VantageTrade Eagle Eye: Markets fall on weak rupee and global triggers

Nifty and Sensex managed to finish yesterday in positive terrains after a volatile trading session during which the markets pared all gains. IT and realty stocks provided support to the markets thanks to global trends whereas FMCG stocks weighed on the markets. Market is expected to take further cues from India’s Q4 GDP number which scheduled to be released on coming Thursday ie on the day of May series expiry.

Nifty ended up 4.45 point today, to close at 4990.1. Sensex ended up 21.74 points, at 16,438.58.

US markets rose yesterday on signs that Greece would stay in Euro zone. However, Facebook Inc shares dropped below $29 to a new low on Tuesday as nervous investors fled the company's shares, concerned about the social network's long-term business prospects and an initial offering price that proved too rich.  The Dow Jones industrial average rose 125.86 points, or 1.01%, to 12,580.69. The S&P 500 Index added 14.60 points, or 1.11%, to 1,332.42. The Nasdaq Composite gained 33.46 points, or 1.18%, to 2,870.99.

Asian shares opened lower today, on the back of growing fears that Spain's banking woes will push up the country's borrowing costs to unsustainable levels. However, the losses were controlled by the reports that Greece would stay in Euro zone and China's stimulus steps. Japan's Nikkei 225 index was trading 0.9% lower at 8,579.75 and Hong Kong 's Hang Seng index was trading lower at 18,698.12, down 1.8%. South Korea 's Kospi index was trading 1% lower at 1831.45. China 's Shanghai index was trading at 2384, down 0.2%.

Nifty and Sensex also decreased, following Asian peers and global risk aversion and rupee that opened weaker today, at 56.01/04 per dollar, weaker than its 55.66/67 close on Tuesday. Sensex opens 100 points down at 16399 and Nifty at 4950, down 31.20.

Auto and banking stocks are hit the worst today. Tata Motors, Mahindra, & Mahindra, Bajaj Auto, Hero MotoCorp, Apollo Tyres and Exide Industries are among the losers. From the banking space, Axis Bank, Indusind Bank, IDBI Bank, Bank of India, Canara Bank, Yes Bank, Union Bank and Punjab National Bank are the top losers.

 Tata Motors is the top loser from the auto pack. The stock has plunged 8.2% to Rs 253 after reporting a 30 basis points decline in EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for Q4FY12 to 14.3%. The market expected a jump of over 100 basis points.

Aban Offshore, Anant Raj Inds, Colgate Palmolive, Jaiprakash Associates, DLF, Financial Technologies, Gail India, Godrej Inds, HDIL, Jindal Saw, Mahindra & Mahindra, Parsvnath Developers, PTC India, Rajesh Exports and Spicejet are among the many to announce their numbers today.

 BHEL said that it has commissioned a 250 MW unit at Parichha Thermal Power Station in Uttar Pradesh. This would result in generation of 6mn units of electricity that would be supplied to the grid every day.

Ritesh Idnani, senior vice-president and chief operating officer of Infosys BPO arm, has resigned.

Other Economic and Political News:

• Foreign retail investors can buy US$1bn Indian corporate debt: Govt.

• High Govt. borrowing may crowd out private sector: RBI

• Air India board refers Boeing compensation issue to Govt.

• Jindal Steel's US$2.1bn project gets Bolivian boot

• JSPL buys 10% in Gujarat NREs Oz unit

• Bharat Forge to sell loss-making US unit

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