The Indian markets declined for the third straight day in last session, mainly tailing weak global cues. Today, the start of the important November series F&O expiry week is likely to be in green and the markets will track the positive mood in the global markets. However, some volatility too can be seen as the investors will churn portfolios. Now traders will be eyeing the Q2 GDP numbers to be announced later in the week. Marketmen will be taking cues with the E&Y report that India has emerged as the most attractive investment destination surpassing neighbouring China and the US, due to relaxation in FDI norms to boost investor sentiments. The PSU oil marketing companies will be relieved with the easing supply concern after Iran reached an agreement. Traders will also be eyeing the rupee movement, as the Reserve Bank of India (RBI) has said that the concessional swap facility will not be extended beyond November 30. There will be some buzz in the pharma and realty sector, as the Cabinet is expected to take a decision on relaxing FDI norms for the housing sector and reducing foreign direct investment cap to 49 percent in critical areas of the pharma segment.
The US markets made a positive closing of the passing week with S&P 500 reaching new record closing high above 1,800 on upbeat economic reports. The Asian markets have mostly made a good start as Iran reached an agreement with Western powers and agreed to limit its nuclear program, while Japanese market surged over a percent as yen weakened against dollar.
Back home, the Indian markets failed to hold a good relief rally on Friday, after two consecutive sessions of butchery and ended flat with a negative bias, however barring last hour volatility the trade remained firm with benchmarks trying to keep themselves in green. The mood of the markets showed recovery since beginning, tailing the good going in the global markets, though there was some cautiousness too with the ongoing talk of tapering in the US and the rupees’ further decline past 63/$ mark. The good global cues mainly set the tone for the early recovery in the Indian markets, as the US markets ended higher overnight on getting better than expected jobs data, while following the trend, the Asian markets made a positive start and most of them ended higher. Later the European markets too made a green start and supported the domestic markets to retain their gains. Back home, the final session of the week was unable to bring any cheer and Nifty despite early good going closed below 6000 level for the second straight session. The Indian markets showed early recovery sign and traders seemed value buying at lower levels after the slump in last two sessions with beaten down sectors in demand. Gains were slightly influenced by Finance minister P Chidambaram’s statement that the annual headline inflation is expected to moderate to near 5 percent as there was reasonable price stability in some major commodities. Finance Minister also made a strong pitch to overseas Indians and said that the country is a safe destination with a potential of 8% growth and ample investment opportunities. Traders also got support of the report that the inflation based on consumer price index (CPI) for agricultural labourers (AL) eased to 12.65 percent in the month of October on y-o-y basis as against 12.78 percent recorded in the previous month. Though, there was some cautiousness with the continuous decline in rupee after it breached 63/$ mark intraday and as the exchanges reported that foreign institutional investors (FIIs), snapping their 32-day buying streak sold shares worth of Rs 59.80 crore on Thursday. Sectorally, rate sensitive auto and realty suffered the maximum beating, down by about a percent. Banking stocks too remained under pressure after the Reserve Bank of India (RBI) said that the Indian banks must focus on improving their asset quality and bring down bad loans in the near term even as they gear up for major structural changes going forward. Meanwhile, telecom stocks hogged substantial limelight during the session ahead of EGOM meeting later in the day to discuss the details of the third round of spectrum auction as well as M&A guidelines for the sector. Finally, the BSE Sensex lost 11.66 points or 0.06%, to settle at 20217.39, while the CNX Nifty declined by 3.60 points or 0.06% to settle at 5995.45.
The US markets made a positive closing of the passing week with S&P 500 reaching new record closing high above 1,800 on upbeat economic reports. The Asian markets have mostly made a good start as Iran reached an agreement with Western powers and agreed to limit its nuclear program, while Japanese market surged over a percent as yen weakened against dollar.
Back home, the Indian markets failed to hold a good relief rally on Friday, after two consecutive sessions of butchery and ended flat with a negative bias, however barring last hour volatility the trade remained firm with benchmarks trying to keep themselves in green. The mood of the markets showed recovery since beginning, tailing the good going in the global markets, though there was some cautiousness too with the ongoing talk of tapering in the US and the rupees’ further decline past 63/$ mark. The good global cues mainly set the tone for the early recovery in the Indian markets, as the US markets ended higher overnight on getting better than expected jobs data, while following the trend, the Asian markets made a positive start and most of them ended higher. Later the European markets too made a green start and supported the domestic markets to retain their gains. Back home, the final session of the week was unable to bring any cheer and Nifty despite early good going closed below 6000 level for the second straight session. The Indian markets showed early recovery sign and traders seemed value buying at lower levels after the slump in last two sessions with beaten down sectors in demand. Gains were slightly influenced by Finance minister P Chidambaram’s statement that the annual headline inflation is expected to moderate to near 5 percent as there was reasonable price stability in some major commodities. Finance Minister also made a strong pitch to overseas Indians and said that the country is a safe destination with a potential of 8% growth and ample investment opportunities. Traders also got support of the report that the inflation based on consumer price index (CPI) for agricultural labourers (AL) eased to 12.65 percent in the month of October on y-o-y basis as against 12.78 percent recorded in the previous month. Though, there was some cautiousness with the continuous decline in rupee after it breached 63/$ mark intraday and as the exchanges reported that foreign institutional investors (FIIs), snapping their 32-day buying streak sold shares worth of Rs 59.80 crore on Thursday. Sectorally, rate sensitive auto and realty suffered the maximum beating, down by about a percent. Banking stocks too remained under pressure after the Reserve Bank of India (RBI) said that the Indian banks must focus on improving their asset quality and bring down bad loans in the near term even as they gear up for major structural changes going forward. Meanwhile, telecom stocks hogged substantial limelight during the session ahead of EGOM meeting later in the day to discuss the details of the third round of spectrum auction as well as M&A guidelines for the sector. Finally, the BSE Sensex lost 11.66 points or 0.06%, to settle at 20217.39, while the CNX Nifty declined by 3.60 points or 0.06% to settle at 5995.45.
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