The MSCI Asia Pacific Index surged by 0.8% at 9:49 a.m. in Tokyo. The Nikkei225 advanced by 1.89% at 10,018.79. The Japanese stocks rose as the country"s export outlook was boosted on optimism that the country"s government is on the verge of a deal to raise the country"s debt ceiling. Japanese car major, Honda Motor Co., which generates its major revenues from North America, surged by 1.1%.
However, the Shanghai Composite decreased by 0.35% at 2,692.40. The weakness among Chinese stocks came in, despite of data released by China Federation of Logistics and Purchasing, which stated the country"s manufacturing sector grew by more than economists" expectations in the month of July. However, the figure came short of the previous month"s figure. The Purchasing Managers" Index for July was at 50.7 as compared to economists" estimates of 50.2.
However, the index read 50.9 in the month of June. Further, the Hang Seng and Seoul Composite increased by 1.50% and 1.86%, respectively. In the domestic arena, the markets are likely to follow the route of its global peers and open on a strong note. The FMCG, Banking, Realty and Metal space will be in focus during today"s trade.
On Friday, the domestic bourses ended on a lackluster note as the pending decision on raising US debt ceiling weighed on the global investors" sentiment. Soon after witnessing a gap down opening, the benchmark indices were seen recovering sharply and surging above the baseline.
However, the rally didn"t last and the benchmarks again plunged into the negative terrain. As the day progressed, the market continued to trade in a tight range with no major movement on either side, despite of the benchmarks showing volatile moves. Investors remained cautious ahead of the US debt issue deadline. Sensex components, JP Associates and Jindal Steel declined by around 4.50% each. Finally, the market closed on a flattish note with negative bias.
The BSE Sensex closed at 18,197.20 down by 12.32 points or by 0.07% and NSE Nifty closed at 5,482.00, lower by 5.75 points or by 0.10%. The BSE Midcap was at 6,915.31 lower by 47.64 points or by 0.68%, whereas the BSE SmallCap closed at 8,305.58, decreasing by 55.84 points or by 0.67%. The BSE Sensex touched intraday high of 18,334.27 and intraday low of 18,131.86.
On Friday, the U.S. markets closed on a weak note after the US GDP data came in below street expectations. The benchmark S&P500 also posted around 4% on the back of uncertainties over the debt ceiling increase decision. The GDP growth rate during the second quarter ended June 2011 was 1.3% as compared to 1.9% during the first quarter and analysts" expectations of 1.7%.
Further, the final July Consumer Sentiment Survey from the University of Michigan came in at 63.7, which is slightly below the economists" expectation of 63.8. However, the Chicago Purchasing Managers" Index report came in at 58.8, exceeding street expectation of 58.0. However the data failed to make any impact on the sentiment. All eyes were on Tuesday"s deadline for the debt ceiling rise decision from the US government.
In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 96.87 or 0.79% at 12,143.24 while NASDAQ index finished down by 9.87 points or 0.36% to 2,756.38. The S&P 500 (SPX) closed lower by 8.39 points or 0.65% to 1,292.28.
The FIIs on Friday stood as net buyer equity, while net seller in debt. Gross equity purchased stood at Rs. 4120.90 crore and gross debt purchased stood at Rs. 167.70 crore, while the gross equity sold stood at Rs. 3703.80 crore and gross debt sold stood at Rs. 1845.30 crore. Therefore, the net investment of equity and debt reported were Rs. 417.10 crore and Rs. (1677.50) crore, respectively.
Top traded volumes on NSE Nifty – JP Associates 21863695, IDFc 16441945, ITC 13288551, Reliance Communications 7766290, Bharti Airtel 7205818 and ICICI Bank 6537105.
On BSE, total number of shares traded was 25.41 crore and total turnover stood at Rs. 2,968.26 crore. On NSE, total number of shares traded was 67.86 crore and total turnover stood at Rs. 12459.14 crore.
In the NSE Futures and Options segment, total number of contracts traded in index futures was 448420 with a total turnover of Rs. 11541.62 crore. Along with this total number of contracts traded in stock futures were 529177 with a total turnover of Rs. 14694.28 crore. Total numbers of contracts for index options were 2534392 with a total turnover of Rs. 70310.61 crore and total number of contracts for stock options was 116272 with a total turnover of Rs. 3274.35 crore.
Today, Nifty will face a resistance near 5,520 level and will have a support near the 5,450 mark.