VantageTrade Eagle Eye: Markets down, investors book profits after the rally

The Indian markets ended in green for the fourth session in a row yesterday. The markets remain flat throughout the day to end up 0.60% near intraday’s high. Buying interest was observed in Auto stocks as investors expect an increase in sales of the automakers due to lower cost of loans.  Other top performers were bank stocks, like PNB, IDBI Bank and ICICI Bank as they cut their lending rates by 25 basis points each.

Rupee fell to its 14-week low of 52.14 against the US dollar.

Nifty closed 32 points up at 5,332. It touched a high of 5,342 and low of 5,291 in trade today. Sensex finished 111 points higher at 17,504. It touched intraday high of 17,530 and low of 17,362.

US markets, after a volatile trading session yesterday finished the day in Red as US economic data released yesterday were disappointing and weighed on the markets, dampening positive sentiment generated by some optimistic banking earnings. The Dow Jones industrial average fell 68.65 points, or 0.53%, to end at 12,964.10. The S&P 500 Index dropped 8.22 points, or 0.59%, to 1,376.92. The Nasdaq Composite lost 23.89 points, or 0.79%, to 3,007.56.

Asian stocks are trading lower, as the Group of 20 nations warned Europe’s debt crisis still threatens global growth, and as US economic data signaled that the recovery in the world’s largest economy is slowing. Japan's Nikkei 225 index was trading 0.5% lower at 9,541.62 and Hong Kong’s Hang Seng index was trading higher at 20,945.12, down 0.2%. South Korea's Kospi index was trading 1.2% lower at 1975.45. China's Shanghai index was trading at 2380, up 0.09%.

Nifty and Sensex also trade lower as expected, following the global cues and because of absence of any supportive triggers. Investors are also taking profits after 4 days of rally.  The Sensex opened down 48 points at 17456 levels while the Nifty at 5,317 levels down 16 points. Reliance Industries. Cairn India and FAG Bearings stocks will be eyed as the companies are releasing their quarterly earnings today

Investors will keep a close eye on aviation stocks after the finance ministry on Thursday announced policy changes for the airline industry, allowing them to raise additional low-cost capital through external commercial borrowings (ECBs). Now, airline companies can borrow through the ECB route up to $300 million each with a maximum ceiling of up to $1 billion for the entire sector.

Oil was up 0.39 per cent at $102.67 per barrel. Gold was also up 0.23 per cent at $1645.10 per ounce.

Other Economic and Political News:

-        DTC to be implemented from April 2013

-        Government allows Rs.5,000cr overseas borrowing for airlines

-        FY2012 exports up 21% at US$303bn

-        Plan panel unlikely to go by Power Ministry’s 12th Plan target

-        Ranbaxy to sell Daiichi's anti-hypertension drug in Romania

-        Lupin resumes anti-diabetic drug sales in the U.S. after court’s nod

-        Mahindra Satyam to invest US$240mn globally on infrastructure

-        Cairn gets government’s nod for raising Mangala output

-        Three SBI officials held for over Rs.1cr scam

-        Kingfisher begins jet fuel import process

 

 

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