Stocks, cues that will determine if Nifty holds 5200
Here is a look at top global cues and stocks that will determine if the Nifty holds 5200 today.
The eurozone debt crisis has reared its head again, triggering a sell off in most equity markets around the world. In the US, markets trimmed losses by the end of trade but still ended in the red. The S&P500 is down almost 4% from its 2012 highs.
In Europe, markets closed sharply lower shedding last week's gains following Sarkozy’s setback in the first round of French presidential elections. The DAX, CAC and FTSE lost between 3-4%.
Indian equities also took a beating yesterday due to weak European cues. The Nifty tumbled 90 points to close below 5,200 while the Sensex close to 300 points.
This morning, Asian markets kicked off on a weak note with key indices down around half a percent.
Listen to the accompanying audio for more pre-market cues..
The euro slipped to 1.31 rattled by poor euro zone data while the dollar index continues to hover around the 79 mark.
Back home, the rupee depreciated further to 52.50 against 52.07 last week.
Crude prices trade weak ahead of a report that may show crude stockpiles at an 11-month high in the US. However, they continue to remain stable around the USD 118 per barrel level.
Gold prices decline by over 2% in the last two sessions and are currently around USD 1630 per ounce. The weakest commodity was copper which lost 2% in trade yesterday.
Stocks in News
Telecom regulator TRAI yesterday set the base rate for the auction of 2G spectrum at Rs 3,622 crore, 10 times higher than the floor price in 2008. This comes as a blow to telcos who will have to shell out much higher to acquire licenses.
On the positive side, TRAI’s recommendation to cut the spectrum usage charge is a big positive. From 8% currently, the usage charge will be cut to 1%. So keep an eye out for Bharti, Idea and Rel Comm which could gain on spectrum cut charge.
TCS delivered a good set of Q4 numbers yesterday, with dollar revenue and volume growth beating street estimates. The company said it will outdo NASSCOM’s guidance for the year.
Ultratech reported a topline growth of 18% owing to higher cement sales. They will pay Rs 8 per share dividend.
The result candidate today is Sesa Goa so keep an eye out for that name. According to a CNBC-TV18 poll, revenues may see a 28% decline led by lower iron ore realizations and sales volumes. Also watch out for Petronet LNG’s numbers due today.
From the primary market space, Tribhovandas Bhimji Zaveri issue opens today. The company is planning to raise around Rs 200 crore in a price band of Rs 120-126. They have already finalised allocation of 24,99,999 equity shares at Rs 120 per share to HSBC global investment funds, HSBC India Alpha and Credit Suisse.