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Today the benchmark Indices are likely to open negative as the Asia stocks are trading lower tracking cues from the Wall Street and as investors were concerned about the further action by China to control inflation. The MSCI Asia Pacific Index declined 0.8% to 136.68 with about three stocks declining for each that rose. Further, Japan's Nikkei 225 Stock Average is down by 0.87% or 90.53 points to 10,346.78 as trading houses plunged following declines in oil and metal prices on concern that China will raise interest rates and result in decline of demand. However, Shanghai Composite is up by 1.51% to 2,718.06 and Hang Seng Index inclined by 0.13% to 24,035.0. China's stocks managed to incline despite worries that inflation will pick up this month after slowing in December, thus pressurizing the government to increase interest rates. Separately, Straits Times is up by 0.06%, while, Seoul Composite is trading down by 1.21%. In the domestic arena, the markets are likely to follow the rout of global counterpart and trade range-bound with downside movement. Banking, IT and CG pivotals will be in focus today.
On Thursday, the domestic bourses ended on a cheerful note after the benchmark indices gained strength during the final couple of hours backed by the Banking and IT stocks. The market started off the session on a downbeat note as the benchmark indices witnessed a gap down opening tracking negative global cues. The Asia stocks declined during early trade due to negative closing for the US market amidst disappointing earnings reports. Further, the Chinese market declined despite the country''''s annual gross domestic product growth reported a growth in the fourth quarter to 9.8% from 9.6% in the third quarter. Moreover, China's December Consumer Price Index grew 4.6% over the last year. After a weak start, the market started to pare off some of the losses and inched towards the baseline. But, the upmove remained short-lived and the benchmarks were seen dragging again making fresh intraday lows. However, the last couple of hours witnessed emergence of buying interest in the Banking and IT stocks which pulled the broader indices on the positive terrain to reach the highest point of the session. The strength in the market came in after the food inflation figures cooled down from the previous week. The mixed opening for the European bourses had limited impact in the domestic arena.
The BSE Sensex closed up by 68.22 points or (0.36%) at 19,046.54 and NSE Nifty ended higher by 20.55 points or (0.36%) at 5,711.60. BSE Midcap closed with a gain of 9.88 points or (0.14%) at 7,176.19 while BSE Smallcap closed higher by 3.51 points or (0.04%) at 8,905.18. The BSE Sensex touched intraday high of 19,100.26 and intraday low of 18,794.73.
On Thursday, the U.S. markets closed lower as stocks attempt to rally failed against stiff selling effort. Sellers attempted to take control from the start as they were encouraged by worries that China might have to tighten monetary policy to control inflation after the country reported that its economy expanded at a torrid clip of 9.8% in the fourth quarter. Sellers came with a bid such that the S&P 500 and the Dow were dragged back to the neutral line, but resistance there encouraged sellers to redouble their efforts. For the second consecutive session the Nasdaq was hit the hardest. However, amid improved tone stocks rebounded in the second half, but neither the Dow nor the S&P 500 could do more than briefly poke into positive territory before drifting into the close. Besides, eBay (EBAY 30.78, +1.68) was one of the few strong performers in the Nasdaq as its near 6% surge followed better-than-expected earnings and strong guidance. Whereas, fellow Nasdaq component Google (GOOG 626.77, -4.98) was weak ahead of its latest report. Further, on the economic front, initial jobless claims for the week ended January 15 stood at 404,000, below the expected 425,000 initial claims. Besides, continuing claims fell to 3.86 million from 3.89 million. On the currency front, the dollar gained 0.2% against a basket of major foreign currencies. Most of that move came against the yen, which was down 1.2% to 83.0 yen per dollar at the closing bell.
In the major indices, the Dow Jones Industrial Average (DJIA) closed with a loss of 2.49 points or 0.02% at 11,822.8, while NASDAQ index finished lower by 21.07 points or 0.77% to 2,704.29. The S&P 500 (SPX) closed down by 1.66 points or 0.13% to 1,280.26.
The FIIs on Thursday stood as net seller in both equity and debt. Gross equity purchased stood at Rs 3,179.0 Crore and gross debt purchased stood at Rs 491.0 Crore, while the gross equity sold stood at Rs 3,387.0 Crore and gross debt sold stood at Rs 889.0 Crore. Therefore, the net investment of equity and debt reported were Rs (208.1) Crore and Rs (398.0) Crore respectively.
Top traded volumes on NSE Nifty – Suzlon Energy with total traded volume of 11,946,904, followed by JP Asso with 9,599,824, Reliance with 9,361,271, Hindalco with 8,696,253 and ITC with 7,342,116.
On BSE, total number of shares traded was 27.73 Crore and total turnover stood at Rs 3,347.16 Crore. On NSE, total number of shares traded were 63.48 Crore and total turnover was Rs 13,346.89 Crore.
On NSE Future and Options, total number of contracts traded in index futures was 709663 with a total turnover of Rs 19,080.51 Crore. Along with this total number of contracts traded in stock futures were 740876 with a total turnover of Rs 20,095.67 Crore. Total numbers of contracts for index options were 3639459 with a total turnover of Rs 104,860.27 Crore and total numbers of contracts for stock options were 134470 and notional turnover was Rs 3,943.81 Crore.
Today, Nifty would have a support at 5,661 and resistance at 5,742 and BSE Sensex has support at 18,889 and resistance at 19,143.
Regards,
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