Nifty has some support around 8,750
We had mentioned in Thursday’s closing report that the gain on the Indian indices may be capped and NSE’s 50-share CNX Nifty closing below 8,860 may weaken it. The benchmark opened high and hit its high at the same level. This is the new lifetime high for Nifty. Except for a range bound session between 11.45am to 2pm the index fell gradually.
The S&P BSE Sensex opened at 29,802 while Nifty opened at 8,997. Sensex hit a high at 29,844. Sensex moved lower to hit a low of 29,070 while Nifty hit a low at 8,775. Sensex closed at 29,183 (down 499 points or 1.68%) while Nifty closed at 8,809 (down 143 points or 1.60%). NSE recorded a higher volume of 129.91 crore shares. India VIX rose 3.81% to close at 20.1725.
The weak result from Bank of Baroda and ICICI Bank’s December quarter earnings showed that asset quality continued to remain under pressure. This further affected the market sentiment.
Minister of State for Finance Jayant Sinha Friday said the Indian economy has the potential to become a $4-5 trillion economy in the next 10-12 years and it is the great time to invest in India.
A UN report says India's FDI increased by 26% in 2014 to nearly $35 billion with maximum growth in the services sector.
Coming back to the Indian stock markets, Hindustan Construction Co (19.18%) was the top gainer in ‘A’ group on the BSE. The company posted an improved December 2014 quarter result, after market hours on Thursday.
Bank of Baroda (11.08%) was the top loser in ‘A’ group on the BSE. Posting a huge fall in the bottom line of December 2014 quarter pulled the stock lower.
Tata Power (2.90%) was the top gainer in Sensex 30 pack. It has entered into a binding understanding with Nelco to acquire group firm Nelco's defence business of Unattended Ground Sensors (UGS) for about Rs8.3 crore.
All the bank stocks in the Sensex 30 stock were among the laggards. SBI (5.13%) and
ICICI Bank (4.95%) were the top two losers. Axis Bank (1.75%) and HDFC Bank (1.67%) were also among the losers.
US indices closed Thursday in the green.
The number of people who applied for US unemployment-insurance benefits plunged 43,000 to 265,000 in the week that ended January 24, hitting the lowest tally in 14 years, according to Labor Department data released yesterday.
Pending home sales cooled in December, which the National Association of Realtors attributed to fewer homes available for sale and a slight rise in prices. The pending home sales index fell 3.7% during December, though the year-on-year gain was 11.7%, the highest since June 2013.
US crude turned positive on Thursday afternoon after earlier falling below $44 a barrel for the first time since April 2009, while benchmark Brent sharply pared early gains after data showing additions to already record-high US oil inventories.
Except for Jakarta Composite (0.51%) and Nikkei 225 (0.39%) all the other Asian indices closed in the red. Shanghai Composite (1.59%) was the top loser.
China's fiscal revenue growth dipped to a 23-year low of 8.6 per cent last year due to a slump in the demand raising concerns of a prolonged slowdown.
Japan's industrial output rose a seasonally adjusted 1% in December from the previous month, government data showed today. The rise in December came after a 0.5% fall in November.
Taiwan's gross domestic product rose 3.17% from a year earlier in the final quarter of 2014, the lowest rate in five quarters, and 1.17% from the previous quarter, an initial official reading showed today, 30 January 2015. The economy expanded 3.63% in the third quarter of 2014.
European indices were trading lower. US Futures too were trading in the red.
German retail sales rose less than expected in December, but the annual figures suggest that consumption continued to act as a pillar to economic growth in the final quarter of last year. Retail sales in December rose 0.2% in calendar- and inflation-adjusted terms compared with November, the Federal Statistics Office said Friday.