Indices continue to be listless in the absence of buying support in a week shortened by two trading holidays.The Nifty has broken its 200 Day Moving Average (DMA) of 5620 this morning. A close below 200 DMA, an indicator closely followed by technical analysis, on a consistent basis indicates further weakness ahead.
Political uncertainty is keeping investors edgy. After DMK’s pullout from the UPA last week, Samajwadi Party chief Mulayam Singh on Monday revived talk of the Third Front. N Ram, former editor-in-chief at The Hindu believes Samajawadi Party’s move don’t indicate early elections. “The Indian politics is facing a period of painful uncertainty”, he added.
The mood in global markets has turned somewhat subdued despite the Cyprus bail-out. The euro is hit by fears that future bank rescues in the euro zone would come with the same stern conditions seen in Cyprus’ deal.
The oil & gas sector which was holding the market yesterday is now beginning to crack today. Heavyweights like Reliance Industries and ONGC are down 1 percent each. Reliance Industries has slipped below Rs 800 mark. Full list
Larsen & Toubro has acquired 50 percent stake in Future Generali India Insurance Company owned by Kishore Biyani’s Future Group for around Rs 500 crore. Full article
Public sector lenders Indian Overseas Bank (IOB), Oriental Bank of Commerce (OBC) and Syndicate Bank were down 2-3 percent on Tuesday after the ratings agency Moody’s downgraded the ratings of these banks on weak asset quality. Full article
Suzlon Energy has successfully completed its USD 647 million bond issue. The proceeds from the issue will be used to pare its existing foreign currency debt. The stock is up 1 percent. Full article
The rupee has slipped to 54.3525/3600, tracking negative local shares and heavy losses in the euro in Asian trade.