Wall Street and European stock markets closed weak on the China scare.
US bond yields ticked higher after solid housing data and ahead of the
FOMC minutes and CPI inflation data due later today. Copper prices
remain under pressure. Oil prices continue to remain depressed despite
small rebounds occasionally.
The Chinese market collapse along with the continued weakness in commodities and emerging market currencies has now driven the MSCI EM equity index to October-2011 lows. Chinese markets sold off 6 per cent yesterday on concerns that authorities there may be less supportive of stock markets.
Trading action in India yesterday started muted and then got negative very quickly as Chinese markets dropped sharply. We then saw a steady recovery in the last 2 hours with Nifty making it back above 200 day moving average. Technology stocks were the best performers while metals was the worst performing sector.
Keep an eye out on tech and pharma stocks on rupee fall. Revenues to the tune of 50-55 per cent of Indian pharma companies comes from the US. Oil marketing stocks finally saw some upmove after having been ignored so-far after a great set of earnings.
Kaveri Seed ended 6 per cent higher after having lost 50 per cent in three months. There is no domestic market news flow today. The cues will largely be global.
The Chinese market collapse along with the continued weakness in commodities and emerging market currencies has now driven the MSCI EM equity index to October-2011 lows. Chinese markets sold off 6 per cent yesterday on concerns that authorities there may be less supportive of stock markets.
Trading action in India yesterday started muted and then got negative very quickly as Chinese markets dropped sharply. We then saw a steady recovery in the last 2 hours with Nifty making it back above 200 day moving average. Technology stocks were the best performers while metals was the worst performing sector.
Keep an eye out on tech and pharma stocks on rupee fall. Revenues to the tune of 50-55 per cent of Indian pharma companies comes from the US. Oil marketing stocks finally saw some upmove after having been ignored so-far after a great set of earnings.
Kaveri Seed ended 6 per cent higher after having lost 50 per cent in three months. There is no domestic market news flow today. The cues will largely be global.
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