As long as Nifty stays below 6,705, we may see it going lower further
On Friday, the Indian indices made their highest absolute daily loss over the past 24 days (including today). The weakness on the bourses persisted for the whole day. As we had mentioned, on Thursday, the BSE 30-share Sensex and NSE 50- share Nifty remained weak throughout the day.
Sensex opened at 22,522 and moved in the range of 22,339 and 22,525 before closing at 22,360 (down 150 points or 0.66%), while Nifty opened at 6,742 and moving between 6,685 and 6,742 and closed at 6,694 (down 42 points or 0.62%). The NSE recorded a huge volume of 100.56 crore shares.
Among the five stocks, which closed in the positive out of the Sensex 30 stocks, SBI rose 0.47% to close at Rs1,904.25 on the BSE. In response to the complaint filed against SBI, Competition Commission of India (CCI) has dismissed allegations that the state-run lender abused its dominant market position by imposing unreasonable and unfair conditions on car loan borrowers.
NTPC is in the process of implementing 2400 MW Kudgi Super Thermal Power Project in Bijapur district of Karnataka. On 13 March, 2014, the National Green Tribunal (NGT) passed an order directing MoEF to keep in abeyance the environmental clearance granted to the project and directing NTPC to maintain a status quo at the project. The Supreme Court has stayed an order of the NGT putting on hold the project and directed the matter to be listed for final hearing on 5th August. NTPC was among the top losers in the Sensex 30 stocks and fell 1.95% to close at Rs120.55 on the BSE.
Essar Oil (up 7.04%) was among the top five gainers on the ‘A’ group on the BSE. The company sold around 55,000 tons of naphtha to Vitol at about $35 a ton over Middle East quotes on a free-on-board (FOB) basis, traders said on Thursday.
US indices closed in the negative on Thursday. The US trade deficit unexpectedly widened in February to $42.3 billion as exports hit a five-month low, suggesting that first-quarter growth could be much weaker than initially expected.
Business activity across emerging markets fell for the fourth straight month in March, with output contracting in three of the four biggest economies, a survey showed on Friday. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped to 50.3 from 51.1 in February, teetering on the 50 threshold that marks the difference between expansion and contraction.
Except for Shanghai Composite (0.74%), KLSE Composite (0.05%) and NZSE 50 (0.03%) all the other Asian indices which were trading today closed in the negative. Jakarta Composite (0.68%) was the top loser.
The International Monetary Fund (IMF) warned that emerging markets may suffer as growth slows in China, where the government this week announced policies designed to shore up the economy. The probability of defaults in China is relatively high, Alfred Schipke, the International Monetary Fund's senior resident representative for China, said on Wednesday.
European indices were trading in the green. US Futures were trading marginally higher.
German manufacturing orders grew more than expected in February on the back of strong domestic orders, data from the country's statistics office showed today.
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R Gandhi, the executive director of RBI, has been promoted as deputy governor
The finance ministry approved the appointment of R Gandhi as the new deputy governor of Reserve Bank of India (RBI). According to a government notification, Gandhi has been appointed for three years from 3 April 2014.
R Gandhi replaced Anand Sinha, who served as deputy governor from February last year and retired in January 2014. R Gandhi will look into, Department of Banking Operations and Development, Department of Non-Banking Supervision, Urban Banks Department, Department of Expenditure and Budgetary Control, Department of Information Technology, Legal Department, Premises Department and Risk Monitoring Department, RBI said in a release.
R Gandhi was Executive Director of the Reserve Bank before being elevated to the post of Deputy Governor. He joined RBI in 1980 and has 33 years of expertise and experience in varied fields. He has been associated with various committees, working groups and task forces at the central bank.