Markets open in the green on positive global cues :: HDFC Securities

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Indian Markets

The Indian benchmark indices closed at record high consecutively for the fourth trading session on Friday buoyed by the European Central Bank's announcement of bond-buying programme to stimulate the flagging eurozone economies. The trigger for Friday's rally was a $1.15 trillion stimulus announcement by the European Central Bank overnight. The ECB said it would buy government bonds from this March until the end of September 2016 to kick-start the stagnant eurozone economy. 

The S&P BSE Sensex advanced 0.9% or 273 points to end the day at 29,279 and the Nifty advanced 74 points or 0.9% to shut shop at 8,896. Bucking the trend, the broader markets underperformed the benchmark indices. The BSE small-cap index closed weaker by nearly 1% at 11,366 and the small-cap index lost 0.2% to end at 10,695. Market breadth was negative, as the A/D ratio was 0.6:1 on the BSE. NSE cash turnover was Rs.10,263 crs. Vs. Rs.19,254 crs. on Thursday.

Barring Consumer Durables and PSU, all other sectoral indices ended the day in green. The top gainers were BSE Auto, Realty, Capital Goods and Power. Among BSE Sensex 30, Tata Power, Tata Motors, Bharti Airtel and Cipla were the top gainers, while the losers were GAIL, BHEL, ONGC and Dr Reddy.

As per the provisional figures on Friday, FIIs were net buyers of Rs.2,020 cr in the cash market, while they were net buyers of Rs.384 cr in the F&O markets. However, DIIs were net sellers of Rs.1,300 cr in the cash market. 

US and European Markets

U.S. stocks edged higher on Monday as investors brushed off fears a leftist victory in Greece would bring fresh crisis to the Eurozone and energy stocks advanced. Dow Jones rose 6 points, or 0.03%, to 17,679, the S&P 500 gained 0.3%, to 2,057 and the Nasdaq Composite too added 0.3%, to 4,772.

The majority of the European markets ended Monday's session in positive territory. DAX of Germany climbed 1.4% and CAC 40 of France rose 0.7%. FTSE 100 of U.K. gained 0.3%.

The Indian ADRs ended on a positive note with Wipro rising the most by 1.6% while ICICI Bank and Tata Motors rose by 1.4% each. HDFC bank moved up by 1.2% while Dr Reddys ended higher by 0.9%. Infosys rose by 0.5%. 

Latin American Markets

Among the Latin American markets, the Mexican markets ended higher by 0.2%, while Brazilian index ended lower by 0.4%.

Asian Markets

Most the Asian markets are trading higher today except Hang Seng and Shanghai, which are down by 0.7% and 0.4% respectively. Nikkei is up the most by 1.4% followed by Strait Times and Kospi, which are trading higher by 0.7% and 0.3% respectively. Taiwan is up 0.1%.

As of IST 9.00 am SGX Nifty was trading higher by 38 points.

Currencies

The Indian Rupee ended higher by 28 paise at 61.42 against the US Dollar on Friday on fresh selling of dollars by banks and exporters on persistent foreign capital inflows into the equity market. 

The euro rebounded from two days of sharp losses on Monday even after an anti-bailout party was victorious in Greek elections, while global stock indexes edged up on confidence in the European Central Bank's new money-printing program.

Commodities

Oil for March 2015 contract ended lower by 1% at 45.15 $ / barrel.

Gold for Feb 2015 delivery fell by 1% to end at 1279.4 $ / troy ounce.

Key Events for Today

Australia - NAB Business Confidence
Japan - Corporate Services Price Index (Y-o-Y)
UK - GDP (Y-o-Y & Q-o-Q), BBA Mortgage Approvals
US - Chain Store Sales, Durable Goods Orders, Redbook, PMI Services, CB Consumer Confidence, New Home Sales, Richmond Manufacturing Index

Outlook

Indian markets could open in the green on positive global cues and positive news from Europe. ECB's stimulus may lead to additional fund flows into emerging markets such as India, which is good news for domestic stock markets. Immediate supports on Nifty are at 8,800 and 8,770 while resistance is at 8,900.