DSIJ Mindshare

Market Likely To Open Flat

A benchmark index of Indian equities markets crashed sharply, the Sensex, tumbled more than 855 points on yesterday and closed below 27,000-mark which is the steepest fall in five and a half years as tumbling oil prices and political uncertainty in Greece led to risk aversion, pushing world markets lower. The Sensex shed 3.07% to close at 26,987.46 points, while the Nifty declined 3%, or 251.05 points, closing at 8,127.35 points.

All Nifty stocks, with the exception of HUL and Coal India, closed lower. Jindal Steel was the worst hit with a fall of almost 7%, followed by ONGC, Sesa Sterlite, Tata Steel, HDFC and Reliance Industries which are fall by 5%. The BSE Mid-Cap and BSE Small-Cap indices drop 2.95% each. On yesterday, FIIs’ net equity selling stood at Rs 1,570.76 crore against which DIIs’ purchased Rs 1,189.65 crore –a net sale of Rs 381 crore.

The U.S. stock market endured another day of selling due to slumping oil prices. The S&P 500 index fell for the fifth straight session and is off more than 4% from its peak reached on Dec 29, 2014. The Dow Jones Industrial Average dropped 130.01 points to 17,371.64, the Nasdaq Composite fell 59.84 points to 4,592.74 and the S&P 500 closed 17.97 points lower at 2,002.61.

Yesterday, Brent settled down USD 2.01 at USD 51.10 a barrel. It came close to testing the USD 50 support, falling to a May 2009 low of USD 50.52. In the first two days of this week, Brent has lost USD 5.32, or almost 10%. US crude WTI finished down USD 2.11, or 4.2%, at USD 47.93, after plumbing an April 2009 low at USD 47.55.

Gold and silver futures rose to three-week high weeks after Europe’s economic concerns mounted, spurring demand for the precious metals as a haven. U.S. gold futures for February delivery settled up 1.3% at USD 1,219.40. Gold priced in euros hit its highest since September 2013 at 1,024.21 euros an ounce. Spot gold was last up 1.1% at USD 1,216.45 an ounce at, having earlier touched a peak of USD 1,222.40; it’s highest since Dec. 15. Spot gold's rise above the 100-day moving average at USD 1,216.16.

After a steep slide Monday, shares in Europe held up better but still weak. The German DAX was trading flat after being up nearly 1% earlier in the session, the CAC 40 in Paris was off 0.8%and the FTSE 100 in London was off 0.7%.

The continuous fall in Asian markets for the last 2-3 days seem to have stoped and are witnessing mixed trends currently. Japan’s Topix index is up by 0.35%. The S&P/ASX 200 Index slipped 0.55% in Sydney, while the Kospi index in Seoul was up by 0.21% after a negative start. The Hang Seng index down by 0.20%.

SGX Nifty is trading in red with 15.5 points lower to 8,124.5. Markets are expected to consolidate gains this week ahead of December quarter earnings season that will kick off with Infosys on Friday. Today, Indian market is expected to open flat on account of mixed trend in Asian stock markets.

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