Pre Session-Markets may open lower on weak Asian cues Analysis for May 11, 2012

The key domestic benchmarks are likely to witness a gap down opening today tracking bearish cues from its Asian peers. Asian markets fell for a third straight day on Friday after financial services giant JP Morgan Chase & Co. reported a USD 2 billion trading loss as positions in its credit portfolio proved to more riskier and volatile than expected. The data overshadowed the US jobless claims report which signaled a pickup in hiring. US jobless claims fell to the lowest level in a month last week, signaling a recovery in the nation's job market. Jobless claims fell by 1,000 to 367,000 in the week ended May 5 from the previous week. The MSCI Asia Pacific Index fell 0.4 per cent to 119.21 as of 10:21 am in Tokyo. Shanghai Composite was down 0.17 per cent, Hang Seng was down 0.91 per cent and Nikkei 225 was trading flat. The key domestic benchmarks are likely to open lower amid weak Asian cues. The Metal and Auto space will be in focus during today's trade.

On Thursday, the key domestic benchmarks erased earlier gains to end lower for a third straight session as weak global cues marred domestic sentiment. Global risk aversion has increased in the last few days amid Europe's deepening debt turmoil. Investors worldwide are cutting down their exposure to equities and other risky assets amid bets that Greece may face a messy default and will be forced to exit the Euro. After witnessing a gap up opening amid mixed Asian market cues, the key domestic benchmarks traded firm in the positive terrain, touching the day's high in afternoon trade. However, the benchmarks pared gains and fell into the negative terrain amid weak European cues, to close on a bearish note. On the Sectoral front, Metal and Auto fell 1.02 per cent and 0.89 per cent, respectively.

BSE SENSEX closed at 16,420.05, down by 59.53 points or by 0.36 per cent and the NSE Nifty ended at 4,965.7, down by 9.1 points or by 0.18 per cent. The BSE Sensex touched intraday high of 16671.81 and intraday low of 16377.02 The NSE Nifty touched intraday high of 5039.3 and intraday low of 4950.3. Meanwhile, the BSE MIDCAP closed at 5,998.32, up by 3.82 points or by 0.06 per cent, while the BSE SMLCAP ended at 6,454.2, down by 15.76 points or by 0.24 per cent.

Most US stock markets ended higher on Thursday as the S&P 500 rebounded from a two-month low as Greece looked to break the political deadlock and form a new government. Greek socialist leader Evangelos Venizelos said that his aim was to form a new government and ensure that the nation remains in the Euro area, easing concerns over the lingering debt turmoil. Moreover, robust US jobless claims report signaled a pickup in hiring. US jobless claims fell to the lowest level in a month last week, signaling a recovery in the nation's job market. Jobless claims fell by 1,000 to 367,000 in the week ended May 5 from the previous week.

The Dow Jones Industrial Average ended up 0.16 per cent or by 19.98 points at 12,855.04, Nasdaq closed down 0.04 per cent or by 1.07 points at 2,933.64 and the S&P 500 closed higher by 0.25 per cent or 3.41 points at 1.357.99.

The FII's on Thursday stood as net sellers in both equity and debt. Gross equity purchased was Rs 2,211.30 crore and gross debt purchased stood at Rs 520.80 crore. Gross equity sold was Rs 2,568.50 crore and gross debt sold stood at Rs 751.20 crore. Net investment in equity and debt was Rs (357.20) crore and Rs (230.40) crore respectively.

Top traded volumes on the NSE Nifty were Jaiprakash Associates Ltd. 189,22,258, Infrastructure Development Finance Company Ltd. 148,59,618, Tata Motors Ltd. 66,51,924, ITC Ltd. 65,16,503 and Bharat Heavy Electricals Ltd. 62,04,367.

On the BSE, total traded quantity was 19.67 crore with a total turnover of Rs 1,941.62 crore. On NSE, total number of shares traded was 64.04 crore with a total turnover of Rs 9,693.13 crore.

In the NSE F&O segment, total number of contracts traded in index futures was 515,964 with a total turnover of Rs 11,945.65 crore and total number of contracts traded in stock futures stood at 465,755 with a total turnover of Rs 11,052.68 crore. Total number of contracts traded in index options was 32,87,850 with a total turnover of Rs 83,291.66 crore and total number of contracts traded in stock options was 177,028 with a total turnover of Rs 4,432.90 crore.