VantageTrade Eagle Eye: Indian benchmarks opened down led by losses in bank and realty stocks

The National Stock Exchange’s Nifty and Bombay Stock Exchange’s Sensex ended the volatile trading session on Friday up. Nifty ended at 5278.20, up 49.75 points or 0.95%.  Sensex closed at 17361.74, up 165.27 points or 0.96%. The markets bounced back from negative terrains as foreign investors remained net buyers, easing worries that domestic political uncertainty and weakness in Euro zone economies would encourage selling. According to the Reuters report, foreign investors were net buyers of Rs 2.46 billion ($48.1 million) in Indian equities on Thursday. They were also buyers in Nifty futures of Rs 4.52 billion that day

Asian shares edged up on Monday however, the worries about an economic slowdown in China still appear. Asian equity markets which had got off to a flying start in 2012, saw some unwinding since China decreased its growth forecast for the year to 7.5% in March. Japan's Nikkei 225 index was trading 0.2% higher at 10,038.62 and Hong Kong's Hang Seng index was trading lower at 20,646.12, down 0.1%. South Korea's Kospi index was trading 0.3% lower at 2020.45. China's Shanghai index was trading at 2346, down 0.1%.

The US stocks rose slightly on Friday, Dow Jones industrial average gained 34.59 points, or 0.27%, to 13,080.73 at the close. The S&P 500 Index rose 4.33 points, or 0.31%, to 1,397.11. The Nasdaq Composite added 4.60 points, or 0.15%, to 3,067.92. Investors are worried about higher oil prices which affects consumer spending. Also the data released by the Commerce Department caused the real estate stocks to fall. According to it, sales of new homes fell 1.6% last month.

This week, Indian benchmark might remain volatile. The budget outcome, coal mining scam, possibility of no rate cut by RBI in April, expiry of F&O  are some of the critical factors to cause the fluctuations of the markets.  The markets opened down today, as expected, due to traders closing their positions and carrying it forward to the next month. Sensex opened at 17,377, up 16 points, from its previous close but turned negative after a while. Nifty opened down 4 points from its previous close at 5,274. The major losers are bank and oil & gas and capital goods stocks.

The rupee opens at 51.09/10, against the dollar, firmer than last week’s close of 51.17/18, on the back of gains in euro.

Other Economic and Political News:

-        No new gas-based power plant to be set up till 2015-16: CEA

-        CPSE reserves up 10% at Rs.6.65 lakh cr in FY2011

-        CBDT sets up panel for tax-avoidance

-        BHEL commissions power gear with 7,900MW capacity

-        Kingfisher to pay only Rs.10cr of its Rs.76cr service tax dues till March-end

-        SKS raises Rs.321cr from four banks

 

 

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