Markets May Recoup Some Of Yesterday's Losses
DSIJ Intelligence / 27 Mar 2012
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17052.78 | -1.78 |
| NIFTY | 5184.25 | -1.78 |
| Dow Jones | 13241.63 | 1.23 |
| S&P 500 | 1416.51 | 1.40 |
| NASDAQ | 3122.57 | 1.78 |
| Bovespa | 66684.59 | 1.32 |
| FTSE | 5902.70 | 0.82 |
| DAX | 7079.23 | 1.20 |
| CAC | 3501.98 | 0.74 |
| .. | ||
| Hang Seng | 20908.2 | 1.16 |
| Nikkei | 10183.72 | 1.65 |
| Shanghai | 2358.55 | 0.34 |
After Yesterday’s big fall market may open up on a positive note, as investors may find out buying opportunity on the beaten down stocks. Markets yesterday plunged almost 2 per cent, on the back of lack of clarity on taxing of FIIs coming via Mauritius route. Overnight, US market closed higher more than a per cent after Bernanke statement that accommodative policy is still needed and on the hopes that European Union will increase the size of bailout package. Asian market too, have joined the overnight rally of US markets, with the three major Indices Hang seng, Nikkei and Shanghai are trading in the positive territory,
Going forward, the outlook for Indian equities this week is very volatile. 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.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 51.3090 | 67.9785 | 81.3658 | 62.1300 |
| Future | 51.3175 | 67.9225 | 81.4900 | 61.7650 |
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27594 | 126.12 |
| % change | - | 0.21 |
| Future | 28376 | 106.86 |
| % change | 0.99 | -0.01 |
Rupee has shown some signs of nervousness in the past, and it is now trading at 51.3090 against US dollar. The fears of further Rupee depreciation from here on are higher as the crude prices are at the higher level. Brent crude is currently trading at 126.12 USD a barrel. Another factor which could further weaken rupee would be the yesterday’s confusion on the taxing norms for FIIs which are coming from Mauritius route. FII may remove money from the market which would further crate a rise in demand for dollars against rupee. This may further have negative impact on the markets.
Today, Reserve Bank of India and the Finance Minister is going to decide the market borrowings for the first six months of FY13. One has to watch out for the movement in the 10 year benchmark bond yield.
In conclusion, for today we expect markets volatile as there could be some buying seeing in the beaten down stocks. However one has to take a cautious approach while investing in the markets.
Stocks In Action
According to Economic Times, Jindal steel plans to scale down steel, pellet plants in Bolivia after the Bolivian government is unable to supply natural gas, a crucial input into steel making. Company needs about 4.5 mcmd of gas for its operations but was offered only 2.5 mcmd by the government. The stock may see a negative movement in today’s trading session.
Jaguar Land Rover, the parent company of Jaguar Cars and Land Rovers, owned by Tata motors is raising around pound 500 million through senior notes at a coupon rate of 8.25 per cent per annum which will be due in 2020. The net proceeds of the issue will be used for general corporate purposes. The stock may some movement in today’s trading session.
GMR group raises Rs 1500 crore debt from ICICI bank for energy boost. Money will be raised through the issuance of Non convertible debentures (NCD), which will further meet debt to equity needs across power projects. GMR may see a upwards movement in today’s trading session.
Another news for ICICI bank, is that it has asked Kingfisher Airlines to provide more collateral for loans given to the company. After the shares of Kingfisher and United spirits tanked, bank has asked airlines to top up collateral or adjust the loan amount. The news would have negative impact on the stocks.
Maharashtra Seamless, part of D.P. Jindal, market leader in Semless and higher dia erw pipes in India has successfully commissioned new 6 seamless pipe facilities at Mangoan in Maharashtra. The counter may see a upward movement in today’s session.
NBCC IPO was subscribed 0.58 times till the yesterday (i.e. till third day). Investors willing to subscribe should note that today is the last day of subscription for the IPO. Also, an IPO from education space, named MT Educare is opening up today and will close on 29th March 2011. For our detailed Analysis on both the IPO visit our Mindshare column on our website.
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| Madras Cements | Interim Dividend | 2 |
| Ramco Inds | Interim Dividend | 0.9 |
| State Bank Mysre | Interim Dividend | 10.00 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 26-Mar-12 | 3,988.36 | 4,133.65 | -135.29 | 775.03 | 975.97 | -200.94 |
| 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 |
| Mar , 12 | 46,419.86 | 39,683.92 | 6,745.94 | 16,042.62 | 19,320.42 | -3,277.80 |
| FII DERIVATIVES STATISTICS FOR 26-March-2012 | |||||
|---|---|---|---|---|---|
|
| BUY | SELL | OI (End of the day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| INDEX FUTURES | 3101.51 | 4536.10 | 678381 | 17560.70 | -1434.58 |
| INDEX OPTIONS | 22681.73 | 22047.65 | 2067006 | 53575.64 | 634.08 |
| STOCK FUTURES | 5129.10 | 5288.84 | 1080190 | 30181.69 | -159.74 |
| STOCK OPTIONS | 610.19 | 602.55 | 52619 | 1443.85 | 7.64 |
| Total | 31522.54 | 32475.13 | 3878196 | 102761.88 | -952.59 |
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