Indian Markets May Open Sideways With Negative Bias

DSIJ Intelligence / 23 May 2012

The Indian equity markets extended their losses and have opened sideways with a negative bias. The SGX Nifty is trading down by 6 points at 4,827, indicating a gap down opening to the markets today.


Opening Bias

The Indian equity markets extended their losses and have opened sideways with a negative bias. The SGX Nifty is trading down by 6 points at 4,827, indicating a gap down opening to the markets today.

Benchmark Indices

Index

Closing

% Change

SENSEX

16026.41

-0.97

NIFTY

4860.50

-0.93

Dow Jones

12502.81

-0.01

S&P 500

1316.63

0.05

NASDAQ

2839.08

-0.29

Bovespa

55038.75

-2.74

FTSE

5403.28

1.86

DAX

6435.60

1.65

CAC

3084.09

1.88

LIVE

Hang Seng

18778.95

-1.37

Nikkei

8637.31

-1.05

Shanghai

2364.68

-0.36

Yesterday, while most global markets bounced back and rallied on hopes that Europe, the epicenter of financial turmoil, may shift its stance to growth from austerity, the Indian markets stood out like a sore thumb, with the rupee crashing to a new low and the stocks falling down. The RBI’s move to curtail currency arbitrage had very little effect as policy inaction coupled with Morgan Stanley lowering its forecast for the country’s economic growth led to a sell-off on D-Street. The rupee fell by 0.7 per cent to 55.39 per dollar at close, after touching an all-time low of 55.47. The Sensex lost 1 per cent to end at 16,026.41, its lowest level since January 9 and is off 13 per cent from its February 21 high.

Currency Rates

Particulars

Rs/$

Rs/Euro

Rs/GBP

Rs100/JYP

RBI Rate

54.8845

70.2093

86.8410

69.0800

Future

55.4925

70.7550

87.5350

69.4875

Going forward, the RBI is said to be looking to conduct open market operations (OMO) by buying back government bonds aggregating Rs 12,000 crore on Friday (May 25), in a bid to ease the tightening liquidity situation. This move by the RBI, which is usually aimed at either easing the bond yields or maintaining liquidity in the economy, is this time around seeking to curb the sharp rupee depreciation by rendering the rupee some liquidity support.  

Key Global Indicators

Particulars

Gold (Rs/10gm)

Crude ($/bbl)

Spot

27390

108.79

% change

-

-0.45

Future

29086

91.19

% change

0.18

-0.73

In conclusion, for today we see the markets remaining volatile with a negative bias. There is a lot of negativity looming on the streets and any bad news on the European front or further weakening of the rupee may mar the mood and send the markets spiraling downwards. We advise investors to remain cautious while taking investment decisions. 

Stocks In Action

According to a press release on the BSE, Power Finance Corporation announced a 35 per cent increase in net profit at Rs 818 crore for the quarter ended March 2012. It was Rs 607 crore in the same quarter a year ago. The total income was up by 40.4 per cent at Rs 3,684 crore as against Rs 2,623 crore in March 2011. For the financial year ended March 2012, the company’s annual consolidated net profit was up by 15.5 per cent at Rs 3,059 crore as compared to Rs 2,647 crore in the year ended March 2011. The consolidated total income rose by 28.2 per cent to Rs 13,096 crore while it was Rs 10,214 crore a year ago. The PFC during the 2011-12 fiscal mobilised Rs 126 crore through long-term infrastructure bonds’ issue. Besides, it garnered about Rs 5,000 crore through tax-free bonds, of which Rs 4,033 crore were raised through a public issue. 

According to a press filing with the BSE, Tata Communications today reported consolidated net loss of Rs 260.94 crore for the fourth quarter ended March 31, 2012. The company had posted net loss of Rs 156.51 crore in the same period last year. Its consolidated income from operations, however, increased in Q4 to Rs 3,961.28 crore, from Rs 3,068.83 crore for the same quarter in the 2010-11 fiscal. It has posted net loss of Rs 794.65 crore for 2011-12 as compared to Rs 776.9 crore in the previous fiscal. The income from operations in 2011-12 was Rs 14,196.05 crore from Rs 11,931.99 crore for the preceding fiscal. The board of directors recommended a dividend of Rs 2 per share for the financial year 2011-12.

Corporate Action


BSE Institutional Turnover

 

 FII

 DII

Trade Date

 Buy

 Sales

 Net

 Buy

 Sales

 Net

22-May-12

1,611.91

1,895.25

-283.34

927.65

720.05

207.60

21-May-12

1,334.72

1,414.31

-79.59

662.44

513.24

149.20

18-May-12

1,672.69

1,921.62

-248.93

1,021.59

872.65

148.94

May , 12

30,787.31

31,975.89

-1,188.58

15,192.49

14,737.74

454.75

FII DERIVATIVES STATISTICS FOR 22-May-2012

 

Buy

Sell

OI (End of day)

Net Position

Particulars

Rs (crore)

Rs (crore)

No. of contracts

Rs (crore)

Rs (crore)

Index Futures

1795.06

1223.14

512474

11824.17

571.92

Index Options

16545.46

16515.04

1807624

43896.29

30.41

Stock Futures

1900.89

1653.50

940846

21871.23

247.39

Stock Options

1077.78

1064.36

56572

1366.21

13.42

Total

21319.19

20456.05

3317516

78957.89

863.14

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