The hefty losses in the US markets on Friday also dampened the sentiment in the Asian front during morning trade. The MSCI Asia Pacific Index declined by 0.5% to 131.43, with about three stocks fell against each that rose in the gauge. The Nikkei225 plunged by 0.77% at 9,441.34.
The Japanese market were trading negative as the country"s machinery orders fell for the first time in four months in April by 3.3% as compared to a 1% increase during March. The decline in the data indicated that companies were hesitant to increase their outlay after the massive earthquake and tsunami in March. Further, the Shanghai Composite fell by 1.02% at 2677.47 and the Hang Seng plunged by 0.82% at 22237.37.
The Chinese stocks declined as reports stated that short selling has increased to the highest level since September last year after concerns over slowdown in the concerns over Chinese economic growth has raised probabilities of further monetary policy tightening.
The Taiwan Weighted fell by 0.33% during morning trade, whereas the Seoul Composite increased by 0.25%. In the domestic arena, the markets are likely to follow the route of its global peers as the SGX Nifty is already indicating to a negative start, plunging by 0.36% in the morning trade. The FMCG, Metal, Banking and Capital Goods space will be in focus during today"s trade.
Today, Nifty will face a resistance near 5,510 level and will have a support near the 5,400 mark.
Review of Previous Session
On Friday, the domestic bourses ended on a bearish note, as the weak IIP data weighed heavily on the market sentiment. After opening in the negative terrain, the benchmark indices were seen dragging further, as investors" remained skeptical about the outcome of the IIP data. The benchmarks were seen making fresh intraday lows as the FMCG and Realty space playing the major spoilsport.
A fresh bout of selling came in, post mid-session after the lower than estimated IIP figures negated the sentiment. The benchmark Nifty was seen dragging near the 5,460 mark. Despite of a mild pullback during the final hours, the losses were too hefty to recover. Sensex heavyweight, ITC, Reliance Industries and SBI plunged by 1.69%, 1.06% and 0.89%, respectively.
The BSE Sensex closed at 18,268.54 down by 116.36 points or by 0.63% and the NSE Nifty closed at 5,485.80 down by 35.25 points or by 0.64%. The BSE Midcap was at 6,898.28 down by 23.31 points or by 0.34%, whereas the BSE SmallCap closed at 8,288.46, down by 37.89 points or by 0.46%. The BSE Sensex touched intraday high of 18,399.02 and intraday low of 18,182.90.
On Friday, the U.S. markets witnessed bloodbath as the benchmark indices marked their six straight weeks of losing streak, closing at the lowest point since mid-March. Despite of a mild attempt to recover during mid-session, the market failed to make up for the hefty losses made as the heavyweights like Exxon Mobil and Chevron plunged by 1.4% and 1.5%, respectively.
The mid-session recovery came in amidst a sharp turnaround among the financials space after reports stated that the Fed may require "Systemically Important Financial Institutions" to hold an additional 2.2% to 2.5% capital buffer when previous reports suggested that number would be 3%. The market weakness was also attributed to the rally in the greenback amidst weakness in euro due to a conflict of opinions between European Central Bank President Jean Claude Trichet and German Finance Minister Wolfgang Schauble regarding the new Greece rescue package.
In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 172.45 or 1.42% at 11,951.91 while NASDAQ index finished down by 41.14 points or 1.53% to 2,643.73. The S&P 500 (SPX) closed lower by 18.02 points or 1.40% to 1,270.98.
The FIIs on Friday stood as net buyer in equity, whereas net seller in debt. Gross equity purchased stood at Rs. 1839.70 crore and gross debt purchased stood at Rs. 644.80 crore, while the gross equity sold stood at Rs. 1693.70 crore and gross debt sold stood at Rs. 1134.30 crore. Therefore, the net investment of equity and debt reported were Rs. 146.10 crore and Rs. (489.40) crore, respectively.
Top traded volumes on NSE Nifty - Hindalco Industries 4951050, DLF 3892070, Tata Steel 3511665, ONGC 3043897 and Cairn India 2812994.
On BSE, total number of shares traded was 24.22 crore and total turnover stood at Rs. 2638.60 crore. On NSE, total number of shares traded was 46.88 crore and total turnover stood at Rs. 8959.59 crore.
In the NSE Futures and Options segment, total number of contracts traded in index futures was 455977 with a total turnover of Rs. 11648.70 crore. Along with this total number of contracts traded in stock futures were 410902 with a total turnover of Rs. 10326.53 crore. Total numbers of contracts for index options were 2345128 with a total turnover of Rs. 65259.08 crore and total number of contracts for stock options was 86612 with a total turnover of Rs. 2219.38 crore.