It‘s been one of the most range bound April series that the market has had in a long time. On F&O expiry, we wake up to a whole host of positive cues from the US and European markets.
It’s been one of the most range bound April series that the market has had in a long time. On F&O expiry, we wake up to a whole host of positive cues from the US and European markets.
Dovish comments from the FOMC have left markets in a good mood. Wall Street closed near its best levels boosted by Apple's robust results and as Bernanke reiterated that the central bank remains prepared to take action to help the economy. The Nasdaq surged 2.3%, logging its biggest one-day gain this year and rebounding from a five-day losing streak. Meanwhile the CBOE Volatility Index slumped to end near 17.
US Closing: S&P +1.4% at 1390.7; Dow +0.7% at 13090.7; Nasdaq +2.3%
It's a tale of 2 Fed's. FOMC chairman, Ben Bernanke left open the possibility of further quantitative easing, if the US economy needed it. Bernanke said, “Our intention is to maintain a highly accommodative stance of policy for the foreseeable future and we remain able and willing to take further action if necessary.”
Key interest rates remain unchanged near zero until late 2014, and it has also boosted the economic growth outlook for the year to between 2.4% and 2.9%.
They also projected that unemployment will ease down to between 7.8% and 8% by year-end. The rate currently sits at 8.2%, a three-year low. Still, Bernanke gave little hints as to whether he will offer more stimulus to juice up the economy.
On the economic data front, orders for long-lasting goods slumped 4.2% in March hurt by a decrease in the transportation sector and aircraft.
Data to Watch
-US Weekly Jobless Claims
-US Pending Home Sales Index
European markets advanced for a second day as robust corporate results helped overshadow some fears over the region's debt crisis. These gains were led by big moves in major banking shares.
Societe Generale rose 6.3%, BNP Paribas added 5.6% and credit Agricole closed higher by 5.9%. However, recent data showed Britain's economy slipping back into recession, capping the upside on the FTSE which in contrast to its peers closed almost flat.
Europe Closing: CAC +2%; DAX +1.7%; FTSE +0.2%; Italy +3%
From Asian, watch out for the Japanese industrial output and the CPI numbers. The Asian markets opened in the green. Kospi is up 0.3%; Shanghai and Nikkei is up 0.2%; Straits are up 0.1% while Taiwan was down 0.2%.
Currency & Commodity Corner
In the currency space, the dollar remains lower against its peers ahead of data tomorrow that may show the US growth slowing in the first quarter. The dollar index session was low below at 79.06 this morning. The euro meanwhile gained ground on the dollars weakness and was well above 1.32 today.
In commodities, crude prices gain, with Brent hovering close to 119 dollar levels following a lift in US equities. The shift erased losses brought about by a larger-than-expected increase in US inventories.
Gold was trading flat around USD 1640/oz levels.
And back home, the Sensex closed at 17151, down 56 points while the Nifty was down 20 points at 5202.
Stocks to Watch
Hindalco raises Rs 3000 crore via NCD issue to institutional investors. The NCD'S, have a maturity of 10 years and will pay an annual coupon of 9.55%.
In result impact, Sterlite's topline came in higher than expected. Their profits were in-line if adjusted for one offs. Profits are at Rs 1,276 crore including a forex gain of Rs 330 crore and one time payment of Rs 430 crore to Asarco.
ONGC has approved a Rs 600 crore investment for development of Mumbai High South Field Western Periphery. The project is expected to be completed by 2014.
Rabobank will sell 1.5 crore YES Bank shares via a block deal today. The price is set at Rs 360 a share.
In a CNBC-TV18 exclusive, Arun Sawhney, the CEO & MD of Ranbaxy says the company will close FY12 with better sales and profitability than FY11.
Hindustan Zinc will hike its silver output to 500 tonne from 200 tonne by expanding its captive mines, reports the Economic Times.
SAIL seeks partners for a Rs 38000 crore steel plant at Sindri, reports the Financial Express.
Man Industries will issue 1.8 million shares to Kobe Steel at Rs 165 a share.
The government is close to hiving off surplus VSNL land of 700 acres. Tatas is expected to get 5% from the proceeds, reports Mint.
Era Infra secures contract from department of atomic energy worth Rs 51.42 crore.
EID Parry will merge Sankili and Haliyal undertaking of Parry Sugar. The company plans to allot 5 shares for 19 shares held by shareholders of Parry Sugar.
Earnings to Watch
Idea, Bata, L&T Finance, Biocon, Sterlite Tech, MRF, Gujarat Gas, Sasken Com, Strides Arcolabs, Tamilnadu Petro, Vakrangee Software, Cholamandalam Invst, Everest Inds, Ador Welding, Ajanta Pharma, Astra Micro, Agro Tech, Kirloskar Oil, Kirloskar Inds, Magma Fin, Oil India Tubular, Wendt and XPRO.