Friday, 27 March 2015

A flat opening likely for Indices

A flat opening is likely for the Indices. Lack of triggers are expected to shift the focus on individual stocks which may have unnecessarily borne the brunt of F&O activity on Thursday. Investors chose to unwind their long positions with open interest falling by over 6%. Some rolled over their short positions, others opted to cut their leveraged positions on Thursday itself. Oil prices flared before paring even as Saudi Arabia and its allies launched air strikes in Yemen. Gold rose to a 3-week high.  US indices closed in the red and Asia is showing ticks of green this morning.

Telecom Minister Ravi Shankar Prasad has reportedly dismissed mobile service operators’ statements that call tariffs will increase because of the high bids for spectrum. He sees no case for a rise in tariffs, and says these “campaigns” should stop.Telecom stocks were in focus after the auction ended amid fierce bidding for mobile phone airwaves. According to reports, the government has collected a record Rs 1.10 lakh crore from the auction sale.

Thursday, 26 March 2015

A flat opening likely for Indices

A flat opening is likely for the Indices due to weak global sentiments.The F&O expiry will ensure that volatility reigns supreme especially at close. US indices fell after technology and biotech shares triggered a sell off.  Dow lost 1.62% while S&P was down 1.46%. Nasdaq was most hit and dropped over 2%. Attention will be on the rupee movement.

Huge positions have been built around these levels of 8500 (though not a technical level) and bulls and bears will fight it out to gain an upper hand at expiry. The reported airstrikes in Yemen by Saudi-Arabia led coalition of Arab nations to push back Houthi rebels is adding to the tension. 

Finance minister Arun Jaitley said the government would like the rupee to reflect its real value instead of the currency being allowed to depreciate against the dollar to give some competitive edge to country's exports, says a report.

Wednesday, 25 March 2015

A higher opening likely for Indices

A higher opening is likely for the Indices. Data on February’s 8 infrastructure industrial data is awaited. The Nifty has been in a range of 200 points for quite a while. With F&O expiry tomorrow, the index will hope to move out of the range either way soon. Indices could move in a choppy manner yet in a narrow range as the adjustments take place ahead of the F&O expiry tomorrow. Wall Street managed to clock gains with Dow and S&P adding close to 1% while Nasdaq ended at a 15-year high adding a little more than 0.5%. Asian indices are mixed with Japan’s Nikkei and China’s Shanghai indices trading lower. Hang Seng is marginally up for now.

FII interest in India is nearing a short-term peak due to the lack of market triggers and heavy overweight positions, according to a report. Some may tend to agree but it all depends on the kind of flows we see in the coming months especially as expectations rise about a rate increase in US.

India's economy is projected to grow by 7.8% in FY16 according to the Asian Development Bank. While it is pegged much lower than the 8.1-8.5% predicted by the Economic Survey the growth is much higher than the 7.2% projected for China by the Asian Development Bank.

Tuesday, 24 March 2015

A flat opening likely for Indices

A flat start is likely for the Indices. Asian markets are undecided. US indices, which were doing well for most part of the day tumbled to end flat at close. The S&P 500, Dow Jones Industrial Average and Nasdaq registered marginal losses.China March ‘flash’ PMI fell to 49.2 from February, finally reading 50.7

After four days of fall, Indices continue to languish for positive cues. While the Nifty is down around 1% this expiry, it has crashed over 5% from its highs hit this month. Nifty has been the worst performer in March. The F&O expiry will bring its share of choppiness in the coming days. Prop desks and HNIs have been very active in the options segment. Nifty rolls are at a mere 15% while the average of last 6 months is around 28%. Cost of carry is at the highest level in last six months not just for Nifty but also Bank Nifty. 

Cleveland Federal Reserve President Loretta Mester said that the US monetary policy easing has created only minimal bubble-like activity in financial markets. Speaking at a conference at the Bank of France in Paris, Mester said the US central bank was aware of risks that easing could fuel bubbles. Mester further said that some segments of the equity market have shown some bubble-like things, but they were never thought to be that extraordinary.

SEBI is likely to reject a finance ministry proposal that seeks to halt trading in shares of PSUs in which the government is selling its stale on the day of the offer for sale (OFS), says a report. SEBI chairman has expressed concern over this since any insider trading will directly impact SEBI, as per a report. SEBI has reportedly started probing into the issue of nexus between CAs, brokers and market operators. The Securities and Exchange Board of India said it is looking into the raised complaints and a multitude of other agencies are also prying into the reported leaks of documents.

Monday, 23 March 2015

A flat start likely for Indices

A flat opening is likely for the Indices. Year-end profit taking could also be on the cards for many. With F&O expiry date coming this thursday, indices could get very choppy in the coming days. The other data points are Feb eight infrastructure Industries data and Feb fiscal deficit this week. Global cues are mostly positive for now. On Friday, Dow rose 0.94%  and S&P 500 was up 0.9%, Nasdaq closed at a 15-year high gaining 0.68%. Asian markets are also in the green with Japan's Nikkei and China's Shanghai index gaining close to 1% while Hong Kong's Hang Seng index is up 0.5%.

Indices seem to be sitting on supports with less downside seen immediately. Lack of triggers may prevent an upmove and so what we have is a range-bound trade initially.  Though the week ended mostly lower, top seven Sensex companies added Rs 21,942.99 crore in market valuation.

The RBI and Finance ministry appeared to be on the same page at a news conference on Sunday. "A public debt management agency as a professional organisation, independent of the (central) bank, independent of the government, is something that is desirable," Rajan said. "Besides time and the nature of resources it uses, how it works with the central bank and with the government, those are all details that the government is working to fill out. Those are the things that have to be determined," Rajan said.

Prime Minister Narendra Modi has assured farmers that their interest will be fully protected in implementation of revised land acquisition legislation. He also assured farmers that the Government is with them at a time when farmers are having tough time due to unseasonal rain and hailstorm which damaged rabi crops. "Government aims to remove anomalies in land bill to benefit farmers, their families, villages," he said in his monthly radio broadcast 'Mann ki Baat' on Sunday.

SEBI today pitched for allowing investment of pension money into various securities instruments and to create an enabling environment for REITs to flourish, as Finance Minister Arun Jaitley reviewed the state of capital markets in the country.

A success for the Narendra Modi goverment at the Rajya Sabha, where it is in minority, was the passing of the Coal bill which got a nod from the Rajya Sabha members, making it the second bill to be passed as MMDR bill was passed earlier. Lok Sabha passed about 15 Bills during Budget session so far

Minister of Parliamentary Affairs M.Venkaiah Naidu has said that the first phase of the Budget session of Parliament that concluded today has been productive and has been the most significant and rewarding of the four sessions of Parliament since the Government assumed office in May, 2014. Naidu briefed the media on the outcomes of the Budget session so far.

According to reports, the Cabinet Committee on Economic Affairs has approved sale of equity in four state-owned companies including ONGC and NMDC which may fetch the exchequer Rs 22,574 crore, the Lok Sabha was informed on Friday.

Friday, 20 March 2015

A flat opening likely for Indices

A flat start is likely for the Indices. Attention will be on Parliament. Black money law will be introduced in Parliament today. Government is keen on getting the insurance, coal, mines and minerals bills passed.
Global indices are mostly subdued. Dow fell 0.65%, S&P 500 lost 0.49% and Nasdaq was down 0.19%. Asian markets are also lower. Japan's Nikkei and Hong Kong's Hang Seng shed 0.2% each while China's Shanghai index is down around 0.5%.

Reaffirming its commitment to the BRICS New Development Bank (NDB), which is expected to rival the International Monetary Fund (IMF) and the World Bank, India has set aside Rs.930 crore in the 2015-16 budget in addition to the Rs.100 crore that it had earmarked for the year ending 31 March. However, the budget has no amount allocated for the proposed $50 billion Asian Infrastructure Investment Bank (AIIB), which will be led by China, says a report in Mint.

Indices which saw an initial spurt came tumbling down in despair following a sell-off in banks and realty stocks especially. Oil prices tumbled as Kuwait's stance that OPEC had no choice but to keep producing in an oversupplied market undercut the previous day's rally, says a report.

SEBI is considering the possibility to allow strategy-based derivative trading, according to a media report. The objective is to help bring in various new products in the derivative trading segment, the report added. 

Thursday, 19 March 2015

A strong opening likely for Indices

A strong opening is likely for the Indices. The indices could come lower soon as profit booking is bound to happen at higher levels. Global cues are mixed for now. The Dow gained 1.27% and S&P 500 was up 1.21%. Nasdaq closed with gains close to a percent. Asian markets are mostly lower. The word patience is dropped from commentary even as Fed Chair Janet Yellen says, it should not be read as indicating that the committee is going to be impatient.  So the door now is open wider for a rate hike.The Fed has cut its inflation outlook for 2015 and reduced expected US economic growth.

The government has firmed up a list of PSUs for divestment of minority stakes in the fiscal beginning next month. Topping the charts is BHEL. Report said that BHEL divestment is likely in April. The Disinvestment Department has completed overseas roadshows for BHEL stake sale in London, Singapore and Hong Kong, says report

Delay in implementation of 224 central sector infrastructure projects resulted in cost overruns to the tune of Rs 2.11 lakh crore, government reportedly said. Domestic natural gas prices are likely to be reduced by over 10% to $5.02 per unit from April 1, according to reports.Report said that the new rate will be around $5.02 per million British thermal unit (mmBtu) as compared to the current price of $5.61.