Market to open weak. Asian indices turned negative

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Market to open weak.
The key domestic indices are likely to open on a weak note, as most of the major Asian indices were seen turning negative after a positive start. The positive opening for the Asian bourses were bolstered by the surge in the banking stocks after France and Germany agreed to solve Greece"s debt crisis together, ahead of today"s summit. The MSCI Asia Pacific Index gained 0.1% to 136.91 as of 10:14 a.m. in Tokyo, with about seven stocks declined against every five that rose. The Nikkei 225 declined by 0.04% at 10,001.87. The Japanese exports for the month of June declined by 1.6%.

However, it was way below the market estimates of 4.1% decline. The Shanghai Composite plunged by 0.27% at 2,786.75. Further, the Hang Seng and Seoul Composite decreased 0.27% and 0.44%, respectively. In the domestic arena, the markets are likely to follow the route of its global peers and open on a negative note. The Power, Healthcare, Banking and FMCG space will be in focus during today"s trade.

On Wednesday, the domestic bourses ended on a negative note with the Banking space playing the major spoilsport during the final hours of trade. During morning trade, all the major Asian indices were seen trading on an upbeat note amidst optimism that the US government will be able to reach a decision on reducing budget deficit and increasing debt ceiling. Back in the domestic front, soon after witnessing a gap up opening, the benchmark indices were seen giving up their gains gradually. The market faced profit booking near the 5,650 mark on Nifty and all the morning gains got erased. A fresh bout of selling pressure came in post mid-session amidst weakness in the Power, Healthcare and Auto space. The Banking majors including SBI, ICICI Bank and HDFC Bank also weakened as concerns rose over a fresh bout of rate hike from the RBI next week. Further, IT heavyweight Wipro declined by 3.95% during today"s trade, as the company"s Q-o-Q net profit declined by 2.9%. Finally, the benchmarks settled near their session lows with around 0.80% losses.

The BSE Sensex closed at 18,502.38 down by 151.49 points or by 0.81% and NSE Nifty closed at 5,567.05, lower by 46.50 points or by 0.83%. The BSE Midcap was at 6,988.77 lower by 62.02 points or by 0.88%, whereas the BSE SmallCap closed at 8,432.34, decreasing by 30.58 points or by 0.36%. The BSE Sensex touched intraday high of 18,765.60 and intraday low of 18,473.90.

On Wednesday, the U.S. markets closed on a negative note after trading in a narrow range across the baseline, throughout the session. Despite of strength in the Financial space, the broader market failed to perform, pulling the market for a lower closing. Better than expected results from US Bancorp lifted the financials along with E*Trade which gained after Citadel, which holds around 10% stake in the company, urged it to call a special meeting to maximize value. In the economic front, the existing home sales data for June showed that an annualized sales rate of 4.77 million units, as compared to economists" estimates of annualized sales of 4.93 million units. The Eurozone debt concerns eased amidst a successful debt auction by Portugal. Further, France and Germany agreed to solve Greece"s debt crisis jointly, ahead of today"s summit. Consumer Discretionary (0.6%) and Tech (0.4%) space were the major losers during the session.

In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 15.51 or 0.12% at 12,571.91 while NASDAQ index finished down by 12.29 points or 0.43% to 2,814.23. The S&P 500 (SPX) closed lower by 0.89 points or 0.07% to 1,325.84.

The FIIs on Wednesday stood as net buyer in both equity and debt. Gross equity purchased stood at Rs. 1981.80 crore and gross debt purchased stood at Rs. 1141.20 crore, while the gross equity sold stood at Rs. 1564.30 crore and gross debt sold stood at Rs. 982.60 crore. Therefore, the net investment of equity and debt reported were Rs. 417.50 crore and Rs. 158.60 crore, respectively.

Top traded volumes on NSE Nifty – DLF 14274187, ITC 8409884, JP Associates 7654641, Wipro 4690625 and Hindalco Industries 4303328.

On BSE, total number of shares traded was 39.11 crore and total turnover stood at Rs. 3,165.65 crore. On NSE, total number of shares traded was 63.08 crore and total turnover stood at Rs. 11315.26 crore.

In the NSE Futures and Options segment, total number of contracts traded in index futures was 491137 with a total turnover of Rs. 12944.10 crore. Along with this total number of contracts traded in stock futures were 572929 with a total turnover of Rs. 15988.87 crore. Total numbers of contracts for index options were 3565793 with a total turnover of Rs. 100616.52 crore and total number of contracts for stock options was 143992 with a total turnover of Rs. 3943.36 crore.

Today, Nifty will face a resistance near 5,610 level and will have a support near the 5,490 mark.

Read more about: bse, nse, nifty, sensex
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