Market Analysis for Nov 17, 2011

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Market Analysis for Nov 17, 2011
Today, the Indian domestic markets may open in the red, taking the negative cues from the rest of the global markets. Most of the Asian markets opened in the red today following the previous evening's trends in the US and European markets.

The US markets closed in the red yesterday. After flat trading during much of the day, the US market sentiments were negatively hit in the last hour of trading when the Fitch report on the exposure of US banks to European sovereign debt came out. The report warned of a contagion in the US banking sector if the European debt crisis was not resolved in time. Most of the European Markets ended in the red yesterday as there was no good news coming from the zone on the debt crisis front.

As the day will progress the Indian markets may continue to move on the downward path as there is no major positive economic news coming that can bolster the sentiments of the market players. The FIIs were net sellers yesterday. If they continue with their selling trend today also then the market can be hammered by the end of the day. The government has tried to come out of its policy paralysis by giving green signal to FDI in pension sector. However, it needs to do much more to restore the confidence of the markets.

Yesterday, BSE SENSEX closed at 16775.87 down by 106.8 points or by 0.63 % and then NSE Nifty ended at 5030.45 down by 38.05 points or by 0.75 %.The BSE MIDCAP closed at 5851.92 down by 55.27 points or by 0.94 %, while the BSE SMLCAP ended at 6374.79 down by 86.59 points or by 1.34 %.The BSE Sensex touched intraday high of 16878.3 and intraday low of 16641.65 The NSE Nifty touched intraday high of 5065.2 and intraday low of 4989.

The net FII investment in the Indian markets on November 16th, 2011 stood at Rs – 473.70 crore. The net inflows by FIIs were negative on this day.

The gross purchases by the FIIs in the Indian equity markets were of Rs. 1704.01 crore. The gross sales were of Rs. 2081.80 crore. The net investment in the equity markets by FIIs on November 16th, 2011 stood at - Rs 377.20 crore. The gross purchases by the FIIs in the Indian debt markets were of Rs 843.30 crore. The gross sales by FIIs were of Rs 939.80 crore. The net investment by the FIIs in the debt markets stood at Rs – 96.50 crore.

Today, most of the Asian markets opened in the red. At 7.40 A.M. Indian time, the Nikkei 225 was down 26.67 points and was at 8436.39. The Hang Seng was down 251.62 points and was at 18698.94. The Taiwan weighted was down 43.54 points and was at 7342.01. The Shanghai composite was up 0.40 points and was at 2467.36.

On Wednesday, November 16th, 2011 the US markets closed in the red. The Nasdaq closed at 2638.07, losing 46.59 points over the previous day"s closing. After flat trading during much of the day, the US market sentiments were negatively hit in the last hour of trading when the Fitch report on the exposure of US banks to European sovereign debt came out. The report warned of a contagion in the US banking sector if the European debt crisis was not resolved in time. Consequently the financial sector stocks ended the day as worst performers, while energy stocks were the best performers. The US data on consumer price index for October didn"t impact the markets as they were in line with expectations. Consumer Price Index slipped by 0.1% in October.

The Dow Jones Industrial lost 190.57 points and closed at 11905.59. The S & P 500 lost 20.59 points and closed at 1236.91. The New York Stock Exchange composite (NYA) lost 117.03 points and closed at 7392.02.

Most of the European Markets ended in the red yesterday as there was no good news coming from the zone on the debt crisis front. The Bank of England added to the negativity by lowering its growth forecast for the UK economy to less than 1 per cent in 2012. The DAX lost 19.78 points and closed at 5913.36. The FTSE 100 lost 8.42 points and closed at 5509.02. The ATX was down 23.90 points and closed at 1849.10 .

Gold prices ended lower by 0.4 per cent to close at $1774.30 per ounce, while silver prices were down 1.8 per cent and closed at $33.82 per ounce. Crude oil gained 3.2 per cent to close at $102.59 per barrel.

Dion Global Solutions Ltd

Read more about: bse, nse, euro zone, fii, debt crisis
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