Indian Markets down, Rupee gains 21 paisa

The markets had opened on a lower note tracking weakness in the Asian front and traded lower in the morning session and later in the second part of the day we saw a recovery in the early part but turned volatile and later closed on a flat to negative note. Global markets were actually supporting our markets at lower levels throughout the day with Italy moving towards implementing strict austerity measures to cut its debt ahead of the European leaders meet on Friday helping it to cut its borrowing cost to a three week low. Cues from US also were positive with US automakers set to make best annual gains since 2008 at sales of 12.8 million vehicles. Also the US exports are expected to grow next year led by Caterpillar and Services Industries probably expanded at fastest pace in six months moving towards 53.8 last month from 52.8. Rupee gained today against dollar by 21 paisa tracking recovery in Euro and other Asian currencies against dollar.

One thing that kept the markets dull was the Finance Minister's decision to hold the decision to allow FDI in multi and single brand retail for now until a consensus is reached between the political parties. Stocks which had rallied on the expectation of FDI crashed heavily. Nifty today closed above 5019 and is having resistance at 5062 and 5085 if moves up with volumes more buying can be seen while the support is there at 5009 and 4979 levels.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,395 shares fell and 1,293 shares rose. IT stocks gained on as US futures were trading up about 100 points at one point in time indicating a positive opening and trade for them.

Asian markets were all trading sideways to positive tracking US futures and European markets. Asian markets are showing some positiveness as the euro and oil advanced on signs that Italy is taking steps to resolve its debt crisis as Mario Monti announced 30 billion Euros of austerity and growth measures. Everybody is eyeing the European leaders meet on December 9th. One concern is that the engineering employer's federation cut its UK growth forecasts stating that its manufacturers expect the industry to stagnate in the first quarter. Later in the day we are expecting the European retail sales, US factory orders and ISM non-manufacturing index.

Source : Equity Bulls

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