– Indian markets closed flat after remaining volatile throughout the day. Asian markets also traded flat today. Nifty is holding the level 8000 ahead of the expiry for this month’s series i.e. tomorrow. The overall market remains slightly weak today and is focusing on to consolidate its position at around present levels.
– SBI board gives its decision to split its stock in the ratio of 1:10. One stock will be divided into 10 stocks (Rs10 face value per share has been decided to come down to Rs1/share). The market price is expected to go up as more people can buy the shares of this largest public sector bank of India. Higher demand will make the prices of SBI stocks go up. On the other hand, SC gave judgement on coal block allocation. Keeping 4 coal blocks (2 in MP and 2 in Jharkhand) rest of the coal blocks have been declared as illegal. Coal India went up today as it will manage all coal blocks till next 6 months as SC has given 6 month to companies who holds these coal blocks and government to take care of the matter. SC has left the coal mines of Reliance power, SAIL went up as their mines are safe. Banks declined on the basis of their loan exposure to these companies holding mines. Their (companies holding coal blocks) risk of default goes up as their operations will get hurt. FMCG sector (HUL, ITC, etc) saw buying today.
– US will give its crude oil inventory (crude oil storage) data and new home sales data tonight. Inventory is expected to move up as compare to demand which will lead prices down (Negative) but anything other than estimated date will push prices up. High inventory of crude indicates that demand can be met easily because of enough supplies and therefore sentiments regarding prices go down. The overall trend of crude is negative as Russia-Ukraine is moving together on border issues and the US with its Arab countries allies, i.e. Jordan, Qatar, Saudi Arabia and Bahrain has open air strikes in Syria on ISIS.
– German business confidence falls down, putting entire European markets under pressure. Chinese market cheered today and led the Asian markets over positive manufacturing data. Gold is expected to see some buying coming in with every dip from here because of the Indian festive season, which kicks off here and which again will be followed by marriage season.
– Chana prices are expected to move slightly up from immediate support for short term over festive season demand. However, the overall trend is weak due to high imports and enough domestic supplies. Cardamom too trades weak over weak demand.