 "Sensex in red, rupee gains; ICICI bank down 1.45%")
The Indian markets opened in the red today.
The Nifty opened below 6200, down 16.50 points at 6186.85. The Sensex is down 57.03 points at 20833.79.
Meanwhile, the Indian rupee continues its upward momentum as its gained 12 paise in the early trade at 62.24 per dollar against 62.36 Tuesday.
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Pramit Brahmbhatt, Alpari India told CNBC-TV18, “Rupee should trade strong today aided by strong equities; strong euro and good dollar inflow into the market. However there is considerable dollar demand from OMCs and other importers which is keeping a check on rupee’s rise. The range for the day is seen between 61.90-63.10/USD.”
Pressure on the yen shows no signs of letting up with the euro near a four-year peak and the dollar holding onto overnight gains even after more dovish comments.
Jyotivardhan Jaipuria of Bank of America Merrill Lynch feels lack of external debt makes India relatively safer compared to other emerging markets. In an interview to CNBC-TV18, he said that more earnings downgrades can be expected in banks and automobile stocks. However, he is of the view that corporate earnings are close to stabilizing after a prolonged downtrend.
Globally, US stocks fell on Tuesday, with the Dow and the S&P 500 retreating further from milestone levels, led by a slide in Best Buy after a disappointing outlook.
The dollar was under pressure but global shares found support on Wednesday after Federal Reserve Chairman Ben Bernanke reiterated the Fed’s commitment to easy policy, cementing expectations its stimulus will stay for the rest of year.
Bernanke said the Fed would maintain its ultra-easy US monetary policy for as long as needed and only begin to taper bond buying once it is assured that improvements in the labor market would continue. He noted that the fed funds rate can remain near zero ‘well after’ the unemployment rate hits 6.5 percent and that unemployment targets are thresholds, not triggers. The US unemployment rate is currently at 7.3 percent.
Stocks in news:
ICICI Bank is down 1.45 percent after ithit the overseas bond market with a benchmark 5.5-year issue at an initial pricing of 3.75 per cent over the US treasury. This is the second debt raising by the city-based lender this year after it had raised SGD 225 million early January in a seven-year bond sale programme through its Dubai branch offering a coupon of 3.65 per cent.
BSE realty index is at the top of the sectoral chart, up almost 1 percent; DLF rises 1.2 percent.
Financial Technologies is down 0.49 percent. It has announced thatIntercontinental Exchange Group Inc.has acquired one of its subsidiaries, Singapore Mercantile Exchange for $150 million or Rs 932 crore.