Nifty may be headed for 8,600 and below
We had mentioned in our previous week’s market report that the Indian indices may move sideways. But the much-awaited US jobs report gave out better than anticipated data which has sparked the fear that Federal Reserve may raise interest rates by June 2015. This has led to a sharp downmove in all equity markets around the world.
The S&P BSE Sensex opened Monday lower at 29,317 while Nifty opened in the red at 8,891. After hitting the day’s high, almost at the same level, the benchmarks moved lower. The indices continued to move lower and hit the day’s low at the end. Sensex hit a low at 28,800 and closed at 28,845 (down 604 points or 2.05%) while Nifty hit a low at 8,740 and closed at 8,757 (down 181 points or 2.03%). Bank Nifty opened and hit the high at 19,545 and moved lower at 19,113 and closed at 19,145 (down 602 points or 3.05%). The loss on the indices was the highest since 6 January 2015. NSE recorded a volume of 90.68 crore shares. India VIX rose 9.52% to close at 15.8125.
Minister for Commerce & Industry Nirmala Sitharaman last week said that exports play a key role in ensuring success of the Make in India initiative. Speaking at the ECGC Dun & Bradstreet Export Performance Award ceremony in Mumbai, Sitharaman reiterated government's commitment to 'ease of doing business' and assured the gathering that similar measures will be extended to the export sector as well.
Coming back to Indian stock markets, Sun Pharma Advanced (15.07%) was the top gainer in ‘A’ group on the BSE. The stock hit its all-time high again today. It recently got USFDA approval for its new drug application for Elepsia XR (Levetiracetam extended-release tablets 1000 mg and 1500 mg). Elepsia XR is indicated for adjunctive therapy in the treatment of partial onset seizures in patients 12 years of age and older with epilepsy.
Pipavav Defence (7.26%) was the top loser in ‘A’ group on the BSE. It was in news as Reliance Infrastructure said that it bought 18% stake in the company for aggregate amount of Rs819 crore. This will be followed with it making open offer for 26% of share capital at Rs66 per share.
Hindustan Unilever (3.76%) was the top gainer in Sensex 30 pack. The stock hit its 52-week high today. Sesa Sterlite (5.21%) was the top loser in the Sensex.
On Friday, US indices closed in the red. US Labor Department said employers added 295,000 workers in February. It was the longest run of 200,000-plus increases since 1994. The jobless rate dropped to 5.5% from 5.7% in January. The market fell because investors now anticipate a hike in interest rates. Except for Shanghai Composite (1.89%) all the other Asian indices closed in the red. Jakarta Composite (1.27%) was the top loser.
Data released by the General Administration of Customs on Sunday showed that China posted a record trade surplus of $60.6 billion last month. February exports jumped 48.3% from a year earlier, the strongest rise since May 2010 and comfortably beat market expectations, but customs office cautioned about reading too much into the figure given seasonal distortions. A 20.5% slide in February imports was the sharpest since the global financial crisis.
European indices were trading in the red. US Futures were trading flat. Greece may reportedly hold a referendum on whether to accept terms from the European Union over further aid to the country. Last month, Greece struck an agreement with its creditors to extend its current euro 240 billion ($263 billion) bailout by another four months.