VantageTrade Eagle Eye: Markets opened with moderate gains led by power and capital goods sectors

Markets have witnessed a small rally on the first day of April Series expiry. The Finance Minister has dispelled the investors’ fear with the statement that people investing in stock markets in India through P-Notes will not be taxed. Also RBI’s decision to inject 10,000 crore through open market operations boosted liquidity in the banking system and the markets have reported maximum gain since last six weeks.  Nifty ended up 116.7 points, to close at 5295.55. Sensex ended up 345.59 points, at 17,404.20.

Asian shares began with modest gain today as China manufacturing data soothed fears of a poor growth. Data on Sunday showed China’s official Purchasing Managers’ Index (PMI), which marks large factories, jumped to an 11-month high of 53.1 in March, performing better than expected. But credit-constrained smaller manufacturers performed worse, suggesting that while the world’s second-biggest economy is not falling, however it will require some monetary policy easing for support.
Japan's Nikkei 225 index was trading 0.9% higher at 10,177.62 and Hong Kong's Hang Seng index was trading lower at 20,547.12, down 0.04%. South Korea's Kospi index was trading 0.0.4% higher at 2023.45. China's Shanghai index was trading at 2262, up 0.4%.

On Friday, US stocks rose and closed in the strongest quarter in more than two years led by energy and health care sectors. The recent released data, that were better than expected, boosted the sentiment, however the most recent data show a sign of slackening. Commerce Department reported Friday that consumer spending in the U.S. jumped 0.8% during February, largely because of higher energy costs, even though income rose a much smaller 0.2%. The personal savings rate fell to 3.7% from 4.3% as a result, striking lowest level seen since August 2009.   The Dow Jones industrial average gained 66.22 points, or 0.50%, to 13,212.04 at the close. The S&P 500 Index gained 5.19 points, or 0.37%, to 1,408.47. The Nasdaq Composite dipped 3.79 points, or 0.12%, to 3,091.57.

Indian benchmarks, Sensex and Nifty, started the trading week positive, following the global bourses and thanks to support given from clarification on P-Notes given by Finance Minister. Nifty opened at 5,296.35 and touched the intraday high of 5,315.80. Sensex started at 17,429.96 and reached the intraday high of 17,487.97. This week might be however hard for the bulls. The data about FII inflows and will be observed as it decreased due to confusions about GAAR. It will be as important for the stock market as Index of Industrial Production and inflation data.  Also rising prices of crude oil remains a worry for investors.  The RBI meeting, the biggest event for the stock markets is scheduled for April 17.

 

Other Economic and Political News:

-        SEBI board today to discuss ownership of stock exchanges

-        Air India signs agreements with lenders

-        Oil companies to lose Rs 2,08,000 crore on subsidies in 2012-13

-        FII inflows surge in March to $ 9bn

-        Reliance Power to invest Rs 6,000 crore in Rajasthan for solar power

-        LIC invests Rs 2,137 crore in PSU banks

-        Oil prices rise as Iran production falls

 

 

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