Global mkts fall post Fed minutes; Nifty to hit 5200 soon?
Global markets slipped in the red on Wednesday after FOMC minutes offered little direction on the timing of when the stimulus will be scaled back. Asian markets were negative in morning trade today.
August 22, 2013 / 09:14 IST
US markets closed near session lows on Wednesday as the FOMC minutes offered little direction on the timing of when the stimulus will be scaled back. European market too ended in the red. The rupee's fall knocked the breath out of the Indian stock market as well. Sensex fell over 700 points from the day's highs to end below 18,000 and Nifty closed almost 100 points lower. This is the lowest level for the Nifty in nearly a year.
Asian markets were negative in morning trade today. Bank of Japan governor Haruhiko Kuroda said he will not hesitate to provide further monetary stimulus if downside risks to the economy increased.Stock to watch ICICI Bank raises fixed deposit maturities by up to 0.75 percent across select maturities.Federal Bank revises interest rates on resident and NRI deposits. For resident deposits, rate of interest for the maturity band of '60 days to 119 days' stands increased from 7 percent to 8.50 percent. Resident senior citizens are eligible for additional interest of 0.50 percent. For NRE term deposits, for three years and above, the bank has increased the rate to 9.00 percent from the extant 8.75 percent. In a CNBC-TV18 exclusive, Sajjan Jindal has written to PM and FM on iron ore shortage in Karnataka. He also mentioned about how SAIL and TISCO get their iron ore but JSW is not assured of any such supplyNalco will raise alumina exports amid rupee plunge. Asian Paints will buy additional 24.18 percent in Berger International via open offer raising stake in the company to 75.82%. They will delist Berger International from Singapore bourse.
USStocks tumbled in the final hour of trading to close near session lows in heavily volatile trading session, with the Dow posting its sixth-straight day in the red, as investors digested the minutes from the latest Fed policy meeting. Stocks initially spiked lower following the minutes but rebounded within a half hour to wipe out all of the day's losses. Selling renewed aggressively into the close, with the major averages closing near session lows. The CBOE volatility index jumped near 16. The 10-year US treasury yields spiked post the release of the fed minutes to trade just shy of the 2-year high of 2.9% they hit on Monday.On the economic data front, existing home sales jumped 6.5 percent in July. Economists had expected a rate of 5.15 million units versus 5.08 million units in June. Meanwhile weekly mortgage applications declined for a second week and rising interest rates put a damper on refinancing activityIn key data to watch out for - weekly jobless claims are seen rising marginally to 329,000. Also, the Markit PMI manufacturing index is expected to show a reading of 53.5. EuropeMarkets closed lower posting their longest losing streak in eight weeks.CurrencyThe dollar gained across the board rising closer to 81.50. Conversely, the euro-dollar slipped to 1.33 levels. Back home, the rupee hit a fresh record low of 64.51 to the dollar before ending at an all-time closing low of 64.11 to the dollar, but the bond yields remained below the psychological 9 percent. CommoditiesBrent crude slipped below the USD110/barrel levels while Nymex fell all the way to USD 103/barrel post Fed comments along with data indicating low inventories, further widening the spread between the two. From precious metals space, gold prices at USD 1360/oz levels, largely unchanged after a volatile session and weighed down by the rising US treasury yields. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
