Markets open flat and remain range-bound with a positive bias :: HDFC Securities

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Indian Markets

The 30-share Sensex ended 195 points lower at 27,506, while the 50-share Nifty closed down 57 points at 8,267. In the broader market, BSE midcap index performed better than the front-liners with a loss of 0.3% while BSE smallcap index underperformed with a loss of around 0.6%. Market breadth in BSE ended weak with 1,850 declines against 1,072 advances. NSE cash turnover was at Rs. 13498.

All the sectoral indices ended weak. BSE Metal index, down around 2%, lost the most followed by BSE Consumer Durables and Capital Goods indices which lost around 1.4% each. However, a handful of stocks stood out for their positive performance in a dull market.  NTPC gained around 3%. Cipla gained around 2%. Bajaj Auto gained around 2%. ICICI Bank lost more than 1.5% while Axis Bank lost around 06% and SBI lost 0.3%. RIL and ONGC lost more than 1% each while GAIL ended higher by 0.3%.

As per the provisional figures on Tuesday, FIIs were net sellers of Rs. 445 cr in the cash market, while they were net buyers of Rs. 2364 cr in the F&O markets. DIIs were net buyers of Rs. 516 cr in the cash market. 

US and European Markets

The Dow Jones closed above 18000 for the first time on Tuesday after data showed the U.S. economy posted its strongest growth in more than a decade. The blue-chip index climbed 64.73 points, or 0.4%, to 18024.17, marking its 36th record for the year. The S&P 500 index added 3.63 points, or 0.2%, to 2082.17, notching its 51st closing high of 2014. Meanwhile, the Nasdaq Composite fell 16 points, or 0.3%, to 4765.42, dragged down by broad declines in health-care stocks. The iShares Nasdaq Biotechnology exchange-traded fund fell 4.7%.

European markets ended higher. The FTSE 100 gained 0.3%, while CAC 40 & DAX gained 1.4% & 0.6% respectively.

Most of the Indian ADRs ended on a negative note. Software majors Infosys & Wipro were down 0.2% and 0.4% respectively. Banking stocks HDFC Bank & ICICI Bank were each down 0.4%. Tata Motors was down 1.4% while Dr Reddy?s was down 0.9%.

Latin American Markets

Among the Latin American markets, the Mexican markets gained 0.6%, while the Brazilian index ended higher by 1.5%.

Asian Markets

Asian markets are mixed. The Shanghai Composite is lower by 1.51% while the Hang Seng is even. The Nikkei 225 is not trading.

As of IST 8.35 am SGX Nifty is trading higher by 3.5 points. 

Currencies

The Indian rupee lost three paise against the US dollar to 63.28 due to sustained capital outflows and fresh demand for the US currency from banks and importers.

A gauge of the dollar climbed to a five-year high after the economy expanded at the fastest pace in more than a decade, supporting the case for the Federal Reserve to raise interest rates. The greenback advanced for a fifth day against the yen as consumer spending accelerated more than estimated. 

Commodities

Oil for Feb 2015 contract gained 3.4% at $57.1/barrel.

Gold for Feb 2015 delivery ended marginally lower by 0.2% at $1178/troy ounce.

Key Events for Today

India - M3 money supply
US - Continuing & Initial Jobless claims, Crude Oil inventories

Outlook

Indian markets could open flat and remain range-bound with a positive bias. Immediate support for Nifty is at 8205 level, while immediate resistance is at 8375 level. Among the sectoral indices, Pharma, Capital Goods, FMCG could relatively outperform while IT may underperform.