Markets May Open Positive

DSIJ Intelligence / 04 Jul 2012

The Indian markets may open green owing to positive cues from the global markets. Overnight the US and European markets closed in positive. Asian markets are also trading in positives.

The Indian markets may open positive owing to the positive cues from the global markets. The SGX Nifty is currently trading 21 points up to 5317.

Overnight the US markets closed in positives on date on factory orders. The higher commodities prices boosted energy and materials stocks in the US markets. The Dow Jones Industrial Average advanced 0.6%, to close at 12,944. The US Commerce Department yesterday said that the orders for U.S. factory goods rose by 0.7% in May. Better than expected factory orders were seen positively by the markets. The S&P 500 Index closed up 0.6%, at 1,374 while the NASDAQ Composite index advanced 0.8%, to close on 2,976.

Benchmark Indices
IndexClosing% Change
SENSEX 17426 0.15
NIFTY 5288 0.18
Dow Jones 12944 0.56
S&P 500 1374 0.62
NASDAQ 2976 0.84
Bovespa 55780 1.99
FTSE 5688 0.83
DAX 6578 1.26
CAC 3271 0.96
Live    
Hang Seng 19,753 0.09
Nikkei 9,101 0.38
Shanghai 2,339 0.18

The European stocks also rose yesterday on the hopes that the ECB would act to boast the growth in the European countries. The unemployment across the member countries have surged 11.1% due to the slowdown. The manufacturing activity has also indicated the slowdown in the European region due to which there are higher hopes of easing of the monetary policy to boast the growth.

The Asian indices are also trading in positives. The broader sentiment seems positive at this hour. The hopes that the central banks will go for some policy action across the world has kept the markets in gains for the third day in this week.

Key Global Indicators
 Gold (Rs/10gm)Crude ($/bbl)
Spot 29,445.00 100.63
% change - -0.05%
Future 29,469.00 87.55
% change -0.64% -0.13%

Overall the shares of the energy companies have rose as the commodity prices have increased. The crude oil futures have touched USD 100/barrel mark again.The rupee has also shown some strength and is trading below 55 / USD mark again.

Currency Rates
 Rs/$Rs/EuroRs/GBPRs100/JYP
RBI Rate 54.81 69.06 86.04 68.71
Future 54.79 69.07 85.89 68.56

Back home yesterday  markets shown a very good strength while opening but by closing they trimmed the morning gains showing  volatility. We may witness similar trend with the markets gaining on hopes of the central banks going for the rate cut. however it could be trimmed due to the domestic issues like confusion on the proposed GAAR policy, Split vertid on telecom 3G roaming agreements.

In conclusion we at Dalal Street Investment Journal expect the markets to open positive amid volatility.

BSE Institutional Turnover
 FIIDII
Trade DateBuySalesNetBuySalesNet
3-Jul-12 2,233.64 1,643.93 589.71 715.98 1,259.95 -543.97
2-Jul-12 2,104.11 1,513.05 591.06 783.2 1,230.69 -447.49
29-Jun-12 4,747.12 1,700.36 3,046.76 1,532.57 1,783.28 -250.71
July, 2012 4,337.75 3,156.98 1180.77 1499.18 2,490.64 -991.46

FII DERIVATIVES STATISTICS FOR 3-July-2012
 BUYSELLOI (End of the day) Net Position
 Rs (crore)Rs (crore)No. of contractsRs (crore)Rs (crore)
INDEX FUTURES 1445.76 1029.81 501154 13000.59 415.95
INDEX OPTIONS 11576.47 11285.50 1343473 35519.14 290.97
STOCK FUTURES 1244.93 1396.84 888107 23936.38 -151.90
STOCK OPTIONS 689.43 653.42 27517 785.27 36.02
Total 14956.60 14365.57 2760251.00 73241.38 591.03

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