Skip to main content

Nifty futures test 5000 mark; Asian indices slide sharply by Venky Vembu May 7, 2012

By

Hong Kong: The blood has barely been wiped off the trading floors after last week’s tumbles on the Indian markets. But already, markets are off to another bloody start to the week.
Nifty futures are again sharply down in early trades on Monday, testing the 5000 mark on very weak global cues after election results in Greece and France over the weekend, and tepid US employment data on Friday, busted investor sentiment. (More details here.)
Listen to market audio:

All across the region, trading boards are awash in red. As at 7.30 am IST, most of the indices are down in excess of 2 percent. Tokyo, returning from a holiday, is down the hardest, playing catch-up with last week’s falls: it’s now down in excess of 2.5 percent. Hong Kong is down about 2 percent, and Sydney about 1.5 percent. Shanghai is faring the best of the lot, down only about 0.2 percent.
We’re probably looking at sharp losses when markets open in Mumbai today. Reuters
Nifty futures are down nearly 1.5 percent, and are just a notch above the 5000 mark. This likely means that the Indian market will open with sharp losses to add to Friday’s fall.
Back home, the debate on the Finance Bill gets going today, and investors will be looking for clues from Finance Minister Pranab Mukherjee that the retrospective taxation proposals he announced in the Budget will be rolled back. The taxation proposal in the Vodafone case, and other similar cases, has unnerved investors, already reeling from the effect of an economy that’s slowing down. There’s been some speculation that the penalty provision will be waived, although Vodafone might still have to pay back taxes, with interest thereon.
Whether that will be enough to sustain foreign investors’ interest in the Indian market will be on test, but the Nifty futures market is the relative outperformer this morning, which says something.
Even so, given that risk aversion runs high today – and the rupee’s slide of recent days has impacted returns – we’re probably looking at sharp losses when markets open in Mumbai today.

Comments

Post a Comment

Popular posts from this blog

By
Markets at a Glance Indian indices are likely to open lower today, tracking weakness in the Asian markets, as disap-pointing China’s PMI data raised concern over domestic economic slowdown. Meanwhile Asian shares falters on Wednesday on fading hopes of stimulus action this week by the US Federal Reserve and the European Central Bank. The Chinese manufacturing PMI slipped to 50.1 in July from 50.2 in June, the weakest since November 2011, and reflects three consecutive months of decline. However, the Shanghai Composite index edged up ~1% following the comments from Premier Wen Jiabao's that China will step up policy fine-tuning in the second half to support economic growth. The SGX Nifty, Aug’12 contract last traded at 5,239, down by 10.00 points from previous session. Wall Street Update The US markets ended lower after trading in a tight range throughout the day as investors re-mained cautious ahead of the US Federal Reserve and the European Central Bank releasing monetary...
Post a Comment
Read more

COMMODITY RESEARCH NEWS

By
August 9, 2012 News Highlights:  The Energy Information Administration said that U.S. Crude Oil Inventories fell more than expected to a seasonally adjusted annual rate of -3.729M, from -6.522M in the preceding month indicating that demand for the fuel in US, world’s largest consumer of crude oil is strong.  The German industrial production fell 0.9 per cent in June, more than forecasts for a 0.8 per cent decline, following an upwardly revised 1.7 per cent gain in May indicating a weakening euro zone crisis and further dampening demand prospects for copper and crude oil.  China's annual consumer inflation fell to a 30-month low of 1.8 percent in July from June's 2.2 percent creating more room for policy easing to support economic growth which in turn curbed losses in copper by improving demand outlook for industrial metal.  The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, ended 0.22 per cent higher ...
Post a Comment
Read more
By
.. It is your trading methodology that will ultimately determine whether you win or lose in the markets. While, it is vital that you have the discipline to stick to your plan, it is equally vital that you have one to stick to in the first place. EVERY SUCCESSFUL TRADER HAS A WINNING TRADING SYSTEM and there are as many successful systems as there are traders. Some systems get you to buy on strength and sell on weakness; others do the opposite. Some investors succeed as value investors, such as Warren Buffet; others make their millions in momentum trading. I have even heard of an astrologist who is said to trade profitably using the stars. Although there are a variety of methods, the point I am trying to illustrate here is this: there are many ways to profit from the markets. Despite their differences, TECHNO TRADES TRADING SYSTEMS FOR ALL MARKETS MASTER THE ART OF TRADING HIGH ACCURACY MAKE DAILY PROFITS FROM MARKETS THERE IS ONE COMMON ELEMENT AMONGST ALL SUCCESSFUL TRADERS: THE...
Post a Comment
Read more