We expect Indian markets to open higher and may hit fresh highs today also as global cues are quite supportive. Asian shares edged higher in early trade on Wednesday on fresh signs of strength in the U.S. economy and diminishing concerns over the diplomatic standoff between the West and Russia. U.S.
consumer confidence rose more than expected in March, climbing to its highest level since January 2008 and U.S. house prices increased solidly in January. Also Expectations that China will take more steps to bolster its sagging economy also underpinned many markets. London copper futures rose to a two-week high of $6,623.75 per tonne on Tuesday, while other commodities that had been battered earlier this month -- ranging from iron ore and steel --also rebounded from their lows. Back home, FIIs flows continue to be healthy and have been largely responsible for this rally as they expect a stable new government. Also positive macros like falling inflation, improving CAD & strengthening rupee has bolstered confidence. Yesterday, Nifty registered small gains & garnered 6.25 points or 0.09% to settle at 6,589.75, a record closing high. Overall, market was lackluster. However there was stock specific action in the market. Many small and mid- cap stocks were in momentum. Capital Goods, Power, Realty and FMCG witnessed smart rally while Tech and Pharma stocks witnessed profit booking. USDINR fell by 27bps to 60.52, which panned out in favor of bulls. European markets were up by 1% in our closing hours. ONGC and Reliance declined by 1% and 3% respectively after the Election Commission of India has asked the government to defer a hike in gas prices due to start April 1, ahead of next month's election. Capital Goods stocks like BHEL (up 4.5%), Siemens and Crompton surged on account of strong order book. BHEL has bagged an order worth nearly Rs 30bn from NTPC. Infosys, HCL Tech and Wipro declined by 1-3%, while TCS closed flat at Rs2147 as the company won multi-million Dollar order from overseas. The Nifty continues to make a higher top, higher bottom pattern. The broad market too is supportive and attempted up move can be expected. Nifty Supports are at 6590 & 6513. Highest open interest lies at 6600 call and markets trading above this level on sustained basis will lead to aggressive short covering to 6660.
Reliance: Shares of oil and gas companies like Reliance Industries (RIL), Oil and Natural Gas Corporation(ONGC) and Oil India closed lower on the BSE after the Election Commission (EC) has ordered deferment of an increase in gas prices that was to take effect from April 1, 2014. ONGC finished lower 0.34% to Rs 320.10, while RIL and Oil India are down 2.87% & 2.75% at Rs 878.65 and Rs 471.70 respectively. EC stated that the decision on quantum of increase in gas price should be decided by the new government that will be formed after the general election. Reliance Industries and ONGC were likely to be key beneficiaries of increase in gas price.
Engineers India: Shares in Engineers India 's (EIL) stock touched a 52-week high of Rs 209.50 on the BSE, and finally closed up 4.05% at Rs 208.06 after the company received USD 40 million contract for the Liwa Plastics project of Oman Refineries and Petroleum Industries (Orpic). "EIL has been awarded a project management consultancy (PMC) contract by Orpic for their Liwa Plastics Project in Sohar, Oman
against international competitive bidding competition from international consultants," the company said in a statement. Orpic is owned by the Government of Oman and state-owned Oman Oil Company SAOC and
has been created to pursue investment opportunities in the energy sector both inside and outside Oman.
Capital First: Shares in Capital First surged 14.25% to Rs 78.75 also its 52-week high on the BSE, on back of heavy volumes. Non-banking finance company Capital First has called an Extra-ordinary General
Meeting on Friday, March 28, 2014 to take shareholders approval for issue and allotment of equity shares on preferential basis.Capital First is raising Rs 179 crore from an affiliate of US-based private equity firm
Warburg Pincus and HDFC Standard Life Insurance Company.Capital First will allot 8.36 million shares to Warburg Pincus affiliate Cloverdell Investment for Rs 129 crore and 3.25 million shares to HDFC
Standard Life for Rs 50 crore, it has said in a filing with the BSE.The preferential issue will increase Warburg Pincus' holding in the company to 72% while HDFC Life will get 4% stake. In June 2012, Warburg had
acquired the Future Group's 42.73% holding in Capital First.
INR HITS 8- MONTH HIGH ON THE BACK OF ROBUST FII INFLOWS RECAP
Rupee continued its gains to close at its highest levels in 8 months at 60.48/49 vs. previous close of 60.77/78.fueled by continued FII inflows into the domestic markets. A breach of a key support in USDINR added to the rupee`s momentum. Further gains in the rupee were capped on the back of strong demand from domestic oil importers.
Rupee is likely to trade sideways with a positive bias ahead of the F&O expiry but current levels suggest USDINR will face selling pressure on every upside correction. USDINR in NDF is currently trading down and it is likely to open down in futures too.
US dollar pared its gains after a round of mixed economic data, but held narrowly higher against key global rivals. While the US consumer confidence hit a 6-year high, climbing to 82.3 in March from an upwardly revised 78.3 in February new home sales dropped 3.3% in February and home prices slipped 0.1% in January. UK‘s CPI came at 4-year low and remains below the comfort level of the Bank of England.
Indian Rupee is likely to open positive against the US dollar. Positive Asian equities and positive euro will keep rupee in a positive mood but month end dollar demand will keep sentiment marginal negative.
In the spot market, the Rupee is expected to open at 60.30 against 60.48 closing on yesterday. Spot USDINR is expected to move in the range of 60.20 to 60.60. The most active march futures are expected to move between 60.10 and 60.70 after opening at 60.30.
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consumer confidence rose more than expected in March, climbing to its highest level since January 2008 and U.S. house prices increased solidly in January. Also Expectations that China will take more steps to bolster its sagging economy also underpinned many markets. London copper futures rose to a two-week high of $6,623.75 per tonne on Tuesday, while other commodities that had been battered earlier this month -- ranging from iron ore and steel --also rebounded from their lows. Back home, FIIs flows continue to be healthy and have been largely responsible for this rally as they expect a stable new government. Also positive macros like falling inflation, improving CAD & strengthening rupee has bolstered confidence. Yesterday, Nifty registered small gains & garnered 6.25 points or 0.09% to settle at 6,589.75, a record closing high. Overall, market was lackluster. However there was stock specific action in the market. Many small and mid- cap stocks were in momentum. Capital Goods, Power, Realty and FMCG witnessed smart rally while Tech and Pharma stocks witnessed profit booking. USDINR fell by 27bps to 60.52, which panned out in favor of bulls. European markets were up by 1% in our closing hours. ONGC and Reliance declined by 1% and 3% respectively after the Election Commission of India has asked the government to defer a hike in gas prices due to start April 1, ahead of next month's election. Capital Goods stocks like BHEL (up 4.5%), Siemens and Crompton surged on account of strong order book. BHEL has bagged an order worth nearly Rs 30bn from NTPC. Infosys, HCL Tech and Wipro declined by 1-3%, while TCS closed flat at Rs2147 as the company won multi-million Dollar order from overseas. The Nifty continues to make a higher top, higher bottom pattern. The broad market too is supportive and attempted up move can be expected. Nifty Supports are at 6590 & 6513. Highest open interest lies at 6600 call and markets trading above this level on sustained basis will lead to aggressive short covering to 6660.
Reliance: Shares of oil and gas companies like Reliance Industries (RIL), Oil and Natural Gas Corporation(ONGC) and Oil India closed lower on the BSE after the Election Commission (EC) has ordered deferment of an increase in gas prices that was to take effect from April 1, 2014. ONGC finished lower 0.34% to Rs 320.10, while RIL and Oil India are down 2.87% & 2.75% at Rs 878.65 and Rs 471.70 respectively. EC stated that the decision on quantum of increase in gas price should be decided by the new government that will be formed after the general election. Reliance Industries and ONGC were likely to be key beneficiaries of increase in gas price.
Engineers India: Shares in Engineers India 's (EIL) stock touched a 52-week high of Rs 209.50 on the BSE, and finally closed up 4.05% at Rs 208.06 after the company received USD 40 million contract for the Liwa Plastics project of Oman Refineries and Petroleum Industries (Orpic). "EIL has been awarded a project management consultancy (PMC) contract by Orpic for their Liwa Plastics Project in Sohar, Oman
against international competitive bidding competition from international consultants," the company said in a statement. Orpic is owned by the Government of Oman and state-owned Oman Oil Company SAOC and
has been created to pursue investment opportunities in the energy sector both inside and outside Oman.
Capital First: Shares in Capital First surged 14.25% to Rs 78.75 also its 52-week high on the BSE, on back of heavy volumes. Non-banking finance company Capital First has called an Extra-ordinary General
Meeting on Friday, March 28, 2014 to take shareholders approval for issue and allotment of equity shares on preferential basis.Capital First is raising Rs 179 crore from an affiliate of US-based private equity firm
Warburg Pincus and HDFC Standard Life Insurance Company.Capital First will allot 8.36 million shares to Warburg Pincus affiliate Cloverdell Investment for Rs 129 crore and 3.25 million shares to HDFC
Standard Life for Rs 50 crore, it has said in a filing with the BSE.The preferential issue will increase Warburg Pincus' holding in the company to 72% while HDFC Life will get 4% stake. In June 2012, Warburg had
acquired the Future Group's 42.73% holding in Capital First.
INR HITS 8- MONTH HIGH ON THE BACK OF ROBUST FII INFLOWS RECAP
Rupee continued its gains to close at its highest levels in 8 months at 60.48/49 vs. previous close of 60.77/78.fueled by continued FII inflows into the domestic markets. A breach of a key support in USDINR added to the rupee`s momentum. Further gains in the rupee were capped on the back of strong demand from domestic oil importers.
Rupee is likely to trade sideways with a positive bias ahead of the F&O expiry but current levels suggest USDINR will face selling pressure on every upside correction. USDINR in NDF is currently trading down and it is likely to open down in futures too.
US dollar pared its gains after a round of mixed economic data, but held narrowly higher against key global rivals. While the US consumer confidence hit a 6-year high, climbing to 82.3 in March from an upwardly revised 78.3 in February new home sales dropped 3.3% in February and home prices slipped 0.1% in January. UK‘s CPI came at 4-year low and remains below the comfort level of the Bank of England.
Indian Rupee is likely to open positive against the US dollar. Positive Asian equities and positive euro will keep rupee in a positive mood but month end dollar demand will keep sentiment marginal negative.
In the spot market, the Rupee is expected to open at 60.30 against 60.48 closing on yesterday. Spot USDINR is expected to move in the range of 60.20 to 60.60. The most active march futures are expected to move between 60.10 and 60.70 after opening at 60.30.
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