Market check: Watch out for 10 stocks ahead of F&O expiry
November, 24th 2011
Global markets are fighting to survive as threats of a possible recession in Europe loom nearer. Closer home, all eyes will be on how the Nifty and Sensex close ahead of the F&O expiry. Will our market react to all the negative sentiment or can we amble along a little more at current levels? Read ahead for more US Markets The global selloff continued, after Wall Street ended overnight near session lows which saw low volume trading as investors hesitated to stay long. The Dow closed down 2% on weak economic data and ongoing debt concerns from the Eurozone. The S&P 500 is now down 7% while the Nasdaq is down 8% in the last six sessions respectively. US markets and banks will be closed today for the Thanksgiving holiday
US Economic Data US weekly jobless claims edged up 2,000 to 393,000. Meanwhile consumer sentiment came in at 64.1 for November, up from 60.9 the month before. Mortgage applications slipped 1.2% in the week ended November 18, after a 10% drop the week before.
European Markets The Eurozone debt crisis could be right on Germanys doorstep. European markets logged their worst close in seven weeks after an auction of 10-year German bunds received poor response. Only 6% of the 60 billion worth of paper on offer found buyers. Market pressure grows on Germany as chancellor Angela Merkel in a forcible speech in Parliament refused to bow to demands that the ECB be given a new mandate. Asian Markets
Asia markets were trading lower which saw Japan's Nikkei fall 1.38% or 115.04 points at 8,199.70 and China's Shanghai Composite shedding 0.85% or 20.46 points at 2,374.61. Currency Corner In the currency space, the dollar traded near a seven-week high against the euro ahead of a German report that may reflect that business confidence had dropped for a fifth month. Commodity Bets
Nymex crude prices slid 2% to USD 95 as weak global data raised concerns over outlook for global oil demand. Meanwhile Brent traded around USD 107 levels. From the precious metals space, gold slipped below USD 1,700 levels following a slowdown in the US economic data, consumer spending growth and a sharp fall in equities. Indian Market
Our own market will be in the limelight today after the disastrous session we had yesterday. The Nifty collapsed to a 2-year low of 4,650, before finding its feet to close around the 4,700 mark while the Sensex closed down 365 points at 15,699 levels. The F&O expiry also takes place today. Stocks in News
Pantaloon and Shoppers Stop will be in focus today. The cabinet will look at key reforms like FDI in retail and the new Companies Bill today.
The hunt for Ratan Tata's successor is over. Forty-three-year-old Cyrus Mistry will take over as Chairman of Tata Sons a year from now. Watch out for how the stock will react to this news. Another stock to watch out for is SKS Microfinance. Vikram Akula has stepped down from the board of the company. PH Ravi Kumar will take over as interim Non-Executive Chairman. Airline stocks might react over a decision by the government to allow fuel imports. As part of an overall package to aid Kingfisher in its hour of crisis, the government has said it will be open for all carriers and not only those struggling to repay their debt.
And telecom player Idea Cellular has launched 3G services. The stock might see some reaction. GMR Infra promoters have pledged additional three crore shares. Remember the stock fell more than 5% yesterday. And the Amtek India board has approved a 1:1 bonus issue. Stock may react. Energy major BP has signed a memorandum of understanding (MoU) with Indian Oil Corporation (IOC) to set up a joint venture (JV) company.