Indian Market may open flat to negative on weak Asian Stocks - Equentis Capital

Indian market may open flat to negative on weak Asian stocks trade. Trading of SGX Nifty futures indicates that the Nifty could lose 8 points at the opening bell. Asian Benchmarks are trading with marginal lower on 07 February 2013. US Indices ended flat by 0.05 to -0.10% on 06 February 2013. Europe markets closed negative on 06 February 2013 indicates flat to negative opening for Indian benchmarks.

Fund flows are likely to dictate the near-term trend on the bourses. Current market movement is driven by FIIs fund inflow in equity & debt market. FIIs aggressive buying in debt segment indicates weakness on browser in near term. FIIs bought shares worth a net Rs 11379.6 mn and DIIs sold shares worth Rs 12240.7mn on 06 February 2013, as per provisional data from the NSE and BSE.

Indian Market may move in upward direction in medium to long term (Fundamentally) as government is putting best effort on market place to boost up economy and trying to achieve projected GDP and trying to control fiscal deficit which will help growth of Indian economy in long run. Though stock-specific activity on remaining results will set tone for the market in near term.

RBI cut key policy rates (CRR/RR) by 0.25 basis points, rate cut will increase liquidity by Rs. 180,000 Mn in the market place. Finance Minister cleared that the government has decided to defer the implementation the General Anti Avoidance Rules (GAAR) by two years until 1 April 2016. Recently government has given authority to PSU OMCs to change diesel prices by a small margin from time to time (that action is been taken to match the domestic oil prices with the international crude prices). International rating agency MOODY retains its Baa 3 rating on India with stable outlook. Supportive WPI data but lower IIP Data indicating that all the major industries facing liquidity problems and key policy rate cut from RBIs policy review meet may increase some liquidity.

Crude OIL is accounted 80% of our total import, in NYMEX future trading up by 0.11 percent at $96.73 a barrel now.

Source : Equity Bulls

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