Indian Market Likely To Remain volatile on F&O Expiry Day
Indian equities indices ended flat after a volatile session ahead of F&O expiry. The Nifty was at a kissing distance of 9000-mark intraday and ended at record closing high up 3.80 points or at 8914.30. The Sensex snapped 8-day gains, down 11.86 points at 29559.18. The broader markets ended on a weak note. BSE mid-cap index closed weaker by 0.3% and the small-cap index managed to close with marginal gains.
The government is eyeing a record high spectrum sale of Rs 1 trillion fixed the base price for 3G auction at Rs 3,705 per mega hertz which itself can fetch over Rs 17,000 crore from this band. Along with the spectrum in 2,100 MHz band, which is used to offer 3G services, the government will also offer the second generation or 2G mobile airwaves in three different bands in an auction scheduled for March 4. While the auction of these 2G and 3G airwaves could garner Rs 82,395 crore at the base or minimum price, sources said the government expects the total proceeds to exceed Rs one lakh crore.
A sharp drop in oil prices overshadowed the Federal Reserve, with energy companies leading a selloff in U.S. stocks even as the central bank delivered what is usually good news for equities: It remains in no rush to raise interest rates. The Dow Jones industrial average fell 195 points, or 1.1%, to close at 17,191, near its low point for the day. The S&P 500 slid 27 points, or 1.4%, to 2,002. Nasdaq Composite Index lost 43.50, or 0.9%, to 4637.99.
Word that U.S. oil supplies hit 80-year highs pushed crude oil prices sharply lower on yesterday. Benchmark WTI sank 4.3% to USD 44.25 a barrel near six year lows after the U.S. Energy Information Administration said domestic supplies rose to nearly 407 million barrels last week, the highest level since 1924. Brent crude dropped 2.3% to USD 48.44.
European stocks were also mixed. Britain's FTSE 100 index was down 0.1% and France's CAC 40 dropped 0.1%. But Germany's DAX index gained 0.8% as German consumer confidence rose to a more than 14-year high. The Stoxx Europe 600 index closed 0.1% higher having given up most of its early gains. The Athens index tumbled by 9.2% with the banks plunging by a quarter or more, and yields on Greek 10-year bonds also rose above the symbolic barrier of 10%. The euro edged down to USD 1.1336 from the previous session's USD 1.1362.
Asian indices saw modest losses early Thursday, following a sell-off on Wall Street overnight as U.S. crude tumbled to near six-year lows. Australia’s S&P/ASX 200 Index fluctuated and currently trading at flat. While Japan’s Topix index drop of 0.60%. The Kospi index dropped 0.2%. The Shanghai Composite dropped 1.2% sending the benchmark index to a one-week low, amid speculation increased regulatory scrutiny of margin loans will spur some leveraged investors to reduce holdings.
SGX Nifty is trading in red and lowers by 20.5 points. Indian market may expect to open in red following other Asian markets. Ashok Leyland, Akzo Nobel India, Gateway Distriparks, Transport Corporation of India, Sesa Sterlite, HDFC, Dr Reddy's Laboratories, Asian Paints and IDFC would be reporting third quarter earnings today.