Markets To Open On A Flat Note

DSIJ Intelligence / 13 Sep 2012

The Indian markets may open on a flat negative note ahead in line with the global cues. The SGX Nifty is down by 5 points at 5,450, indicating a negative gap down opening to the markets today.

The Indian markets may open on a flat negative note ahead in line with the global cues. The SGX Nifty is down by 5 points at 5,450, indicating a negative gap down opening to the markets today.

Benchmark Indices
IndexClosing% Change
SENSEX 18000.03 0.82
NIFTY 5431 0.76
Dow Jones 13323.36 0.07
S&P 500 1436.56 0.21
NASDAQ 3114.31 0.31
Bovespa 59921.8 0.84
FTSE 5,782 -0.17
DAX 7343.79 0.46
CAC 3543.79 0.18
..    
Hang Seng 20104.26 0.14
Nikkei 9001.29 0.46
Shanghai 2127.9 0.06

The Indian markets witnessed a strong trading session yesterday as the broader indices closed higher up by 0.82 per cent. Nifty closed above the key resistance level of 5,400 while the Sensex closed at the 18,000 mark. Yesterday the Indian markets opened on a flat positive note, remained firm for the day and jumped up during the later hours of the trading session post the news that the German court has announced its decision in favour of the ECB bond-buying plan to rescue the euro zone from its debt crisis. The metal and auto sectors were major gainers and closed with gains of nearly 2.14 per cent and 1.26 per cent respectively.

The Asian markets yesterday too closed on a positive note. The major Asian markets i.e. Hang Seng, Nikkei and Shanghai closed higher by 1.70 per cent, 1.08 per cent and 0.28 per cent respectively. Positive cues from the European region helped pull the market into the green zone.  

Overnight, the U.S. stock markets also closed higher after the ruling of the German court paved the way for policymakers to take further steps to tackle the euro zone’s debt crisis and as investors consider the possibility of further stimulus from the Federal Reserve. The European stocks too edged higher yesterday due to the German court ruling. The markets all across the globe cheered the European measures to tackle the debt crisis situation. However, there is some uncertainty as to whether the Federal Reserve will launch new stimulus measures to help the struggling U.S. economy and this will keep the markets on the edge.

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 marginally positive region as investors are being cautious about the upcoming decisions expected from the Federal Reserve on a fresh round of quantitative easing at the end of its FOMC meeting today.

On the Indian turf, the rupee has gained some strength in the last three days and closed at Rs 55.26 per USD yesterday. However, it is still hovering above the comfort zone, which is a worrisome factor for those companies and government agencies with huge dependency on imports, especially in a situation where fiscal deficit is at its all-time high. The Brent crude price is inching northwards to reach USD 115.42 per barrel, thus making imports costlier. The under-recoveries of the oil marketing companies are rising and the government has not yet taken any step to resolve the issue.

Currency Rates
 Rs/$Rs/EuroRs/GBPRs100/JYP
RBI Rate 55.26 71.13 88.85 70.93
Future 55.3 71.33 88.96 70.97

Key Global Indicators
 Gold (Rs/10gm)Crude ($/bbl)
Spot 32063 115.33
% change - 0.3
Future 31870 97.05
% change -0.02 0.04

In conclusion, for today we expect the markets to operate on a flat note with a positive bias later in the day on the back of some global cues. The markets will also remain cautious ahead of the announcement from the Federal Reserve regarding quantitative easing. Any favourable outcome from the Federal Reserve meeting will boost the market sentiments all across the globe.

FII DERIVATIVES STATISTICS FOR 12-Sep-2012
 BUYSELLOI (END OF THE DAY)Net Position
  Rs (crore) Rs (crore) No. of contracts Rs (crore) Rs (crore)
INDEX FUTURES 1499.07 1061.68 394037 10375.49 437.39
INDEX OPTIONS 13171.83 12688.67 1662086 45057.34 483.16
STOCK FUTURES 1115.43 1143.73 956605 25349.33 -28.30
STOCK OPTIONS 906.22 977.73 58176 1562.44 -71.51
Total 16692.55 15871.81 3070904.00 82344.60 820.73
 


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