Nifty may find support around 8,490 and put in a short bounce
In Friday’s closing report, we had mentioned that if Bharatiya Janata Party (BJP) loses in the Delhi assembly elections, it might result in making of more losses on the bourses. The exit polls released by several media showed that the Aam Aadmi Party (AAP) will get majority and will be able to form the next government in Delhi. The counting of votes for the 70-member Delhi assembly takes place Tuesday morning.
The S&P BSE Sensex opened at 28,567 while NSE’s CNX Nifty opened at 8,584. Sensex hit its intra-day high at the same level as at which it opened, while Nifty hit its intra-day high at 8,606. Both the indices moved to the low of 28,183 and 8,516, respectively. Sensex closed at 28,227 (down 491 points or 1.71%) while Nifty closed at 8,526 (down 135 points or 1.56%). NSE recorded a volume of 82.07 crore shares. India VIX rose 6.43% to close at 22.0150.
The Indian government will release advance estimates of GDP for 2014-15, as well as for the first three quarters of the current financial year - on the basis of the revised methodology later in the day.
Prime Minister Narendra Modi has urged all Chief Ministers to work with the Centre to forge a model of cooperative federalism to come together to resolve differences and chart a common course to progress and prosperity. He urged all Chief Ministers to focus on the cycle of investment, growth, job creation and prosperity.
The Ministry of Finance on Saturday said that the government has decided to infuse Rs6,990 crore in a total of nine public sector banks (PSBs) during the current fiscal year based on efficiency parameters for individual banks. The methodology for arriving at the amount to be infused in these banks has been based on efficiency parameters, the finance ministry said.
Coming back to stock markets, Sun TV Network (9.02%) was the top gainer in ‘A’ group on the BSE. It posted an improved result of December 2014 on Friday. The board of directors have declared an interim dividend of Rs6.75 per share (135%).
Jammu & Kashmir Bank (17.52%) was the top loser in ‘A’ group on the BSE. The stock hit its 52-week low today after posting weak result on Saturday for December 2014 quarter.
Dr Reddy’s Lab (1.81%) was the top gainer of the Sensex 30 pack, while Larsen & Toubro (6.61%) was the top loser of the pack.
US indices closed Friday in the red.
The Labour Department report showed that the economy added 257,000 jobs in January, while November and December numbers were revised sharply higher. In another good sign, hourly wages jumped 0.5%. Although the unemployment rate ticked up to 5.7% from 5.6%, it suggests that more people are entering the workforce. The US economy has added more than 200,000 jobs for 12 straight months.
Asian indices showed mixed performance. Shanghai Composite (0.62%) was the top gainer while SET Composite index of Thai (0.73%) was the top loser.
Data published on Sunday showed China's trade performance slumped in January, with exports falling 3.3% from year-ago levels while imports tumbled 19.9%, far worse than market expectations.
European indices were trading lower while US Futures were trading in the red.
The concern grew over the political situation in Greece as Greece's Prime Minister Alexis Tsipras reaffirmed his rejection of the country's international bailout program.
Rating agency Standard & Poor's (S&P) cut Greece's long-term sovereign credit rating to B- from B on Friday warning that liquidity restraints on Greek banks would limit the time the new government has to clinch a deal with its creditors.
German exports increased in monthly adjusted terms in December, data from the country's statistics office, Destatis, showed today. The rise of exports of 3.4% combined with the 0.8% decrease in imports and translated into a trade surplus of 21.8 billion euros.