12 Dec 2014

New intra-day highs: US, China, India

The US, Chinese and Indian stock markets hit new intra-day highs over the past few weeks as global investors responded to policy moves and expectations, as well as a rapidly declining oil price. OPEC appears to be settling in to a long campaign to recover market share and price leadership. This is good news for India, where the Nifty keeps adding points. Average daily trading volumes at $3.7bn continue to drag the trailing average upwards as FIIs bought a bet $502mil and this while domestic institutions sold a net $357mil. Breadth was narrow, with advances just ahead of declines but concentration was evident, with the FMCG sector a big contributor: ITC and HUL together worth just 16% of the Nifty, contributed 87 points on the upside.  HDFC and Reliance, together worth 9% of the index, dragged it down by 27 points. Volatility continued to subside, with the India VIX trading mostly down from its opening at 14, hitting 9 before closing at 12. Nifty futures closed at a premium of 1.6% to cash.

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