Concerns over Spanish debt made Euro tumble to newer lows. Yields rose sharply at an Italian sale of five- and 10-year debt, and investors worried about Spain's plans to raise new funds to shore up its banks even as borrowing costs rose there.
Euro debt worries made all global markets tumble. The Dow lost 160 points to 12419. The S&P 500 dropped 19 points, to 1313. The Nasdaq fell 33 points to 2837. U.S. Treasury benchmark yields fell to their lowest in at least 60 years, prices for crude fell more than 3 percent and the euro dropped below $1.24 to a 23-month low. July oil futures settled down $3.16 at $87.60, while August gold futures were up $15.40 to settle at $1,566.40 an ounce.
A worse-than-expected read on a U.S. pending home sales index also contributed to the selloff, which was accompanied by heightened volatility. There are already talks of some form of money printing from the central bankers to stabilize the markets. Brazilian central bank reduced its Selic interest rate by 50 basis points to 8.5 per cent, undercutting the previous mark of 8.75 per cent reached during the 2009 financial crisis.
Back home, FIIs seems to be shifting their positions to overseas instruments like SGX Nifty, on wake of confusion over domestic tax policies. We are witnessing unusually low rollover to June Nifty futures. Regulators and exchanges must take notice of these facts and act fast to preserve business within India.
CSIR Okays Bilcares nonClonableID tech to authenticate drugs
The Council of Scientific and Industrial Research under its New Millennium Indian Technology Leadership Initiative scheme has approved the implementation of the project Customized adaptation of nonClonableID technology to establish authenticity of medical products by Bilcare Ltd.
Tide water to market Veedol in Germany
Andrew Yule-controlled Tide Water Oil Co plans to take its newly acquired Veedol brand of lubricants to Germany this year. The company had already set up Veedol International DMCC in Dubai to cater to the high-value West Asian market. In 2011-12, Tide Water acquired Veedol International Limited, at an undisclosed price, from British Petroleum, with marketing rights in more than 120 countries.
Had it not been the last day of this derivative settlement one would have come out with a clear-cut recommendation to sell. On the last day, Derivative traders may try to manage the markets closing to their liking level and that makes it very volatile. Expect such a volatile day today.
DLF results are nothing to write home about while JP and HDIL did tad better. Telecom stocks will gyrate with provision of the new policy.
Indias fourth quarter GDP will be released and markets are expecting a figure of 6.1% growth. Support for the markets come in at 4890 and resistance comes in at 4990. June months have many events which can break or make the markets, keep the positions light and keep powder dry.