The Indian markets may open on a positive note as the SGX Nifty is trading up by 11 points at 5,645, indicating a positive start-up for the markets in early trades.
Further, yesterday was the first session of the winter parliament and as expected it was highly stormy. The Trinamool Congress’ no-confidence motion against the UPA government on retail FDI was rejected by Lok Sabha Speaker Meira Kumar over the shortage of requisite support in numbers. Meanwhile, the frontline indices ended yesterday in the positive territory, up by almost 0.30 per cent.
Interestingly, the government has kick-started its disinvestment program. The revenue from the same would help the government to contain the widening fiscal deficit. According to reports in Mint, the Union Cabinet approved a 9.5 per cent stake sale in NTPC and the divestment is expected to raise Rs 13,000 crore. Further, Hindustan Copper’s Tranche 1 stake sale of 4 per cent is scheduled for today and the base price for the same is set at Rs 155 a share.
| Benchmark Indices |
|---|
| Index | Closing | % Change |
|---|
| SENSEX | 18517 | 0.31 |
| NIFTY | 5628 | 0.23 |
| Bovespa | 56437 | 0.35 |
| FTSE | 5791 | 0.67 |
| DAX | 7245 | 0.83 |
| CAC | 3498 | 0.6 |
| .. |
|
|
| Hang Seng | 21782 | 0.18 |
| Shanghai | 2019.94 | 0.21 |
Overnight the U.S. markets were closed on account of a public holiday and hence all focus was on the European markets. The European indices, namely FTSE, CAC and DAX, closed higher in the range of 0.60 to 0.83 per cent. According to media reports, the European stocks rallied for a fourth day and metals gained on signs that China’s manufacturing is on the rebound. The euro strengthened and Greek bonds rose for the tenth day as the region’s leaders prepared to hold budget talks.
Taking cues from the overnight European market, the Asian markets have also opened higher with Shanghai Composite and Hang Seng up by 0.21 and 0.18 per cent respectively while the Japanese index Nikkei is closed for the day. Also, according to media reports, Nikkei yesterday closed higher by almost 1.6 per cent at the 9,367 level, which was the highest level reached over the past six months, primarily due to a weaker yen.
| Key Global Indicators |
|---|
| Gold (Rs/10gm) | Crude ($/bbl) |
|---|
| Spot | 31895 | 110.28 |
| % change | - | -0.24 |
| Future | 31853 | 87.39 |
| % change | 0.13 | 0.01 |
Of concern is the fact that the rupee has again started depreciating against the dollar, currently trading at Rs 55.21. Meanwhile, Brent crude continues to hover around USD 110 per barrel while WTI crude is currently trading at USD 87 per barrel.
| Currency Rates |
|---|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
|---|
| RBI Rate | 55.21 | 71.011 | 87.85 | 66.86 |
| Future | 55.2625 | 71.1325 | 88.1375 | 66.88 |
In conclusion, we expect the markets to remain volatile for the day and investors would have to take their cues from the proceedings of the parliamentary session. Caution is what is required as of now.
| FII DERIVATIVES STATISTICS FOR 22nd November 2012 |
|---|
| BUY | SELL | OI (End of the day) |
| Net Position |
|---|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| INDEX FUTURES | 1152.46 | 1188.75 | 348473 | 8682.52 | -36.29 |
| INDEX OPTIONS | 10916.63 | 10838.07 | 1910570 | 53799.97 | 78.56 |
| STOCK FUTURES | 2209.29 | 2269.97 | 1124651 | 30130.68 | -60.67 |
| STOCK OPTIONS | 1495.27 | 1513.19 | 104473 | 2832.91 | -17.92 |
| Total | 15773.66 | 15809.97 | 3488167.00 | 95446.08 | -36.32 |