Market To Open Positive on Greece Deal
DSIJ Intelligence / 27 Nov 2012
The Indian markets are expected to open positive after the Euro zone finance minister finally agreed to a new Greece debt deal. SGX Nifty is up 42 points indicating that the Indian markets too will open positive.
In a very important deal, the Euro zone finance ministers, ECB and IMF, agreed early Tuesday on a plan to cut Greece's government debt to 124% of GDP by 2020 and below 110% of GDP by 2022. This now leads to a way for Greece to receive its next tranche of financial aid. On this news the Asian markets reacted marginally positive.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 18537.01 | 0.16 |
| NIFTY | 5635.9 | 0.17 |
| Dow Jones | 12967.37 | -0.33 |
| S&P 500 | 1406.29 | -0.2 |
| NASDAQ | 2976.78 | 0.33 |
| Bovespa | 57574 | 2.01 |
| FTSE | 5786.72 | -0.56 |
| CAC | 3500.94 | -0.8 |
| DAX | 7292.03 | -0.23 |
| Live | ||
| Hang Seng | 21932.07 | 0.32 |
| Nikkei | 9428.4 | 0.42 |
| Shanghai | 2013.22 | -0.21 |
Currently Hang Seng is up 0.3% while Nikkei is up 0.4%. Shanghai is down 0.2%. The U.S. stocks closed on a mixed note on Monday, with the worries of fiscal cliff back on the agenda for investors.
On the domestic front, the parliament remains hung as the FDI in retail has attracted strong criticism from the Opposition. The parliament did not run smoothly on Monday which may cast doubts on the the recent reforms taken by the government. Overall, the investors are expecting that the parliament may not be able to pass many of the important bills, including FDIs in various sector, which may drag the market down.
On the commodity front, Brent crude oil remained steady at the level of USD 111 per barrel due to violent protests in Egypt which renewed worries over the stability of the Middle East, reigniting the supply concerns. The Greece deal may lead to an increase in the oil prices as the demand may rise in the future. The US crude oil futures however fell by 39 cents to USD 87.89 on the supply worries.
| Key Global Indicators | ||
|---|---|---|
| Gold (Rs/10gm) | Crude ($/bbl) | |
| Spot | 32460 | 111.07 |
| % change | - | 0.14% |
| Future | 32360 | 87.94 |
| % change | 0.35% | 0.23% |
The gold prices are hovering near an all-time high on strong demand amid persistent weakness in the rupee. The rupee also tanked further to 55.7 against the dollar amid concerns about the fate of the reforms. The rupee futures also indicate continued weakness of the rupee throughout this calender year.
In conclusion, the news of the Greece deal is very good for the global markets but the domestic factors are also equally important. We expect a positive opening and a volatile session today.
| Currency Rates | ||||
|---|---|---|---|---|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP | |
| RBI Rate | 55.692 | 72.1005 | 89.1963 | 67.84 |
| Future | 55.73 | 72.2 | 89.21 | 67.88 |
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