VantageTrade Eagle Eye: Indian markets rebounded led by global markets

The Bombay Stock Exchange's Sensex and National Stock Exchange’s Nifty finished the trading session on Monday 1.80% down. Sensex ended at 17037.17, down 324.57 points or 1.87% and Nifty closed at 5180.10, down 98.10 points or 1.86%. We could observe a selling pressure yesterday because of traders’ worries that the RBI may not reduce interest rates due to high-priced crude oil, around $125 per barrel. The Indian rupee fell to 51.44 per US dollar because of demand for dollars from oil importers and decrease in equities.  Another factor was global worries about Spain’s fiscal outlook and confusions related to New General Anti-Avoidance Rules (GAAR) provisions which will be applicable from April 1.

Asian and US stocks bounced back today, after Federal Reserve Chairman Ben Bernanke said they would keep the easy monetary policy for some time although the US economy is improving. Also China signaled that its economic growth is moderating.  Japan's Nikkei 225 index was trading 1.6% higher at 10,184.62 and Hong Kong's Hang Seng index was trading higher at 20,923.12, up 1.2%. South Korea's Kospi index was trading 0.8% higher at 2035.45. China's Shanghai index was trading at 2361, up 0.4%.  The Dow Jones industrial average shot up 160.90 points, or 1.23%, to 13,241.63 at the close. The Standard & Poor's 500 Index gained 19.40 points, or 1.39%, to 1,416.51. The Nasdaq Composite Index climbed 54.65 points, or 1.78%, to 3,122.57.

Today, Indian benchmarks opened positive following the global bourses. Nifty started the trading session at 5,242.95, up 58.7 points and Sensex opened 156.35 points up at 17,209.13. However, the markets lost most of their opening gains due to continued confusions about proposed GAAR rules.  At 10.40am Nifty was trading at 5,203.60 and Sensex at 17,113.92. The rupee was at 51.12 to the dollar, stronger than Monday's close of 51.265/275.  According to experts, markets may remain volatile ahead of F&O expiry.

Other Economic and Political News:

-        Govt. allows 1mn tonnes of extra sugar exports

-        Power companies lost 8.7bn units due to coal shortages: govt.

-        Interest rates on post-office operated small savings scheme hiked up by 0.5%

-        Car making operations at Gurgaon plant will continue: Maruti

-        Bank of Maharashtra get shareholders nod for Rs.995cr pref. issue

-        Gammon Infra bags Rs.935 cr road project from NHA

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