The mood across the region is cautious and the Indian markets after declining marginally in last session, are likely to get a similar start of the last trading day of the year. Traders will be concerned with Reserve Bank of India (RBI) Governor Raghuram Rajan’s statement that the challenge of containing inflation is limiting the central bank’s ability to boost economic growth. The banking sector stocks are likely to remain under pressure, as the RBI has said that risks to the banking sector have increased during the past six months due to rising bad loans and has proposed tightening banks' exposure limit for single borrower and single groups. There will be some buzz among the retail stocks as the government cleared proposals by UK-based retail giant Tesco’s proposal to invest around Rs 680 crore. Tesco has sought permission to pick up 50% stake in Trent Hypermarket, a wholly owned subsidiary of Trent, a Tata Group company. Tesco becomes the first MNC to enter multi-brand retail in India. Meanwhile, the RBI has extended the time for issuance of inflation indexed bonds to March 31, 2014 from earlier date of Dec 31, 2013.
The US markets made a mixed closing after trading choppy throughout the day, as many traders remained away from their desks ahead of the upcoming New Year's Day holiday. Lots of the Asian markets are closed today, while some will be trading half day.
Back home, Indian equity markets snapped the lackluster day of trade, slightly in the red with frontline gauges ending below their crucial 21,150 (Sensex) and 6,300 (Nifty) levels in absence of any major trigger. Markets, after a positive opening, entered into red terrain as traders opted to unwind their position approaching the end of the turbulent year. Afterwards, both the bourses traded in tight band throughout the session as investors remained on sidelines ahead of April-November fiscal deficit reading, due on December 31, and the manufacturing Purchasing Managers’ Index (PMI) for December, due on January 2, which will help them gain insights into the extent of the economic slowdown. However, losses remained capped with the CII Business Confidence Index (BCI) rising sharply to 54.9 during the October-December period of 2013-14 fiscal, from 45.7 in the previous quarter. Some support also came in after Reserve Bank of India (RBI), painting an optimistic picture on the external front, underscored that the country was ready for the US Federal Reserve’s tapering, while pegging the current account deficit at below 3% for this fiscal in its eighth Financial Stability Report. Global cues remained mixed with most of the European markets opening in the red terrain, while Asian markets shut shop mostly in the green. Back home, public sector oil marketing companies (OMCs) like BPCL, HPCL and IOC remained under pressure on talks of increasing the subsidized cylinder cap for households. Selling in banking counter too dampened the sentiments after RBI in its ‘Financial Stability Report-December 2013’, highlighted that risks to the banking sector have increased during the past half-year and that all the risks dimensions captured in the banking stability indicator show increase in vulnerabilities in the banking sector. Additionally, telecom stocks witnessed mixed trend after the government delayed the planned mobile phone spectrum auction in the 900 and 1800 megahertz frequency bands by 10 days from the original schedule, it will now start on February 3. Finally, the BSE Sensex declined by 50.57 points or 0.24%, to settle at 21143.01, while the CNX Nifty lost 22.70 points or 0.36% to settle at 6,291.10.
The US markets made a mixed closing after trading choppy throughout the day, as many traders remained away from their desks ahead of the upcoming New Year's Day holiday. Lots of the Asian markets are closed today, while some will be trading half day.
Back home, Indian equity markets snapped the lackluster day of trade, slightly in the red with frontline gauges ending below their crucial 21,150 (Sensex) and 6,300 (Nifty) levels in absence of any major trigger. Markets, after a positive opening, entered into red terrain as traders opted to unwind their position approaching the end of the turbulent year. Afterwards, both the bourses traded in tight band throughout the session as investors remained on sidelines ahead of April-November fiscal deficit reading, due on December 31, and the manufacturing Purchasing Managers’ Index (PMI) for December, due on January 2, which will help them gain insights into the extent of the economic slowdown. However, losses remained capped with the CII Business Confidence Index (BCI) rising sharply to 54.9 during the October-December period of 2013-14 fiscal, from 45.7 in the previous quarter. Some support also came in after Reserve Bank of India (RBI), painting an optimistic picture on the external front, underscored that the country was ready for the US Federal Reserve’s tapering, while pegging the current account deficit at below 3% for this fiscal in its eighth Financial Stability Report. Global cues remained mixed with most of the European markets opening in the red terrain, while Asian markets shut shop mostly in the green. Back home, public sector oil marketing companies (OMCs) like BPCL, HPCL and IOC remained under pressure on talks of increasing the subsidized cylinder cap for households. Selling in banking counter too dampened the sentiments after RBI in its ‘Financial Stability Report-December 2013’, highlighted that risks to the banking sector have increased during the past half-year and that all the risks dimensions captured in the banking stability indicator show increase in vulnerabilities in the banking sector. Additionally, telecom stocks witnessed mixed trend after the government delayed the planned mobile phone spectrum auction in the 900 and 1800 megahertz frequency bands by 10 days from the original schedule, it will now start on February 3. Finally, the BSE Sensex declined by 50.57 points or 0.24%, to settle at 21143.01, while the CNX Nifty lost 22.70 points or 0.36% to settle at 6,291.10.
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