VantageTrade Eagle Eye: Sensex and Nifty open flat, bank stocks bounce back

Negative global cues over the weekend weighed on the markets yesterday. Global investors’ sentiments were dampened due to concerns regarding US economy growth on the account of the worse than expected US jobs data released on Friday. Rising inflation in China also influenced investors. Selling pressure could be observed in infrastructure, metals and banking stocks in Monday’s trading session. There was also absence of any triggers from European markets remaining closed for the Easter Monday holiday. At the highs, Nifty reached 5,288 and Sensex rose to 17,408. The Indian markets ended down around 1.70% yesterday, down second day in a row. Nifty closed at 5,234.40 down 89 points and Sensex finished 264 points lower at 17,222.14.

Asian shares eased today as investors cautiously wait for more trade data from China and Gross Domestic Product results. Japan's Nikkei 225 index was trading 0.8% higher at 9623.62 and Hong Kong’s Hang Seng index was trading lower at 20,420.12, down 0.84%. South Korea’s Kospi index was trading 0.6% higher at 2009.45. China’s Shanghai index was trading at 2283, down 0.1%.

The US stocks experienced the worst decline yesterday as traders used opportunity to close their positions due to weak jobs data. The Dow Jones Industrial Average closed down 130.55 points, or 1%, to 12,929.59. The S&P 500 Index declined 15.88 points, or 1.1%, to 1,382.20. The Nasdaq Composite Index fell 33.42 points, or 1.1%, at 3,047.08.

Today the market opened slightly positive. Sensex opened at 17,259.26 up 0.2% while Nifty opened at 5,254.10 up 0.4%. Shares of IGL and GAIL dropped in early trade after Gas board ordered cuts in rates, charges for CNG & PNG to Delhi consumers. Bank stock recover after 2 days of losses, State Bank of India gained 1.2%, while ICICI Bank advanced 0.4%.

The rupee was at 51.06/07 to the dollar, stronger than Monday's close of 51.14/15. Crude oil prices were down 0.2 per cent at $122.37 per barrel. Gold prices were up 0.6 per cent at $1653 per ounce.

Other Economic and Political News:

-        Bank deposit growth rate falls despite higher interest rates

-        Imports of sensitive items up 43% during April-January

-        India, Qatar sign initial pact for cooperation in the energy sector

-        India's 2012-13 cotton output may fall to 32.3mn bales: Report

-        L&T commissions 40MW solar plant of Reliance Power in Rajasthan

-        Panel recommends green nod to NTPC's coal project in Orissa

-        Glenmark gets U.S. nod for generic contraceptives

-        Reliance, BP set to kick off imported LNG marketing

-        Indian companies raise $2.6 bn from overseas markets in Feb

 

 

 

 

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