The market is expected to open sideways on mixed cues from the global arena and nervousness on the futures and options (F&O) expiry day. Wall Street closed lower on Wednesday as investors stayed on the fence on concerns about the outcome of the two-day Federal Reserve meeting next week. Markets in Asia were trading with marginal gains in early trade, for the first time in three days, on upbeat earnings numbers. The SGX Nifty was down 6 points to 6,025 compared to its previous close of 6,031.
The market opened weak on Wednesday on unsupportive global cues. Selling in key heavyweights and nervousness ahead of the futures and options (F&O) expiry, kept the market in the negative terrain. The losses increased as the day progressed, plunging the indices deeper into the red following a dismal opening at the European bourses. However, the indices settled a little above the psychological levels.
The Sensex ended at 20,005, down 216.02 points (1.07%), marginally above the 20,000-mark. The Nifty declined 75 points (1.23%) to end at 6,007, slightly above the crucial level of 6,000.
Wall Street closed lower on Wednesday as investors preferred to stay on the sidelines, awaiting the outcome of the two-day Federal Reserve meeting next week. On the economic front, sales of new US single-family homes rose more than expected last month while demand for durable goods, excluding aircraft, unexpectedly fell in the same month.
The Dow fell 43.18 points (0.39%) to 11,126. The S&P 500 fell 3.19 points (0.27%) to 1,182. On the other hand, the Nasdaq rose 5.97 points (0.24%) to 2,503.26.
Markets in Asia were trading with marginal gains this morning on positive earnings reports. The gains were also supported by a halt in the dollar’s rise against other key currencies. The markets are showing some signs of recovery after the steep decline last week after China surprised the region with a hike in interest rates.
The Hang Seng was up 0.19%, KLSE Composite was up 0.02% and Straits Times gained 0.40%. On the other hand, Shanghai Composite was down 0.16%, Jakarta Composite was down 0.12%, Seoul Composite was down 0.30% and Taiwan Weighted shed 0.10%.
Finance minister Pranab Mukherjee said that the government will bring down fiscal deficit to 4.1% of the country’s gross domestic product (GDP) by 2012-13.
Mr Mukherjee added that buoyant economy will help to fund infrastructure. He also informed that the government will involve MPs in monitoring central schemes and projects. India's economy he said is a reflection of the strength of India's fundamentals led by industries and improved services growth.
Vadodara: Public sector bank Central Bank of India is all set to start its first financial inclusion initiative in Gujarat's Khanpur village tomorrow, reports PTI quoting a top bank official.
Financial inclusion consists of providing banking services at affordable costs to weaker sections of the society or the unbanked segment, which does not have any access to formal banking system.
"Central Bank is perhaps first in the state of Gujarat to do so after the Reserve Bank of India (RBI) and the government of India made it mandatory for public sector banks and private banks to implement financial inclusion plans," U Mohapatra general manager of the Central Bank of India-Gujarat state told PTI.
Executive director of the bank R K Dubey will inaugurate the banks' first financial initiative at Khanpur village in the presence of other senior officials of the RBI and the National Bank for Agriculture and Rural Development (NABARD).
At present, financial inclusion experts believe that an estimated 60% of the Indian population does not have an access to formal banking facilities.
During his first ever visit to the city, Mr Dubey will meet leading industrialists, businessmen, corporate world leaders and head of government bodies for discussing the future plans and strategies of the bank in meeting future challenges, Mr Mohapatra added.
BS TransComm which found no takers at Rs260, got listed today and ended the day at Rs381!
Strange games are being played at ease in the Initial Public Offering (IPO) market even as the market regulator and the stock exchanges look on. BS TransComm got listed today. It had failed to receive even one-time subscription initially. The price band was reduced and time extended.
Finally the issue barely managed 1.1 times subscription in the extended period. But even as the Sensex tanked on the day of listing, (down 216 points) the stock was almost up 60%!
Isn't it strange that when there were no buyers at Rs260 (issue price), suddenly there will emerge a host of buyers at Rs370-Rs380? The stock closed today at Rs381 on the BSE. According to a market observer, "This is a classic case of price rigging, circular trading and structural deals." He added, "The real fun starts from tomorrow, when the operators start offloading."
The source points out that the same pattern was seen in Bedmutha, Aster Silicate, Sea TV and Tirupati Inks. "All these companies had a similar debut and now there are no takers at lower levels and absolutely no volumes."
Today, two other companies got listed, both at a significant premium, braving the falling market. Prestige Estates, the Bangalore-based builder, had issued shares at Rs183 and ended the day at Rs192.55, up 5.2% even though it was barely oversubscribed by 2.26 times. Gyscoal Alloys, which issued shares at Rs71, ended at Rs81.55, up 15.86%. Gyscoal and BS TransComm both got a grading of 2/5 while Prestige got a grading of 3/5.