VantageTrade Eagle Eye: Sensex trades below 16k, Nifty plunged below 4,800 level

Yesterday’s session was volatile however markets managed to close marginally higher and overcome fears about Euro zone crisis. Buying in fast moving consumer goods, realty, banking and power helped the indices gain momentum in subsequent trade and hit their intraday high. But, profit booking saw the market paring early gains. The losses increased as the European markets opened weak. Downgrades of Ashok Leyland and Larsen & Toubro by global brokerage Nomura also weighed negatively on investors. The indices pared all gains and ventured into the red on selling in technology, capital goods and healthcare sectors. Besides, the rupee hit its intraday low of 54.48 to a dollar, after witnessing a mild recovery this morning. Although the fall was short the market continued to face volatility and ended the session with minor gains.

Sensex gained 40.39 points or 0.25 per cent and settled at 16,070.48. It touched the day's high 16,240.18. Nifty added 11.95 points, or 0.25 per cent to 4,870.20, after climbing to as high as 4,922.25.

ITC was the top gainer on Sensex today on the news that the company has signed an agreement with the Board of Investment of Sri Lanka to build a luxury hotel in Colombo. SBI ended up 1.56% today due to positive expectation from its quarterly result which the company will report today.

Overnight, US stocks hit a four-month low as growing worries over developments in the euro zone and lackluster US economic data weighed on sentiments. The Dow Jones industrial average dropped 156.06 points, or 1.24 percent, to 12,442.49. The Standard & Poor's 500 Index fell 19.94 points, or 1.51 percent, to 1,304.86. The Nasdaq Composite Index lost 60.35 points, or 2.10 percent, to 2,813.69.

Facebook Inc priced its initial public offering at $38 per share, giving the world's No. 1 online social network a $104 billion valuation in the third largest offering in U.S. history. The stock begins trading today on the NASDAQ.

Asian shares fell steeply on Friday after more signs emerged of growing instability among Spanish banks and political turmoil in Greece. The latest weak US data also diminished the sentiments. Japan's Nikkei 225 index was trading 2.1% lower at 8,684.75 and Hong Kong's Hang Seng index was trading lower at 18,851.12, down 1.8%. South Korea's Kospi index was trading 2.4% lower at 1800.45. China's Shanghai index was trading at 2364, down 0.6%.

Sensex and Nifty began trading with 1.2% gap down today morning in reaction to rising concerns over Spain and Greece in Euro zone, and weak US economic data. Nifty opened 73.8 points down at 4,796.40 and Sensex was down 202.41 points at 15,868.07.

Moody's downgraded 16 Spanish bank ratings by 1-3 notches including EU's largest Banco Santander. Fitch downgraded Greece to CCC from B- and sees heightened risk of Greece exiting Euro.

Wipro is likely to bag a contract worth 9.6 billion rupees from the Indian Air Force (IAF) to automate its maintenance management system. Bharti Airtel, India's top mobile phone operator, on Thursday cut prices of its third-generation (3G) mobile data services by about 70 percent under some plans, a company statement showed. Jaypee Infratech rose 2.5% after good numbers in March quarter.

Other Economic and Political News:

-        Exports target set at US$350bn for FY2012-13

-        Italy keen to bring FDI in fashion, textiles in India

-        Government makes norms stringent for incorporation of firms

-        Government may offer incentives on export of textiles, handloom and leather products

-        Bharti Airtel slashes 3G data tariffs by up to 70%

-        Cairn deal boosts miner Vedanta's core profit

-        DLF gets Rs.2,900cr offer for 17 acre plot in Lower Parel

 

 

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