VantageTrade Eagle Eye: Markets dragged down by losses in metals, capital goods, power and bank stocks

Nifty and Sensex opened today lower as it was expected due to global cues.  Asian markets are trading in negative zone due to US job data and inflation data released in China. The inflation in China increased more than expected, from 3.2% in February till 3.6% in March, which awakened fears about a slowdown in global economy.  Also the US job data diminished the sentiment in the market. The US jobs data released on Friday raised investors’ doubts about the recovery in the world’s largest economy. The U.S. economy added 120,000 jobs in March, below forecasts for the addition of 200,000 jobs. There are also concerns about growing pressure on Europe’s debt market and the financial stability of the region.

Japan's Nikkei 225 index was trading lower at 9,565.31 and Hong Kong's Hang Seng index was trading lower at 20,479.27. South Korea's Kospi index was trading lower at 2008.03. China's Shanghai index was trading at 2,409.00, up 0.4%.

The US markets finished the trading week mixed, mostly down with S&P 500 achieving the worst result this year. The Dow Jones industrial average dropped 14.61 points, or 0.11%, to 13,060.14 at the close. The Standard & Poor's 500 Index dipped 0.88 of a point, or 0.06%, to 1,398.08. But the Nasdaq Composite Index gained 12.41 points, or 0.40%, to 3,080.50.

Nifty opened 40.4 points lower today, at 5.2828.50 and Sensex slipped 78.36 points and started at 17.407.66. In the first hours of the trading session markets are dragged down by the selling pressure.  At 11.50am the Sensex was down at 17.275,24 and Nifty fell at 5.248.65.

Hindalco Industries (-3.83%), BHEL (-3.33%) and Jaiprakash Associates (-3.90%) were the major Nifty losers. Ranbaxy Laboratories (3.24%), Tata and Dr Reddy's Laboratories (1.46%) were amongst the gainers pack.

Top Sensex gainers include Tata Power, which was trading 1.04% higher and Hindutan Unilever Ltd was trading at Rs 401.55, up 0.5%.

Kingfisher Airlines lost 2% on profit booking; the stock had rallied 20% in previous two sessions after the company paid salaries to all employees.

The rupee was at 51.37 to the dollar, weaker than Wednesday's close of 51.055/065. Crude oil was down 1.15 per cent to about $102.12 per barrel. Gold was up 0.67 per cent at $1,641 per ounce.

The eyes will be kept on information technology services firms, as they are expected to report muted earnings in the March quarter as demand remains soft. Of the larger companies, Infosys and TCS are expected to report slower growth.  This week’s inflation and IIP data release and speculations on RBI meeting on 17^th April may cause the markets to be volatile.

Other Economic and Political News:

-        Power Ministry eyes 920,000mn units of electricity in FY2013

-        Cotton Association demands removal of ban on cotton exports

-        PMO to hasten languishing port projects

-        Strengthen recovery mechanism for NBFCs: Finance Ministry

-        Government initiates exercise to revise WPI series

-        Coal India may import coal to ensure adequate fuel to power firms

-        Coal Ministry's nod pending for ONGC's pilot UCG project

-        Hindustan Copper plans to raise Rs.1,250cr via ECB

 

 

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