Markets Likely To Remain Range Bound
A benchmark index of Indian equities markets closed flat on yesterday after record highs for the second consecutive day. The Sensex discard 14.59 points i.e. 0.05% to settle at 28,163.29 and Nifty closed lower by 4.85 points i.e. 0.06% at 8,425.90 points. The market breadth indicating the overall health of the market was positive. Sustained selling pressure was observed in consumer durables, oil and gas and healthcare sectors, while healthy buying was seen in capital goods, metal, automobile, bank and power scrip.
On the global canvas, US stocks ended higher yesterday, with the S&P 500 scored its fourth straight day of gains after USD 66 billion deal by Actavis for Allergan helped drive gains in the healthcare sector and a gauge of sentiment among U.S. home builders increased more than expected. The Dow and S&P 500 closed at record highs on yesterday, the S&P 500 closed up by 10.72 points (0.53%) 2,052.04 and Dow rose 44.05 points (0.25%), to 17,691.8. The Nasdaq Composite added 31.44 points (0.67%), to 4,702.44. The U.S. Producer Price Index (PPI) for final demand rose 0.2% in October on a seasonally adjusted basis, said the U.S. Labor Department. The fresh figure followed a 0.1% decline in September and no change in August.
European stocks and the euro climbed yesterday, helped by an indication of renewed confidence in the strength of the Germany economy which a rare signal of the European Central Bank is still on track to take new steps to tackle low inflation. DAX index ended the session 1.6% higher, helping the Stoxx Europe 600 to a 0.6% gain, after Germany’s ZEW institute stated that although the economic environment remains fragile, recent eurozone growth figures suggest a degree of stabilization. The U.K.’s FTSE 100 was up 0.6%, helped by annual inflation accelerating in October, climbing to 1.3% from 1.2% in September.
The euro touched a day’s high of $1.2546 against the dollar and was around 0.6% higher against the greenback in late European trade, while advancing around 0.5% against the British pound.
It was a mixed start for Asian stock market, Japan's benchmark Nikkei average rose 2.03% to 17,317.60 in today early morning and now it’s trading flat following news of a snap election in Japan and the delay of a proposed sales tax increase. While, Hong Kong shares were down 0.3% with the Hang Seng index at 23,529.17 and Shanghai's Composite index was also lower, down 0.2% at 2,452.15.
Indian market is consolidating waiting for winter session of parliament to unveil a slew of reform measures especially GST, land act and insurance bill where market is holding high expectation. The second event hazard is RBI meet, whether they will lower rate cut in December or later is the question. Based on these event stocks will be volatile. The SGX Nifty is open in green with up by 0.11%. Today we expect Indian equities open slightly higher.