VantageTrade Eagle Eye: Nifty and Sensex continue gains, ICICI lead

Indian markets pared half of its gains in second half of the trading session. The Markets ended up around 1.25% today. Yesterday’s strong statement by ECB President Mario Draghi regarding sustenance of EU, provided impetus to the global equity markets. The markets touched day’s high point in noon trade but pared its gains as the poor asset quality performance by PSU banks in Q1FY13 dampened investor’s sentiments. Selling pressure was observed in all PSU Banks stocks today. ICICI bank has reported 36.26% Y-o-Y increase in its Q1FY13 NPAT.

The Nifty ended up 56.85 point on Friday, to close at 5099.85. The Sensex ended up 199.37 points, at 16,839.19.

 

US markets posted steep gains for a second day Friday, reclaiming a weekly advance as investors anticipated moves by the ECB as well as the U.S. Federal Reserve. The rally was aided partly due to the release of a report from the Commerce Department showing that the pace of U.S. economic growth slowed by less than anticipated in the second quarter as GDP came in at 1.5% (Estimate: 1.2%) as compared to 2.0% in the first quarter. While the report points to continued economic growth, analysts noted that the slowdown still leaves the door open for further stimulus from the Federal Reserve. The Dow Jones industrial average climbed 187.73 points, or 1.46 percent, to close at 13,075.66. The Standard & Poor's 500 Index advanced 25.95 points, or 1.91 percent, to finish at 1,385.97. The Nasdaq Composite Index gained 64.84 points, or 2.24 percent, to end at 2,958.09.

 

Asian shares extended their gains on Monday, on hopes that US Federal reserve and European Central Bank will work out new stimulus measures to support growth.  Japan's Nikkei 225 index was trading 0.6 per cent higher at 8,622.75 and Hong Kong 's Hang Seng index was trading higher at 19,530.12, up 1.3 per cent. South Korea's Kospi index was trading 0.7 per cent higher at 1,845.45. China's Shanghai index was trading flat at 2,131.12.

 

The BSE Sensex and NSE Nifty gained nearly 1% in early trade today following positive global cues. The BSE benchmark rose 151 points to 16,990.23 and the NSE benchmark went up 45 points to 5,144.75.

ICICI Bank gained another 2% after better than expected numbers on Friday. Maruti fell 2% as traders worried about its Manesar plant. Even its first quarter numbers disappointed the street. Company said, "Adverse currency movement hit Q1 profit. Demand was lower for petrol cars in the quarter."

Deccan Chronicle Holdings was under pressure after reports that Industrial Finance Corporation of India in the winding-up petition said that the company has liabilities running into crores of rupees that may lead to the erosion of the entire net worth of the company and make it commercially unviable and insolvent.

 

Other Economic and Political News:

• EGoM to meet next week to review monsoon situation
• Government's public debt up 4.9% in Apr-Jun 2012
• Monsoon about 21-22% below average until July end
• Deccan Chronicle promoters pledge 54% stake to Future Cap
• RCom accuses Bharti Airtel of blocking international calls
• Suzlon redeems FCCBs worth Rs.1,993cr
• USFDA lifts ban on Dr ReddyRs.s Mexico plant