The Indian markets despite a late recovery could not make it to green closing and snapped the last session lower by three-tens of a percent. Today is the expiry of the September F&O series and the trade is likely to remain volatile, though the series so far has been good and markets may see a better ending with Nifty rollovers of 55 percent and market wide rolls of 58 percent till yesterday. The start may remain subdued, as the global cues are sluggish and traders will play safe before going to new series. There is some encouraging report from the tax front, as indirect tax collections grew at 4.1 percent in the April-August period of this fiscal total collection of indirect taxes stood at about Rs 1,67,000 crore during the first five months of the 2012-13 fiscal. Traders will also be getting some support with the Reserve Bank of India’s assurance that it will take actions, including open market operations, to ensure adequate liquidity support in the system. There will be buzz in the telecom stocks, as the telecom regulator has mandated mobile phone companies to implement full mobile number portability within six months. The PSU oil marketing companies are likely to remain under pressure as the oil minister M Veerappa Moily indicated that the UPA government is working on a plan to reduce petrol prices.
The US markets once again ended modestly in red, extending their weakness for one more day on lingering concerns about the possibility of a government shutdown at the end of the month. Most of the Asian markets have made a soft start with some of the indices trading lower by about a percent, though the Japanese market has recovered from its gap-down start amid optimism that Prime Minister Shinzo Abe and the Bank of Japan will lead the country out of deflation.
Back home, Indian equity indices, despite late hour recovery on Wednesday, ended the volatile session of trade in red as the investors opted to remain on sidelines on the penultimate day of September F&O series expiry. Benchmarks resumed their southward journey after a day of pause and snapped the session with a cut of around one third of a percent, as sentiments remained down-beat with banking counters continuing to trade under pressure on fourth day in a row on expectation of further hike in repo rate by Reserve Bank of India. Sentiments got dampened on report that foreign institutional investors (FIIs) sold shares worth Rs 21 crore on September 24, 2013, adding to September 23 sales of Rs 25.90 crore. Selling got intensified after European markets made a sluggish opening, with all the gauges viz. CAC, DAX and FTSE trading lower in early deals as nagging concerns over a potential US government shutdown at the end of the month and uncertainty about the outlook for the Federal Reserve’s stimulus programme kept investors on edge. Back home, the down fall was also triggered by selling in public sector oil marketing companies (OMCs) as stocks like BPCL, HPCL and IOC edging lower after the Minister of Petoleum & Natural Gas M Veerappa Moily, ruled out any steep increase in diesel and cooking-fuel prices. Stocks related to realty sector continued their declining trend after the Reserve Bank of India, in a surprise decision, raised its key policy rate in its monetary policy review on September 20, 2013. Though, markets after hitting intraday low started recovering in last leg of trade, supported by pull back in rupee. Sentiments also got some support with Union Cabinet approved a methodology for auctioning coal blocks, enabling the government to allot coal mining licences through competitive bidding for the first time. Also, RBI in its latest initiative of relaxing norms to raise funds from abroad said that now all types of companies can avail trade credit facility from overseas for import of capital goods. Earlier, only companies in the infrastructure sector were allowed to raise such trade credits. Shares of some power generation firms rose after the Cabinet Committee on Economic Affairs approved the methodology for auctioning coal blocks, enabling the government to allot coal mining licences through competitive bidding to private companies. Finally, the BSE Sensex lost by 63.97 points or 0.32%, to settle at 19856.24, while the CNX Nifty declined by 18.60 points or 0.32% to settle at 5,873.85.
The US markets once again ended modestly in red, extending their weakness for one more day on lingering concerns about the possibility of a government shutdown at the end of the month. Most of the Asian markets have made a soft start with some of the indices trading lower by about a percent, though the Japanese market has recovered from its gap-down start amid optimism that Prime Minister Shinzo Abe and the Bank of Japan will lead the country out of deflation.
Back home, Indian equity indices, despite late hour recovery on Wednesday, ended the volatile session of trade in red as the investors opted to remain on sidelines on the penultimate day of September F&O series expiry. Benchmarks resumed their southward journey after a day of pause and snapped the session with a cut of around one third of a percent, as sentiments remained down-beat with banking counters continuing to trade under pressure on fourth day in a row on expectation of further hike in repo rate by Reserve Bank of India. Sentiments got dampened on report that foreign institutional investors (FIIs) sold shares worth Rs 21 crore on September 24, 2013, adding to September 23 sales of Rs 25.90 crore. Selling got intensified after European markets made a sluggish opening, with all the gauges viz. CAC, DAX and FTSE trading lower in early deals as nagging concerns over a potential US government shutdown at the end of the month and uncertainty about the outlook for the Federal Reserve’s stimulus programme kept investors on edge. Back home, the down fall was also triggered by selling in public sector oil marketing companies (OMCs) as stocks like BPCL, HPCL and IOC edging lower after the Minister of Petoleum & Natural Gas M Veerappa Moily, ruled out any steep increase in diesel and cooking-fuel prices. Stocks related to realty sector continued their declining trend after the Reserve Bank of India, in a surprise decision, raised its key policy rate in its monetary policy review on September 20, 2013. Though, markets after hitting intraday low started recovering in last leg of trade, supported by pull back in rupee. Sentiments also got some support with Union Cabinet approved a methodology for auctioning coal blocks, enabling the government to allot coal mining licences through competitive bidding for the first time. Also, RBI in its latest initiative of relaxing norms to raise funds from abroad said that now all types of companies can avail trade credit facility from overseas for import of capital goods. Earlier, only companies in the infrastructure sector were allowed to raise such trade credits. Shares of some power generation firms rose after the Cabinet Committee on Economic Affairs approved the methodology for auctioning coal blocks, enabling the government to allot coal mining licences through competitive bidding to private companies. Finally, the BSE Sensex lost by 63.97 points or 0.32%, to settle at 19856.24, while the CNX Nifty declined by 18.60 points or 0.32% to settle at 5,873.85.
No comments:
Post a Comment