Will weak global markets pull Nifty below 5900 again?
It was a negative session on Wall Street on Wednesday with major indices closing with almost 1 percent cuts on weaker than expected economic data even as the Fed plans to maintain its stimulus program. European markets ended mixed.
It was a negative session on Wall Street on Wednesday with major indices closing with almost 1 percent cuts on weaker than expected economic data even as the Fed plans to maintain its stimulus program. European markets ended mixed.
Key equity benchmarks closed at one-month highs on Tuesday. The Sensex closed at 19504, up 117 points and the Nifty ended at 5930 up 26 points.Asian markets were trading on a cautious note today. In key earnings to watch today, Bharti Airtel and Kotak Mahindra Bank will report earnings today. According to a CNBC-TV18 poll, Bharti’s revenues may see 2.7 percent growth while profits may surge 38 percent. Margins may improve driven by higher contribution of data services.From banking, one can expect a steady set of numbers from Kotak Mahindra Bank. Its net interest income may come 27 higher at Rs 870 crore.According to a CNBC-TV18 poll, Canara Bank’s net interest income for the fourth quarter is seen coming 5 percent higher at Rs 2146 crore. Profits may grow 3 percent to Rs 856 crore. Margins are expected to be sustained at around 2 percent. Also expect possible asset quality recovery at least on the gross NPA front.The US markets kicked off May on a weak note, with major indices dropping nearly 1 percent across the board, as a batch of weaker-than-expected economic data overshadowed the Federal Reserve's plan to maintain its stimulus program. The CBOE volatility index jumped above 14. In key economic data, growth in manufacturing activity slowed in April. Construction spending declined in March to a seven-month low, according to the commerce department. Adding to woes, the US private sector added an unimpressive 119,000 jobs in April, according to the ADP National Employment Report. Meanwhile the Federal Reserve kept interest rates unchanged as expected, and reiterated it will continue asset purchases until the labor market improves substantially. One minor change in the Fed's recent statement after the meeting is that the central bank would increase or decrease the pace of its asset purchases depending on conditions.In key data to watch out for in the US today, weekly jobless claims are seen coming in higher at 345,000. Also watch out for international trade dataEuropean markets closed mixed with UK markets closing off its session highs, after weak employment data was released in the US. France and Germany were closed on Wednesday. In the currency space, the euro is at 1.31 to the dollar from a two-month high of 1.32. The dollar index is around 81.65 levels. In commodities, Brent crude slipped to sub USD 100 per barrel. From the precious metals space, gold price slipped nearly 2 percent to USD 1450 an ounce. Back home, the cabinet approved several proposals, including a 15 percent reduction in the subsidy on nutrient based fertilisers in FY14. The move will help the government save about Rs 5,000 crore. The finance minister clarified that the fertilizer ministry will set up a monitoring mechanism to ensure that companies adhere to the lower prices of P and K fertilizers. Meanwhile, the government decided to cut petrol prices across the country by Rs 2.5 per litre. This is the biggest cut in petrol prices this year. However government has not hiked diesel prices for the month of April. Remember, the centre had proposed a diesel price hike of 45 to 50 paisa every month to help reduce the under-recovery burden on oil marketing companies. Auto stocks would be in focus today after April auto sales come in mostly lower. Maruti's total sales drop 18 percent month on month, Tata Motors sees a huge drop in PV sales yet again and M&M's sales were down 20% to 41432 units.Earnings ReviewMarico's fourth quarter disappointed on all parameters. Slow volume growth and problems in international business especially GCC countries hurt company's performance. IDFC’s NII stood below consensus estimates, up 10% at Rs 643 crore, but profits came in above estimates at Rs 536 crore. This is higher due to principal gains of Rs 129 crore this quarter. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
