VantageTrade Eagle Eye: Markets and rupee rebound after recent losses

After opening in Red yesterday, due to global triggers, markets witnessed volatile trading session.  In the late morning session they managed to compensate some of the losses and hit the intraday high on the back of select buying. Nifty and Sensex moved lower in the noon as they were unable to keep the gains but again, after positive opening of European bourses they traded in Green again. However, in the late session, losses in banking, auto and realty stocks pulled the benchmarks down.

Sensex closed at 16,479.58, down 66.60 points, or 0.40%. It touched an intraday high of 16,615.74 and a low of 16,422.93. Nifty ended at 4,974.80, down 25.15 points, or 0.50%. It touched an intraday high of 5,016.25 and a low of 4,956.45.

ITC was the top gainer on Sensex today as the proposed amendment to the pricing methodology for an excise duty announced in March is expected to benefit the cigarette manufacturers. Reliance Industries ended down almost 2%, the stock has lost 5% in last five trading sessions after the company said that it has cut estimates for proven gas reserves in its Krishna-Godavari (D6) block.

US stock fell weighted by Greece’s and Spain’s issues, however they trimmed some losses after the board of the European Financial Stability Facility agreed to make a payment of 5.2 billion Euros in emergency aid to Greece. The Dow Jones industrial average finished down 97.03 points, or 0.75%, at 12,835.06. The Standard & Poor's 500 Index was down 9.14 points, or 0.67%, at 1,354.58. The Nasdaq Composite Index fell 11.56 points, or 0.39%, at 2,934.71.

Asian shares trade lower for sixth trade in a row, as investors’ sentiment is low because of worries over unstable political situation in Europe. Japan's Nikkei 225 index was trading 0.05% lower at 9,040.75 and Hong Kong’s Hang Seng index was trading lower at 20,356.12, up 0.13%. South Korea's Kospi index was trading 0.1% lower at 1947.45. China's Shanghai index was trading at 2416, up 0.3%.

Indian markets opened higher after witnessing major falls in last sessions. Both opened higher led by buying interest in banks, oil & gas, auto, capital goods and FMCG stocks. Nifty opened 9.35 points up, at 4,984.15 and Sensex gained 36.04 points and started session at 16,515.62.

The rupee also appreciated 67 paise to 53.15 a dollar, on the back of fresh measures announced by the RBI overnight. RBI said it will require exporters to convert 50% of their foreign exchange holdings into rupees. The central bank has also said restrictions on intra-day position limits will only be applicable for rupee trades.

Reliance Industries rose 0.96% at Rs 701.80 at 9:26 on BSE after the company said it raised $2 billion in debt from a consortium of nine international banks covered by Euler Hermes Deutschland AG earlier this week in Germany. Ranbaxy is trading lower as it is witnessing profit booking after yesterday’s rally.

India's top power producer NTPC Ltd will report March-quarter results. Analysts expect profit to drop 7% from a year ago. Other companies that will report their earnins today are: Cadila Healthcare, Cipla, Escorts, Jubilant Foodworks , Jain Irrigation Systems and Sintex Industries.

Crude oil fell 0.5% at $112.64 a barrel.

Other Economic and Political News:

-        Cabinet may mull Coal Regulatory Bill tomorrow

-        India's urban consumer confidence edges up: survey

-        Government to auction 54 coal blocks with 18 bn tonne reserves

-        March factory output seen slowing further: Poll

-        Fire at M&M Nasik plant, operations suspended

-        ICICI Bank raises foreign currency deposit rates

-        ONGC to foray into city gas, plans to set up ONGC Gas

-        Lanco Infra gets Supreme Court nod for township project

 

 

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