Markets Open Strong on Ratings Outlook

Thu, 9 Apr 09:30 am

   Previous Close   

   Pre-Open   

   01:30 pm   

   03:30 pm   

   Closing   

International markets are trading on a mixed with the US markets closing with moderate gains and European markets closing in the red due to losses on profit taking. The Asian stock too are trading with mixed sentiments. Chinese and Korean stocks are trading with losses of 1.2% and 0.04% while Hong Kong, Taiwan and Japanese stocks are trading with gains of 0.7%, 3.6% and 0.5%, respectively. Investors wait for the Fed minutes which will likely affect their sentiment towards equity markets. Hong Kong markets and Japan equity markets conquer 7 –year high and 15- year highs respectively.

Indian stock markets gained over 100 points after the credit rating agency Moody's increased India's Credit rating to stable. BSE-Sensex opened strong, up by over 100 points while NSE-Nifty gained about 25 points. Healthcare sector lost over 1% on profit booking while other sectoral indices are trading with modest gains. S&P BSE Midcap and S&P BSE Smallcap sectors outperformed markets with gains of 0.5% and 0.7%, respectively.

Commodities continue to trade on sidelines. While the gold prices declined 0.3% or Rs 80; silver prices fell 1.7% or Rs 650. Gold prices, per 10 grams, fell to Rs 26,800 levels, however, silver prices, per kilogram fell to Rs 37,000 levels. Crude oil prices tanked over 4.2% after the US economy revealed crude oil data. Crude oil prices, per barrel, declined Rs 136 or Rs 3,125. The Dollar value against the Indian rupee remained unchanged at Rs 62.24.

Capital goods major ABB has bagged an order of Rs 0.9 bn from Techno Electric and Engineering Company. The project involves providing gas-insulated switchgear (GIS) and transformers for 400/220 kV (kilovolt) in Punjab. In a power system switchgear plays a role of a catalyst that controls, protects and isolates electrical equipment to boost electric supply. The project is expected to be completed in 2016. Shares of the company traded with moderate losses. Larsen & Toubro, capital goods bellwether, traded with moderate gains.

Tyre-maker Ceat plans to raise capital which, according to a leading financial source, will be utilized to increase its footprint in the form of expanding product portfolio. The exact figure of the capital to be raised in not decided yet, but is expected to be in the range of Rs 2.5 bn and Rs 3 bn. Ceat has raised capital in the past from Qualified institutional Placement (QIP) to expand capacities to increase operations. Kotak Mahindra Bank is expected to be the mediator.