If Nifty closes below 8,750, a down move may start
We had mentioned in last week’s closing report that NSE’s CNX Nifty may continue to head higher. The 50-share benchmark opened Monday with a gap up and moved further higher to hit the day’s high. After a range bound session up to 11am, the index moved lower. Nifty lost its strength further during the last few minutes of the trading session, when it made a quick plunge into negative. However, after few minutes of trading in the red, Nifty entered the green zone and closed marginally higher.
The S&P BSE Sensex opened at 29,171 while Nifty opened at 8,831. Sensex moved to the low of 29,083 after hitting a high at 29,325 while Nifty moved to the low of 8,793 from the high of 8,870. Sensex closed at 29,136 (up 41 points or 0.14%) while Nifty closed at 8,809 (up 4 points or 0.04%). NSE recorded a volume of 105.89 crore shares. India VIX rose 3.59% to close at 20.8250.
The stock market will remain closed on Tuesday for Mahashivratri.
Petrol price was hiked by Rs0.82 a litre and diesel by Rs0.61 in Delhi with corresponding increase in other states from midnight of Sunday. Such a price hike is the first increase since August 2014.
Exports during January 2015 were 11.19% lower in dollar terms than the level of January 2014, while imports were 11.39% lower in dollar terms. The trade deficit for April-January 2014-15 was estimated at $118,373.95 million, which was higher than the deficit of $116,532.22 million during April-January 2013-14.
The annual rate of inflation based on monthly wholesale price index (WPI) stood at negative 0.39% in January 2015, compared with a reading of 0.11% for December 2014. Meanwhile, annual rate of inflation based on WPI was revised downward to negative 0.17% for November 2014, from a figure of zero reported earlier.
Coming back to Indian stock markets, Suzlon Energy (19.84%) was the top gainer in ‘A’ group on the BSE. The board of directors at its meeting has approved issuance of up to 100 crore equity shares on preferential basis to Dilip Shanghvi family & Associates and has also approved divestment in SE Forge Limited, a wholly owned subsidiary of the company.
CESC (12.15%) was the top loser in ‘A’ group on the BSE. It was in the news as SN Menon has resigned as a director with effect from 16 January 2015.
ITC (3.04%) was the top gainer in Sensex 30 pack. It informed that it has entered into asset purchase agreements with Johnson & Johnson Ltd (India) and Johnson & Johnson Pte Ltd (Singapore) for purchase of ‘Savlon’ and ‘Shower To Shower’ trademarks and other intellectual property, respectively, primarily for use in India. These agreements are subject to customary closing conditions and regulatory permissions as may be necessary.
Sun Pharma (2.65%) was the top loser in Sensex 30 stock. The company fell as it posted a weak December 2014 quarter result.
US indices closed Friday in the green.
The University of Michigan said its preliminary consumer sentiment index for February tumbled to 93.6 from the final January reading of 98.1.
Except for Jakarta Composite (0.91%), SET Composite index of Thailand (0.49%) and NZSE 50 (0.49%) all the other Asian indices closed in the green. Shanghai Composite (0.58%) was the top gainer.
China attracted $13.92 billion of foreign direct investment in January, up 29.4% from a year earlier, the Ministry of Commerce said today. The figure was above December's $13.32 billion, which was 10.3% higher than a year earlier. Chinese investments overseas reached $10.17 billion in the first month of the year, up 40.6% from a year ago, according to the ministry.
European indices were trading in the red. US Futures too were trading marginally lower.