Nifty is trying to establish a short term bottom
We had mentioned in Monday’s closing report that NSE’s CNX Nifty may try to bounce back. Also mentioned was that it may find support around 8,490 and put in a short bounce. The 50-share index opened Tuesday lower, however, it immediately moved into the green. The benchmark managed crossing yesterday’s high but then started moving to lower levels. As mentioned, Nifty reached 20 points below the support and tried reviving. Finally, it managed to enter into green zone again and closed higher breaking the seven days of consecutive losses.
S&P BSE Sensex opened at 28,122 while Nifty opened at 8,478. Sensex hit a high of 28,634 and moved to the low of 28,045 before closing at 28,356 (up 128 points or 0.45%). Nifty moved from the high of 8,646 to the low of 8,471 and closed at 8,566 (up 39 points or 0.46%). NSE recorded a volume of 95.03 crore shares. India VIX fell 3.74% to close at 21.1925.
Arvind Kejriwal-led Aam Aadmi Party (AAP) got a clear majority at the Delhi Assembly elections. According to the election manifesto unveiled by AAP, late last month, among other promises, AAP government will keep its promise of reducing electricity bills by half. Prime Minister Narendra Modi congratulated Kejriwal on the win and assured central government's complete support in the development of Delhi.
Finance Minister Arun Jaitley, at the First Meeting of the Parliamentary Consultative Committee attached to his Ministry to discuss ‘Suggestions for the Budget', said that the overall economic situation in the country is looking better and basic parameters of Indian economy are moving in the right direction.
Economy is likely to grow at a faster pace of 7.4% in the current fiscal as against 6.9% in 2013-14, according to government’s advance estimates for GDP based on the new calculation methodology. The data further said that the economy grew by 7.5% in the September-December quarter of the current fiscal after a growth rate of 8.2% in the preceding quarter.
The Indian IT outsourcing sector is reportedly expected to see export revenue growing 12-14% to $112 billion in the financial year ending 31 March 2016 (FY 2016), according Nasscom.
Coming back to Indian stock markets, ABB (7.39%) was the top gainer in ‘A’ group on the BSE. Improved result of December 2014 quarter pulled the stock higher.
Future Retail (15.91%) was the top loser in ‘A’ group on the BSE.
Tata Motors (4.01%) was the top gainer in the Sensex 30 pack, while TCS (2.87%) was the top loser in the pack.
On Monday, US indices closed in the red.
Asian indices showed mixed performance. Shanghai Composite (1.50%) was the top gainer, while Seoul Composite (0.57%) was the top loser.
China's consumer inflation slipped to a five-year low in January. China's consumer-price index rose 0.8% in January from a year earlier, slower than a 1.5% year-over-year rise in December, data from the National Bureau of Statistics showed today, 10 February 2015.
European indices were showing mixed trading, while US Futures were trading in the green.
French Industrial output rebounded in December as production rose across the Eurozone's second largest economy, the national statistics agency Insee said. Industrial production in France rose 1.5% in December from November.