The main Indian equity benchmarks are trading near the intraday low in early afternoon trade, as investors continue to reel under the after-effects of shocking fourth-quarter GDP data and bleak prospects for the Indian economy in the coming quarters. The Indian markets have kick-started June on a negative note after two consecutive monthly falls in April and May. They had advanced in the first three months of 2012 on the back of strong FII inflows. However, the overseas capital flows have turned negative in the wake of the controversy over GAAR, Vodafone tax dispute and weak economic fundamentals.
At 12:38 pm ( IST), the BSE Sensex was 16,078, down 140 points points over the previous close. It had earlier touched a day’s high of 16,226 and aday’s low of 16,052. It opened at 16,217.
NSE Nifty was quoting 4,878 down 44 points over the previous close.It has earlier touched a day’s high of 4,925 and a day’s low of 4,869. It opened at 4,910.
ICICI Bank,SBI,Tata Power,Maruti Suzuki,Tata Motors,Reliance Infra, ITC, Hindalco Inds were among the notable leaders in the Sensex and the Nifty.
RIL, Infosys, Wipro, TCS, Bajaj Auto,Hero MotoCorp, Jindal Steelwere among the notable losers in the Sensex and the Nifty.
The BSE Small-Cap index was trading down 0.30% while BSE Mid-Cap index was trading down 1%
FMCG indices is only the gainer.
Oil and Gas, Consumer Goods, Auto,Bankex, Metal,Realty FMCG, Teck, IT , Metal, PSU indices are the losers.
An intraday recovery in the Asian markets, led by China and Hong Kong, has not had any positive fallout in the Indian markets. Also, the Rupee has extended its ascent from the previous session on hope of some policy action to arrest the slide in the local currency.
The rupee has recovered from a weak opening and was trading above the 56 to the dollar mark, though the broader sentiment remains weak as the euro fell to a two-year low. It was last trading at 55.89 per dollar after being as high as 55.8150 and as low as 56.28. It opened at 56.18 as against the previous close of 56.11.
Meanwhile, the Hong Kong stocks turned higher and other Asian indices pared their losses, after data pointing to further slowdown in China spurred hopes for more stimulus measures.
European stock indices opened more or less flat on Friday, with traders cautious following the downbeat China factory data. Investors will now focus on manufacturing PMI reports for Germany, the UK and Eurozone besides the US nonfarm payroll data due out later in the session.
Miserable May for markets:
Looks like investors took the old adage ‘Sell in May and go away’ quite seriously. There was no dearth of misery in May, as eurozone debt problems resurfaced in the form of Greek politics and Spain’s banking troubles. The of the largest growth engines of the world - the US and China – are also losing steam.
India is not immune to the global headwinds but the fact of the matter is that much of the problems are home grown. That GDP growth in Q4 was the slowest in nine years shows how big a setback we have suffered. UPA II’s stint has been a disaster so far. While growth has decelerated, inflation remains sticky and deficits are soaring. The rupee’s slide underscores the deterioration in economic fundamentals.
The big question is have we seen the worst? The fear is things could deteriorate further, especially if there are more shocks out of the eurozone. We may see more red ticks this morning due to global selloff and GDP shocker. Watch out for data on auto sales, exports and manufacturing PMI. Globally too, the markets will keenly track data on manufacturing sector PMIs, auto sales and US monthly job additions.
The Nifty opened lower on Thursday but managed to recoup some loses despite weaker than expected Q4 GDP data. It finally closed below 4,950. This move has negated the weekly breakout and the Nifty is back in the trading range of 4,800-4,950. We maintain our cautious outlook for the near term on the back of strength in the USD.
Key Results Today: McNally Bharat and Mphasis.
Trend in FII flows: The FIIs were net sellers of Rs 6.65bn in the cash segment on Thursday while the domestic institutional investors (DIIs) were net sellers of Rs 2.66bn, as per the provisional figures released by the NSE.
The FIIs were net sellers of Rs 4.14bn in the F&O segment on Thursday, according to the provisional NSE data.
The foreign funds were net buyers of Rs 855mn in the cash segment on Wednesday, according to the SEBI figures.
Global Data Watch today: Japan capital spending, China manufacturing PMI (Govt and HSBC), UK Halifax house prices, Germany manufacturing PMI, Eurozone manufacturing PMI, UK manufacturing PMI, Eurozone unemployment rate, US ISM manufacturing PMI, US non-farm payrolls, US unemployment rate, US personal income, US consumer spending, US vehicle sales and US construction spending.