STEEP SELL-OFF AFTER A GAP UP OPENING FOR INDIAN MARKETS; ECB IN FOCUS TODAY

STEEP SELL-OFF AFTER A GAP UP OPENING FOR INDIAN MARKETS; ECB IN FOCUS TODAY

WORLD MARKETS

US indices fell between 0.3%-0.6% yesterday amid a series of economic data that continued to show moderate growth ahead of Friday's key jobs report. Markets also eyed ECB meeting on Thursday that might reveal details on the timing of the bond-buying program announced earlier in the year.

Fed's Beige Book showing optimism on an expanding economy in most regions, with some pressure from energy and winter weather. The report also said there are some wage hikes in separate industries.

Earlier, the ADP private payrolls report showed a gain of 212,000 in February, below expectations and the slowest pace since August 2014. The ISM non-manufacturing index posted 56.9 for February, above estimates of 56.5. Markit's services PMI rose to 57.1 in February from 54.2 in January, its highest level since October.

Nymex oil rose 2% to $51.53 a barrel.

European markets gained between 0.3%-1%. The final composite reading of Markit's purchasing managers' index (PMI) for Eurozone came in at 53.3 in February, slightly below a preliminary reading of 53.5.

FIIs net bought stocks worth Rs 2786 cr which includes Rs 1922 cr on account of Eicher deal. They net sold index futures worth Rs 3 cr but net bought stock futures worth Rs 203 cr. DIIs were net buyers to the tune of Rs 17 cr.

AT HOME

After opening with a gap of nearly a percent and half on the back of surprise rate cut by RBI, benchmark indices nosedived through the session to end lower by about eight tenth of a percent, breaking four day winning streak. Sensex, which touched a high of 30025 at the open, ended at 29381, down 213 points compared to previous close. BSE mid-cap and small-cap indices lost 1.1% and 1.3% respectively.BSE Metal index and Bankex were the top losers among the sectoral indices, losing 2.4% and 1.8% respectively while Healthcare and FMCG indices were the top losers, giving away 1.2% and 0.9% respectively. 

FIIs net bought stocks worth Rs 2786 cr which includes Rs 1850 cr on account of Eicher deal. They net sold index futures worth Rs 3 cr but net bought stock futures worth Rs 203 cr. DIIs were net buyers to the tune of Rs 17 cr.

Rupee fell 34 paise to end at 62.23/$.

India's HSBC services PMI rose to an 8-month high of 53.9 in February from 52.4 in January.

The Lok Sabha yesterday passed the Insurance Laws (Amendment) Bill, 2015, that proposes to raise the foreign direct investment (FDI) cap in insurance to 49% from 26% ; and the Coal Mines (Special Provisions) Bill, 2015, that aims at making the process of issuing coal mine leases more transparent. The bills must now be passed in the Rajya Sabha—where the NDA is in a minority—before it becomes law.

Cabinet Committee on Economic Affairs (CCEA) yesterday approved road widening projects worth Rs 12646 cr.

Rupee fell 34 paise to end at 62.23/$.

OUTLOOK

China has set GDP growth target at 7% for 2015 Vs 7.5% target in 2014.

Shanghai and Hang Sang are trading with cuts in excess of half percent, other Asian markets are trading modestly higher while SGX Nifty is suggesting about 15 points higher opening for our market.

Just to reiterate we have been working with an immediate target of 9200 ever since 8900 hurdle was taken out. Yesterday, after touching a high of 9119 at the open, Nifty plunged to end at 8923.

9119 would now act as the immediate resistance, a crossover of would be required for the further upmove.

On the way down, immediate support on the hourly chart is placed around 8865, which should serve as the stop loss for trading longs.

Indian markets will remain shut tomorrow on account of Holi.

The ECB could announce at the press conference following its governing council meeting today when it will start its QE bond-buying program and give more details about what assets it could buy.