Closing Summary, Market Synopsis: 11th August, 2014

Key benchmark indices rose nearly 1 percent on Monday to snap a three-day losing streak after auto stocks such as Mahindra and Mahindra surged on healthy earnings, while strength in global shares on easing tensions over Ukraine also helped. The Nifty rose 0.76 percent, or 57.40 points, to end at 7,625.95, closing above its technically important 50-day moving average at 7,616.74. Realty stocks gained after Securities and Exchange Board of India (SEBI) on Sunday approved the setting up of real estate investment trusts (REITs), a move that may offer a new source of financing to India's cash-strapped property developers.

The market breadth, indicating the overall health of the market was positive, in Nifty50 stocks the advances to declines stands at 28 advances to 21 declines, 1 unchanged.

Morning Summary,Market Synopsis: 11th August, 2014

The Indian market opened higher with a gap, the Nifty 50 stocks were up by 51 points to start the day at 7619.0 whereas Sensex was up by 205 points to 25534.0. The Indian rupee opened higher by 8 paise in the early trade at 61.07 per dollar versus 61.15 Friday. Globally, Asian stocks rose on Monday after Wall Street rallied on an easing of tensions in Ukraine, although conflicts in other geopolitical hotspots such as Iraq limited gains. On BSE, Midcap and Smallcap are trading higher today, the midcap is adding 1.09% whereas the smallcap is up by 1.24% as we write this. On sectoral front, Realty is the top performer to gain as much as 2.73% while FMCG is the only loser to ease 0.36%.
Further the market breath stands positive with 1317 shares seen advancing against 436 declining shares.

News Hour: RBI governor Raghuram Rajan warns of another market crash

MUMBAI: Reserve Bank governor Raghuram Rajan has warned that global markets are at the risk of a "crash" due to the lingering competitive loose monetary policies being followed by the developed economies. 

Warning that the current build-up of financial sector imbalances may cause sudden price reversals and sharp spikes in volatility, Rajan said, "we are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost". 

In an interview to London-based 'Central Banking Journal' on Wednesday, he said, "unfortunately, a number of macro- economists have not fully learned the lessons of the great financial crisis. They still do not pay enough attention - en passant - to the financial sector. Financial sector crises are not as predictable. The risks build up until, wham, it hits you". 
The governor expressed fears that central banks "may be exhausting room on the financial side and creating a situation where there will be a discontinuous movement in the financial sector." 

Discounting arguments from a section of economists that asset price hike is not due to credit growth, Rajan said problems do not appear to be arising from credit growth although this is an issue in some emerging markets. 

"They (global investors) put trades on even though they know what will happen as everyone attempts to exit positions at the same time, there will be major market volatility," the RBI chief said. 

Reiterating his warnings that emerging markets are especially vulnerable to big shifts in capital flows brought on by unprecedented monetary accommodation in rich nations, Rajan warned, "there will be major market volatility if such a crash occurs. True, it may not happen if we can find a way to unwind everything steadily. But it is a big hope and a prayer". 

The former IMF chief economist, who famously predicted the 2008 financial meltdown — three years before at an event in US — from which the global economy is yet to recover fully, compared the current global markets to the 1930s which marked the worst recession in the financial history. 

Stating that the Great Depression was due to a long period of competitive devaluation of national currencies, Rajan said, "we are back to the 1930s, in a world of competitive easing. 

"Back then, it was competitive devaluation, but competitive easing could lead to competitive devaluation. If there were no consequences, to competitive easing, fine; but there are consequences." 

The central banks of the rich nations are now engaged in ever more accommodative policies, he said, and called for more coordination between the major monetary authorities. 

Rajan first made this demand early this year in Sydney during the BRICS finance ministers and central bankers summit. He repeated the same at the annual summit of the World Bank group in Washington a few months later. 

Calling for more policy co-ordination and research into effects of central bank policy spillover and spill-backs, he said monetary policy changes by the developed world central banks can cause "substantial levels of uncertainty" at a time that may suit the policy instigator but not be convenient for other central banks, especially in the emerging markets. 

Welcoming the IMF recent statement that it would "examine" monetary policies of major central banks to check their net benefits, the Governor said this is a major change in the international organination's stance. 

"The sensitivity this kind of discussion raises in central banks will make them think about the value of policies and whether they are helpful elsewhere." 

"I have no doubt that countries will still do what is largely in their interests. But over time we need a little more effort looking at the global interest. My sense is that once the debate is engaged, we will figure out a way to move in that direction," the ex-Chicago University professor said. 

Expressing concerns about the impact of investors quitting emerging markets all at once after buying heavily into assets inflated by these loose central bank policies, he said continued failure of leading economies to comprehend the dangers of financial cycles pose significant risks to the global economy. 
(Source: www.timesofindia.indiatimes.com)

Closing Summary, Market Synopsis: 8th August, 2014

Key benchmark indices ended lower with nifty eased 81 points to 7568 and Sensex closed at 25329, lower by 259 points. On BSE, midcap is lower by 2.07% and small cap was down by 2.14% at the time of writing this. On sectoral front, FMCG and Health care stands positive while Realty was the worst performer to ease 3.86%. The market breadth indicating the overall health of the market was weak, with 826 shares are seen advancing against 2074 declining shares.

Morning Summary, Market Synopsis: 8th August, 2014

Equity benchmarks fell more than 1 percent in morning trade weighed down by broadbased selling due to weak global cues. The Sensex lost 267.32 points to 25321.69 and the Nifty dropped 81.05 points to 7568.20. The Indian rupee depreciated further, down 39 paise to 61.61 a dollar. The euro was on the backfoot after European Central Bank President Mario Draghi struck a cautious note on the euro zone economy, while lower debt yields pressured the dollar against the yen. On BSE, Midcap and smallcap are trading more than a percent each. On sectoral front, Realty is the worst performer to ease 2.29% while IT is the only gainer for the day.
Further the market breath stands negative with 550 shares are seen advancing against 1577 declining shares.

Closing Summary, Market Synopsis: 7th August, 2014

Key benchmark indices fell for a second consecutive session on Thursday to its lowest close in nearly a week as IT big boys like TCS, Infy fell after global rival Cognizant cut its annual revenue guidance. Falls also tracked lower global shares as a Russian troop build-up on the border with Ukraine and sanctions between the West and Moscow kept risk appetite in check. The broader Nifty fell 0.3 percent to close at 7,649.25.

The market breadth, indicating the overall health of the market was negative, in Nifty50 stocks the advances to declines stands at 27 advances to 22 declines, 1 unchanged.

Commodity Market Update (Natural Gas)

Precious metals are trading in a very tight range with Gold trading at 1303.90, down by 0.27% and Silver is at 20.04 an ounce, +0.05%. The overall bias is neutral and we can see prices trading range bound in coming session. ECB press conference and Unemployment rates are due to released today at 6.00 pm. Crude Oil is trading down by 0.27% at 96.66 and Natural Gas is at 3.93, +0.13% as we write this. Base metals are trading mix with Aluminum, Lead and Zinc are in red while Copper and Nickel are trading in green. Copper is at 6994.0, up by 0.39%.