Sensex, Nifty open lower; IT stocks fall,
Axis slips 5% on Q3 Axis Bank, ICICI Bank, Tata Motors, Coal India and Asian Paints are top losers in the Sensex while GAIL, Cipla, SBI, Bharti and L&T are gainers. Inter-ministerial body FIPB approved six investment proposals, including that of India, Star Den Media Services and Idea Cellular Infrastructure Services, envisaging foreign investments of Rs 1,186.5 crore. Of the total, Recipharm Participation BV of Netherlands alone will bring in investment of Rs 950 crore. The company had sought approval for 100 percent foreign direct investment in a proposed Recipharm Group Indian Investing Company through which it will completely acquire in an existing pharmaceutical manufacturing company Dagny Pharma. Global economy is on firmer ground and Dixit Joshi of Deutsche Bank expects GDP growth of 3.4 percent in 2017. However, currency volatility will be a key risk, the US dollar to continue on a positive, albeit somewhat bumpy, path.
Potentially higher inflation and good growth in the US will help underpin the dollar, he said. While this could weigh on emerging markets in the short run, he believes they will recover soon as the EMs are in a much better position now than they were few years ago. India has seen capital flows migrating towards areas of better opportunity, but there is recognition that demonetisation and negative credit impasse from that in the short run will dissipate soon. Growth will return and lead to money starting to flow back, he said. Timothy Moe of Goldman Sachs says generally constructive for Asian equity markets centers on the positive re-flationary dynamic of an improving global macro cycle and a corresponding upswing in regional corporate profits, but with three important risks: rising US rates, strengthening of the US dollar, and the threat of tariff barriers on Asian exports to the US. Of these three, the risk of trade barriers appears likely to increase in prominence in coming weeks and months following the inauguration of Donald Trump as the 45th President of the United States today, he feels. The market has opened cautiously lower head of US President-Elect Donald Trump’s inauguration later in the day.
The Sensex is down 106.48 points or 0.4 percent at 27202.12, and the Nifty down 27 points or 0.3 percent at 8408.10. About 359 shares have advanced, 418 shares declined, and 153 shares are unchanged. Axis Bank, ICICI Bank, Tata Motors, Coal India and Asian Paints are top losers in the Sensex while GAIL, Cipla, SBI, Bharti and L&T are gainers. The Indian rupee opened higher at 68.05 per dollar versus previous close 68.12. Bhaskar Panda of HDFC Bank said, "Data from US has been upbeat but one needs to keep an eye on the new US president and his policies. Confidence in India is on the mend." Treasuries slumped and the dollar slipped as investors await Donald Trump's inauguration for clues on whether his policies will boost growth in the world's largest economy. Asian markets slipped in morning trade as risk sentiment soured ahead of Trump’s event. The Nikkei and Hang Seng slipped 0.14 percent and 0.72 percent, respectively.
Investors now await key data from China as it is set to announce its GDP, retail sales as well as industrial production figures The US markets closed lower, with real estate falling around 1 percent, as investors eagerly awaited Trump's inauguration. The Dow Jones closed about 70 points lower, with Goldman Sachs contributing the most losses. The index also recorded a five-day losing streak. The S&P 500 and Nasdaq too lost 0.36 percent and 0.28 percent, respectively. The country also saw weekly jobless claims drop 15,000 to 2,34,000— the lowest level in 40 years. Housing starts surpassed expectations after it spiked 11.3 percent in December. In Europe, markets closed slightly lower after the European Central Bank announced it would keep its monetary policy stance unchanged. President Mario Draghi of the ECB said that the bank stood ready to increase its asset purchases in size and duration if it becomes necessary. The FTSE index ended the day half a percent lower
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Axis slips 5% on Q3 Axis Bank, ICICI Bank, Tata Motors, Coal India and Asian Paints are top losers in the Sensex while GAIL, Cipla, SBI, Bharti and L&T are gainers. Inter-ministerial body FIPB approved six investment proposals, including that of India, Star Den Media Services and Idea Cellular Infrastructure Services, envisaging foreign investments of Rs 1,186.5 crore. Of the total, Recipharm Participation BV of Netherlands alone will bring in investment of Rs 950 crore. The company had sought approval for 100 percent foreign direct investment in a proposed Recipharm Group Indian Investing Company through which it will completely acquire in an existing pharmaceutical manufacturing company Dagny Pharma. Global economy is on firmer ground and Dixit Joshi of Deutsche Bank expects GDP growth of 3.4 percent in 2017. However, currency volatility will be a key risk, the US dollar to continue on a positive, albeit somewhat bumpy, path.
Potentially higher inflation and good growth in the US will help underpin the dollar, he said. While this could weigh on emerging markets in the short run, he believes they will recover soon as the EMs are in a much better position now than they were few years ago. India has seen capital flows migrating towards areas of better opportunity, but there is recognition that demonetisation and negative credit impasse from that in the short run will dissipate soon. Growth will return and lead to money starting to flow back, he said. Timothy Moe of Goldman Sachs says generally constructive for Asian equity markets centers on the positive re-flationary dynamic of an improving global macro cycle and a corresponding upswing in regional corporate profits, but with three important risks: rising US rates, strengthening of the US dollar, and the threat of tariff barriers on Asian exports to the US. Of these three, the risk of trade barriers appears likely to increase in prominence in coming weeks and months following the inauguration of Donald Trump as the 45th President of the United States today, he feels. The market has opened cautiously lower head of US President-Elect Donald Trump’s inauguration later in the day.
The Sensex is down 106.48 points or 0.4 percent at 27202.12, and the Nifty down 27 points or 0.3 percent at 8408.10. About 359 shares have advanced, 418 shares declined, and 153 shares are unchanged. Axis Bank, ICICI Bank, Tata Motors, Coal India and Asian Paints are top losers in the Sensex while GAIL, Cipla, SBI, Bharti and L&T are gainers. The Indian rupee opened higher at 68.05 per dollar versus previous close 68.12. Bhaskar Panda of HDFC Bank said, "Data from US has been upbeat but one needs to keep an eye on the new US president and his policies. Confidence in India is on the mend." Treasuries slumped and the dollar slipped as investors await Donald Trump's inauguration for clues on whether his policies will boost growth in the world's largest economy. Asian markets slipped in morning trade as risk sentiment soured ahead of Trump’s event. The Nikkei and Hang Seng slipped 0.14 percent and 0.72 percent, respectively.
Investors now await key data from China as it is set to announce its GDP, retail sales as well as industrial production figures The US markets closed lower, with real estate falling around 1 percent, as investors eagerly awaited Trump's inauguration. The Dow Jones closed about 70 points lower, with Goldman Sachs contributing the most losses. The index also recorded a five-day losing streak. The S&P 500 and Nasdaq too lost 0.36 percent and 0.28 percent, respectively. The country also saw weekly jobless claims drop 15,000 to 2,34,000— the lowest level in 40 years. Housing starts surpassed expectations after it spiked 11.3 percent in December. In Europe, markets closed slightly lower after the European Central Bank announced it would keep its monetary policy stance unchanged. President Mario Draghi of the ECB said that the bank stood ready to increase its asset purchases in size and duration if it becomes necessary. The FTSE index ended the day half a percent lower
Read more for Indian Stock Tips-http://www.aceinvestmentadvisory.com
