NEW DELHI: The domestic equity indices extended losses and were trading over half a per cent lower on Friday tracking weak start to European markets.The S&P BSE Sensex was trading about 150 points lower. The gains in ITC, L&T and Asian paints were offset by index heavyweights such as HDFC, Bharti Airtel, Tata Motors, M&M, TCS, and SBI.The Nifty50 was testing its crucial level of 7,700 on the day 1 of April futures and options series. India VIX rose 7.65 per cent to 17.85.
European markets opened lower in line with weak trend globally. Major Asian markets were down up to 3 per cent for the day on concerns over the global economic outlook amid a slew of weak economic releases in China and Japan. The inclusion of four stocks in the NSE benchmark Nifty50 failed to spur any price action on the counters, due to weakness in the broader market. Bharti Infratel, Eicher Motors, Aurobindo Pharma and Tata Motors DVR were trading up to 2 per cent lower.Jaiprakash Associates rallied by over 9 per cent after the company announced part sale of its cement business to the Kumarmangalam Birla-led Ultratech for Rs 15,900 crore, marking the biggest consolidation in the cement sector.
Shares of IVRCL slumped over 8 per cent, in addition to 6.4 per cent fall in the previous session, after an under-construction flyover of the company in Kolkata collapsed taking at least 23 lives, while leaving 90 injured.Alkem Laboratories slipped 4 per cent after the drug firm said that UK health regulator has made eight observations after inspecting its manufacturing plant at Taloja, Maharashtra.
Pre-market: Domestic equity indices are likely to open on a negative note on Friday, tracking weakness in other Asian markets, on the first day of the April series derivative contracts.The market may react to the China Caixin manufacturing PMI, which came in at 49.7 in March compared with 48 in the previous month. A level below 50 suggests contraction in manufacturing activity.At 07:45 am, Nifty50 futures on the Singapore Stock Exchange were trading 41.50 points lower at 7,746, indicating a gap-down opening for the domestic market.
Nifty50 may see resistance at 7,900: Rollovers to the April series were strong compared with that in last month, owing to short coverings in individual names and long buildup in index futures, said S Hariharan, Head of Sales Trading (Institutional Equities), Emkay Global Financial Services.He pointed out that strong rolls were witnessed in banking and auto stocks and the trend could continue in April.
“We expect some consolidation in the index at current levels after the significant rally seen in the March series. From a directional perspective, the 7,900 level remains a strong resistance and trend-deciding level. If Nifty50 sustains above these levels, it will trigger further momentum in the market. At present, we expect stock-specific action to continue with selling pressure in the 7,850-7,900 range,” said Sahaj Agrawal, Deputy Vice-President for Derivatives Research at Kotak Securities.
Asian markets stay weak: Japan’s benchmark Nikkei was trading 2.91 per cent lower at 16,278.The Bank of Japan (BOJ) quarterly Tankan report, a survey on Japanese manufacturing and service industries, released earlier in the day, showed that business sentiment remained largely subdued in the country.China’s CSI300 fell 0.20 per cent to 3,211. Other Asian indices, including Hong Kong’s Hang Seng (down 0.77 per cent), South Korea’s Kospi (down 0.60 per cent) and Taiwan’s TWSE (down 1 per cent), were trading lower.”Right now, the market is taking comfort from what Fed Chair Janet Yellen said. Yellen said the Fed will be accommodative for a longer period. This is something the market was expecting. The market expected the Fed to hike interest rates slowly and gradually,” said Murthy Nagarajan, Head of Fixed Income, Quantum Mutual Fund.He said RBI could now go for 25 bps rate cut with one more rate cut in June or July.
US markets ended lower on Thursday: Wall Street ended with minor losses gains on Thursday. The S&P500 index fell 0.20 per cent to 2,059. The Dow Jones industrial average declined 0.18 per cent to 17,685.US markets would react to data on euro zone’s unemployment rate and PMI readings, coupled with ISM manufacturing prices and PMI data scheduled for release in the world’s largest economy.
Source : economictimes.indiatimes.com/
Save
Sorry, comments are closed for this item.
Sensex falls 150 points, Nifty slips below 7,700 level; India VIX up 7%
NEW DELHI: The domestic equity indices extended losses and were trading over half a per cent lower on Friday tracking weak start to European markets.The S&P BSE Sensex was trading about 150 points lower. The gains in ITC, L&T and Asian paints were offset by index heavyweights such as HDFC, Bharti Airtel, Tata Motors, M&M, TCS, and SBI.The Nifty50 was testing its crucial level of 7,700 on the day 1 of April futures and options series. India VIX rose 7.65 per cent to 17.85.
European markets opened lower in line with weak trend globally. Major Asian markets were down up to 3 per cent for the day on concerns over the global economic outlook amid a slew of weak economic releases in China and Japan. The inclusion of four stocks in the NSE benchmark Nifty50 failed to spur any price action on the counters, due to weakness in the broader market. Bharti Infratel, Eicher Motors, Aurobindo Pharma and Tata Motors DVR were trading up to 2 per cent lower.Jaiprakash Associates rallied by over 9 per cent after the company announced part sale of its cement business to the Kumarmangalam Birla-led Ultratech for Rs 15,900 crore, marking the biggest consolidation in the cement sector.
Shares of IVRCL slumped over 8 per cent, in addition to 6.4 per cent fall in the previous session, after an under-construction flyover of the company in Kolkata collapsed taking at least 23 lives, while leaving 90 injured.Alkem Laboratories slipped 4 per cent after the drug firm said that UK health regulator has made eight observations after inspecting its manufacturing plant at Taloja, Maharashtra.
Pre-market: Domestic equity indices are likely to open on a negative note on Friday, tracking weakness in other Asian markets, on the first day of the April series derivative contracts.The market may react to the China Caixin manufacturing PMI, which came in at 49.7 in March compared with 48 in the previous month. A level below 50 suggests contraction in manufacturing activity.At 07:45 am, Nifty50 futures on the Singapore Stock Exchange were trading 41.50 points lower at 7,746, indicating a gap-down opening for the domestic market.
Nifty50 may see resistance at 7,900: Rollovers to the April series were strong compared with that in last month, owing to short coverings in individual names and long buildup in index futures, said S Hariharan, Head of Sales Trading (Institutional Equities), Emkay Global Financial Services.He pointed out that strong rolls were witnessed in banking and auto stocks and the trend could continue in April.
“We expect some consolidation in the index at current levels after the significant rally seen in the March series. From a directional perspective, the 7,900 level remains a strong resistance and trend-deciding level. If Nifty50 sustains above these levels, it will trigger further momentum in the market. At present, we expect stock-specific action to continue with selling pressure in the 7,850-7,900 range,” said Sahaj Agrawal, Deputy Vice-President for Derivatives Research at Kotak Securities.
Asian markets stay weak: Japan’s benchmark Nikkei was trading 2.91 per cent lower at 16,278.The Bank of Japan (BOJ) quarterly Tankan report, a survey on Japanese manufacturing and service industries, released earlier in the day, showed that business sentiment remained largely subdued in the country.China’s CSI300 fell 0.20 per cent to 3,211. Other Asian indices, including Hong Kong’s Hang Seng (down 0.77 per cent), South Korea’s Kospi (down 0.60 per cent) and Taiwan’s TWSE (down 1 per cent), were trading lower.”Right now, the market is taking comfort from what Fed Chair Janet Yellen said. Yellen said the Fed will be accommodative for a longer period. This is something the market was expecting. The market expected the Fed to hike interest rates slowly and gradually,” said Murthy Nagarajan, Head of Fixed Income, Quantum Mutual Fund.He said RBI could now go for 25 bps rate cut with one more rate cut in June or July.
US markets ended lower on Thursday: Wall Street ended with minor losses gains on Thursday. The S&P500 index fell 0.20 per cent to 2,059. The Dow Jones industrial average declined 0.18 per cent to 17,685.US markets would react to data on euro zone’s unemployment rate and PMI readings, coupled with ISM manufacturing prices and PMI data scheduled for release in the world’s largest economy.
Source : economictimes.indiatimes.com/
Save
Categories: BSE Sensex flat, BSE Sensex online news, Depository and Participants, Free online sharemarket commentary, How To Make money, new online sharemarket news
Comments
Sorry, comments are closed for this item.