US Federal Reserve (the Fed) initiated tapering, albeit by a small margin of $10 billion, that sent gold crashing. The market interpreted this to mean that the US economy is recovering and dollar assets are expected to firm up. Gold, perceived to be a hedge against the dollar and financial weakness, fell. The price of gold, in dollar terms, declined from $1,237 per ounce to $1,197 per...
As long as Nifty does not go below any previous day’s low, the bulls will have the upper hand
The market carried the positive momentum of Thursday and opened Friday in the positive and stayed in the green for the entire session after trading in the narrow range. Today’s performance of the indices was backed by the positive news flowing from the US with a drop in jobless claims and the holiday retail sales rising in November and December. On Thursday we mentioned that the NSE Nifty awaits a breakout from the current range of 6,260-6,320. The index barely managed to cross the upper level and fell back. However, the climate favours the bulls. We feel that Nifty may drift higher subject to short dips.
The BSE 30-share Sensex opened at 21,114 and hit the day lows almost at the same level at 21,113. Similarly the NSE Nifty opened at 6,293 and hit a low at 6,289. In the noon session the benchmark hit the day’s high at 21,235 and 6,325. This is the highest for Sensex since 10 December 2013 while for the Nifty it was the highest since 11 December 2013. The Sensex closed at 21,194 (up 119 points or 0.56%) while the Nifty closed at 6,314 (up 35 points or 0.56%). The NSE recorded a recorded a lower volume of 58.11 crore shares.
Except for Auto (down 0.05%); Media (down 0.06%) and Energy (down 0.36%) all the other indices on the NSE closed in the positive. The top five gainers were IT (1.58%); Service (0.97%); PSU Bank (0.85%); Nifty Junior (0.81%) and Pharma (0.79%).
Of the 50 stocks on the Nifty, 31 ended in the green. The top five gainers were TCS (3.09%); NMDC (2.78%); Kotak Mahindra Bank (1.80%); Cipla (1.75%) and Wipro (1.60%). The bottom five losers were Jaiprakash Associates (1.74%); Maruti (1.12%); Reliance Industries (1.07%); Asian Paints (0.94%) and UltraTech Cement (0.82%).
Of the 1,232 companies on the NSE, 628 closed in the green, 542 closed in the red and 62 closed flat.
To be sworn in as Delhi's chief minister, Arvind Kejriwal Friday questioned the timing of the hike in CNG prices and assured that he will look for the reason for the same. "I will look at the files and see as to why the CNG prices have been hiked. They could have waited for two days," he said. Hinting at a conspiracy against his government, Kejriwal also requested the auto drivers to give him the time of two days to ascertain the reason. Indraprashtha Gas was a gainer thanks to the hike in LPG prices.
US indices closed in the positive on Thursday. Drop in jobless claims fueled optimism in the economy. Fewer Americans than projected filed applications for unemployment benefits last week, indicating the US labour market is improving. Jobless claims declined by 42,000 to 338,000 in the week ended December 21, a Labour Department report showed in Washington. US consumer confidence climbed last week to a four-month high on the back of improving job market.
President Barack Obama on Thursday signed a compromise budget that reduces the risk of another government shutdown.
Except for NZSE 50 (down 0.01%) all the other Asian indices closed in the positive. Shanghai Composite was the top gainer which rose 1.36%.
China data today showed industrial companies' profits rose 9.7% from a year earlier in November, compared with a 15.1% jump in October.
Japan's inflation accelerated to the fastest pace since 2008 last month, bringing the rate closer to policy makers' target while threatening to erode household spending power unless employers boost wages. Prices excluding fresh food rose 1.2% from a year earlier, the statistics bureau said today in Tokyo.
European indices were trading in the green while US Futures were trading marginally lower.