The Indian markets ended the week on negative note. It witnessed intensive selling pressure in capital good, power & realty stock as investors were booking profits after four days of gains. A small buying activity in the afternoon helped markets to get to Green terrains and reach intraday highs. However, new tax proposed on FII investments caused the markets to tank 1%. Sensex ended at 17,373.84, down 129.87 points, or 0.74%. It touched an intraday high of 17,519.88 and a low of 17,231.34. Nifty closed at 5,290.85, down 41.55 points, or 0.78%. It touched an intraday high of 5,336.15 and a low of 5,245.45. Markets managed to finish the trading week up, Nifty 1.60% up and Sensex 1.63% up.
On Friday, US stocks closed higher led by better-than-expected earnings of companies like McDonald’s, Microsoft and General Electric. Strong German business data a deal to fight the Euro zone debt crisis also lifted the markets. The Dow Jones industrial average rose 65.16 points, or 0.50 percent, to 13,029.26. The S&P 500 Index gained 1.61 points, or 0.12 percent, to 1,378.53. The Nasdaq Composite dropped 7.11 points, or 0.24 percent, to 3,000.45.
Asian shares are trading lower today in spite of positive news from HSBC that moved away fears about slowdown in world’s second largest economy. Investors are awaiting key events this week. Japan's Nikkei 225 index was trading 0.03% lower at 9,558.62 and Hong Kong's Hang Seng index was trading lower at 20,867.12, down 0.7%. South Korea's Kospi index was trading 02% lower at 1970.45. China's Shanghai index was trading at 2401, down 0.2%.
Indian markets also edged lower on weak Asian cues. Nifty opened 13.45 points down at 5,277.40 and Sensex slipped 26.08 points and started at 17,347.76. At 11.00am markets were trading higher led by gains in Tata Consultancy Services and Reliance Industries and banking stocks on hopes the Reserve Bank of India would take measures to enhance liquidity.
Other Economic and Political News:
- Government spending on projects hits all-time high
- Government clears 22 FDI proposals worth Rs.586cr
- FY12E exports up 21% at US$303.7bn, trade deficit at record US$184.9bn
- Cabinet unlikely to consider FDI in aviation till May-end
- SC allows firms to resume work in Karnataka mines
- Orissa to fast-track renewal of mines under 'deemed extension'
- Reliance Retail changes strategy looking at evolving markets