The key domestic indices are likely to witness a negative opening, as most of the Asian indices were trading weak after the US Federal Reserve downgraded its 2011 GDP forecasts for the country and signaled that any further financial assistance is unlikely, raising concerns over slowdown in the global economic recovery.
The MSCI Asia Pacific Index fell by 0.6% to 131.2, with nearly three stocks declining for each that rose. The Japanese stocks declined after the US Fed downgraded its GDP forecasts, raising concerns over the outlook for the country's exporters. The Nikkei225 fell by 0.37% at 9,594.00.
Further, the Chinese market fell as the country's property boom spread to the smaller cities from Beijing and Shanghai after government measures to contain the prices. The Shanghai Composite declined by 0.41% at 2,638.43. Further, the Hang Seng, Seoul Composite and Taiwan Weighted plunged by 1.02%, 0.50% and 0.55% respectively. In the domestic arena, the markets are likely to follow the route of its global peers and witness a negative start. The Consumer Durables, Realty and Oil&Gas space will be in focus during today's trade.
Today, Nifty will face a resistance near 5,320 level and will have a support near the 5,250 mark.
On Wednesday, the domestic bourses ended on a lackluster note as benchmarks ended on a mixed note after trading in a tight range throughout the session. During morning trade, most of the Asian indices traded strong after the Greek Prime Minister, George Papandreou won the parliamentary confidence vote, which pushed the country towards the initiation of measures for avoiding the default on its debt. Soon after opening on the positive terrain, the domestic benchmark indices were seen paring the gains and tasted the baseline.
As the day progressed, the market entered a tight range and started trading volatile across the baseline. The market sentiment remained under pressure as the SEBI data showed that the FIIs were net sellers in the Indian market during the past few trading sessions. Further, the below average monsoon forecasts by the weather department for 2011, also weighed on the sentiment. Finally, the market closed on a mixed note with the market remaining weak.
The BSE Sensex closed at 17,550.63, down by 9.67 points or by 0.06% and the NSE Nifty closed at 5,278.30, up by 2.45 points or by 0.05%. The BSE Midcap was at 6,528.41 down by 55.56 points or by 0.84%, whereas the BSE SmallCap closed at 7,807.71, down by 66.43 points or by 0.84%. The BSE Sensex touched intraday high of 17,678.86 and intraday low of 17,492.19.
On Wednesday, the U.S. markets closed on a downbeat note after Fed Chairman, Ben Bernanke stated in the FOMC meet that the US is slowing down. The market was seen trading sideways across the baseline for the major part of the session. Bernanke's statement didn't had immediate effect on the sentiment. However, selling pressure emerged during the final hours of trade which took the market to the lowest point of the session.
In the FOMC meet, Bernanke stated that the Fed has downgraded its GDP forecasts for 2011 to the range of 2.7% to 2.9% from earlier estimates of 3.1% to 3.3%. Further, the unemployment expectations for 2011 have been raised to range from 8.6% to 8.9%. The Core PCE inflation forecasts for 2011 has been also raised and expected to range from 1.5% to 1.8%.
However, the Fed promised to keep the interest rates low in the range of 0.00% to 0.25% for an extended period and also stated that the plans to complete its purchase of $600 billion of longer-term Treasuries by the end of this month, remains intact. The consumer discretionary and tech stocks were the major market draggers during the session, declining by 0.8% each.
In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 80.34 or 0.66% at 12,109.67 while NASDAQ index finished down by 18.07 points or 0.67% to 2,669.19. The S&P 500 (SPX) closed lower by 8.38 points or 0.65% to 1,287.14.
The FIIs on Wednesday stood as net seller in equity, whereas net buyer in debt. Gross equity purchased stood at Rs. 1705.20 crore and gross debt purchased stood at Rs. 2358.50 crore, while the gross equity sold stood at Rs. 2256.30 crore and gross debt sold stood at Rs. 1839.00 crore. Therefore, the net investment of equity and debt reported were Rs. (551.20) crore and Rs. 519.50 crore, respectively.
Top traded volumes on NSE Nifty – JP Associate 9892832, Bharti Airtel 7698165, Hindalco Industries 4528233 and ONGC 3869518.
On BSE, total number of shares traded was 28.86 crore and total turnover stood at Rs. 2,304.65 crore. On NSE, total number of shares traded was 54.76 crore and total turnover stood at Rs. 8764.78 crore.
In the NSE Futures and Options segment, total number of contracts traded in index futures was 387686 with a total turnover of Rs. 9712.11 crore. Along with this total number of contracts traded in stock futures were 494146 with a total turnover of Rs. 12131.15 crore. Total numbers of contracts for index options were 2752893 with a total turnover of Rs. 73897.31 crore and total number of contracts for stock options was 106570 with a total turnover of Rs. 2686.39 crore.