Pre Session Market Analysis for Dec 20, 2010

Posted By: Religare
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Today the benchmark Indices are likely to open negative as most of the Asian stocks are trading as concern mounted Europe's debt crisis will spread and South Korea said it will proceed with an artillery drill that has prompted threats of retaliation from North Korea. The MSCI Asia Pacific Index fell 0.1% to 133.46 with about seven stocks declining for every five that advanced. Meanwhile, Japan's Nikkei 225 Stock Average is trading lower by 0.32% at 10,271.28 after the euro weakened to near a two-week low against the yen, damping the outlook for export earnings. Further, Shanghai Composite is down by 0.28% to 2,885.6 and Hang Seng Index trading lower by 0.29% at 22,648.85. Separately, Taiwan Weighted is down by 0.01% and Seoul Composite is trading lower by 0.72%. In the domestic arena, the markets are likely to follow the rout of global counter part and trade range-bound with downside movement. Bankex, Realty and Metal pivotals will be in focus today.

On Thursday, the domestic bourses ended on a cheerful note after trading volatile for the majority of the session. The market started off the session on a volatile note, as the benchmark indices seen trading across the baseline during early trade. Most of the Asian stocks traded lower following a overnight loss in the US market as Moodys announced it was reviewing Spain for a negative outlook, Portugal held a weaker-than-expected 3-month bill auctional, and Japans Tankan survey indicated manufacturers confidence was at its lowest point in about two years. The Japanese stocks fluctuated as the yen's depreciation against the dollar buoyed carmakers while trading companies fell after metal prices dropped. A rangebound movement was witnessed till the final couple of hours and the benchmarks traded sideways. During the later part of the day, a sharp upmove was witnessed in the banking space, following the RBI announcement of slashing the SLR rates and the market surged to the positive terrain. Finally the benchmark indices managed to hold on to the gains and closed near their respective intraday highs. In the sectorial front, the IT space remained in limelight and carrying forward yesterday's gains, it surged by 2.79%. Further, the Banking, Metal and Realty sectors well supported the rally towards the end and advanced by 1.86%, 1.32% and 0.98% respectively. Both the Nifty and Sensex gained substantial momentum during the final hours and posted gains of around 1% each. The NSE Nifty closed near the 5,950 mark, while the BSE Sensex closed above the 19,850 level.

The BSE Sensex closed up by 217.08 points or (1.10%) at 19,864.85 and NSE Nifty ended higher by 56.45 points or (0.96%) at 5,948.75. BSE Midcap closed with a gain of 24.62 points or (0.33%) at 7,568.01 while BSE Smallcap closed higher by 44.57 points or (0.49%) at 9,184.00. The BSE Sensex touched intraday high of 19,897.22 and intraday low of 19,554.35.

On Friday, the US market closed mixed as the Dow closed lower whereas other two major equity averages closed higher. Market opened flat and spent most of the morning with moderate changes on this quadruple-witching options expiration Friday. However, stocks got some intraday support as the dollar edged back and as yields continued to fall. By close stocks witnessed little change as a result of a late day selloff. On the corporate front, one of the bigger news was Bank of Montreals (BMO 57.26, -4.40) acquisition of Marshall & Ilsley (MI 6.85, +1.06) in a stock-for-stock transaction that values the company at US$7.75, or an aggregate amount of approximately US$4.1 billion. This deal represents a 34% premium to yesterdays closing share price of Marshall & Ilsley. Further, Intermune (ITMN 34.84, +20.57) gained some interest, after the company announced the Committee for Medicinal Products for Human Use of the European Medicines Agency has adopted a positive opinion recommending the granting of a marketing authorization for Esbriet (pirfenidone) in

Story first published: Monday, December 20, 2010, 8:17 [IST]
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