The 50-share Nifty is
expected to open lower on Thursday, tracking weak global cues, while
investors will keep a close eye on sugar stocks after the government
removed the cap on sugar exports and placed the commodity under the open
general licence (OGL) category.
According to sources, the export of 1 million tonnes of sugar announced in the last meeting of the empowered group of ministers (EGoM) will now take place under OGL. Stocks like Balrampur Chini Mills Ltd, Shree Renuka Sugars Ltd and Bajaj Hindustan Ltd will be in focus.
The Nifty snapped a three-day upmove and closed in the negative terrain on Wednesday as a weak rupee and lack of conviction among investors hurt sentiment.
The rupee closed near the 53-per-dollar mark on Wednesday as demand for the greenback from importers increased. A widening current account deficit, slowing domestic economic growth and exit of foreign institutional investors on concerns of tax policies have been putting pressure on the rupee.
"There is a lot of headwind against the market's momentum, particularly because of the regulatory issues and non-implementation of policy. At the same time, nasty provisions like GAAR have certainly affected confidence of the people, which has probably taken away many investors from directly participating in the market at the current levels," Deven Choksey, MD, KR Choksey Securities, said.
"Adding fuel to the fire are ETFs which have withdrawn money to pay oil bills and this acts as a negative for the rupee. This too is putting off global investors and traders," Deven added.
Overnight, US stocks edged lower as economic data showed that private sector hiring unexpectedly fell to a seven-month low in April, sparking concerns that Friday's key jobs report will also disappoint investors.
"US private employers added 119,000 jobs in April, well short of expectations for 177,000, according to the ADP report. That sparked market rumors that Friday's payrolls data will show the economy added just 125,000 to 150,000 jobs last month, well below a Reuters consensus forecast for 170,000," a Reuters report said.
The Dow Jones Industrial Average dropped 10.75 points, or 0.08 per cent, to 13,268.57. The Standard & Poor's 500 fell 3.52 points, or 0.25 per cent, to 1,402.30. The Nasdaq Composite Index gained 9.41 points, or 0.31 percent, to 3,059.85.
Asian shares slipped on Thursday after disappointing data from US and Europe reignited concerns about the strength of the global economic recovery.
"European shares dropped on Wednesday after a survey showed euro zone factories sank further into decline last month, with the downturn hitting Italy and Spain hard and appearing to take root among core members France and Germany," a Reuters report added.
Hong Kong 's Hang Seng was trading lower at 21,197.12, down 0.5%. South Korea 's Kospi was trading 02% lower at 1,993.45. China 's Shanghai index was trading flat at 2,439.
At 08:00 a.m., Nifty India stock futures in Singapore were down 15 points at 5,217.00, indicating a negative opening in the domestic market.
According to sources, the export of 1 million tonnes of sugar announced in the last meeting of the empowered group of ministers (EGoM) will now take place under OGL. Stocks like Balrampur Chini Mills Ltd, Shree Renuka Sugars Ltd and Bajaj Hindustan Ltd will be in focus.
The Nifty snapped a three-day upmove and closed in the negative terrain on Wednesday as a weak rupee and lack of conviction among investors hurt sentiment.
The rupee closed near the 53-per-dollar mark on Wednesday as demand for the greenback from importers increased. A widening current account deficit, slowing domestic economic growth and exit of foreign institutional investors on concerns of tax policies have been putting pressure on the rupee.
"There is a lot of headwind against the market's momentum, particularly because of the regulatory issues and non-implementation of policy. At the same time, nasty provisions like GAAR have certainly affected confidence of the people, which has probably taken away many investors from directly participating in the market at the current levels," Deven Choksey, MD, KR Choksey Securities, said.
"Adding fuel to the fire are ETFs which have withdrawn money to pay oil bills and this acts as a negative for the rupee. This too is putting off global investors and traders," Deven added.
Overnight, US stocks edged lower as economic data showed that private sector hiring unexpectedly fell to a seven-month low in April, sparking concerns that Friday's key jobs report will also disappoint investors.
"US private employers added 119,000 jobs in April, well short of expectations for 177,000, according to the ADP report. That sparked market rumors that Friday's payrolls data will show the economy added just 125,000 to 150,000 jobs last month, well below a Reuters consensus forecast for 170,000," a Reuters report said.
The Dow Jones Industrial Average dropped 10.75 points, or 0.08 per cent, to 13,268.57. The Standard & Poor's 500 fell 3.52 points, or 0.25 per cent, to 1,402.30. The Nasdaq Composite Index gained 9.41 points, or 0.31 percent, to 3,059.85.
Asian shares slipped on Thursday after disappointing data from US and Europe reignited concerns about the strength of the global economic recovery.
"European shares dropped on Wednesday after a survey showed euro zone factories sank further into decline last month, with the downturn hitting Italy and Spain hard and appearing to take root among core members France and Germany," a Reuters report added.
Hong Kong 's Hang Seng was trading lower at 21,197.12, down 0.5%. South Korea 's Kospi was trading 02% lower at 1,993.45. China 's Shanghai index was trading flat at 2,439.
At 08:00 a.m., Nifty India stock futures in Singapore were down 15 points at 5,217.00, indicating a negative opening in the domestic market.
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