Markets May Maintain A Weak Streak

DSIJ Intelligence / 11 Sep 2012

The Indian markets may open on a negative note ahead in line with the global cues. The SGX Nifty is down by 20 points at 5,355, indicating a neutral to negative gap down opening to the markets today

The Indian markets may open on a negative note ahead in line with the global cues. The SGX Nifty is down by 20 points at 5,355, indicating a neutral to negative gap down opening to the markets today.

Benchmark Indices
IndexClosing% Change
SENSEX 17766.53 0.1
NIFTY 5363.45 0.09
Dow Jones 13254 -0.39
S&P 500 1429.08 -0.62
NASDAQ 3104.02 -1.04
Bovespa 58404.12 0.14
FTSE 5,793 -0.03
DAX 7213.7 -0.01
CAC 3506.05 -0.37
..    
Hang Seng 19701.59 -0.55
Nikkei 8797 -0.81
Shanghai 2113.4 -1.02

The Indian markets witnessed a lacklustre and volatile trading session yesterday as the broader indices closed flat up by 0.10 per cent. Nifty is hovering around the 5,360 level mark while the Sensex closed near the 17,766 level. Yesterday the Indian markets opened on a positive note and gained momentum in the afternoon but gave up most of the gains during the later hours of the trading session. The pharmaceutical and consumer durables sectors were up by 1 per cent and pulled the market higher, thus gaining entry into the green zone.

The Asian markets yesterday closed on a mixed note. The major Asian markets, Hang Seng and Shanghai, continued with their gains and closed higher by 0.13 per cent and 0.33 per cent respectively while the Japanese market Nikkei closed marginally lower by 0.03 per cent. After a strong rally in last week the Asian markets seemed cautious ahead of the key events from the U.S. and Europe. A further fall in the euro against the yen is hitting exporters in Japan.

Overnight, the U.S. stock markets closed on a lower level, weighed by a sell-off in tech stocks and as investors took a cautious stance before the Federal Reserve’s policy decision later this week. The European stocks too edged lower yesterday, taking a breather from a strong rally as investors offloaded stocks less exposed to any economic improvement as a result of possible central bank interventions in Europe and the United States. As per Reuters, the risk appetite was underpinned by speculation that the U.S. Federal Reserve would announce measures to stimulate the economy on Thursday as well as the European Central Bank’s pledge last week to buy the bonds of struggling countries if they apply for a bailout.  

Taking cues from the overnight closing of the global markets, the Asian indices have also opened with a similar kind of trend with most of the Asian markets trading in the red zone as investors are looking ahead with caution to the German constitutional court’s ruling over the legality of the European bailout fund on Wednesday and the U.S. Federal Reserve policy meeting this week.

On the Indian turf, the rupee continues to hover in the range of 55-56 per USD, which remains a worrisome factor for the companies and the government with huge dependency on imports. On one side while the rupee is gaining strength, the Brent crude price is inching northwards to reach USD 115 per barrel in a short period of time.  

Currency Rates

 

Rs/$

Rs/Euro

Rs/GBP

Rs100/JYP

RBI Rate

55.33

70.74

88.5

70.71

Future

55.54

70.9

88.75

70.89


Key Global Indicators

 

Gold (Rs/10gm)

Crude ($/bbl)

Spot

31962

114.14

% change

-

-0.18

Future

31924

96.25

% change

0.09

-0.28


In conclusion, for today we expect the markets to operate on a negative bias on the back of weak global cues. The markets will remain cautious ahead of the key domestic and global events. The IIP data is expected to be announced on Wednesday, the WPI numbers on Friday. The FOMC meeting in the U.S. on Thursday will give the much needed direction to the markets later

FII DERIVATIVES STATISTICS FOR 10-Sept-2012

 

BUY

SELL

OI (END OF THE DAY)

Net Position

 

Rs (crore)

Rs (crore)

No. of contracts

Rs (crore)

Rs (crore)

INDEX FUTURES

931.00

1401.52

360398

9272.31

-470.52

INDEX OPTIONS

7671.06

6734.67

1581030

42325.49

936.39

STOCK FUTURES

941.25

918.71

937289

24588.79

22.54

STOCK OPTIONS

736.54

753.06

52510

1405.53

-16.52

Total

10279.86

9807.97

2931227.00

77592.13

471.88



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