Friday 13 January 2017

Nifty slips below 8,400 mark

The Indian stock markets climbed for a fourth straight session on Friday.

At 9:58 AM, the BSE Sensex is trading lower by 18 points at 27,229, while the Nifty50 slipped by 14 points at 8,393 mark.

The BSE Mid-cap Index was down by 0.32% at 12,602, whereas BSE Small-cap Index was down by 0.30% at 12,648.

ONGC, GAIL, Coal India and HDFC were among the gainers, whereas TCS, Hindalco, Idea, Zee and Bosch were among those losing sheen on NSE.

A total of 24 stocks registered a fresh 52-week high in trade today, while two stocks touched a new 52-week low on the NSE.

Out of 1,892 stocks traded on the NSE, 802 declined, 665 advanced and 425 remained unchanged today.

Some buying was observed in FMCG and financial services sectors, while media, IT, realty, pharma, auto, metal and banking stocks are showed weakness on NSE.

The INDIA VIX was down 0.37% at 14.56

The rupee opened weakened 11 paise to 68.19 against the U.S. dollar in early trade on fresh demand for the American currency from banks and importers despite positive macro economic data.

On the macro front, Consumer price inflation (CPI) in December fell further to 3.4% with food inflation hitting a two-year low. Thanks to a lower base, the index of industrial production (IIP) grew by 5.7% yoy in November.

Gold briefly surpassed US$1,200/oz mark, with values eventually retreating from the seven week high on account of profit taking. The short term trajectory for the yellow metal hinges on the policy developments from Trump regime. Clarity of fiscal policy, including government spending and corporate tax cuts can translate into bullish dollar and effectively deemed negative for gold. Conversely, protectionist measures from Trump can pose a threat to global trade and US economy, which will logically prove supportive for gold.

Meanwhile, Fitch reported that Trump's plans to slash taxes can threaten US triple-A credit rating over the medium term. The country has a very high level of government debt and proposed tax cuts by US$6.2 trillion over the next 10 years can pile up debt load by more 33%.

Oil futures scaled higher, underpinned by comments from Saudi Arabia Energy minister that OPEC would accelerate the rebalancing of the market and prices will be receptive to the same later this year.

No comments:

Post a Comment