Markets To Open On A Flat Positive Note

DSIJ Intelligence / 11 Oct 2012

The Indian markets may open on a flat positive note ahead in line with the global cues. The SGX Nifty is marginally up by 5.5 points at 5,665, indicating a flattish gap up opening to the markets today.

The Indian markets may open on a flat positive note ahead in line with the global cues. The SGX Nifty is marginally up by 5.5 points at 5,665, indicating a flattish gap up opening to the markets today.

Benchmark Indices
IndexClosing% Change
SENSEX 18631.1 -0.86
NIFTY 5652.15 -0.92
Dow Jones 13,344.97 -0.96
S&P 500 1,432.56 -0.62
NASDAQ 3,051.78 -0.43
Bovespa 58456.95 -0.82
FTSE 5,777 -0.58
DAX 7,205.23 -0.41
CAC 3,365.87 -0.50
..    
Hang Seng 20973.99 0.26
Nikkei 8579.57 -0.2
Shanghai 2113.97 -0.28

The Indian markets witnessed a negative trading session yesterday as the broader indices closed lower by almost 1 per cent. Nifty closed well near the 5,652 mark while the Sensex also sailed lower, closing at the sub 18,631 level, below the 19,000 mark. This was on the back of negative global cues which remained gloomy after a subdued start to the U.S. reporting season. Further, after a cut in GDP growth announced by the International Monetary Fund (IMF), most of the global markets have been looking nervous. IMF has revised the growth downwards for developed nations like the U.S. and Europe too. In case of India, the growth has been significantly lowered by 130 basis points to 4.9 per cent for the fiscal, which is probably the lowest in the decade.

Overnight the U.S. stock markets fell sharply as investors braced themselves for earnings reported by the major companies even as the IMF cut the global growth outlook. Investors became concerned after America’s largest aluminum maker Alcoa cut its demand forecasts and oil major Chevron Corp issued a profit warning. The European markets too dropped as the IMF issued a warning about the impact of the Eurozone debt crisis and as Greece’s equity benchmark fell by 3.5 per cent. The markets were also dragged lower by the expectation of weak corporate earnings in the region after a subdued start to the American reporting season.

Also, yesterday Standard & Poor’s cut Spain’s credit rating by two notches to just one level above speculative or ‘junk’ grade with a negative outlook, citing mounting risks to the country’s public finances. The slow progress towards a bailout for Spain would have played a major role in the decision, a factor that is also weighing heavily on the general market sentiment.

Back home the rupee for the third consecutive day has fallen against the dollar. Yesterday it was down by 0.18 per cent and trading at Rs 53.04 against a dollar after creating fresh high of Rs 51.20 last week. The Brent crude oil price too rose on Wednesday to USD 115 per barrel. The crude oil prices are inching backwards above the comfort zone of the Indian economy, which is a factor contributing to the rising inflation level and higher fiscal deficit.

Currency Rates
 Rs/$Rs/EuroRs/GBPRs100/JYP
RBI Rate 53.04 68.21 84.83 67.82
Future 53.22 68.44 85.09 67.93

Key Global Indicators
 Gold (Rs/10gm)Crude ($/bbl)
Spot 31269 114.77
% change - 0.28
Future 31456 91.47
% change 0.01 0.23

One should watch out for stocks like Gruh Finance, Sintex Industries, Electrosteel Cast and GM Breweries that are going to post their September quarter results today. These stocks may see a price movement.

The Asian markets have opened on a negative note today and Japan’s Nikkei share average fell by 0.6 per cent in the early trading sessions on concerns that the upcoming corporate earnings will be weak after the American results season got off to a slow start. Also, with a downgrading of Spain’s credit rating, the negative sentiment among investors has inched higher.

In conclusion, for today we expect the markets to remain Flat and volatile ahead of the earnings season and the IIP numbers that will announced tomorrow. The earnings season will actually be kicked off from tomorrow onward with the result announcement of the major bellwethers HDFC Bank and Infosys. Investors, meanwhile, are jittery due to the weak global scenario and the earnings season forecast. 

FII DERIVATIVES STATISTICS FOR 10-Oct-2012
 BUYSELLOPEN 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 48973 1211.69 83205 2224.05 576368 15422.53
INDEX OPTIONS 469698 13341.27 460624 13101.70 1703342 48136.67
STOCK FUTURES 30105 909.86 44094 1334.17 1013906 29599.29
STOCK OPTIONS 50888 1587.53 51867 1626.74 79277 2448.60


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.