Cues from the Asian markets indicate an opening in the green for the Indian market. The regional bourses were mixed in early trade today, brushing aside fears of possible policy tightening initiatives. Absence of cues from the US also led to the cautiousness in the minds of investors. The SGX Nifty was 10.50 points higher at 5,670.50 compared to its previous close of 5,660. Wall Street was closed on Monday for the Dr Martin Luther King Jr holiday.
The local market opened weak yesterday on mixed cues from its Asian peers, then skidded further early in the day, after which the indices popped in and out of the red in choppy trade. While the market crawled into the green in mid-morning trade, volatility put a cap on the gains pushing the gauges lower again. The indices continued to swing in the post-noon session, weighed by a huge decline of over 3% on the Shanghai Composite, the biggest decline since mid-November, following Friday's 50 basis point increase in the reserve requirement for banks.
The Sensex moved in a range of 239 points (107 points up and 132 points down) and ended in the positive (22 points higher) at 18,882. The Nifty ended flat at 5,655. We expect the market volatility to reduce and the indices to trade in a narrow range before the next move.
Markets in Asia were mixed in early trade on Tuesday, brushing aside possible policy tightening measures. Technology stocks were dampened following news that Steve Jobs, the CEO of Apple Inc, took a leave of absence citing health reasons. The Chinese market continued its decline, after plunging over 3% yesterday following a hike in reserve requirements for banks.
The Hang Seng was up 0.23%, the Nikkei 225 gained 0.18%, the Straits Times rose 0.14%, the Seoul Composite advanced 0.30% and the Taiwan weighted surged 0.67%. On the other hand, the Shanghai Composite was down 0.27% and the KLSE Composite shed 0.25%.
Back home, oil minister Murli Deora has sought a meeting with finance minister Pranab Mukherjee to discuss precarious finances of state-owned oil firms, as crude prices inch towards the $100 per barrel mark. Officials however said the meeting has so far not been fixed.
State-owned Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are losing about Rs290 crore a day in revenues on selling diesel, domestic LPG and kerosene below the imported cost.
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