Markets May Remain Volatile
DSIJ Intelligence / 07 Oct 2012
After having a negative close on the markets on Friday (Last week) we expect the markets to remain in the consolidation mood, one can also see some more profit booking.
Last week the Indian markets remained quiet firm and positive . Sensex touched the physiological mark of 19k levels however on Friday despite second rounds of reforms measure announced by the government it closed on negative note just below the 19k levels. Both the index Sensex and Nifty closed with the losses of 0.63% and 0.70% respectively.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 18938 | -0.63 |
| NIFTY | 5746 | -0.7 |
| Dow Jones | 13,610 | 0.26 |
| S&P 500 | 1,461 | -0.03 |
| NASDAQ | 3,136 | -0.43 |
| Bovespa | 58571 | 0.19 |
| FTSE | 5,871 | 0.74 |
| DAX | 7,398 | 1.27 |
| CAC | 3,457 | 1.64 |
| .. | ||
| Hang Seng | 21,012 | 0.5 |
| Nikkei | 8,863 | 0.44 |
| Shanghai | 2,086.00 | 0 |
One major incident occurred on Friday when Nifty lost almost 150 points within splits of seconds, however it was later clarified by the NSE that it was a technical glitch due to some erroneous trade punched by some dealer.
The Asian indices closed almost flat over the last week. Taking cues from the US, its largest trading partner, all the major indices in the Asia Pacific region, viz. Nikkei, Shanghai Composite and Hang Seng remained flat in the green.
Meanwhile the US markets closed mixed on Friday, but posted weekly gains, as enthusiasm over a drop in the U.S. unemployment rate was weighed down as investors remained cautious ahead of the beginning of the quarterly earnings season. The unemployment rate in the world’s largest economy dropped to 7.8% from August’s 8.1%, marking the lowest level since 2009
The European markets also closed with strong gains last Friday after Us reported strong job data numbers. Also investors remained firmly focused on nonfarm-payroll growth and the U.S. unemployment rate for September which came better than the market expectations. However the crisis in the euro zone and Spain holding back from seeking a bailout and the risk of weakness in the upcoming earnings season also kept investors in a relatively cautious mood.
The rupee has recovered from its all-time low of Rs 56 levels to 52 in the span of 30 days which is very positive for the government and for the companies who largely depends on the imports. Further Brent crude has again started moving downwards from the level of USD 115 to USD 111 per barrel. Lower crude oil prices and rupee appreciation is quiet positive for the oil marketing companies and for the country which meet 70% of its oil requirement through imports.
| Currency Rates | ||||
|---|---|---|---|---|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP | |
| RBI Rate | 51.61 | 67.17 | 83.57 | 65.83 |
| Future | 52.11 | 67.78 | 84.32 | 66.40 |
| Key Global Indicators | ||
|---|---|---|
| Gold (Rs/10gm) | Crude ($/bbl) | |
| Spot | 30882 | 111.9 |
| % change | - | 3.73 |
| Future | 31178 | 89.92 |
| % change | 0.25 | -1.79 |
This week earning season will kick start and the investors will look forward to get further clues on the market direction. Also investors will look forward to IIP data on 12th October. After seeing a negative close on the markets last week we expect the markets to remain in the consolidation mood today, one can also see some more profit booking as it seems the market has been overbought in the last two weeks post the announcement of the various reforms measures.
| FII DERIVATIVES STATISTICS FOR 05-Oct-2012 | ||||||
|---|---|---|---|---|---|---|
| BUY | SELL | OPEN INTEREST AT THE END OF THE DAY | ||||
| No. of contracts | Amt in Crores | No. of contracts | Amt in Crores | No. of contracts | Amt in Crores | |
| INDEX FUTURES | 70358 | 1957.66 | 91103 | 2573.91 | 573177 | 16048.86 |
| INDEX OPTIONS | 725864 | 20778.34 | 709198 | 20264.77 | 1648004 | 47356.00 |
| STOCK FUTURES | 54538 | 1605.90 | 64271 | 2039.45 | 1012124 | 30131.75 |
| STOCK OPTIONS | 53930 | 1702.44 | 54517 | 1730.14 | 53652 | 1718.97 |
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.