Indian markets were trading marginally in the red in the afternoon session on Monday amid mixed European cues.
The Sensex was quoting at 19,723.51, down 0.17 point or 0.00 per cent and the Nifty was quoting at 5,844.55, down 6.05 points or 0.1 per cent.
The volatility index, India Vix, was near flat at 28.50.
Top gainers in the Nifty were IndusInd Bank, Maruti, ICICI Bank, Axis Bank and Mahindra & Mahindra, while Ranbaxy, HCL Tech, BHEL, Sesa Goa and Coal India were the top losers.
Broader indices were in the red marginally. Healthcare, IT, realty and TECk indices were the major losers, while banking, power, auto and FMCG indices were the major gainers.
Domestic sentiment was propped up in the early trade on heavy FII inflows after SEBI allowed FIIs to invest in government securities without any auction mechanism to boost foreign fund inflows into the capital markets.
At the global front, decreasing chances of US action on Syria resulted in falling crude prices and with this global markets rallied sharply.
Added to this, was an expectation that the US Fed would not taper its bond buying programme as fast as it had indicated and this could prompt a rate cut in India. The Nifty opened with a gap up of 79 points at 5,930, while the Sensex opened at 19,977, up 244 points.
Credit Suisse in its India Market Strategy said: “The earnings season will have surprises: mispriced import and export hedges or complex currency derivatives are likely to get exposed. We now have more evidence (from RBI's September bulletin) that the recent precipitous fall in the rupee was caused only by a crisis of confidence and estimate ~US$13 bn exited in just July and August through panicking corporates hedging themselves.Given that the fear trade drove the decline, it is quite likely that the following appreciation may be as sharp. Even if the RBI tries to reduce volatility and starts to build reserves at the rupee dollar exchange rate of 60, currency volatility is already the highest ever seen, it added.”
The dollar weakened against overseas currencies while Asian stocks climbed with US index and Treasury futures as Lawrence Summers withdrew his bid to become Federal Reserve Chairman.
Crude oil prices were down after the US and Russia agreed on a plan to eliminate Syria’s chemical weapons.
In the Asian trade, Japan's Nikkei was up 17.40 points or 0.12 per cent at 14,404.70, Hong Kong's Hang Seng jumped 282.16 points or 1.23 per cent to 23,197.40 and Australia's S&P/ASX 200 climbed 28.37 points or 0.54 per cent to 5,248.
The European benchmarks FTSE100 was marginally down, while CAC40 and DAX were near flat.
Investors are closely watching the minutes of the US Federal Reserve meeting scheduled for Wednesday and Thursday. The Federal Open Market Committee meeting is important, especially for emerging markets such as India, because it would provide some definitive clue on the timing and downsizing of the Fed’s bond-purchase programme — commonly known as quantitative easing programme.
No comments:
Post a Comment