Market Analysis for Dec 09, 2011

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Market Analysis for Dec 09, 2011
Today, Indian domestic markets may continue with the declining trend of yesterday and may once again open in the red. The sentiments of the market participants have been battered by the government"s decision to rollback FDI in multi-brand retail and as a result, Indian markets declined the most in Asia yesterday.

The market sentiments will be depressed further today by the House Finance committee"s rejection of the Insurance bill which proposed to increase FDI investment limit to 49 per cent from the current 26 per cent.

The stocks of aviation companies may get a further beating today on reports that Mamta Banerjee is opposed to FDI in aviation also and that Jet and Indigo too are against FDI investments in the troubled sector. Indian markets will find little support from their global peers today.

Major Asian markets have opened in the red today mainly due to negative global cues from the European and US markets.

Yesterday, the US markets closed in the red.

European Central Bank"s decision to cut down its primary lending rates and enhance its monetary policy was also not able to bolster the US markets as they were already expecting this news.

Similarly, the major European Markets ended in the red yesterday, as market sentiments were depressed by the news that the vote to reduce interest rates at the ECB meeting was not unanimous. The ECB has cut down its primary lending rates by 25 basis points as was expected by market participants. Market sentiments were also depressed by the stress test results of European Banking Authority which found that the recapitalization needs of banks have actually increased. 


Yesterday, BSE SENSEX closed at 16462.75 down by 414.31 points or by 2.45 % and then NSE Nifty ended at 4943.65 down by 118.95 points or by 2.35 %.The BSE MIDCAP closed at 5669.14 down by 102.66 points or by 1.78 %, while the BSE SMLCAP ended at 6112.01 down by 95.89 points or by 1.54 %.The BSE Sensex touched intraday high of 16847.82 and intraday low of 16421.55 The NSE Nifty touched intraday high of 5049.05 and intraday low of 4921.45.

The net investments by FIIs on 8th December, 2011 in Indian capital markets stood at Rs 2049.60 crore. The net FII investments were positive yesterday.

The gross purchases by the FIIs in the Indian equity markets were of Rs. 2841.90 crore. The gross sales were of Rs.2762.50 crore. The net investment in the equity markets by FIIs on December 5th, 2011 stood at Rs 79.40 crore.

The gross purchases by the FIIs in the Indian debt markets were of Rs 3081.30 crore. The gross sales by FIIs were of Rs 1111.10 crore. The net investment by the FIIs in the debt markets stood at Rs 1970.20 crore.

Today, the major Asian markets have opened in the red mainly due to negative global cues from the European and US markets. At 7.00 A.M. Indian time, the Nikkei 225 was down 129.94 points and was at 8533.12. The Seoul composite was down 37.77 points and was at 1874.68. The NZSE 50 was down 3.94 points and was at 3266.00. The KLSE composite was down 12.74 points and was at 1460.58.

Yesterday, the US markets closed in the red. The Nasdaq closed at 2596.38, losing 52.83 points over the previous day"s closing. The European Central Bank"s decision to cut down its primary lending rates and enhance its monetary policy was also not able to bolster the US markets as they were already expecting this news. Some positivity was injected by the fact that actual jobless claims had declined to 380000 from initial expectations of 395000.

The Dow Jones Industrial lost 198.67 points and closed at 11997.7. The S & P 500 lost 26.66 points and closed at 1234.35.

The major European Markets ended in red yesterday, as market sentiments were depressed by the news that the vote to reduce interest rates at the ECB meeting was not unanimous. ECB has cut down its primary lending rates by 25 basis points as was expected by market participants. Market sentiments were also depressed by the stress test results of European Banking Authority which found that the recapitalization needs of banks have actually increased.The DAX lost 120.29 points and closed at 5874.44. The FTSE 100 lost 63.14 points and closed at 5483.77. The CAC was down by 80.49 points and closed at 3095.49.

Gold prices ended lower by 1.9 per cent and closed at $1712.30 per ounce, while silver prices lost 3.2 per cent and closed at $31.59 per ounce. Crude oil lost 2.1 per cent to close at $98.34 per barrel.

Dion Global Solutions Ltd

Read more about: bse, nse, aviation, fdi, retail, interest rate, fii
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