VantageTrade Eagle Eye: Markets down as Greece hurts global sentiment

Indian markets ended 2.50% down yesterday on the back of huge selling by Foreign Institutional Investors, weak rupee and negative triggers from Europe. It was led down also by IT index that dropped more than 3% due to guidance reduce by Cognizant Technology Solutions as it faces demand decrease.

IT stocks, capital goods, auto and banks led the decline while the FMCG and realty sectors showed some resistance.

Nifty ended at 4,986.20, down 127.95 points, or 2.50%. It touched an intraday high of 5,119.95 and a low of 4,983.60. Sensex closed at 16,518.07, down 394.64 points, or 2.33%. It touched an intraday high of 16,918.31 and a low of 16,502.91.

TCS fell 5.7% after JP Morgan downgraded it to "neutral" from overweight" saying the stock price was now "fully valued".

Crude oil prices were steady after a four-day decrease on concerns of a decelerate in the US economy and the results of elections in France and Greece. The crude was at $113.43, up 26 cents per barrel after closing at $113.16 a day ago.

As per provisional data from stock exchanges, foreign institutional investors sold shares worth Rs. 630.81 crore on Monday. They bought shares worth Rs. 1,224.82 crore between April 28 and May 4.

US stocks declined due to poor earnings results political chaos in Greece as it struggles to form a government 2 days after elections. There are fears that Greece will reject an international bailout and leave the euro.  There are also concerns about France-Germany split after anti-austerity Socialist Francois Hollande was elected French president. The Dow Jones industrial average was down 76.44 points, or 0.59%, at 12,932.09. The Standard & Poor's 500 Index was down 5.86 points, or 0.43%, at 1,363.72. The Nasdaq Composite Index was down 11.49 points, or 0.39%, at 2,946.27.

Asian stocks opened lower today due to global cues. Asian exporter, especially from China, Japan and South Korea, are hurt by the situation in Europe as demand for their products comes mostly from there. Japan's Nikkei 225 index was trading 1.3% lower at 9,059.75 and Hong Kong’s Hang Seng index was trading lower at 20,351.12, down 0.6%. South Korea's Kospi index was trading 0.7% lower at 1952.45. China's Shanghai index was trading at 2428, down 0.8%.

Nifty and Sensex, following global bourses and weak global and domestic triggers as there are fears that there is little room for further rate cuts by RBI, opened lower today. Nifty opened 18 points down at 4,967.90 and Sensex dropped 82 points and opened at 16,436.41.

Ranbaxy was up 1.4% ahead of quarterly numbers today while Asian Paints gained 0.7% after better than expected results. Central Bank of India tanked 3.5% after the bank reported loss in the fourth quarter of FY12; the stock closed down 12% yesterday. TCS recovered after the sharp selloff yesterday. Reliance Industries Ltd slipped 0.2% to Rs 707 in early trade after Oil Minister Jaipal Reddy said the natural gas output from Reliance Industries' D6 block would drop to 20 million standard cubic meters per day in 2014-15. Investors will also eye shares of Punjab National Bank, ABB India and IRB Infra as the companies are publishing their results today.

The rupee was at 53.54/55 to the dollar in early trades versus its Tuesday's close of 53.12/13.

Other Economic and Political News:

-        Oil Ministry for hiking excise duty on diesel cars

-        29 thermal plants with less than one week's coal

-        India unlikely to maintain 21% export growth in FY13: FIEO

-        US working with India on Iran oil replacements: Clinton

-        Cipla considers price cuts on more cancer drugs

-        Maruti hikes prices of diesel DZire by up to Rs 12,000

-        SREI Infra partners ISB to groom future business leaders

-        Jubilant FoodWorks begins Dunkin' Donuts rollout in India

 

 

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