Markets To Remain Volatile Ahead Of The Results Announcement
DSIJ Intelligence / 12 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 12 points at 5,760, 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 12 points at 5,760, indicating a flattish gap up opening to the markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 18804.1 | 0.93 |
| NIFTY | 5708.05 | -0.99 |
| Dow Jones | 13,326.00 | -0.14 |
| S&P 500 | 1,432.84 | 0.02 |
| NASDAQ | 3,049.41 | -0.08 |
| Bovespa | 59161.72 | 1.21 |
| FTSE | 5,830 | 0.91 |
| DAX | 7,281.70 | 1.05 |
| CAC | 3,413.72 | 1.40 |
| .. | ||
| Hang Seng | 21190.68 | 0.9 |
| Nikkei | 8546.96 | 0.01 |
| Shanghai | 2115.17 | 0.58 |
The Indian markets witnessed a strong positive trading session yesterday as the broader indices closed higher by almost 1 per cent. Nifty closed higher at above the 5,700 mark while the Sensex also sailed higher, closing at the sub 18,804 level, just below the 19,000 mark. This was on the back of positive global cues which remained upbeat after a drop in the American jobless claims data.
Overnight, the U.S. stock markets closed marginally positively despite the country reporting a strong fall in the jobless claim data which fell to its lowest level in more than four and a half years. This limited gain was largely due to the uncertainty ahead of the American presidential election less than a month away. The better-than-expected jobless claims’ data supported sentiment in the first week of the earnings season.
Further, the European stocks rallied after a drop in the U.S. jobless claims and Spain’s credit downgrade raised expectations that Madrid would soon request a bail-out. The downgrade of Spain by S&P has further raised hopes of a rescue attempt for the country and limiting contagion for the other countries. Standard & Poor’s has cut Spain’s credit rating by two notches to just one level above speculative or ‘junk’ grade with a negative outlook. It also seems that the European markets have discounted the weak earning numbers for the third quarter.
Back home the rupee gained strength against the dollar. Yesterday it was trading at Rs 53.07 against a dollar. After the announcement of major reforms by the central government, the rupee has witnessed a strong rally in the last two weeks and we believe it may also touch the Rs 50 level in the next one month. The Brent crude oil price too rose on Thursday 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/Euro | Rs/GBP | Rs100/JYP | |
| RBI Rate | 53.07 | 68.23 | 84.94 | 68.06 |
| Future | 52.75 | 68.1 | 84.52 | 67.27 |
| Key Global Indicators | ||
|---|---|---|
| Gold (Rs/10gm) | Crude ($/bbl) | |
| Spot | 31174 | 115.62 |
| % change | - | 0.2 |
| Future | 31312 | 92.39 |
| % change | -0.46 | 0.2 |
One should watch out for stocks like HDFC Bank, Infosys, DCB Bank, Heidelberg Cement, Polaris and TTK Prestige that are going to post their September quarter results today. These stocks may see a price movement.
The Asian markets have opened on a positive note today. Hong Kong’s stocks extended gains fueled by mainland banks for a second day after a unit of China’s sovereign wealth fund said it would continue to buy shares in major lenders, with the sentiment also underpinned by hopes that Beijing will act to support the economy.
In conclusion, for today we expect the markets to remain volatile ahead of the results of the major bellwethers and the announcement of IIP numbers. The earnings season will actually be kicked off today with the result announcement of two biggies viz. HDFC Bank and Infosys which will provide vital cues to the markets and investors.
| FII DERIVATIVES STATISTICS FOR 11-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 | 81955 | 1869.71 | 83682 | 1995.52 | 615805 | 15882.19 |
| INDEX OPTIONS | 509474 | 14472.09 | 511279 | 14559.40 | 1734375 | 49501.04 |
| STOCK FUTURES | 49601 | 1452.20 | 62452 | 1763.96 | 1037591 | 30749.11 |
| STOCK OPTIONS | 80192 | 2471.60 | 83352 | 2575.26 | 82225 | 2594.64 |
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