Pre Session Market Analysis for Apr 13, 2011

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Pre Session Market Analysis for Apr 13, 2011
The key indices are likely to open negative as Asian stocks are trading lower tracking overnight losses in the Wall Street and decline in commodity producers stock due to fall in oil and metal prices. The MSCI Asia Pacific Index was flat at 134.74 with about three stocks advancing for every two that declined.

Further, Japan"s Nikkei 225 Stock Average is trading is trading marginally lower by 0.11% to 9,545.12 after opening strong. Slide is Japanese stocks came as investors are a bit conscious ahead of earning announcements. Further, Shanghai Composite is down by 0.58% to 3,003.82 and Hang Seng Index fell 0.24% to 23,919.06.

Separately, Seoul Composite and Taiwan Weighted are trading lower by 0.25% and 0.17% respectively. In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with downside movement. Realty, Oil&Gas and Metal pivotals will be in focus today.

In previous session

On Monday, The domestic stock market closed the first trading day of the week on a negative note tracking the unfavouring cues from the domestic and global arena. The sentiments across the board was bearish since the initial bell on the back of weak Asian stocks that tumbled on concerns of soaring crude oil prices.

Moreover, the investors" sentiments dampened tracking the lower than expected India"s industrial output data for the month of February 2011, which slowed to 3.6 per cent in February, 2011, compared to 15.1 per cent expansion in the year-ago period. Also, the traders turned a bit cautious in booking fresh positions ahead of the corporate earnings result.

The Realty stocks were the worst hit in today"s trading on fears of higher interest rates that would dent the demand for the realty sector. Also, the Auto stocks remained on the sellers" radar on fears of hike in the domestic fuel prices and higher interest rates. Both Realty and Auto indices were down by more than 2% each.

The BSE SENSEX was at 19262.54 down by 188.91 points or by 0.97 % and then NSE Nifty was at 5785.7 down by 56.3 points or by 0.96%. The BSE MIDCAP was at 7123.57 down by -49.93 points or by -0.7 %. while the BSE SMLCAP was at 8709.91 down by -62.64 points or by -0.71 %. The BSE Sensex touched intraday high of 19426.3 and intraday low of 19242.59 The NSE Nifty touched intraday high of 5830.3 and intraday low of 5777.9.

International market

On Tuesday, the U.S. markets closed lower as buyers failed to provide assistance near-term support in the face of selling pressure thus leaving the S&P 500 to witness its worst single-session slide in almost a month. The tone of trade was hampered by an intensive selling effort among the global peers, most of which registered losses of around 1%.

Japan's Nikkei was one of the worst performers that lost 1.7% amid news that officials have increased Japan's nuclear crisis rating to the maximum level of 7. Further, Dow component Alcoa (AA 16.70, -1.07) opened the earnings season that showed its fourth consecutive upside earnings surprise, but a light revenue figure suggested softer demand than what investors had expected.

Market participants denied providing support to the broad market's early drop, despite fall in oil prices. On the sectoral front, the combination of lower oil prices and broad market weakness led energy stocks to shed 3.0%, which was the sector's worst single-session slide in one month. Crude oil contracts for May closed lower by 3.3% at $106.25 per barrel, while May natural gas prices closed flat at $4.1 per MMBtu.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 117.53 points or 0.95% at 12,263.58 while NASDAQ index finished lower by 26.72 points or 0.96% to 2,744.79. The S&P 500 (SPX) closed down by 10.3 points or 0.78% to 1,314.16.

Read more about: bse, nse, sensex, nifty
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