VantageTrade Eagle Eye: Nifty and Sensex decline on profit booking and weak Asia clues

Markets continue their winning streak for another day on the back of strengthening of rupee and easing of Euro zone debt. Indian shares extended recent gains on Thursday after the rupee breached the 55 mark to hit a two-week high against the dollar. Talks of the government giving a big push to infrastructure development bolstered sentiments. Although there were reports of the Union Cabinet deferring a decision on the Pension Bill due to lack of consensus, the benchmark indices ended the trading day with significant gains. They closed 1% higher yesterday at 1-month high level. Once again interest sensitive stocks were the leading gainers. Realty & Banking indices gained more than 2% on Thursday.

Nifty ended up 52.55 point today, to close at 5049.65. Sensex up 194.75 points, at 16,649.05.

 

U.S. Shares ended flat yesterday as optimism about China's interest-rate cut was offset by Federal Reserve Chairman Ben Bernanke's comments that dimmed hopes for more US stimulus.  The surprising move by China's central bank to cut its benchmark interest rate by 25 basis points helped ease worries about faltering global demand.  The Dow Jones industrial average rose 46.17 points, or 0.37%, to end unofficially at 12,460.96. The Standard & Poor's 500 Index edged down 0.14 of a point, or 0.01%, to finish unofficially at 1,314.99. The Nasdaq Composite Index slipped 13.70 points, or 0.48%t, to close unofficially at 2,831.02.

 

Facebook stocks continue to decline. The stock fell 50 cents, or 1.9%, to close Thursday at $26.31. It's down 31% from its initial public offering price of $38.

 

Asian shares opened lower on Friday, weighed down by Federal Reserve Chairman Ben Bernanke comments which signaled no clues on any stimulus measures, outweighing any positive effect from China rate cuts.  Japan's Nikkei 225 index was trading 1.9% lower at 8,468.75 and Hong Kong 's Hang Seng index was trading lower at 18,548.12, down 0.7%. South Korea's Kospi index was trading 0.5% lower at 1,837.45. China's Shanghai index was trading at 2,286, down 0.2%.

 

After rising more than 4% in previous trading sessions, Nifty and Sensex opened slightly lower today due to profit booking and weak openings on Asian bourses. The rupee opened weaker against the dollar, retreating from a 2-week high in the previous session. It was at 55.25/27 per dollar, weaker than its previous close of 54.94/95.  Sensex declined 69.12 points to 16,579.93 and Nifty fell 26.45 points to 5,023.20.

 

Reserve Bank of India will auction a new 10-year government bond that will replace the existing benchmark. This is the second new 10-year paper the central bank is auctioning in 7 months, after the existing one touched a large outstanding worth 830 billion rupees.

 

Other Economic and Political News:

• People’s Bank of China cuts interest rates as economy continues to slide
• Monsoon 36% below average in first week: IMD
• PM's push for infra sector to boost investor confidence: CII
• Cabinet defers decision on pension reforms bill
• Tata Steel to set up Rs.30,000cr plant in Karnataka
• Suzlon to invest Rs.15,000cr to set up a 2,500 MW wind farm in Karnataka
• Dr Reddy's launches generic Parkinson's disease tablets in US
• BHEL commissions 250MW unit at UP thermal power project
• Jubiliant Life Sciences to invest ~Rs.1,000cr across businesses in Karnataka

 

 

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