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Money Sep 2, 2013

Shares to stay volatile; watch out for rupee movement

By Firstbiz Editors

Market outlook: Indian shares may remain volatile in the short term as traders remain wary of foreign flows after overseas investors sold over $1 billion worth of shares in the 10 sessions through Thursday ahead of June quarter GDP data later in the day. The rupee will also be on watch to see whether a reversal from a record low of 68.85 is sustainable. It continues to remain vulnerable to any talk of U.S. tapering, while a worsening fiscal deficit could also weigh on it. Traders are also hopeful of more market friendly measures like a hike in diesel price after the passage of the Land Acquisition Bill and the Food Security Bill by parliament was seen as populist. Traders will also watch out for any comments or fresh measures with Raghuram Rajan taking over the reins of the central bank as the new governor on 5 September. (Reuters)

Asian shares, the Australian dollar and copper prices rose on Monday while the yen fell as hopes grew that China may have halted a sharp economic slowdown after factory activity data expanded at the fastest pace in more than a year in August. (Reuters)

Reuters

Reuters

The yen slipped 0.4 percent to 98.455 yen to the dollar, pulling well away from last week's low of 96.81, and eased 0.3 percent to 130.00 to the euro. The Australian dollar, which is seen as a proxy for Chinese growth because of the two countries' close trade ties, rose 0.3 percent to $0.8936. Against a basket of major currencies, the US dollar held steady at a four-week high. (Reuters)

Oil and gold prices fell as investors unwound their positions as the U.S. delayed military strike against the Syrian government, blamed for using chemical weapons against civilian. Brent crude prices dropped 1.8 percent to around $112.3 a barrel after falling for a second day in a row on Friday, while gold shed 1.1 percent to around $1,308 an ounce. (Reuters)

Stocks in news

Oil marketing companies Indian Oil, HPCL and BPCL, after fuel prices were increased over the weekend.

Auto stocks as companies are expected to release today their sales data for August.

Hero MotoCorp, as the worker strike at the company's Haridwar plan ends.

Fortis Healthcare, as the promoters have revoked pledge shares.

IT and pharma stocks will continue in focus as a weaker rupee boosts their earnings.

Economy news

The April-June quarter GDP data came in at 4.4 percent, much lower than expected. The data also signals that worst is yet to come for the economy.

by Firstbiz Editors

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