Pre Session Market for November 11, 2010

Posted By: Religare
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Today the benchmark Indices are likely to open positive as Asian markets are trading up tracking overnight gain in the US market that came on the back of dose of positive data moving the markets to a positive close. Meanwhile, Japan's Nikkei 225 Stock Average is trading up by 0.29% or 28.68 points to 9,850.20 as the dollar rallied to a one-month high against the yen, boosting the outlook for export earnings, while banks climbed after an upgrade by Deutsche Bank AG. Further, Shanghai Composite is up by 0.48% to 3,130.43 and Hang Seng Index inclined by 0.84% to 24,706.63. Chinese stocks surged after the central bank boosted banks' reserve requirements to cool down inflation and prevent fund flows from hurting the economy. Separately, Straits Times is up by 0.33% and Seoul Composite is trading down by 0.04%. In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with upside movement. FMCG, Bankex and CD pivotals will be in focus today.

On Wednesday, the domestic bourses traded the entire session on a subdued note as the benchmark indices were seen struggling below the neutral line throughout. The market opened on a negative note tracking weak global cues. The Asian stocks fell during the opening trade, dragging down the MSCI Asia Pacific Index by the most in two weeks, as Chinese companies fell on concern that rising consumer prices and surging fund flows may spur the government to boost interest rates and increase capital controls, which overshadowed gains by Japanese banks. Soon after the weak start, the market plunged further before taking support at lower levels. A gradual recovery was witnessed till the mid-session and the benchmark indices were seen tasting the baseline for a couple of times. But the final couple of hours witnessed emergence of some selling pressure and the domestic bourses dragged in the negative terrain and finally closed near the session bottom. In the sectorial front, the FMCG space witnessed profit booking after previous session's smart rally and ended lower by 0.99%. The Banking space continued to trade weak led by sector heavyweight SBI and lost 0.76%. However, the Consumer Durables sector showed considerable strength and gained by 4.78% during today's trade. Both the Nifty and Sensex traded weak throughout the session and finally closed near their respective intraday lows. The NSE Nifty closed below the 6,280 mark, while the BSE Sensex closed below the 20,900 level.

The BSE Sensex closed down by 56.77 points or (0.27%) at 20,875.71 and NSE Nifty ended lower by 25.85 points or (0.41%) at 6,275.70. BSE Midcap closed with a gain of 25.32 points or (0.29%) at 8,730.30 while BSE Smallcap closed higher by 95.77 points or (0.86%) at 11,243.99. The BSE Sensex touched intraday high of 20,970.91 and intraday low of 20,849.92.

On Wednesday, the US market closed higher despite strength in the dollar has some real dose of data moved the market during the session. Market was down by about 0.8% before the dollars downturn from its session high attracted buyers back into the market. Besides, data released comprised of initial jobless claims count for the week ended November 6 that stood at 435,000, down by 24,000 week-over-week and below the expected 450,000. Further, continuing claims came in at 4.30 million, down from 4.39 million. Additionally, the trade deficit for September totaled $44.0 billion, less than expected $44.8 billion. The September deficit was also down a bit from the $46.5 billion deficit recorded for August. These data stimulated positive sentiments among the participants. Investors showed interest for financial stocks after they had dropped more than 2% in the prior session. The sector bounced back to a 1.4% gain this session. Lastly, Research In Motion (RIMM 58.44, +3.44) assisted the Nasdaq Composite modestly outperform its counterparts after it announced plans for its tablet. Crude oil for December contract surged

Story first published: Thursday, November 11, 2010, 8:42 [IST]
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