VantageTrade Eagle Eye: Markets fall on the back of global cues

India markets ended down almost 2% in Friday’s trading session. Depreciating rupee, uncertainty regarding GAAR pulled the markets down. Weak European markets increased the negative sentiments among investors. Heavy selling pressure could be observed in Capital Goods, Bank and Metal stocks.

Nifty closed at 5,086.85, down 101.55 points, or 1.96%. It touched an intraday high of 5,177.20 and a low of 5,070.60. Sensex ended at 16,831.08, down 320.11 points, or 1.87%. It touched an intraday high of 17,121.37 and a low of 16,776.72.

The market closed lower for the second week with Sensex losing 303 points at 16,831 and Nifty settling at 5,087, down 104 points.

On Friday, US stocks ended their worst week this year with a strong selling pressure after a decelerate in job creation and decreased unemployment, as people gave up looking for job and government counts people as unemployed if they are actively searching for job. It raised the question about the US growth.  Traders were also nervous about the elections in Europe, especially in Greece and France, as their results will have significant impact on Europe’s debt. The Dow Jones industrial average dropped 168.32 points, or 1.27%, to 13,038.27 at the close. The Standard & Poor's 500 Index lost 22.47 points, or 1.61%, to 1,369.10. The Nasdaq Composite fell 67.96 points, or 2.25%, to 2,956.34.

Asian stocks declined today as the election results in Greece and France raised questions if the countries will be willing to continue the measures to fight the debt in Euro zone.  US triggers also weighted negatively on the markets. Japan's Nikkei 225 index was trading 2.4% lower at 9,143.62 and Hong Kong’s Hang Seng index was trading lower at 20,577.12, down 2.4%. South Korea’s Kospi index was trading 1.7% lower at 1954.45. China's Shanghai index was trading at 2441, down 0.4%.

Indian benchmarks also opened lower, with Sensex trading close to its one-year low, as there are no positive global or domestic triggers.  Sensex opened 210.64 points down at 16,620.44 and Nifty declined 69.05 points and started the session at 5,017.80.

Oil marketing companies like HPCL, IOC and BPCL gained 0.5-1.5% as crude decreased by 4% yesterday.

The rupee opened lower today and was trading at 53.68/69 to a dollar as against 53.47/48 Friday close.

Bank stocks are still declining with State Bank of India, ICICI Bank, Axis Bank and Bank of Baroda leading losses and trading down over 3%.

JP Associates shares trade 6% lower after the Himachal Pradesh High Court has put a fine of Rs 1 billion for setting up a cement plant fraudulently.

 

Other Economic and Political News:

-        Government plans review of tax treaty with Mauritius

-        Government proposes setting up sovereign fund to buy coal assets abroad

-        Iraq becomes second largest crude oil supplier to India

-        Infy clients mulling contingency plans over visa row: Forrester

-        Two iGate promoters reduce stake by 3%

-        Petronet likely to sell stake in Vizag terminal

 

 

 

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