Markets Likely To Open Positive Ahead Of F&O Expiry Today

DSIJ Intelligence / 29 Nov 2012

Indian markets may show a flat to positive opening on the hopes of the positive talks over averting the fiscal cliff. The Asian markets are currently showing gains in line with the US markets.

The Indian markets may show a flat to positive opening on hopes of positive talks over averting the fiscal cliff. Today, however, is the expiry of the November F&O series and hence we may also see some volatility in the markets. The SGX Nifty is currently trading with gains of 19 points.

Benchmark Indices
IndexClosing% Change
SENSEX 18842.08 1.65
NIFTY 5727.45 1.62
Dow Jones 12985.11 0.82
S&P 500 1409.93 0.78
NASDAQ 2991.78 0.8
Bovespa 56539 0.52
FTSE 5803.28 0.06
CAC 3515.19 0.37
DAX 7343.41 0.15
Live
Hang Seng 21819.14 0.50
Nikkei 9369.22 0.65
Shanghai 1977.85 0.22
The focus of the global markets has now moved towards the US fiscal cliff which on Wednesday reflected a nervous mood after Senate Majority Leader Harry Reid expressed disappointment over progress in dealing with the approaching fiscal cliff. Today, though, the mood is upbeat after Barack Obama said that he wants to offer a solution before Christmas. His comments have improved the sentiment and the markets have sensed that a deal will be reached in this year itself.
Earlier on Tuesday, credit rating agency Moody’s said that the India’s rating outlook is ‘stable’ which lifted the market up by 1.6 per cent. The Eurozone finance ministers also agreed over a Greece debt deal, thus adding to the positive sentiment.

Meanwhile, on the political front, the parliament was again adjourned on Tuesday due to the opposition’s criticism to FDI in retail. Prime Minister Manmohan Singh is however confident on winning the vote if at all it takes place. His comments are also seen as a first sign of an indication that the government may be willing to put the decision on FDI to vote.

The crude oil prices have also declined on fears of a fiscal cliff. On Wednesday Brent crude recovered from its earlier steep losses. The crude oil futures for January delivery gained 18 cents to USD 86.67 a barrel.

On Tuesday the Eurozone markets declined on concerns of the American fiscal cliff. On Wednesday however the markets gained in line with the US markets. CAC was up by 0.3 per cent while DAX and FTSE were also up by about 0.1 per cent. The US markets also jumped up by about 0.8 per cent in the wake of the positive remarks by Obama.

Key Global Indicators

Gold (Rs/10gm)Crude ($/bbl)
Spot 32325 109.73
% change - 0.20%
Future 31899 86.67
% change -1.02% 0.21%
The Asian markets have started today’s trading session on a positive note after recording losses yesterday. Hang Seng and Nikkei are up by 0.5 per cent each while Shanghai is up by 0.22 per cent.

The national currency saw good appreciation against the dollar as Moody’s affirmed the stable outlook on India. There could be further appreciation of the rupee going ahead due to this positive news flow. Overall we expect the impact to be positive on the domestic markets but the November series expiry may limit the upside today.

Currency Rates

Rs/$Rs/EuroRs/GBPRs100/JYP
RBI Rate 55.70 72.35 89.34 67.72
Future 55.45 71.96 88.95 67.85

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