Markets expect a negative start as Fed disappoints

The Indian markets may open on a negative note led by negative global cues and disappointing US Federal reserve meeting.

Headlines for the day:

Everonn Education founder sells 4.98% stake.
BHEL open to collaborations with Chinese firms.
188 cos default on financial commitments in FY12: Crisil .
RIL gas output from KG-D6 block drops to 34 mmscmd.
Steel makers hike prices by up to Rs1,500 per tonne.



Events for the day:

Ex-date for dividend of SKF India, Goodricke Group

Indian Indices:

Fed’s meeting disappointed global equities, which may drag the Indian markets in the opening trade. SGX Nifty is trading 24.50 points lower. Today, the investors would be under pressure after US Federal Reserve disappointing meeting.

The Federal Open Market Committee meeting suggested to investors that a third round of monetary easing was increasingly unlikely. The policymakers are worried about a still elevated US jobless rate and potential risks to the recovery. The US Federal Reserve will update its outlook at its next meeting on April 24-25, when Bernanke will deliver one of his quarterly press conferences, giving him a chance to clear up remaining doubts about prospects for another round of bond buying to support economic growth.

Equity markets will be closed for the Mahavir Jayanti and Good Friday holiday, which could create lighter volume and increase volatility.

On Monday (April 03, 2012), Sensex closed at 17597, up by 119 points and the Nifty settled at 5358, rose by 41 points.

Daily trend of FII/MF investment in equities:

The FIIs have been net buyers of the Indian stocks to the tune of Rs1297.70 crore on April 02, 2012. The domestic investors sold Indian shares worth a net of Rs87.40 crore on April 02, 2012. The data is as per the SEBI website.

Global Indices:

Asian stock markets fell on Wednesday (April 04, 2012), after the minutes from the US Federal Reserve's March meeting suggested that the bank was less likely to take further stimulus measures, leaving investors looking for more clues over global growth outlook.

European shares declined on Tuesday (April 03, 2012), paring the previous session's sharp gains, as Spain's economic woes weighed on banks and investors were cautious before the release of minutes from the US Federal Reserve's latest meeting.

US stocks fell after the US Federal Reserve said it was less inclined to provide more economic stimulus.

Commodity cues

Crude slipped on Tuesday after the Federal Reserve released minutes from a recent meeting that suggested little enthusiasm for additional stimulus measures.