The Indian equity benchmarks dropped more than one percent on Friday, biggest absolute losses since October 8, on the back of uncertainty over US fiscal cliff deal. A quick look at local and global cues.
The Indian equity benchmarks dropped more than one percent on Friday, biggest absolute losses since October 8, on the back of uncertainty over US fiscal cliff deal. The Sensex fell 211.92 points to close at 19,242. The Nifty slipped 68.70 points to end below 5,850 level at 5,847.7.
A quick look at local and global cues.
Is market trading at its peak? Only a myth, say experts
The US markets slumped nearly 1 percent on Friday, but closed off the worst levels of the session, after a Republican plan to avert the "fiscal cliff" fell apart, raising fears a deal will not be reached before the end of the year. The CBOE volatility index climbed toward
All the major averages still finished higher for the week. The Dow rose 0.4 percent , the S&P 500 gained 1.2 percent, and the Nasdaq was up 1.7 percent.
US economic data:
Durable goods orders rose 0.7 percent in November, following a 1.1 percent in October. US consumer spending rose in November by the most in three years as incomes climbed.
Personal incomes rose 0.6 percent in November. While spending increased 0.4 percent, the University of Michigan consumer sentiment survey for December came in at 72.9, down from 82.7 in November.
European shares closed lower on as US politicians continued to wrangle over averting the "fiscal cliff" a series of tax increases and spending cuts set to kick in at the start of next year and could tip the US economy into recession.
Italian Prime Minister Mario Monti resigned, ending a 13-month tenure after lawmakers passed a 2013 budget law. This cleared the way for elections that will focus on his crisis-fighting austerity policies.
The appointed premier submitted his resignation to President Giorgio Napolitano, according to a statement from the president's office. Napolitano asked Monti's cabinet to remain in power to handle routine government administration. The president has suggested February 24 as the date for elections.
At 7: 43 am (IST), Asian markets were trading firm. China's Shanghai Composite was up 0.41% or 8.75 points at 2,162.06. Hong Kong's Hang Seng was up 0.15% or 34.20 points at 22,540.49. Singapore's Straits Times was up 0.18% or 5.69 points at 3,169.25.
South Korea's Seoul Composite rose 0.16% or 3.07 points at 1,983.49. Taiwan's Taiwan Weighted was up 0.11% or 8.31 points at 7,548.45. Japan's Nikkei shut today.
The euro slipped below 1.32, the dollar index rose to 79.70 on concerns over the fiscal cliff.
Brent crude slipped to sub USD 109 per barrel levels as faltering efforts to negotiate a US budget reinforced fears a deal would not get done.
Gold, meanwhile, edged higher to USD 1,656 per ounce levels on short covering.
Stocks in news:
Maruti chairman says the company will end FY13 with a 6 percent growth. He doesn’t see double-digit growth next year as well.
The government has approved fund infusion of Rs 3,004 crore in SBI during the current fiscal.