Fears over intensifying conflict in Ukraine have sparked a stampede into haven assets such as the US dollar, gold and bonds, and has driven equity prices lower. Overnight US markets ended lower with the S&P 500 falling 0.7%, Nasdaq Composite down 0.7% and Dow Jones Industrial Average declining 0.9%. Asian markets were trading mixed on Tuesday morning as risk aversion continued after Western powers scrambled to deal with Russia seizing Crimea and US threatening sanctions.FIIs yesterday bought Rs 198.53 crs in cash segment and Rs 156 crs in stock futures. They sold Rs 314 crs in index futures. DII bought Rs 1566 crs in cash segment but this figure is as a result of Rs 1907 crs block deal in Bhel. After excluding Bhels block deal, DII infact sold Rs 341 crs. On Monday, Nifty declined by 56 points to close at 6221 on account of global cues. There was profit booking in the market . Both Asian and European markets fell amid escalating geopolitical tension between Russia and Ukraine and after an official gauge of Chinese manufacturing dropped to an eight-month low. Pharma and Tech stocks witnessed profit booking after a rally in the last few sessions. Auto, Banking and Capital Goods stocks have also declined. Brent crude has climbed up over 1% at $111/bbl. In India, HSBC Manufacturing PMI for the month of February at 52.5 against 51.4 previous month HCL Tech was the biggest loser in the tech space. It nosedived by 4.5% to close at Rs1503. Wipro, Infosys and TCS declined by 1-2% each. Most of the Pharma stocks like Lupin Labs, Dr Reddy, Sun Pharma and Divis Lab declined by 2-4%. Among the Capital goods stocks, BHEL declined 2% to close at Rs158. The company won EPC order from NTPC worth Rs79bn. Bajaj Auto declined by 2% to close at Rs1917. The company reported in line with expected February monthly sales. Opening at 6264, the Nifty went up to 6277 just short of being even and faced selling to break below the previous days low to touch 6212, before closing at 6221, down 55 points for a 0.88% fall. The political crisis in Ukraine jitters the global economies; Nifty too reacted to the building concern as it slips back to 6200 zone. Nifty has reached the gap area near 6270. Though there is no reversal pattern yet on the absolute price chart, the existing momentum seems capped as it approaches multiple resistance.
Posted on: Tue, 04 Mar 2014 04:15:24 +0000
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