Market May Remain Volatile Ahead Of F&O Expiry
Last week was remarkable as far as the velocity of the global market's move. The Sensex closed unchanged in the week that ended Friday on 19th December, 2014. First three trading days of a week, the Sensex fell 640 points (2.34%) and Nifty tanked 194 point (2.36%) due to a series of negative factors such disappointing IIP data, higher trade deficit, global growth concerns after crude fell to fresh multi-year lows and the Russian crisis triggered selling by participants on the bourses. However, the Indian equity market has managed to smart comeback in last two trading days of a week by got a boost from the Fed amid relief the Federal Reserve was in no rush to start hiking interest rates.
Finally during the week, Sensex and Nifty marginally gained by 0.1% each to close at 27,371 and 8,225 respectively. The BSE Mid-Cap index fell 108.19 points (1.07%) to 10,000.41. The BSE Small-Cap index fell 146.27 points (1.32%) to 10,922.21. Both these indices underperformed the Sensex.
On the global canvas, US equity market rose for a third session on Friday, with the S&P 500 tallying its second best week in nearly two years. The S&P 500 gained 9.42 points (0.5%) to 2,070.65, bringing its weekly gain to 3.4%. The Dow Jones Industrial Average rose 26.65 points (0.15%), to 17,804.80 and a weekly gain of 3.03%. The Nasdaq composite picked up 16.98 points (0.4%), to 4,765.38 and gain 2.4% over the week.
European shares closed mixed on Friday, London's FTSE 100 led gains in Europe, ending around 1.23% higher. The French CAC closed 0.18% lower and Germany's DAX finished down 0.25%. The Stoxx Europe 600 shrugged off earlier losses to close up 0.37% at 340.30. The pan-European index Stoxx 600 ended the week higher by 2.95%, its strongest weekly rise in a year. On the week, the FTSE is leading major European bourses, adding around 4%, followed by the CAC with 3.1% and the DAX with gains of 1.8%.
Asian markets open with mixed note. The Topix index was little changed at 1,410, erasing earlier gains of as much as 0.5%. The Shanghai Composite Index rose 1.70% percent to 3,160 and The Hang Seng Index gained 1.43%. The SGX Nifty is open in positive by 37 points i.e. 0.45%. However, we expect Indian benchmark indices to remain quite volatile, on account of December F&O expiry on Wednesday 24th December, 2014. The stock market remains closed on Thursday, 25 December 2014, on account of Christmas. With just two days left for the winter session of parliament to expire, participants would be eyeing the fate of several crucial bills like Insurance.