VantageTrade Eagle Eye: Nifty and Sensex pulled back by realty, banking and FMCG stocks

Nifty and Sensex joined the freefall of global bourses. Global investors kept away on worries about crisis in Greece and back home depreciating rupee, which hit the five-month low losing 47 paise to 54.51 against the US dollar, and capital outflows  was another reason for bearish sentiments on Indian markets.  Sensex closed at 16,030.09, down 298.16 points, or 1.83%. It touched an intraday high of 16,132.68 and a low of 15,974.60. Nifty ended at 4,858.25, down 84.55 points, or 1.71%. It touched an intraday high of 4,882.25 and a low of 4,837.05 in trade today.

U.S markets again declined yesterday as investors worry about political situation in Greece, which is headed for a new round of elections after lawmakers failed to form a coalition government. Investors fear that a Greek exit from the Euro zone, a strong position against austerity measures and a disorderly debt default could lead to serious consequences and make sovereign debt problems worse. Positive U.S. economic data helped to limit the downside for the markets as a report showed that industrial production unexpectedly increased by 1.1% in April. The Dow Jones industrial average dropped 33.45 points, or 0.26%, to 12,598.55. The Standard & Poor's 500 Index dropped 5.86 points, or 0.44%, to 1,324.80. The Nasdaq Composite Index dropped 19.72 points, or 0.68%, to 2,874.04.

Asian shares recovered a bit today after yesterday’s sell-offs however concerns about situation in Greece remain.  Japan's Nikkei 225 index was trading 0.3% lower at 8,773.75 and Hong Kong’s Hang Seng index was trading higher at 19,316.12, up 0.3%. South Korea’s Kospi index was trading 0.1% higher at 1842.45. China's Shanghai index was trading at 2344, down 0.05%.

Indian bourses opened cautious but in Green today on the account of buying by funds and retailers amid a firming trend on the other Asian bourses. The BSE benchmark rose 123.03 points or 0.77% to 16,153.12 led by 26 stocks. Meanwhile, the NSE benchmark crossed the 4900 level, which was up 39.55 points or 0.81% at 4,897.80.The rupee was at 54.30/32 to the dollar in early trade versus its Wednesday close of 54.51, which was just off the record low of 54.52 to the dollar hit on the same day.  FMCG, realty and banking stocks are leading the benchmarks higher today.

Investors should observe textile stocks as the Textiles Ministry has circulated the draft Cotton Trade (Development and Regulation) Bill, 2012, to state governments for consultation. Also, there might be some movements in telecom stocks as the telecom regulator (TRAI) may be inclined to reconsider its recommendations on spectrum auction if the government asks it to do so. Trai’s latest recommendations on spectrum auction propose to keep Rs 3,622 crore as reserve price per unit of 2G spectrum, more than 10 times the cost of the same permits in 2008.(Firstpost)

HDIL is up 2.5% this morning as the company will cut its debt by 25-30%. The company is trying to sell two land parcels to raise Rs 500 crore. The Delhi High Court has asked Jaiprakash Power to stick to the provisions of the power purchase agreement (PPA) to fix the tariff for supply of electricity with PTC.

 Asahi India, Bajaj Auto, Bajaj Holdings, JP Infratech, JP Power, Satyam Computers, United Breweries and Wire & Wireless are among the many to present their results today.

Other Economic and Political News:

-        CBI raids at Yeddyurappa, kin’s residences

-        Government taking austerity steps to arrest market slide: FM

-        Oil prices fall as risk appetite declines

-        Pharma secondary sales surge 18.2% in April

-        Coal India signs fuel supply pacts with 14 power plants

-        Gas from KG-D6 drops to about 32mmscmd

-        Glenmark gets nod from U.S. for migraine tablets

-        Lupin, Aurobindo get U.S. nod for HIV drug

-        Piramal Healthcare acquires US Analytics Co for USD635mn

 

 

 

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