Pre Session- Sensex may open lower amid continued global sell-off Analysis for Feb 03, 2014

Posted By: Religare
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The key domestic benchmarks may open on a bearish note mirroring a sharp sell-off in Asian markets and a weak closing on Wall Street on Friday. Asian markets slumped on Monday as investors remain wary amid concerns over capital outflows following the Fed"s move to unwind stimulus while a slowdown in China"s manufacturing and services underscored further fears over the health of the world"s second biggest economy. China"s Shanghai Composite fell after the official China manufacturing gauge declined to a six-month low at 50.5 in January, with a reading above 50 signaling expansion. The non-manufacturing index fell to 53.4 last month from 54.6 in December. Hang Seng was closed while Japan"s Nikkei 225 tumbled amid a mixed bag of corporate earnings and a slightly stronger yen. Back on the domestic front, corporate earnings, global cues and FII investment trend following the Fed QE taper move are likely the dictate the direction of stocks this week. Auto stocks will be in focus ahead of their January sales data. Investors will eye the earnings numbers of BHEL, Ranbaxy Laboratories, ACC and Ambuja Cements this week.

US stocks ended lower on Friday as benchmark S&P 500 capped the worst January since 2010 amid disappointing earnings numbers from companies such as Amazon Inc. and continued turmoil in emerging markets. The stock of Amazon slumped 11 per cent as the world"s largest web retailer"s Q4 profit and sales fell short of analysts" estimates. Consumer spending in the US grew at a slower pace in December, while incomes stalled and consumer sentiment fell in January, clouding the outlook for the world"s biggest economy. US consumer spending grew 0.4 per cent in December, compared to 0.6 per cent gain in the previous month. The gauge measuring consumer spending fell to 81.2 last month from 82.5 in December. Further, the Chicago Purchasing Managers" Index, which gauges business activity in the US Midwest, fell for the third straight month, down to 59.6 last month from 60.8 in December, with a reading above 50 signaling expansion. The Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500 ended in the red dragged lower by energy, consumer discretionary and financial firms.

The FIIs on 31/01/2014 stood as net seller in equity and debt. Gross equity purchased stood at Rs. 3969.20 Crore and gross debt purchased stood at Rs. 458.70 Crore, while the gross equity sold stood at Rs. 4153.70 Crore and gross debt sold stood at Rs. 1376.20 Crore. Therefore, the net investment of equity and debt reported were Rs. -184.50 Crore and Rs. -917.50 crore.

Top traded Volumes on NSE Nifty – Jaiprakash Associates Ltd. 23833292.00, Power Grid Corporation of India Ltd. 8487386.00, Hindalco Industries Ltd. 8287236.00, Tata Motors Ltd. 6859611.00 and Punjab National Bank 6674795.00.

On BSE, total number of shares traded was 17.28 Crore and total turnover stood at Rs. 2685.58 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 299518 with a total turnover of Rs. 8703.57 Crore. Along with this total number of contracts traded in stock futures were 505807 with a total turnover of Rs. 16280.32 Crore. Total numbers of contracts for index options were 1903804 with a total turnover of Rs. 58011.62 Crore and total numbers of contracts for stock options were 210994 with a total turnover of Rs. 7025.74 Crore.

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Story first published: Monday, February 3, 2014, 8:48 [IST]
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