VantageTrade Eagle Eye: Markets open firm after G8 summit

Nifty and Sensex finished up on Friday as better-than-expected results from State Bank of India prompted the investors to buy SBI shares. US futures moving from deep red to green and recovering rupee provided the needed boost to the market in post-noon trade, ensuring a positive close for the second day.

The market witnessed a low opening as continuing European problems spooked global markets. Fitch's downgraded Greece by one notch to B- from CCC and Moody's downgraded ratings of 16 Spanish Banks what led the markets in Europe and the US down. Concerns about Europe led Asian markets lower in morning trade. In India, the benchmarks opened below their psychological levels. Nifty and Sensex emerged into the green in post-noon trade and managed to close in the green for the second day on better-than-expected results from State Bank of India which prompted the investors to buy SBI shares. US futures moving from deep red to green and recovering rupee provided the needed boost to the markets. Nifty added 21 points to 4,891 and Sensex advanced 82 points to end at 16,153. Overall, the markets closed the week 1% lower. The Sensex declined 140 points to 16,153 and the Nifty closed at 4,891, down 37 points.

The rupee hit another all-time low of 54.85 per dollar in the late morning trade losing 38 paise on fresh demand for the American currency from banks and importers. The Indian currency resumed lower at 54.60/61 per dollar at the Forex market against the last closing level of 54.47/48 and dropped to 54.82/83, before trading at fresh all-time low to 54.85/86.

US markets, after showing a lack of direction in morning trading on Friday, stocks moved down in the afternoon. The pullback by the markets came as traders were unwilling to hold positions going into the weekend. Remaining concerns about the financial situation in Europe continued to weigh on the markets, with the ongoing political uncertainty in Greece adding to worries about the outlook for the Euro zone.

Facebook's stock market debut did not live up to the expectations as the social network's shares closed the first trading day on a flat note with technical glitches at the Nasdaq stock exchange sending confusing signals to investors. After rising to an intraday peak of $45 apiece, the shares ended at $38.23, up only by 0.61% from the $38 offer price.

The Dow Jones industrial average dropped 73.11 points, or 0.59%, to 12,369.38. The Standard & Poor's 500 Index lost 9.64 points, or 0.74%, to 1,295.22. The Nasdaq Composite Index fell 34.90 points, or 1.24%, to 2,778.79.

Asian shares opened mixed today after facing huge losses last week after a statement by Group of Eight leaders saying they wanted Greece to remain in the Euro zone. Japan's Nikkei 225 index was trading 0.2% higher at 8,633.75 and Hong Kong's Hang Seng index was trading lower at 18,850.12, down 0.5%. South Korea's Kospi index was trading 0.5% higher at 1792.45. China's Shanghai index was trading at 2347, down 0.12%.

Markets opened higher today with banks, capital goods and FMCG stocks supporting the market. Sensex was up 79.45 points or 0.5% at 16,232.20 and Nifty rose 27.25 points or 0.56% to 4,918.70. Sentiments turned bullish after G8 meeting.

SBI gained another 2% after rising 5% on Friday due to strong results in Q4. PNB, Bank of Baroda, Kotak Mahindra Bank and HDFC Bank too gained 1% each while ICICI Bank was down 0.5%. IT stocks are facing selling pressure today. Wipro (-0.58%) and Infosys (-0.58%) traded lower.

Oil prices advanced. New York's main contract, West Texas Intermediate crude for delivery in June was up 28 cents to $91.76 per barrel while Brent North Sea crude for July gained 26 cents to $107.40. Gold was at $1,596.50 an ounce at 0300 GMT, compared with $1,589.90 late Friday.

Other Economic and Political News:

-        CCI clears state oil firms of cartelization charges

-        Government to invest Rs.73,000cr in ports

-        Retail inflation jumps to 10.32% in April on dearer vegetables

-        Retrospective amendment to I-T Act may impact FDI in India

-        Coal India board decides to exit ICVL consortium

-        Kingfisher Airlines owes Rs.269cr income tax: Government

-        MMTC inks supply pacts with Japanese, South Korean steel company’s

-        Odisha plant to be ready by early FY14, says Tata Steel

 

 

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