VantageTrade Eagle Eye: Markets closed for Labor Day Holiday

The markets, that opened flat yesterday due to lack of triggers, witnessed positive trading yesterday on account of hopes for a stimulus from the US Fed on the back of poor growth in the world’s largest economy in the first quarter of 2012. The US economy expanded at a 2.2% annual rate in the first quarter as compared to the market expectations of a 2.5%. A higher opening in European markets after Spain's economy shrank less than forecast in the first quarter also supported the uptrend in domestic markets.

Buying interest was seen in IT stocks today, as the increased expectation of QE3 in US & their recent losses has made IT stock’s valuation attractive to the investors. Banking stocks also rose. ICICI Bank rose 1.44% to Rs 881.45 after better than expected quarter earnings and State Bank of India closed 0.32% up at Rs 2,137.95.

Markets ended up around 0.75%. Sensex closed at 17,318.81, up 131.47 points, or 0.76%. It touched an intraday high of 17,359.18 and a low of 17,195.51. Nifty ended at 5,248.15, up 39.15 points, or 0.75%. It touched an intraday high of 5,262.15 and a low of 5,201.45.

Sensex was led by TCS (up 3.49%); Jindal Steel (up 3.41%); Infosys (up 2.75%); DLF (up 2.61%) and Hero MotoCorp (up 2.35%). The main laggards were Maruti Suzuki (down 1.95%); BHEL (down 1.94%); Mahindra & Mahindra (down 0.64%); ITC (down 0.61%) and HDFC (down 0.50%).

The top gainers on Nifty were TCS (up 4.01%); Jindal Steel (up 3.67%); Power Grid Corporation (up 3.04%); DLF (up 2.83%) and Infosys (up 2.63%). The key losers on the index were BHEL (down 2.31%); Maruti Suzuki (down 1.66%); Axis Bank (down 1.34%); Dr Reddy's (down 1.31%) and Asian Paints (down 1.04%).

US stocks slipped on worries about euro zone as Spain entered another recession. Drop in an index of Midwestern manufacturing and a slowdown in consumer spending last month increased worries that the economy is weakening.  The markets ended its first losing month this year. The Dow Jones industrial average was down 29.33 points, or 0.22%, at 13,198.98. The Standard & Poor's 500 Index was down 6.57 points, or 0.47%, at 1,396.79. The Nasdaq Composite Index was down 19.74 points, or 0.64%, at 3,049.46.

The Nikkei Stock Average in Tokyo fell 1% to 9,422.83 amid strong yen which hits the exporters and signs of slowing US economy.

Stock markets in India, China, Hong Kong, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand are closed on Tuesday for a public holiday.

 

 

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