Markets Will Open On A Positive Note
DSIJ Intelligence / 07 Aug 2012
The Indian markets may continue to open on a positive note in line with the global cues. The SGX Nifty is down by 4.50 points at 5,298, indicating a positive gap up opening to the markets today.
The Indian markets may continue to open on a positive note in line with the global cues. The SGX Nifty is down by 4.50 points at 5,298, indicating a positive gap up opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17413 | 1.25 |
| NIFTY | 5282.55 | 1.28 |
| Dow Jones | 13,117 | 0.16 |
| S&P 500 | 1394 | 0.23 |
| NASDAQ | 2990 | 0.74 |
| Bovespa | 58344 | 1.9 |
| FTSE | 5,808 | 0.37 |
| DAX | 6918 | 0.77 |
| CAC | 3401 | 0.8 |
| .. | ||
| Hang Seng | 20055 | 0.28 |
| Nikkei | 8778 | 0.6 |
| Shanghai | 2157 | 0.10 |
The Indian markets witnessed a positive trading session yesterday as the broader indices closed higher by 1.2 per cent. Nifty closed at just near the 5,300 level mark while the Sensex closed near to the 17,500 level. The positivity was on account of the global cues. The European Central Bank (ECB) indicated on Friday last week that it will take steps to contain the debt crisis in the region. Further, the U.S. reported better than expected job payrolls which lifted the market sentiments across the globe.
The Asian markets too yesterday closed on a positive note on the back of positive global sentiments, especially from the European region. The major Asian indices Hang Seng, Nikkei and Shanghai closed higher by nearly 1 per cent each. Overnight, the U.S. stock market closed on a positive note at its three-month high for the second day in a row on Monday, extending its last week’s rally, while expecting additional assistance for the troubled euro zone.
The European stocks too ended in the green yesterday on renewed hopes that the ECB will announce measures to bring the debt-ridden economy on its track. The ECB’s president, Mario Draghi, had earlier said that the ECB may buy short-dated bonds to lower the borrowing costs to help Europe, which has been mired in a debt disaster. The yields of the Spanish and Italy bonds fell to 3.42 per cent on Monday, less than half of a late July high of over 7 per cent - a key threshold above which the borrowing costs become too expensive for a country to afford over the long term.
On the Indian turf the rupee gained strength against the dollar and closed at about the 55.47 level. However, it is still at higher levels, thus raising worries over the increasing fiscal deficit. Moreover, the London Brent crude oil price has again inched back to the higher levels, going up by 4 per cent on Friday last week to USD 109.57 per barrel, which is currently above our comfort zone.
| Currency Rates | ||||
|---|---|---|---|---|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP | |
| RBI Rate | 55.75 | 68.77 | 86.65 | 70.07 |
| Future | 55.47 | 68.66 | 86.6 | 70.77 |
| Key Global Indicators | ||
|---|---|---|
| Gold (Rs/10gm) | Crude ($/bbl) | |
| Spot | 29753 | 109..58 |
| % change | - | -0.01 |
| Future | 29939 | 92.06 |
| % change | 0.12 | -0.14 |
Further, with the appointment of P Chidambaram as the finance minister, the hope for strong measures has risen strongly among the investors. The FM, in the course of a press meet, promised various measures to bring the economy on to its growth track. One of them is to review the retrospective tax provisions to solve the pending tax disputes and push for faster clearances to attract investments. He has also appointed Vijay Kelkar to draw up a roadmap for fiscal consolidation.
In conclusion, for today we expect the markets to operate on a positive bias on the back of positive global cues and due to hopes of various reform measures to be announced by the newly appointed FM. Also, the Asian markets have opened on a positive steady note, extending steep gains made in the previous session. This is on the back of fresh optimism over the possible ECB’s steps to buy bonds with the June quarter earnings also providing some support for the Japanese markets. Also China is due to release a slew of July data including industrial production, retail sales and inflation on Thursday will decide the requirement of the stimulus measures to boost the growth in the economy. Traders and investors will be looking for signs of whether its economy can pick up momentum in the second half of the year.
| FII | DII | |||||
|---|---|---|---|---|---|---|
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 2-Aug-12 | 1,653.63 | 1,513.50 | 140.13 | 838.34 | 904.82 | -66.48 |
| 3-Aug-12 | 1,508.84 | 1,300.15 | 208.69 | 804.26 | 1,238.91 | -434.64 |
| 6-Aug-12 | 1,738.14 | 1,182.41 | 555.73 | 876.85 | 881.08 | -4.23 |
| Total Aug 12 | 6,915.44 | 5,569.44 | 1,346.01 | 3,333.09 | 4,011.42 | -678.32 |
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