Wall Street closed lower on Tuesday on tepid economic news while most markets in Asia softened after opening higher in early trade despite analysts’ optimism on the Japanese economy
The Indian market is likely to see a cautious opening on mixed global cues. Wall Street closed lower on Tuesday on tepid economic news while most markets in Asia softened after opening higher in early trade despite analysts’ optimism on the Japanese economy, brushing aside negative US economic indicators. The SGX Nifty, which opened in the green, was 12.50 points at 2,481.50, down from its previous close of 2,494.
The market continued its upmove yesterday despite the Asian pack witnessing a mixed trend in the morning. But volatility soon crept in, taking the indices to the day's lows in mid-morning trade. Seizing the opportunity, investors resorted to buying at lower levels, pushing the market up into the positive zone. Fluctuations continued for some time until another upmove gave the market some momentum. But the uptick was short-lived as the indices pared most of the gains, albeit ending in the green for the third straight day.
The Nifty closed 25 points up at 5,481, while the Sensex ended 72 points up at 18,274. The Nifty's next resistance is at 5,555. As we mentioned on Monday, if this level too is crossed in the next two days, the market will move up substantially-towards 5,700 and 5,800.
Stock markets in the US closed lower overnight on weak economic indicators. Data from the Labor Department showed import prices climbed 1.5% in January, boosted by higher costs for commodities like food and fuel. Besides, US retail sales rose just 0.3% in January, less than the 0.6% rise economists had expected. Besides, business inventories in December rose to their highest levels in nearly two years, pointing to a slowdown.
The Dow fell 41.55 points (0.34%) at 12,226.64. The S&P 500 shed 4.31 points (0.32%) at 1,328.01 and the Nasdaq declined 12.83 points (0.46%) at 2,804.35.
Markets in Asia softened a bit after opening higher in early trade on Wednesday, despite analysts’ optimism on the Japanese economy. Nomura Research Institute in a report dated 14th February said that Japan will emerge stronger in the first half of 2011, instead of its earlier prediction of the second half. Upgrades of corporates by analysts also lifted investor sentiments in the region.
The Nikkei 225 gained 0.39%, the Seoul Composite rose 0.05% and the Taiwan Weighted added 0.11%. On the other hand, the Shanghai Composite declined 0.28%, the Hang Seng fell by 0.26%, the Jakarta Composite lost 0.21%, the KLSE Composite fell 0.15% and the Straits Times was down 0.23% in early trade.
Back home, media reports said that the Central Bureau of Investigation (CBI) on Tuesday questioned a top executive of Unitech as part of a probe into a telecom corruption scandal that has roiled politics and spooked investors in Asia's third-largest economy.
Unitech managing director Sanjay Chandra was summoned by the CBI to answer questions over his role in a case that charges his firm was favoured by a former telecom minister when telecom licences were issued in 2008.
To start with, SEBI is likely to make the new XBRL business reporting mechanism mandatory for mutual funds and then expand this system to other segments in phases
New Delhi: The Securities and Exchange Board of India (SEBI) has proposed a new reporting system for mutual funds based on XBRL technology-a globally accepted standardised business reporting tool that enables easy dissection of bulk documents without delay, reports PTI.
SEBI, which regulates fund houses, has issued a draft structure of the proposed XBRL (eXtensible Business Reporting Language) system for all the regulatory filings to be made by mutual funds.
XBRL technology enables computers read and divide the information provided in the filings under various heads and thus makes it easy to find any relevant details and to identify any irregularities.
The market watchdog has been working to put in place a unified regulatory filing system for all listed companies and market entities in a standardised format based on XBRL technology.
To start with, SEBI is likely to make the new business reporting mechanism mandatory for mutual funds and then expand this system to other segments in phases.
"SEBI intends to set up a comprehensive reporting, filing and dissemination system for filing of information reports in XBRL by listed entities, registered intermediaries and other entities," a senior official said.
The new system, called SUPER-D (SEBI Unified Platform for Electronic Reporting - Dissemination), is being developed in such a way that it is capable to manage simultaneous filing of 500 documents on normal days and have peak-period capacity to handle 15,000 simultaneous filings.
Besides disseminating the information on real-time basis to investors and others, the XBRL technology-based new system will also help SEBI, as also other regulatory and investigative agencies in monitoring any irregularities in the affairs of companies and market intermediaries.
In addition to mandatory regulatory filings, including financial statements, the entities would have to use the new XBRL-based platform for all their reporting purposes to the regulator, the official added.
The system would also help in analysing the data for research and regulatory purposes and would have provision for automated report generation for regulatory purposes.
Once the system is put in place, all listed companies, as also market entities like foreign and domestic institutions and brokerages would need to make all their regulatory filings, including financial reporting and other disclosures, to the new unified platform in a common standardised format.
Currently, BSE and NSE have a XBRL-based financial reporting platform for listed companies for all their filings and the system helps the investors get real-time access.