VantageTrade Eagle Eye: Nifty and Sensex pulled down by IT shares

After opening in Red and hitting the lowest level since January 2012, Nifty and Sensex bounced back by 2.78% after finance minister’s clarification concerning GAAR regulations.   The FM declared that the general anti-avoidance rule (GAAR) will be implemented from next financial year. He also said the government would not use retro amendments on cases where assessment has been done.

Capital Goods stocks led the bounce back rally today. Buying interest was seen in CG majors such as LT & BHEL due to bargain hunting. Stocks such as Titan Industries and Gitanjali Gems ended up today after finance minister withdrew levy on all branded and non-branded jewellery.

After 3 days of losses markets managed to gain some strength and end in Green.  Sensex ended at 16,933.76, up 102.68 points, or 0.61%. It touched an intraday high of 16,944.13 and a low of 16,513.77. Nifty closed at 5,114.15, up 27.30 points, or 0.54%. It touched an intraday high of 5,124.74 and a low of 4,988.

US stocks ended the trading session mixed yesterday on the back of election results in Greece and France that awakened the fears over euro zone debt recovery. At the close of trade the Dow Jones Industrial Average was down 29.59 points, or 0.23%, to 13,008.68. The S&P 500-stock index was up 0.50 (0.04%) to 1,369.60, while NASDAQ gained 1.42 (0.05%) to 2,957.76.

Stocks on Asian bourses bounced back from the big losses. Investors’ sentiment was improved by hopes that Spain might use public funds to sustain its troubled banks. Japan's Nikkei 225 index was trading 0.6% higher at 9,178.75 and Hong Kong’s Hang Seng index was trading higher at 20,626.12, up 0.4%. South Korea’s Kospi index was trading 0.5% lower at 1966.45. China’s Shanghai index was trading at 2438, down 0.6%.

NSE and BSE opened flat today following dimmed global triggers and selling pressure in IT stocks after the tech major Cognizant decreased its revenue outlook from 23% to 20%. TCS, Wipro, HCL Tech and Infosys are among the top losers on both bourses. Sensex opened at 16,915.71 up 3 points and Nifty opened at 5,114.70 up 0.55 points.

The Indian rupee appreciated by 17 paise to 52.74 a dollar today. It gained more than a rupee since yesterday's low of 53.76 a dollar. The crude oil was at $113.50 per barrel after closing at $113.16 previously.

Shares of Asian Paints, Hindalco, Central Bank, CESC and Dena Bank will be observed by investors today as the companies are to publish their results today.

 

Other Economic and Political News:

-        Government slashes capital gains tax for PE investors

-        CEA requests Power Ministry to seek PMO help on fuel pact

-        Government eases 30% sourcing condition for single brand retail

-        Maruti operations unaffected by Suzuki’s recall of swifts

-         Kingfisher to start paying January salaries: Mallya

-        Ramky infra bags Rs.1,249cr orders

 

 

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