Market Update 9 Dec: HDFC securities

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Indian Markets

The 30-share Sensex ended down 339 points at 28,119 and the 50-share Nifty closed 100 points lower at 8,438. The Sensex and the Nifty touched an intra-day low of 28,097 mark and 8,432. The broader markets ended weak in-line with the benchmark indices- BSE Midcap and Smallcap indices fell 0.9-1.2%. The market breadth in BSE ended dismal with 1,790 shares declining and 1,157 shares declining. NSE cash turnover was at Rs. 22808.

BSE IT index slumped by over 3% followed by counters like Capital Goods, Realty, Auto, Banks, Consumer Durables and Metal, all dropping between 1-2%. Meanwhile, defensive counter FMCG ended higher by nearly 1%. Metal stocks ended lower tracking weak China data. Infosys, TCS, HCL Technologies, KPIT Technologies, Hexaware Technologies, CMC and Mindtree ended down 3-5% on NSE. Sesa Sterlite ended nearly 4%. M&M, Dr Reddy?s Labs, Hindalco, BHEL and L&T, all dropping between 2-3%.

As per the provisional figures on Monday, FIIs were net buyers of Rs. 4985 cr in the cash market, while they were net buyers of Rs. 311 cr in the F&O markets. DIIs were net buyers of Rs. 1031 cr in the cash market. 

US and European Markets

U.S. stocks ended lower on Monday after Brent crude fell to a five-year low on predictions oversupply would keep building until next year. The Dow Jones industrial average ended up 0.59% or 106.31 points to close at 17,852.48, the S&P 500 lost 15.06 points, or 0.73 percent, to 2,060.31 and the Nasdaq Composite dropped 40.06 points, or 0.84 percent, to 4,740.69.

European shares ended in the green. The CAC40 of France, DAX of Germany and FTSE 100 of UK ended lower by 1.0%, 0.72% and 1.05% respectively. 

Most of the Indian ADRs ended on negative note. Among the banking stocks, ICICI Bank was down 0.8%while HDFC Bank was up 0.3%. IT majors, Infosys was down 4% while Wipro was down 2.6%. Dr Reddys was down 0.7% while Tata Motors was up 1.2%

Latin American Markets

Among the Latin American markets, the Mexican markets were down by 0.7%, while the Brazilian index ended lower by 3.3%.

Asian Markets

Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.05% while the Hang Seng is down 1.06%. The Nikkei 225 is not trading.

As of IST 8.30 am SGX Nifty is trading lower by 30 points.

Currencies

The rupee weakened on Monday after a robust monthly U.S. employment data sparked a global rally in the dollar and raised worries that any earlier-than-expected hike in U.S. interest rates could dent foreign flows to emerging markets. The rupee was also weighed down after shares posted their biggest falls in 7-1/2 weeks and after some founders of Infosys Ltd sold shares worth $1.1 billion in India's second-largest IT services exporter. It closed at 61.84 per dollar.

The euro remained near fresh two-year lows against the dollar on Monday, as comments by European Central Bank Governing Council member Ewald Nowotny further weighed on demand for the single currency. It closed at 0.81

Commodities

Oil for Jan 2015 contract lost 4.24% at $63.05/barrel.

Gold for Feb 2015 delivery gained 0.38% at $1194.90/troy ounce.

Key Events for today

Japan - 30-Year JGB Auction
German - Imports, Exports, Trade Balance
USD - Chain Store sales, Core CPI, Redbook, CPI, Bill Auction, JOLTs Job Openings (Oct)
Europe - French Imports, Exports and Trade Balance, Britain Industrial Production, Manufacturing Production, 30-Year Treasury Gilt Auction
 
Outlook

Indian markets could open negative and witness some correction during the day. Immediate support for Nifty is at 8350 level, while immediate resistance is at 8500 level. Among the Sectoral indices, Pharma FMCG may relatively outperform while Banks, Capital Goods, Power may relatively underperform.