Markets are expected to open on a subdued note shrugging off firm Asian peers due to weakness ahead of futures and options expiry today. The Nifty futures in the Singapore Exchange were up 10 points, at 5,358.
Analysts expect markets to remain weak going into next series after the Nifty breached 5400 mark. Derivatives Analyst Devangshu Dutta said that market seems to be headed for new 2011 low within next 5-10 sessions. “The breach of 5,400 makes a short term target of 5.250-5,275 likely and intermediate and long-term bearish trends makes it very likely that February 2011 low of 5,177 will be broken,” added Dutta.
Asian stocks rose on Thursday, led by commodity and consumer related sectors and the euro's rally above $1.41 bringing risk averse investors back into the markets in search of bargains. Hong Kong's Hang Seng was up 0.3% buoyed by resource shares. The Nikkei Stock Average surged 1.3% supported by gains in energy shares. China's Shanghai Composite index was also up 0.3%.
Foreign Institutional Investors continued to remain net sellers in the Indian equities; yesterday they sold shares worth Rs 371 crore. They have been net sellers of Rs 5.355 crore ($1.2 billion) in the cash market.
Among individual stocks Tata Steel will be closely watched after net profit surged 72% for the fourth quarter led by robust volume and spike in prices. The management said that company plans to spend $2 billion capital expenditure in the Jamshedpur plant.
