VantageTrade Eagle Eye: Markets pulled down by losses in banking, metal and realty stocks

Nifty and Sensex closed in green for the third day and made new higher high (Nifty rose to 5,379 and Sensex went up to 17,664.) and higher low (Nifty at 5,344 and Sensex at 17,570.). The markets gained in the morning and reached the intraday high but they pared some gains at around 1.30pm after European bourses fell after firm opening.  At the end of the trading session the markets ended up around 0.70% today mainly due to gains bank stocks.  Nifty ended up 40.6 points, to close at 5358.5. Sensex ended up 119.27 points, at 17,597.42. Positive expectations from the earning season and the RBI credit policy scheduled on 17th April are other reasons for yesterday’s gains.

Foreign institutional investors were net buyers of shares totaling Rs245.94 crore while domestic institutional investors were net sellers of shares amounting to Rs72.81 crore.

The U.S markets fell on Tuesday following the release of the minutes of the Federal Reserve’s latest monetary policy meeting which seemed to indicate that the members were not keen to initiate another round of quantitative easing amid signs of improvement in the economy. Meanwhile another report by U.S commerce department showed that growth in factory orders was less than expected in February. The major European markets too fell in the range of 0.6% – 1.6%. The Dow Jones industrial average dropped 64.94 points, or 0.49%, to 13,199.55. The Standard & Poor's 500 Index lost 5.66 points, or 0.40%, to 1,413.38. The Nasdaq Composite Index fell 6.13 points, or 0.2%, to 3,113.57.

Japan's Nikkei 225 index was trading 1.3% lower at 9917.17 due to receding hopes about stimulus measures in USA. Hong Kong, Taiwan and Shanghai markets are closed for a public holiday.

Following the global peers and also losses in realty, metals and banking stocks which offset gains in power technology, Nifty opened at 5,328.65, down 30 points over its previous close and Sensex opened at 17,553.26, down 44 points over its previous close.

Shares of Coal India fell 1.5% to Rs 337.45 after the government issued a presidential decree to force the company to guarantee 20-year fuel supply to private power firms within a week.

 

Other Economic and Political News:

-        Government may clear FDI cap in broadcasting services

-        India to exceed 100mn 3G connections by 2014: GSMA

-        Parliament may consider finance bill on May 7

-        Provide new interest rates on PPF: RBI orders banks

-        US-India goods trade deficit up 42% at US$14.5bnH

-        DFC Bank to lend Rs.150cr for Kingfisher Towers

-        BHEL open to collaborations with Chinese firms

-        Pfizer completes sale of animal health division for Rs.440cr

-        Mahindra Lifespace plans to develop two more business cities

 

 

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