8 Dec: Start of Day Equity Commentary :: HDFC Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Indian Markets

The Sensex ended down 105 points at 28,458 and the Nifty ended down 26 points to close at 8,538. The broader markets were no different. In the last leg of trade, the mid and smallcap surrendered almost all its gains and closed on a flat note. The smallcap index was almost unchanged and the midcap index was down 0.3%. NSE cash turnover was at Rs. 17101.

Defensive pockets like IT, Teck and Health Care indices were top losers, down upto 2%. Power, Oil & Gas and Capital indices were the other sectoral losers, down 0.4-0.6%. Auto and Bankex ended flat with a negative bias. TCS, Infosys and Wipro  lost between 1.5-2%.Dr Reddys Lab, Sun Pharma lost over 2% along with Cipla which shed 1.7%. M&M and Bajaj Auto gained 2% and 0.1% while Maruti, Tata Motors and Hero MotoCorp were down upto 1.3%. Hindalco, Tata Steel were down 1.5% and 0.3% respectively while Sesa Sterlite added another 2% in today's trade.

As per the provisional figures on Friday, FIIs were net sellers of Rs. 109 cr in the cash market, while they were net buyers of Rs. 286 cr in the F&O markets. DIIs were net buyers of Rs. 166 cr in the cash market. 

US and European Markets

U.S. stocks ended higher on Friday after November's jobs gains blew way past estimates. The Dow Jones industrial average ended up 0.3% or 59 points to its new closing high of 17,958.79, the S&P 500 gained 3.5 points, or 0.2 percent, to 2,075.37 and the Nasdaq Composite gained 11 points, or 0.2 percent, to 4,780.76.

European shares ended in the green. The CAC40 of France, DAX of Germany and FTSE 100 of UK ended higher by 2.21%, 2.39% and 0.95% respectively

Most of the Indian ADRs ended on a mixed note. Among the banking stocks, ICICI Bank was up 0.8% while HDFC Bank was up 0.6%. IT majors, Infosys was down 1.6% while Wipro was down 1.2%. Dr Reddys was down 2% while Tata Motors was up 1.1%

Latin American Markets

Among the Latin American markets, the Mexican markets were up 1%, while the Brazilian index ended higher by 1.1%.

Asian Markets

Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.84% while the Hang Seng is up 0.35%. The Nikkei 225 is not trading.

As of IST 8.40 am SGX Nifty is trading marginally higher by 1 point. 

Currencies

The rupee ended at a two-week closing high on Friday, tracking broad-based strength in Asian currencies against the dollar and continuing large foreign inflows into Indian financial markets, particularly debt, aiding gains. Indian currency ended at 61.85 against dollar. 

The EUR/USD plummeted on Friday, after solid NFP data confirmed the expectations for the first rate hike in the summer of 2015. It closed at 0.81.

Commodities

Oil for Jan 2015 contract lost 0.97% at $65.84/barrel.

Gold for Feb 2015 delivery lost 1.43% at $1190.40/troy ounce.

Key Events for today

Japan - Reuters Tankan Index, Adjusted Current Account, GDP, Economy Watchers Current Index
Australia - ANZ Internet Jobs, Jobs Advertisements, 
Canada - Housing Starts, Building Permits 
USD - CB Employment Trends Index, Bill Auction
Europe - French BTF Auction

Outlook

Indian markets could open flat and be range-bound with a positive bias. Immediate support for Nifty is at 8500 level, while immediate resistance is at 8540 level. Among the Sectoral indices, Capital Goods, Power, FMCG may relatively outperform while IT, Pharma may relatively underperform.