Oct 10, 2008

Markets expected to open flat & remain cautious ahead of weekly inflation data & derivatives expiry today

25 Sep 2008 | 10:07
Markets expected to open flat & remain cautious ahead of weekly inflation data & derivatives expiry today

The Indian Markets ended Wednesday’s session with decent gains amidst intra-day day volatility. The BSE Sensex closed at 13692.5, up by 0.9% over Tuesday’s close. After a positive opening, the Nifty strengthened further & made an intra-day high of 4207.95. However, it witnessed selling pressure at those levels & corrected, thus giving up almost all its gains. Towards the end, it managed to recover from the lows & closed up 0.8% at 4161.3.
The NSE cash turnover stood at Rs. 11829 crores in comparison to Rs. 10610 crores on Tuesday. The market breadth was positive on BSE with the advance-decline ratio of 1:0.9. Among the sectoral indices, Metals, Oil & Gas & Banks outperformed, increasing by 2.2%, 1.2% & 1.2% respectively.
However, Consumer Durables & IT indices were the major losers, which fell by 1.2% & 1.1% respectively.

The Dow and S&P 500 edged lower by 0.3% & 0.2% respectively on Wednesday as uncertainty about when Congress might approve a proposed $700 billion financial sector bailout offset Warren Buffett's $5 billion bet on Goldman Sachs. However, Nasdaq closed marginally up by 0.1%. The Indian ADRs ended mix with Infosys & Satyam decreasing by 4.3% & 0.7% respectively. However, Wipro went up by 1.3%. Tata Motors closed down by 5.2%, while ICICI & HDFC Bank closed up by 6.7% & 3.2% respectively. Among the Latin American markets, the Mexican markets decreased by 0.1%, while Brazilian Market went up by 0.5%. Among the Metal prices, Aluminium & Copper decreased by 1.6% & 2% respectively, Zinc & Nickel decreased by 1.6% & 2.1% respectively. The light crude oil for October decreased by 0.8% to settle at $105.7 a barrel.
Today, the Asian Markets are trading on a mix note with Hang Seng & Shanghai trading up by 1.1% & 4.2% respectively. However, Nikkei & Singapore Strait are trading down by 0.9% & 0.5% respectively.

On Tuesday, the FIIs were net sellers of Rs. 868 crores in the cash markets, while they were net sellers of Rs. 275 crores in the F&O Markets.
Mutual Funds were net sellers of Rs. 226 crores. As per the provisional figures, FIIs were net sellers of Rs. 494 crores in the cash market on Wednesday, while they were net sellers of Rs. 110 crores in the F&O markets.

Today, we expect the Markets to open flat & remain cautious ahead of weekly inflation data & derivatives expiry. Among the sectors, Metals, Oil & Gas & Banks continue to look positive, while IT & Consumer Durables are looking weak & could underperform

0 comments: