VantageTrade Eagle Eye: Markets up, petrol price hike negative for auto stocks

Weakness in rupee along with negative cues from Europe continues the negative influence on stock markets in India.  Rupee hit new all time low of 56.27 yesterday. Heavy selling pressure was observed in telecom, oil and gas, FMCG, power and technology stocks. Bharti Airtel was the top loser on Sensex today ahead of the ministry of telecom meeting scheduled for today regarding spectrum pricing. Nifty ended down 24.85 points today, to close at 4835.65. Sensex ended down 78.31 points, at 15,948.10.

US stock markets finished mostly up yesterday after a volatile session when markets were mostly trading negatively. Dow Jones industrial average dipped 6.66 points, or 0.05%, to 12,496.15. The S&P 500 Index edged up 2.23 points, or 0.17%, to 1,318.86. The Nasdaq Composite gained 11.04 points, or 0.39%, to 2,850.12.

Facebook Inc and Morgan Stanley, were sued by some Facebook’s shareholders, who claimed the they hid Facebook's weakened growth forecasts before the IPO. The stock was up 3.2% at $32 after falling more than 30% on Friday.

Asian shares opened mixed today after the European leaders summit during which they were not able to take any concrete measures to prevent Euro zone from crisis and Greece from leaving from Euro currency. Nikkei 225 was marginally down at 8,550.62 while Hong Kong's Hang Seng fell 0.2% to 18,749.19.

Nifty and Sensex opened the today’s trading session flat but positive led by oil shares trading higher after the biggest petrol price hike in 10 years. Shares of government-owned oil marketing companies rallied over 3% in early trade today while auto stocks were under pressure. Nifty opened 27.75 points up at 4,863.40 and Sensex started at 16,033.90, 85.8 points up.

Oil and gas, capital goods and power stocks were the top sectoral performers while IT, auto and healthcare stocks led the markets down.

Telecom stocks are likely to keep buzzing as the government is looking for the way to end to mobile roaming within the country which will impact the revenue of the telecoms.

Companies presenting their results today are:  Central Bank of India, Gujarat Alkalies, Gujarat State Petronet, Jai Corp, Jet Airways, JM Financial, Madras Cements, Max India, Man Industries, MCX, Novartis India, Orbit Corp, Pidilite Industries, Reliance Power, Shasun Pharma, TVS Motor and Voltas.

Rupee trades at new record low of 56.38 against US dollar. US crude slipped 0.3% at $91.54 a barrel and Brent down 0.3% at $108.13 a barrel.

Other Economic and Political News:

-        Rupee breaches 56/dollar, despite RBI action

-        25% of loans to SEBs restructured

-        June FTP set to bring stability to farm export

-        RIL-led group gives up D4 gas block

-        Aurobindo Pharma gets US nod for generic anti-HIV drug

-        Suzlon to commission 138-MW project for South Africa

 

 

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