U.S. stocks tumbled Thursday as uncertainty over the nation's fiscal policy trumped upbeat economic data and moves by global central banks. The Dow Jones industrial average fell 0.56%, the S&P 500 shed 0.63% and the Nasdaq lost 0.72%. European markets slipped from 18-month highs on Thursday, led by weakness in heavyweight healthcare stocks, after uncertainty over U.S. budget talks prompted investors to cash in on eight-session winning streak. Asian markets have also started on a negative note.
All this has set the tone for the Indian market today. Under most likelihood, Indian stocks will open in negative zone. And being the last day of the trading week, it will remain range bound. In a situation when the punters are not willing to participate in the market and take fresh positions, ahead of the end of 2012 markets will not witness much volatility. Stock specific movements will definitely be there, but by and large the market will move in a narrow range.
Realty stocks may come under lime light today as the government yesterday cleared the Land Acquisition Bill which stipulates approval of 80% of land owners to acquire land for a private projects and approval of 70% people for PSUs. Moody's has revised the rating outlook to negative from stable for the various deposit and issuer ratings assigned to three Indian banks - Punjab National Bank, Bank of Baroda and Canara Bank. This bit of news and the hope that the Banking Regulation Bill will get the nod of the parliament without much difficulty, will certainly lead to movement in the Banking Sector.
Figures of FII investment in Indian stock market is also a positive side. The FIIs were net buyers of Rs12.56bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were net sellers of Rs6.65bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs24.32bn in the cash segment on Wednesday, according to the SEBI figures. The fact that the three big IPOs that hit the market this week saw successful subscriptions shows the inherent power in the market. Bharti Infratel is fully subscribed ahead of closure, P.C Jewelers is subscribed 6.7 times while NDMC is subscribed 1.7 times.
So, to conclude, Indian Stock market will be range bound today and will not witness much volatility. Banking stocks will be in the limelight. Though there is an inherent strength in the market, but the chances of market recovering yesterdays loss seems very bleak.
All this has set the tone for the Indian market today. Under most likelihood, Indian stocks will open in negative zone. And being the last day of the trading week, it will remain range bound. In a situation when the punters are not willing to participate in the market and take fresh positions, ahead of the end of 2012 markets will not witness much volatility. Stock specific movements will definitely be there, but by and large the market will move in a narrow range.
Realty stocks may come under lime light today as the government yesterday cleared the Land Acquisition Bill which stipulates approval of 80% of land owners to acquire land for a private projects and approval of 70% people for PSUs. Moody's has revised the rating outlook to negative from stable for the various deposit and issuer ratings assigned to three Indian banks - Punjab National Bank, Bank of Baroda and Canara Bank. This bit of news and the hope that the Banking Regulation Bill will get the nod of the parliament without much difficulty, will certainly lead to movement in the Banking Sector.
Figures of FII investment in Indian stock market is also a positive side. The FIIs were net buyers of Rs12.56bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were net sellers of Rs6.65bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs24.32bn in the cash segment on Wednesday, according to the SEBI figures. The fact that the three big IPOs that hit the market this week saw successful subscriptions shows the inherent power in the market. Bharti Infratel is fully subscribed ahead of closure, P.C Jewelers is subscribed 6.7 times while NDMC is subscribed 1.7 times.
So, to conclude, Indian Stock market will be range bound today and will not witness much volatility. Banking stocks will be in the limelight. Though there is an inherent strength in the market, but the chances of market recovering yesterdays loss seems very bleak.
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