Markets May Open Negative Ahead Of Expiry Week
DSIJ Intelligence / 26 Mar 2012
Indian markets may open negative ahead of the expiry of March F&O series. The SGX Nifty is trading down by 33 points at 5258 indicating a gap down opening to markets today.
Opening Bias
Indian markets may open negative ahead of the expiry of March F&O series. The SGX Nifty is trading down by 33 points at 5258 indicating a gap down opening to markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17361.74 | 0.96 |
| NIFTY | 5278.20 | 0.95 |
| Dow Jones | 13080.73 | 0.27 |
| S&P 500 | 1397.11 | 0.31 |
| NASDAQ | 3067.92 | 0.15 |
| Bovespa | 65813.00 | -0.02 |
| FTSE | 5854.89 | 0.16 |
| DAX | 6995.62 | 0.21 |
| CAC | 3476.18 | 0.11 |
| LIVE | ||
| Hang Seng | 20691.53 | 0.11 |
| Nikkei | 10023.53 | 0.12 |
| Shanghai | 2353.45 | 0.17 |
Last week markets ended on a marginally negative note as the govt. announced the railway fare rollbacks and a CAG report on alleged coal block allocation scam amounting to Rs 10.7 lakh crore weighed on investor sentiments. Global stock markets in US and Europe managed to close a tough on a positive note helped by some bargain hunting by investors on Friday. Asian shares have edged higher this morning with commodity-exposed firms and Japanese exporters among the gainers.
| Currency Rates | ||||
|---|---|---|---|---|
| Particulars | Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 50.9055 | 67.4035 | 80.7718 | 61.0900 |
| Future | 51.1700 | 67.4200 | 80.9125 | 61.8800 |
Going forward, the outlook for Indian equities this week, in the absence of any major economic triggers would largely depend on the dollar and crude oil price movements. Also with the March F&O contracts expiring this week on Thursday, market volatility could be higher as traders roll over positions to the April series. Investors and traders on the street are expected to carry forward their short positions to April in view of the bearish market sentiments.
Rupee has shown some signs of nervousness in the past one week since the announcement of the budget as it depreciated by more than 2 per cent last week to end at Rs 51.17 a dollar. Crude oil prices have also been threatening in the recent past. Despite the dated Bren6t price at current levels of USD 125.67 per barrel being lower than its all time high of USD 147 a barrel in 2008, the sharp rupee depreciation has made in more expensive from an Indian economic point of view. With no concrete solutions emerging from the Middle East on Iran’s conflict against the western super powers and expectations of increase in demand from US consumers as the summer diving season starts, we expect crude to remain benign above current levels.
| Key Global Indicators | ||
|---|---|---|
| Particulars | Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27208 | 125.67 |
| % change | - | -0.28 |
| Future | 28099 | 106.56 |
| % change | -0.07 | -0.29 |
In conclusion, for today we expect markets volatile with a negative bias as traders and investors fret over the possible direction that markets might hold.
Stocks In Action
According to Economic Times, a fall in Asian oil demand has forced Reliance to divert cargoes to Western markets to keep its refinery running flat out, but the shift is hurting refining margins and would have a bearing on its earnings. India's largest private sector refiner is shipping out close to 70% of its fuel to the United States and Europe, because China and Japan are buying lesser oil, changing the dynamics of the Asian market, which has enjoyed high refining margins. This development comes as a major shock to the oil & Gas major who last Friday looked to receive some respite from the govt. as the PM assured to speed up the gas policy reforms process and oil ministry approved its prices of at least USD 10 per unit for the CBM extracts in MP.
According to Business Standard, the country's largest car maker Maruti Suzuki India Ltd (MSIL) has increased the prices of its vehicles by up to Rs 17,000 following the rise in excise duty in the Budget. The increase in prices will affect the company's models ranging from small car M800 to mid-sized sedan SX4. In Budget 2012-13, finance minister Pranab Mukherjee raised excise duty to 12 per cent from 10 per cent. The excise duties for petrol cars with engines under 1,200 -cc and diesel cars with engine capacity under 1,500 -cc, with length exceeding four metres, have been increased to 24 per cent from 22 per cent and a fixed duty of Rs 15,000. Excise duty on petrol and diesel driven vehicles with length exceeding four metres and engine capacity of over 1,200 -cc and 1,500 -cc respectively, was increased to 27 per cent, from 22 per cent earlier, along with a fixed duty of Rs 15,000.
According to sources, ONGC's overseas exploration arm ONGC Videsh (OVL) might see it’s first-ever decline in production this year on account of geopolitical factors in Sudan and Syria. In the first three quarters of the current financial year, the company's production dropped over four per cent to 6.76 million tonnes against 7.06 million tonnes in the corresponding period last year. The company, with nine producing assets overseas, had achieved a record production of 9.44 million tonnes last fiscal. However, this year the company may even miss the target of nine million tonnes given by the petroleum
Expect negative action in the scrip’s of Hexaware Tech, as sources reckon than Citi one of Hexaware’s largest clients is likely to have scaled down Hexaware’s contract due to Citi's consolidation strategy. It is believed that Hexaware management is in talks with Citi over scale down of deal. However, company has declined to comment on any single client.
Expect positive action in stocks of JP Associates as company has been awarded two contracts by Mangdechhu Hydroelectric Project Authority, Bhutan for construction of the two contract packages (Rs 913 crore approximately) pertaining to 720 MW Mangdechhu Hydroelectric Project located in Trongsa District Bhutan.
Corporate Action
| Corp Action | ||
|---|---|---|
| Scrip Name | Action | Ratio |
| Hatsun Agro | Bonus | 1:2 |
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| Golden Sec | Interim Dividend | 0.40 |
| KSB Pumps | Final Dividend | 3 |
| State Bank BikJpr | Interim Dividend | 14.5 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 23-Mar-12 | 2,310.91 | 2,301.45 | 9.46 | 689.22 | 502.41 | 186.81 |
| 21-Mar-12 | 3,488.60 | 2,865.96 | 622.64 | 956.01 | 1,249.71 | -293.70 |
| 20-Mar-12 | 2,110.50 | 1,999.41 | 111.09 | 994.50 | 1,114.85 | -120.35 |
| Mar , 12 | 42,431.50 | 35,550.27 | 6,881.23 | 15,267.59 | 18,344.45 | -3,076.86 |
| FII DERIVATIVES STATISTICS FOR 23-Mar-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
| Particulars | Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 3382.38 | 3773.43 | 634598 | 16701.97 | -391.05 |
| Index Options | 25926.70 | 23755.96 | 1983336 | 52339.02 | 2170.74 |
| Stock Futures | 3819.98 | 3609.84 | 1070341 | 30569.54 | 210.14 |
| Stock Options | 838.25 | 793.07 | 54659 | 1527.81 | 45.18 |
| Total | 33967.31 | 31932.30 | 3742934 | 101138.34 | 2035.01 |
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.