MUMBAI: Equities opened flat to negative on Tuesday morning, tracking mixed cues from Asian peers and amid uncertainty in the overall sentiment. At 10:05 am, the Bombay Stock Exchange’s Sensex was up 37 points or 0.25 per cent at 14,846.64. The index touched a high of 14,725.68 and low of 14,677.24 in trade so far.

Sensex gainers comprised Larsen & Toubro (up 0.98%), Maruti Suzuki (0.43%) and DLF (0.35%). HDFC Bank (down 3.11%), Ranbaxy Laboratories (1.82%), Satyam Computer (1.63%), Hindalco Industries (1.24%), Tata Motors (1.05%) and Infosys Technologies (1.05%) were the major losers. The National Stock Exchange’s Nifty was up 28 points or 0.62 per cent at 4531.05. The index touched a high of 4533.95 and low of 4468.55 in trade so far.

“We might see a flat opening due to global sentiments, but at the same time, a fresh short built up could be seen. The PCR (put-call-ratio) has come down to 0.85, indicating a huge short build up is happening in call options. In any technical bounce back, the Nifty might face very strong resistance around 4600 levels,” Standard Chartered - STCI Capital Market, said in a note.

Asian stocks fell, reversing earlier gains, after Chinese Premier Wen Jiabao said his government will take ``forceful'' measures to combat inflation. China’s CSI 300 Index was down 2.98 per cent, the Hang Seng was down 2.28 per cent in Hong Kong, the Straits Times lost 0.81 per cent in Singapore, while Japan’s Nikkei 225 was 0.48 per cent higher.

US stocks shook off the bulk of their steep losses on Monday, with JP Morgan Chase fronting a blue-chip rise just one day after its heavily discounted bid for Bear Stearns and the Federal Reserve's extraordinary discount rate cut. The Dow Jones Industrial Average finished 0.18 per cent higher, while the Standards & Poor’s 500 Index was down 0.9 per cent and the Nasdaq Composite Index shed 1.6 per cent.

Source : The Economic Times

MUMBAI: Equities remained subdued amid turmoil in global financial markets as investors refused to provide relief by way of bottom buying despite the sharp drop in prices. “Having seen no signs of let up ever since the bullish trend reversed in Indian markets, even long term investors have thrown in the towel,” said a dealer from a local brokerage.

At 3 pm, the Sensex was down 870 points or 5.52 per cent at 14,890.18, making a low of 14,883.95. HDFC (down 11.09%), ICICI Bank (10.21%), Jaiprakash Associates (8.78%), Hindalco Industries (7.3%) and Reliance Energy (6.8%) were the biggest index losers. The Nifty was down 239 points or 5.03 per cent at 4507.20, near the low of 4500.20.

A remarkable rise in crude oil prices, weakening dollar, restricted inflow of foreign investors in emerging Asian stock markets left with no other option but to invest in gold, which surged to an all-time high of $1026 an ounce in overseas markets. At home, gold zoomed past all previous records to open at a new peak of Rs 13,500.

Stocks in Europe and Asia tumbled and US futures retreated after the Federal Reserve cut its discount rate at an emergency meeting and JPMorgan Chase agreed to buy Bear Stearns. The FTSE was down 2.5 per cent, the DAX lost 3.6 per cent and the CAC dropped 2.71 per cent.

Source : TET

Rahul Mohindar of Viratechindia is of the view that one can stay invested in Tata Steel & SAIL for long as a trader.

Mohindar told CNBC-TV18, "Metals, one has been upbeat for over last one month, we have been talking about stocks like Nalco which have been showing tremendous out performance, over the last 2-3 weeks, that stock just jumped to anywhere between Rs 150-200, so very interesting that if you look at Hindalco or a Nalco, from a trader’s point of view, if you are trying to bet this market 2-3 weeks down, maybe this is the space that you want to look at, even after the crack we saw yesterday, in Tata Steel or SAIL, makes me very comfortable at these levels to stay long as a trader, that two to three week type of a perspective on a short term trading point of view, metals is definitely one that I would like to be in."

Disclosure: It is safe to assume that analyst personally do not hold any of the stocks. However he may have recommended some of them to his clients.

Source : MoneyControl