VantageTrade Eagle Eye: Nifty and Sensex up on pullback in rupee
Indian Markets ended on a flat note in Friday’s trading session. The markets opened in red on the back of weak global triggers and continuous downtrend in rupee but later improvement in rupee and positive European cues helped markets to pare morning losses. GAIL was the top gainer on Sensex today on the news that the company has signed a natural gas sale and purchase agreement with TurkmenGaz for Turkmen gas shipped via the TAPI pipeline. Metal and Capital Goods led the markets up while FMCG stocks weighed negatively on markets today.
Nifty ended down 1 point today, to close at 4920.4. Sensex ended down 4.48 points, at 16,217.82.
A media report indicated that Goldman Sachs and Bank of America-Merrill Lynch have cut their growth forecasts for India. Their move follows a similar downgrade by Morgan Stanley earlier this week. Goldman Sachs said it was cutting its gross GDP forecast to 6.6% from 7.2% for the current fiscal while Merrill Lynch downgraded its forecast to 6.5% from its earlier estimate of 6.8% for fiscal 2012-13.
U.S. markets ended their first positive week in four with a down day on Friday as investors were unwilling to have long positions during long weekend, with uncertainty still swirling around Europe. The Dow Jones industrial average fell 74.92 points, or 0.60 percent, to 12,454.83 at the close. The Standard & Poor's 500 Index dipped 2.86 points, or 0.22 percent, to 1,317.82. The Nasdaq Composite Index was down 1.85 points, or 0.07 percent, at 2,837.53.
Asian shares opened up today as an opinion poll indicated a win for pro-austerity conservatives in next month's Greek general election, but gains were tempered by concerns about Spain. Japan's Nikkei 225 index was trading 0.02% lower at 8,579.75 and Hong Kong’s Hang Seng index was trading higher at 18,706.12, up 0.23%. South Korea’s Kospi index was trading 0.5% higher at 1824.45. China’s Shanghai index was trading at 2329, down 0.1%.
A pullback in rupee, fresh buying by funds and retail investors and a firm trend in the Asian markets led Indian markets up by 0.60% in the opening bell. Sensex was up 109.47 points or 0.67% at 16327.29, and Nifty was up 32.55 points or 0.66% at 4952.95.
Reliance Communications, controlled by billionaire Anil Ambani, said consolidated net profit rose to Rs 3.32 billion for the three months ended March, from Rs 1.68 billion reported in the year-ago quarter.
Sun TV Network fell 1.18% to Rs. 248.10 on BSE after net profit fell 23.7 percent to Rs. 159.03 crore on 7.3 percent decline in net sales.
The PSU oil marketing companies also will be in spotlight as it has been reported that after a sharp hike in petrol prices last week, the government is bracing for a hike in diesel too. Government sources indicate that a diesel price hike in June is unavoidable and that there could be small frequent hikes instead of a Rs 5-7 per litre hike.
3M India, Balrampur Chini, Bharat Forge, Bombay Dyeing, Britannia Inds, Coal India, Indian Hotels, Electrosteel Castings, Engineers India, Mcleod Russel, Oil India, Neyveli Lignite, NMDC and Trent are among the many to announce their results today.
Other Economic and Political News:
- Share of direct tax to touch 12% of GDP: Pranab Mukherjee
- Government mulling private sector corruption law
- High spectrum prices disincentive to investment in India: GSMA
- RIL buyback gains pace; purchases shares worth Rs 1,481 crore
- Airtel to roll out 3G in Rwanda in the next quarter
- Reliance Power synchronizes two units of 2,400 MW Samalkot project
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VantageTrade Eagle Eye: Markets down on potential rollback in petrol prices
Indian benchmarks witnessed a volatile session on the back of falling rupee and negative global triggers. The indexes hit their intraday lows at around 10.40. However, the rupee recovered from the day’s low of 56.38 to 56.09 what lifted the markets higher. Also hike in petrol prices and gains in European bourses lifted the sentiments. Buying activity in banking, oil and gas gave Nifty and Sensex some strength to finish up with all indices in green. Nifty ended at 4,921.40, up 85.75 points or 1.77%. The broader index touched an intra-day high of 4,931.90 and a low of 4,830.15. Sensex closed at 16,222.30 with the biggest gain in 2 months, up 274.20 points or 1.72%. It touched an intra-day high of 16,252.37 and a low of 15,934.77.
US markets, Stocks showed a lack of direction on Thursday, as investors seemed averse to make any important moves. The choppy trading came after the markets saw considerable volatility over the course of the two previous sessions. Traders were also keeping aside due to some uninspiring US economic data, including a report from the Commerce Department showing a drop by a key indicator of business spending. The Dow Jones industrial average was up 33.60 points, or 0.27%, at 12,529.75. The Standard & Poor's 500 Index was up 1.82 points, or 0.14%, at 1,320.68. The Nasdaq Composite Index was down 10.74 points, or 0.38%, at 2,839.38.
Asian markets dropped today on endless Euro zone woes. Japan's Nikkei 225 index was trading 0.14% lower at 8,551.75 and Hong Kong’s Hang Seng index was trading lower at 18,637.12, down 0.16%. South Korea's Kospi index was trading 0.3% higher at 1820.45. China's Shanghai index was trading at 2348, down 0.1%.
The downtrend in Asian stocks influenced Indian markets today that opened lower today. Sensex opens 65 points down at 16,157 while Nifty is down 17 points at 4904.
The rupee has depreciated again; it fell 30 paise to 55.95 a dollar today after showing a recovery of 65 paise from record low yesterday.
Shares of public sector oil and gas companies are slightly down among media reports that there might be some rollback in the petrol price hike announced on Wednesday. ONGC and BPCL were down around 1% on profit booking.
The steel stocks are likely to be in focus as the government has called a meeting of steel makers, private and public sector both, to understand the costing and the reasons for the increase in prices of some of the products.
Bharti Airtel is up 1.36% after acquiring 49% stake in Qualcomm. The move will give Bharti Airtel significant first-mover advantage in rolling out high speed wireless data services.
BPCL, Crompton Greaves, Great Offshore, Gujarat Fluorochem, Gujarat Mnrl, ITC, Mirc Electronics, NHPC, Reliance Infra, Sun TV Network, Suzlon Energy and Trident are among the many to announce their numbers today.
Oil prices slipped close to $90 per barrel on concerns of a slowing global economy. The Brent crude for July delivery at $106.22 per barrel, was down 33 cents, in London.
Other Economic and Political News:
- Government hikes interest rate on SDS to 8.8% for 2012-13
- Government to meet on Friday to discuss raising diesel prices
- Delays in land acquisition stall road projects worth Rs.15,000cr
- RBI to take steps to arrest rupee fall: Finance Ministry
- Sun Pharma gets USFDA nod for nasal spray
- Mahindra & Mahindra taps Korean arm to crack China
- IOC may cut petrol prices if crude falls: chairman
- M&M eyes 100 MW from solar power projects
- Sun Pharma gets USFDA nod for nasal spray
- Mahindra & Mahindra taps Korean arm to crack China
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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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