VantageTrade Eagle Eye: Global sentiments dampened by Eurozone crisis

Yesterday’s trading session was bland as traders preferred to remain edgeways before key events such as IIP and inflation data by the end of this week, Infosys' earnings on Friday and the RBI policy meeting on April 17. Selling pressure was observed in oil and gas stocks after a government directive to cut gas tariffs.  Nifty ended up 9.2 points today, to close at 5243.6. Sensex ended up 21.7 points, at 17,243.84. The Nifty’s intraday high was 5,256 and Sensex intraday high amounted to 17,275. At the lows, the Nifty fell to 5,212 and the Sensex went down to 17,136.

The top gainers on the Nifty were Tata Power (up 4.39%); Reliance Communications (up 3.25%); Tata Motors (up 2.90%); Hindustan Unilever (up 2.84%) and SBI (up 2.43%. The key losers on the index were Ambuja Cement (down 2.54%); Ranbaxy Laboratories (down 2.41%); BHEL (down 2.39%); BPCL (down 2.28%) and GAIL (down 2.16%).

Tata Power (up 3.83%); Tata Motors (up 2.85%); Hindustan Unilever (up 2.63%); State Bank of India (up 2.37%) and ITC (up 2.19%) led the Sensex higher. On the other hand, BHEL (down 2.89%); GAIL India (down 1.82%); Infosys (down 1.63%); ONGC and Sterlite Industries (down 1.42% each) settled lower on the index.

Foreign and domestic institutional investors were net sellers in on Monday. Foreign institutional investors sold stocks amounting to Rs269.43 crore, domestic institutional investors pulled out funds worth Rs105.82 crore.

The strong selling pressure as well as euro zone debt concerns caused the US stocks to fall for fifth straight day. The Dow Jones industrial average lost 213.66 points, or 1.65%, to 12,715.93 at the close. The Standard & Poor's 500 Index dropped 23.61 points, or 1.71%, to 1,358.59. The Nasdaq Composite Index tumbled 55.86 points, or 1.83%, to 2,991.22.

Asian shares are in Red for the third consecutive day as investors prefer to stay sideways due to concerns over global growth prospects and worries about the debt crisis in euro zone.  Japan’s Nikkei 225 index was trading 1.1% lower at 9430.45 and Hong Kong’s Hang Seng index was trading lower at 20,081.12, down 1.3%. China's Shanghai index was trading at 2310, up 0.2%.

Sensex and Nifty, following the global dampened sentiment, started the session down. Nifty opened 34.15 points down, at 5,209.45. Sensex started at 17,125.96, 117.88 points lower.

The eyes will be kept on aviation shares such as Kingfisher Airlines, SpiceJet, Jet Airways. They increased 5-7% in early trade on reports the government is close to allowing foreign airlines to pick up stakes in Indian carriers, throwing a potential lifeline to struggling aviation companies.

Crude oil was at $120 a barrel and gold was trading at $1,655.89 an ounce.

Other Economic and Political News:

-        February industrial output may slow slightly: Poll

-        Car sales rise 20% in March, up 2.2% in FY2012

-        Government plans US$30bn investment to develop airports

-        AI, KFA jointly owe about Rs.525cr to GMR airports

-        Bharti Airtel launches 4G in Kolkata, Bangalore next

-        RCom may launch Rs.7,500cr IPO of Flag Telecom this quarter

-        Tech Mahindra, Satyam may hire 10,000 new staff

 

 

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