Pre session Market
| oday domestic markets are likely to open marginally positive as markets across Asia are trading mixed after continuous two days rally. In the overnight trade, the U.S. markets managed to close firmly higher despite a strong 1% rebound by Dollar against other major currencies. The positive sentiments were backed by the FOMC’s forecast for 2010 GDP growth at 3.2% from 3.0%. The surge in economic growth also brings speculations that the U.S. government might withdraw its stimulus package, which helped Dollar appreciate against other currencies over night. Nikkei is trading higher by 0.15% as participants are enthused by the recovery in the U.S. economy which is the major overseas market for Japanese exporters. The Yen has also abated its strength against Dollar thus easing the worry for exporters. Hang Seng and Strait Times are trading lower by 0.14% and 0.49% respectively. The increased borrowing by the U.S. government to fund its fiscal deficit has prompted China to sell the U.S. treasuries. The total reserve assets in December 2009 amounted a whopping $2.4 trillion. In the domestic arena, the markets are likely to trade range bound today as there are mixed cues from Asian markets after consecutive two days rally. The lack of guidance from other markets might also allure profit bookers resulting in a moderate volatility. Midcap and Smallcap stocks could be the charm of the day as participants would be cautious on the frontline stocks.
On Wednesday, the key benchmark indices ended on a high note taking cues from positive global markets. The market continued its northward journey and extended early gains to hit fresh intraday highs in morning trade as global market rose. On the other hand, European equities advanced for a third straight session on Wednesday as forecast-beating results from BNP Paribas helped banking stocks and stronger commodity prices supported mining and energy shares. Back home, Finance Minister Pranab Mukherjee said on Wednesday that the economy may grow at more than 8% in the fiscal year 2010/11, after growing at around 7.5% in the current fiscal year ending March 2010. He further said that the government”s measures to control rising inflation would take some time to make an impact. The BSE 30-share Sensex today closed below the16,500 mark and Nifty closed below the 5,000 mark. The BSE Sensex closed higher by 202.23 points or (1.25%) at 16,428.91 and NSE Nifty ended higher by 58.25 points or (1.20%) at 4,914.00. BSE Midcap and Smallcap also closed with gains of 51.34 and 51.08 points at 6,565.17 and 8,368.70 respectively. The BSE Sensex touched intraday high of 16,480.89 and intraday low of 16,228.91. On Wednesday, the U.S market closed higher. The major indices opened the day’s session in the positive territory amidst strength largely underpinned by the gains in overseas market despite the early advances extended by the greenback against a basket of foreign currencies. The flurry of better than expected economic data released for the day also helped to keep the positive mood intact among the early traders. The housing starts for January mounted 2.8% (m-o-m) to an annualized rate of 591,000 units which was higher than the consensus for an annualized 580,000 units. Meanwhile, building permits for January reported inline at an annualized rate of 621,000 with the consensus call for 620,000. The industrial production data for January also reported stronger with an increment of 0.9% while capacity utilization for January reported in-line with expectations at 72.6%. As the day progressed, the greenback extended its early hour advances to finish at 1.0% gain amidst indication from the FOMC meeting minutes that the Fed officials mulls to hike the discount rate by 25 basis points. However, the Fed raised its 2010 GDP forecast to 3.2% from 3.0% following a belief that core inflation for 2010 will hit 1.4% against its previous forecast of 1.3%. The day’s session ended with 8 out of the 10 major sectors in green. Health Care (+0.8%), Consumer Discretionary (+0.8%) and Consumer Staples (+0.7%) extended gains while Energy (-0.4%) and Utilities (-0.3%) were the only laggards. US light crude oil futures for March contract finished higher by 0.4% at $77.33 per barrel on the New York Mercantile Exchange. The Dow Jones Industrial Average (DJIA) ended with gains of 40.43 points at 10,309.24, NASDAQ index surged 12.1 points to 2,226.29 and the S&P 500 (SPX) closed higher by 4.64 points at 1,099.51. Indian ADRs ended mixed on Wednesday. However, gainers outnumbered the losers. In the IT space, Satyam Computers was up 4.3%, Patni Computers was up 0.89% while Infosys was down 0.16% and Wipro was down 0.47%. In the telecom space, MTNL was up 1.9% and Tata Communication was up 1%. In the banking space, ICICI Bank was up 0.61% while HDFC Bank was down 0.25%. In other sectors, Tata Motors was up 2.45%, Sterlite Industries was up 0.66% and Dr Reddy”s Labs was up 0.16%. The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 1,181.30 Crore and gross debt purchased stood at Rs 131.20 Crore, while the gross equity sold stood at Rs 924.30 Crore and gross debt sold stood at Rs 92.50 Crore. Therefore, the net investment of equity and debt reported were Rs 257.00 Crore and Rs 38.70 Crore respectively. On Wednesday, the partially convertible rupee ended at 46.11/12 per dollar after hitting 45.95 early, its highest since Feb. 3, but still 0.2% stronger than 46.21/22 at close on Tuesday. On BSE, total number of shares traded were 34.38 Crore and total turnover stood at Rs 4,513.85 Crore. On NSE, total number of shares traded were 61.63 Crore and total turnover was Rs 13,216.91 Crore. Top traded volumes on NSE Nifty – Unitech with total volume traded 22278503, followed by Suzlon Energy with 20492590, Hindalco with 17420796, Bharti Airtel with 16132351 and Jaiprakash with 14283128. On NSE Future and Options, total number of contracts traded in index futures was 664545 with a total turnover of Rs 15,817.60 Crore. Along with this total number of contracts traded in stock futures were 525890 with a total turnover of Rs 18,029.02 crore. Total numbers of contracts for index options were 1980089 with a total turnover of Rs 48,701.02 Crore and total numbers of contracts for stock options were 74126 and notional turnover was Rs 2,576.66 Crore. Today, Nifty would have a support at 4,865 and resistance at 4,940 and BSE Sensex has support at 16,316 and resistance at 16,490. |
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