5,874.50.

In Asian markets, key indices from China, Japan, Taiwan and Singapore closed in the red, while South Korea ended in the green. Hong Kong market was closed today.

18 out of 30 Blue chip stocks closed with losses, while 12 finished with gains. Besides RIL, DLF dropped 2.25%, Reliance Communication by 1.41%, Jaiprakash Associates by 0.98%, Jindal Steel by 0.76%, Hero Honda by 0.62% and HDFC Bank by 0.59%.

From sectoral indices, the BSE-Realty was the second loser with a fall of 1.18%.

The total market breadth remained lower as 1,558 stocks finished in the red, while 1,340 settled in the green on the BSE. The total turnover dipped sharply to Rs 2,736.77 crore from Rs 3,636.83 crore last weekend.

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Indian companies makes Rs. 6 Lakh profit per employee

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Indian companies pay a salary of Rs 4.8 lakh to each of their employee on an average, but earn a profit of Rs 6 lakh per employee in return, says a new survey.

According to a study by Pricewaterhouse Coopers (PwC), Measuring Human Capital - Driving Business Results, organisations in India pay an average remuneration of Rs 4.8 lakh and earn Rs 6 lakh of profit per employee, which makes the human capital return ratio on investment to 1.79 for organisations in the country.

Besides, companies make an investment of Rs 7,000 on learning and development (L&D) per employee.

It further said that Indian companies make a pure profit of Rs 15 from every Rs 100-worth revenue generated by their each employee.

"With India being the fastest growing economy, organisations that would maximise their human capital contribution to business performance, would be the ones to best leverage the positive economic environment," PwC India Leader People and Change practice Sankar Ramamurthy said.

For more: indian-firms-makes-a-profit-of-rs-6-lakh-per-employee

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Next week market outlook: Sensex and Nifty April 18 to 22, 2011

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Sensex recovered from 19,101 last week bodes well for the short-term prospects. The index has immediate support at 19,205 and 19,039. Presence of 200-day moving average at 19,070 also lends support to the zone between 19,000 and 19,200. If the Sensex manages to hold above this support band, it can attempt to move higher to 20,348 or 21,120 in the ensuing months.

However the strong resistance in the band between 19,650 and 19,840 can not be taken lightly either. Since this occurs at 61.8 per cent retracement of the prior down-move, any minor pullback will have trouble crossing over it. Medium-term targets on inability to move above this resistance band remain at 17,761 and 16,495.

In other words, the medium-term trajectory of the index will be decided in the next couple of weeks and it will be difficult to form a view on the same as long as the index remains in the current trading band. Both bull as well as the bear camp has the chance to pull the index in their direction.

A strong start to the week can take the index higher to 19,730, 19,840 or 19,973. Approach near the psychological resistance at 20,000 could cause some profit-booking. Strong break above this resistance will take the index to 20,348.

Supports for the week ahead will be at 19,205 and 19,039. Short-term view will turn negative only if the index records a strong close below 19,000.

The Nifty (5,824.5) too was extremely volatile in the band between 5750 and 5950 last week. The index has not yet moved above the key medium-term resistance around 5,959. Those holding short positions can continue to do so as long as the index trades below this level.

Medium-term targets on a strong reversal from this zone stay at 5332 or 4954.

However the movement last week is encouraging from a short-term perspective.

Nifty halted its slide at 5,735 after retracing 35 per cent of the previous up-move.

Key short-term support for the index is at 5716. Presence of 200-DMA at 5725 also makes the zone between 5700 and 5750 very important from a near-term perspective. Fresh short positions are therefore advised only on a close below 5700.

However if the index manages to hold above 5700, there is the possibility of a break higher to 6103 or 6296 in the months ahead.

Nifty could stay volatile in the short-term. A positive start to the week can take the index higher to 5922 or 5994. Supports for the short-term would be at 5716, 5650 and 5580.

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Sensex down by 140 points on last day of the week

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Extending its losing streak for the fourth day, the BSE benchmark Sensex today fell by 140 points as investors booked profits, particularly in IT stocks on concerns over strengthening rupee.

The Bombay Stock Exchange barometer shed 139.73 points to close at 19,451.45 points. The 30-share index had lost 111 points in the previous three sessions.

Similarly, the broad-based National Stock Exchange index Nifty lost 43.7 points to 5,842, after hitting the day’s low of 5,822 and a high of 5,926.95.

Brokers said investors were booking profits after witnessing rally last month. The index had gained over 9 per cent in March.

They said the selling was more confined to software exporting companies as rupee strengthened against the US dollar. IT companies get maximum business from abroad and appreciation in the rupee has dent their earnings.

The rupee was trading at five-and-a-half month high of Rs 43.98 per dollar as foreign funds increased the holdings of the country’s shares to benefit from its economic growth.

Besides, realty, auto, consumer durable and refinery stocks were notably lower on profit-booking.

Tata Consultancy Services declined for the third day losing Rs 4.50 to Rs 1,194.90. Infosys dropped by Rs 20.50 to Rs 3,226.95 and Wipro by Rs 6.30 to Rs 465.45.

As the selling spilled over a wide-front, the small-cap stock index lost 1.4 per cent to 8,772.55 and the mid-cap index by 1.25 per cent to 7,173.50.

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