Market Analysis for Nov 24, 2011

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Market Analysis for Nov 24, 2011
Today, the Indian domestic markets may remain in the red and may fall further. This will be in line with the global trends. Most of the Asian markets have opened in the red today. One of the main reasons for the negativity in the Asian markets is the disappointing manufacturing data from China. The country's PMI Manufacturing reading for November fell to 48.0 from 51.0 in the prior month.

The US markets closed in the red yesterday and so did the European markets. The US and European markets were depressed by the negative economic news coming from Germany. The German bond auction failed to generate strong demand and this was a negative shock for the markets. German manufacturing too showed signs of contracting as the PMI for November fell to 47.9 from 49.1 in the prior month. The November Manufacturing PMI for the broader euro zone eased to 46.4 from 46.5 in October.

No good news is expected from the domestic front today. The Tatas, however, have surprised the markets by choosing Cyrus Mistry as successor to Ratan Tata. The India markets will react to that news and shares of Tata group companies will see an impact.

Yesterday, BSE SENSEX closed at 15699.97 down by 365.45 points or by 2.27 % and the NSE Nifty ended at 4706.45 down by 105.9 points or by 2.2 %. The BSE MIDCAP closed at 5514.11 down by 115.22 points or by 2.05 %, while the BSE SMLCAP ended at 5975.99 down by 104.58 points or by 1.72 %. The BSE Sensex touched intraday high of 15969.6 and intraday low of 15478.69 The NSE Nifty touched intraday high of 4779.5 and intraday low of 4640.95.

The net FII investment in the Indian markets on November 23rd, 2011 stood at Rs -1582.20 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. 1758.90 crore. The gross sales were of Rs. 2621.10 crore. The net investment in the equity markets by FIIs on November 23rd , 2011 stood at Rs – 862.20 crore. The gross purchases by the FIIs in the Indian debt markets were of Rs 524.00 crore. The gross sales by FIIs were of Rs 1244.60 crore. The net investment by the FIIs in the debt markets stood at Rs – 720.60 crore.

Today, most of the Asian markets have opened in the red. One of the main reasons for the negativity in the Asian markets is the disappointing manufacturing data from China. The country's PMI Manufacturing reading for November fell to 48.0 from 51.0 in the prior month. At 7.40 A.M. Indian time, the Nikkei 225 was down 114.39 points and was at 8200.69. The Hang Seng was down 71.10 points and was at 17792.88. The Taiwan weighted was up 1.48 points and was at 6806.98. The Shanghai composite was down 17.56 points and was at 2395.06.

On Wednesday, November 23rd, 2011 the US markets closed in the red. The Nasdaq closed at 2458.54, losing 61.20 points over the previous day"s closing. The US markets reacted negatively to the Fed's decision to increase capital controls for banks. The markets were further depressed by disappointing economic data from US and abroad. Initial US jobless claims for the week ended November 19 totaled 393,000, which is barely changed from what was posted in the prior week. The German bond auction failed to generate strong demand and this was a negative shock for the markets. German manufacturing too showed signs of contracting as the PMI for November fell to 47.9 from 49.1 in the prior month. The November Manufacturing PMI for the broader eurozone eased to 46.4 from 46.5 in October. The markets were further depressed by the disappointing manufacturing data from China. The country's PMI Manufacturing reading for November fell to 48.0 from 51.0 in the prior month.

The Dow Jones Industrial lost 236.17 points and closed at 11257.55. The S & P 500 lost 26.25 points and closed at 1161.79.

The European Markets ended in the red yesterday.The main reason for this was the negative economic news from powerhouse Germany. The German bond auction failed to generate strong demand and this was a negative shock for the markets. German manufacturing too showed signs of contracting as the PMI for November fell to 47.9 from 49.1 in the prior month. The DAX lost 79.62 points and closed at 5457.77. The FTSE 100 lost 67.04 points and closed at 5139.78. The ATX was down 20.20 points and closed at 1647.80 .

Gold prices ended lower by 0.3 per cent to settle at $1696.80 per ounce, while silver prices were down 2.8 per cent and closed at $32.02 per ounce. Crude oil lost 1.9 per cent to close at $96.15 per barrel.

Dion Global Solutions Ltd

Read more about: bse, nse, economic
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