VantageTrade Eagle Eye: Markets trade marginally lower, bank stocks down

The BSE Sensex and NSE Nifty were completely lackluster in trade as they were moving just around their previous closing values in absence of any news triggers. But markets manage to close on positive note for the fourth consecutive trading session today. India’s trade deficit becomes $10.3 billion for June as the exports fell 5.45 percent to $25.1 billion in June, while imports fell 13.46 percent to $35.4 billion. Buying interest was observed in Health care & Capital Goods stocks. The BSE benchmark was down 0.5 points to 17,235.68 and the NSE benchmark was flat at 5,228.50, but the broader markets outperformed benchmarks. The BSE Midcap Index rose 0.8% and Smallcap gained 1%.

 

US stocks edged lower after Federal Reserve disappointed investors as it offered no new measure to stimulate growth in the world's largest economy. The Dow Jones industrial average fell 32.55 points, or 0.25 percent, at 12,976.13. The S&P 500 Index slipped 4.18 points, or 0.30 percent, at 1,375.14. The NASDAQ Composite lost 19.31 points, or 0.66 percent, at 2,920.21.

 

Asian shares remain range bound on Thursday ahead of the European Central Bank's meeting due later in the day as US. Federal Reserve offered no stimulus to boost growth. Japan's Nikkei 225 index was trading 0.6 per cent higher at 8,694.75 and Hong Kong 's Hang Seng index was trading lower at 19,784.12, down 0.18 per cent. South Korea's Kospi index was trading 0.03 per cent higher at 1,880.45. China's Shanghai index was trading 0.02 per cent higher at 2,123.12.

 

The BSE Sensex and NSE Nifty opened marginally lower amid volatility in early trade due to lack of cues from the Federal Reserve's two days meeting. Asian markets too were mildly down as there was no significant shift in the Federal Reserve policy stance on Wednesday, though doors remain open for further easing. Now globally all eyes are on the outcome from European Central Bank's meet, which will be around 17:15.

The BSE benchmark declined 25 points to 17,232.62 and the NSE benchmark went down 10 points to 5,230.50.

Two-wheeler major Hero Motocorp fell more than 2% after disappointing sales numbers for July. Total sales went down by 9.3% month-on-month to 4.84 lakh units in July. Its rival Bajaj Auto was down 0.5% ahead of sales numbers today.

Country's largest lender State Bank of India went down 1% while its rival HDFC Bank declined 1% too. Housing finance company HDFC lost 0.7% whereas private sector lender ICICI Bank gained 0.2%.

 

Other Economic and Political News:

• Chidambaram takes over as Finance Minister
• RBI sets up panel for strengthening rural credit structure
• Govt formally allows foreign investment from Pakistan
• Current account deficit may be less in FY13: RBI
• Jet fuel prices hiked by 4.5%
• Uninor plans to auction telecom biz, Unitech opposes
• State oil cos decide not to buy Petronet LNG stake
• Muthoot Capital Services shares sale offer oversubscribed

 

 

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