Market Watch: Cues that will affect market momentum today

 

 

Moneycontrol Bureau
Global equity markets paused and took a breather yesterday after Monday's stellar rally. Major US markets dipped into negative territory in the final hour after trading flat for most of the day. Key indices, however, are still on track for their best quarter since 1998.
European markets too closed lower by 0.5-1% after weak US data raised concerns about the economic recovery. Derailed investors are awaiting UK and French GDP today.
Back home, recovery in the second half of trade pushed Nifty up 59 points to end at 5,243. The Sensex gained over 200 points to close at 17, 257.
Asian markets started off on a weak note this morning, selling off after the big rally yesterday and weighed by late session losses seen in US markets overnight. The Nikkei opened down 1.1%, and other key indices were down 0.3-0.7%. However, the indices are still sitting on multi-month highs.
For more morning cues, listen to the accompanying audio..
Currency Corner
The euro marginally fell against the dollar, snapping a 2-day gain, but is still firmly above 1.33. The dollar index climbed above the 79 mark.
The rupee ended at 50.68 to the dollar as against 51.26 on Monday.
Commodities
Crude prices came off slightly as news of release of a potential oil reserve weighed on sentiment. Brent prices are however stable in Asia trade, holding to the key USD 125 per barrel mark.
Among precious metals, gold prices eased off two-week highs and slipped to USD 1680 per ounce levels.
Global Cues
Single-family home prices in the US were unchanged in January, according to the Case-Shiller home price index. Meanwhile, consumer confidence declined in March to 70.2 from an upwardly revised 71.6 in the previous month. Keep an eye out for the durable goods orders, which are expected to rise by 2.9% for the month of February. Also watch out for data from weekly mortgage applications, and for the French and UK GDP numbers.
Fed chairman Ben Bernanke spoke again last night, saying that "all options were on the table" when it came to QE3.
Domestic cues
Looking to frontload its borrowing program, the government yesterday announced that it will borrow Rs 3.70 lakh crores on a gross basis in the first half of FY13. This is nearly 65% of the total borrowing for 2012-2013.
Finance ministry sources outlined the tests that foreign investors need to pass to avoid coming under GAAR regulations. But sources indicate that P-notes may face taxing times in the future. According to them, the GAAR invocation rules will be applicable only in case the source of funds is unknown, as per chapter II of the Finance Bill.
Also, in a CNBC-TV18 exclusive, sources indicate that Finance Ministry officials along with the SEBI chief will speak to foreign investors today to clarify GAAR apprehensions.
Stocks in News
The Coal India board will meet today to discuss the decision to get to hike long-term fuel supply pacts to as high as 80% with the power sector.
Also watch out for Patni in trade today as its reverse book building process for its delisting opens today with the floor price at Rs 356.
L&T Finance acquired Fidelity's Indian mutual fund business, saying that this buy is a strategic transaction for them and that with this it has become the tenth biggest equity fund house in the country. Shares of L&T Finance were up 4.5% yesterday.
Essel group acquires 10.19% stake in IVRCL. The group said that they see opportunities to expand the infrastructure portfolio via IVRCL.
State Bank of India joins the bandwagon and hikes some deposit rates by 25-100 basis points. This hike takes effective from today.
TVS Group acquires Universal Components UK. This is the second acquisition by TVS Group in UK, with which their business in the region is set to cross over Rs 1,000 crores.
Dhanalaxmi bank's board is set to meet today to discuss a revival plan for the bank which could includes business growth and cost reduction plans.
Tata Global Beverages to buy 14.18 lakh equity shares (4.17%) of Mount Everest Mineral Water for Rs 198 per share before 31 March.
Bank of Maharashtra to issue 15.33 crore shares to the government and 2.4 crore shares to LIC at Rs 56.09 per share to GOI.
Fortis Healthcare promoters pledge 2.7 crore shares (6.6%) with IDBI Trusteeship Services.
IFGL Refractories to purchase 5.81 lakh shares of IFGL Exports from promoters to make it a 51% subsidiary.
The Mint reports that LIC has been allowed to buy over 10% in listed firms.

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