After four days of up move, Nifty and Sensex pared the gains and closed negative on the back of weak rupee, which closed at 52.96 per dollar on demand for the greenback from importers, lower investors’ sentiment as they are still concerned about GAAR, new taxation rules proposed by the government in the Budget, and export import data for March 2012. Also poor performance of auto stocks, led by Tata Motors after reporting a decline in sales, brought the markets down.
The markets were trading positive in the first half of the trading session as quarterly earnings of domestic majors turned out to be better-than-expected. However, in the second half they declined. The data about India’s exports for March 2012 was the worst since the global financial crisis in 2009. They fell 5.7% to $28.7 billion, while imports rose 24.3% to $42.6 billion. Sensex ended at 17,301.91, down 16.90 points, or 0.10%. It touched an intraday high of 17,432.33 and a low of 17,265.48. Nifty closed at 5,239.15, down 9 points, or 0.17%. It touched an intraday high of 5,279.60 and a low of 5,226.45.
U.S. stocks fell, taking the Dow Jones Industrial Average down from the highest level since 2007, as data showed companies added fewer jobs than economists projected. US private employers added 119,000 jobs in April, well short of expectations for 177,000. There are concerns that Friday's key jobs report will also disappoint investors. The Dow Jones industrial average dropped 10.75 points, or 0.08%, to 13,268.57. The Standard & Poor's 500 Index fell 3.52 points, or 0.25%, to 1,402.30. The Nasdaq Composite Index gained 9.41 points, or 0.31%, to 3,059.85.
Asian shares opened negative today due to global triggers. Disappointing data from US and Europe awaken the worries about the state of global economy. Hong Kong’s Hang Seng index was trading lower at 21,197.12, down 0.5%. South Korea’s Kospi index was trading 02% lower at 1993.45. China’s Shanghai index was trading flat at 2439.
The Indian markets opened lower following negative global cues. Sensex opened at 17,271.77 down 30.14 points and Nifty opened at 5,211.20 down 27.95 points. The rupee fell to 53.18 per dollar against its previous close of 52.96.
The RBI has ordered a new set of rules governing how much capital banks have to keep (Basel II norms). The new rules will start applying from January 2013 in phases and will finally become fully applicable by 2018. Banking stocks were marginally in red after announcement.
Shares of Hero MotoCorp were witnessing profit booking after the company's quarterly results were worse-than-expected. Its net profit rose 20% to Rs 603 crore in the quarter ended March. Total turnover in the fourth quarter rose 12% to Rs 6,035 crore. The company announced a dividend of Rs 45 per share.
Sugar stocks increased as government removed yesterday the cap on sugar exports and placed the commodity under the open general license category like wheat and rice. Shares of Balrampur Chini Mills, Shree Renuka and Bajaj Hindustan increased over 4% in early trade today.
Cement companies stocks will be also observed as ACC and Ambuja Cements reported a growth in production at 2.17 million tones and 1.91 million tones, respectively in the month of April.
Other Economic and Political News:
- India Manufacturing PMI rose to 54.9 in April from 54.7 in March 2012
- TRAI allows MSO’s to charge a carriage fee from broadcasters
- Oil ministry seeks clarifications from RIL on CBM gas price
- Vodafone ignored CBDT advice on tax liability: Government
- BGR Energy bags Rs.1,855cr order from Meja Urja Nigam
- Petronet signs pact for Rs.4,500cr Gangavaram LNG terminal
- Tata Motors ends distribution alliance with Fiat
- Kingfisher staff likely to move Labour Court over non-payment of salaries