Markets May Open Positive In line With Global Cues
DSIJ Intelligence / 05 Aug 2012
The Indian markets may open positive in line with the global cues. Renewed hope to aid the Europe’s debt troubled nations and better than Expected US job data lifted the overall market sentiments
The Indian markets may open positive in line with the global cues. Renewed hope to aid the Europe’s debt troubled nations and better than Expected US job data lifted the overall market sentiments
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17197 | -0.15 |
| NIFTY | 5215 | -0.23 |
| Dow Jones | 13,096 | 1.66 |
| S&P 500 | 1390 | 1.87 |
| NASDAQ | 2967 | 1.95 |
| Bovespa | 57255 | 3.12 |
| FTSE | 5,787 | 2.16 |
| DAX | 6865 | 3.78 |
| CAC | 3374 | 4.2 |
| .. | ||
| Hang Seng | 19666 | -0.12 |
| Nikkei | 8555 | -1.15 |
| Shanghai | 2132 | 0.81 |
Last week Indian markets gained 2% ignoring the RBI action which left other key rates unchanged but surprised with a SLR cut of 100bps. The Reserve Bank while according top priority to Inflation lowered full year growth and upped estimated year end inflation.The upside was on the back of the appointment of new FM among other key portfolios that were assigned last week. Separately, in a move which was highly applauded by the markets. Also PM approved relaxations in the land transfer policy regarding government owned lands which will now reduce procedural delays for infrastructure projects. All these kept the market in a positive mode last week
.
On the global front last week European market looked very weak especially on Thursday post ECB meet which kept its stance unclear on the rate cuts and on other measures required to bring the economy on its track. Also there was disappointment from the US markets post federal reserve’s meet as no concrete steps were announced to improve the global economic situation.
However on the last day of trading session i.e. Friday, both US and European markets bounced back and saw strong positive momentum. Most of the European markets closed with strong gains in the range of 2 to 4%. Major index such as FTSE, CAC and DAX all closed with the gains of 2.16% 4.20% and 3.78% respectively. This rally was mainly led by gains in bank stocks, as investors said the European Central Bank's pledge to tackle the region's debt crisis had bought the area's troubled economies breathing space. Also it renewed the hopes about efforts to aid Europe’s debt-troubled nations. Further there was positive news from the US market which announced Stronger-than-expected U.S. jobs data. Renewed hope to aid the Europe’s debt troubled nations and better than Expected US job data lifted the overall market sentiments.
However the Asian markets on Friday last week closed on a mixed note with Nikkei, and Hang seng closed on negative note while Shanghai closed in the green zone. The downside of the other Asian markets came on the back of weak Chinese PMI numbers. However China has assured that it would give bigger priority to stabilising economic growth which helped the market from any major downfall. Another positive trigger for the Chinese market is that it has reduced the transaction fees on equity trading by 20 per cent.
Back home, on the Indian Turf the rupee has recovered from its all-time low but is still trading above the comfort zone at Rs 56.96 against the USD. The global benchmark Brent crude prices has again started moving upwards from its lower level of USD 89 and is presently trading at USD 109.36 per barrel, which is currently above our comfort zone.
| Currency Rates | ||||
|---|---|---|---|---|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP | |
| RBI Rate | 56.08 | 68.36 | 87.02 | 71.68 |
| Future | 56.09 | 68.81 | 87.3 | 71.57 |
| Key Global Indicators | ||
|---|---|---|
| Gold (Rs/10gm) | Crude ($/bbl) | |
| Spot | 29675 | 109.01 |
| % change | - | 3.11 |
| Future | 29898 | 91.39 |
| % change | -0.02 | 4.23 |
For today, watch out for stocks like BEML, Britannia Industries, Cadila Health, Escorts, PTC India, SAIl, Tube Investment, Wockhardt, Andhra Bank, DLF, EIH, etc these companies are going to announce their June quarter numbers.
In conclusion, we expect the markets the Indian markets to open on a positive note on the back of strong global cues. Also with the announcement of some reforms on easing the land transfer process to speed up the PPP projects we may some see positive momentum in the Infrastructure space.
| FII | DII | |||||
|---|---|---|---|---|---|---|
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 1-Aug-12 | 2014.83 | 1573.38 | 441.46 | 813.64 | 986.61 | -172.97 |
| 2-Aug-12 | 1653.63 | 1513.5 | 140.13 | 838.34 | 904.82 | -66.48 |
| 3-Aug-12 | 1508.84 | 1300.15 | 208.69 | 804.26 | 1238.91 | -434.64 |
| Total Aug 12 | 5177.3 | 4387.03 | 790.28 | 2456.24 | 3130.34 | -674.09 |
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