Money Jun 7, 2013
Indian markets once again opened in the red as demand for equities has been waning in the last couple of days.The sentiment for rupee too remains bearish on current account deficit concerns.
While the BSE Sensex opened down 0.15 percent at 19490 while the Nifty was down 0.23 percent at 5907.
"For the Nifty, the 5940 levels will continue to act as strong resistance. Lack of domestic cues has made the market trade in a range. Global cues like US unemployment and jobless claims data will take centre-stage," said IIFL in a research report.
The rupee opened at 56.77 versus the dollar, higher than yesterday's close 56.84/dollar. Dealers told Reuters fears that a falling rupee would lead foreign investors to pare positions may hit blue chip stocks. AV Rajwade of AV Rajwade & Co believes that unless the Reserve Bank of India (RBI) intervenes by selling dollars, the weakness in the rupee will continue.
Yesterday the rupee breached the 57 mark against the dollar and hit one-year low but towards the end of trade it managed to recover to close at 56.8.
Stocks in news
Hero Motocorp , Tata Power , Reliance , Dr Reddys Labs and Wipro are key gainers in early trade. Maruti, HDFC , Hindalco , ICICI Bank and ITC are the major losers
Maruti is biggest Sensex/Nifty loser, down 1.7 percent as the company has ordered a one day shutdown of all its facilities due to low demand in the diesel car segment. Maruti facilities at Gurgaon and Manesar will be shut today. The Suzuki Powertrain factory at Manesar will also be shut. Maruti will shut diesel car production at Manesar for the 1st time.
RIL announced it will invest Rs 1.5 lakh crore in the next three years. However, the stock failed to improve the sentiment of the market. Today the stock isu p 0.59 percent
Future Retail is down over 3 percent after the government issued a clarification on FDI rules for multi-brand retail.
Ranbaxy Laboratories is down 0.87 %, after a plea has been filed in the Supreme Court seeking cancellation of generic drugmaker Ranbaxy's manufacturing licence on the grounds that it fudged data and sold adulterated products in the US.
IMD says India's monsoon is 1% below 50-yr avg since June 1.
Meanwhile, the Finance Minister says as CPI inflation and deposit rates fall, commercial banks should translate monetary policy to retail borrowers and firms through lower lending rates.
Chidambaram says Indian gold imports will come down sharply after tax increase and he expects to introduce the amended bill on direct taxes in FY14.
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