Asian stocks are trading with losses an investor sentiment turned negative over the speculation that the U.S. Federal Reserve might hike the interest rates sooner than expected. Friday's U.S. employment numbers made investors wary of this possibility. U.S. employment for February is at a six and half year low with unemployment ticking at just 5.5%. This is lower than January's reading of 5.7%. While the Japanese, Hong Kong, Taiwan and Korean markets are trading with losses of 0.6%, 0.75%, 0.7% and 0.74% respectively, Chinese markets are trading with a loss of nearly 1%.
The value of Indian Rupee against the U.S. Dollar has gained about 0.84% and is currently trading at Rs 62.68. This is the result of the speculation which led investors to believe that U.S. might raise it interest rates sooner than expected. Crude oil price per barrel declined over 2.4% and is trading at Rs 3,138 while price of precious metals has also fallen and is trading in the red. Gold price fell about 1.8% and is trading currently at Rs 26,000 levels per 10 grams while silver price per kilogram has fallen 1.6% and is currently trading Rs 35,972 levels.
Indian markets opened today's trading session in the red as international markets grew sceptical over U.S. interest rates. The BSE- Sensex opened today's session with a loss of 250 points or 1% while the NSE-Nifty opened today's session below the 8,900 levels, down 85 points or 1%. S&P BSE Mid Cap is trading with losses of 0.8% while BSE Small Cap is trading with losses of 0.7%. Most of the sectoral indices have opened in the red with stocks in the banking and software sector leading the losses.
Government owned companies such as Indian Oil Corporation, Oil and Natural Gas Corporation and Oil India Limited have been named by the U.S Government as the ones that have kept business ties with the Iran's energy sector between November 8, 2013 and December 1, 2014. According to the US Iran Sanctions Act, these companies stand to face sanctions from the US Government. According to this act any individual or a company that parks more than US$20 million in Iran's energy sector stands to face sanction from the US Government. According to leading financial daily these companies are reported to have stake in Iran's Farsi Offshore block. Oil companies are in losses, with share price of ONGC losing about 1%.
Realty stocks are trading mainly in the red with Orbit Corporation Ltd and Ansal Housing Ltd leading the losses. However, PVP Vnetures Ltd and Era Infra Engineering Ltd were trading firm. India's largest realty company DLF is planning to capitalize various properties worth Rs 150 billion. The proceeds, whenever available, will be used to optimize cash flow operations and reduce debt. As of December 2014, DLF's outstanding debt stood at Rs 200 billion. Moreover, blaming the slow sales this fiscal, the company has said that it plans to raise Rs 30 billion through private equity. Share price of DLF is down 0.5%.