As mkts rally, here are cues why India can add to the party

US Markets

There is no keeping the bulls down. Wall Street kick started the month on a positive note following better than expected economic data. The Dow and Nasdaq Futures rose 0.2%.

Listen in: Market can go higher because of strong cues

US Economic Data

According to the ADP National Employment report, private employers added 170,000 positions in January. US construction spending surged to its highest level in more than one - year in December and manufacturing growth in January accelerated to its best performance in seven months.

Data to Watch

Weekly jobless claims are expected to fall to 370,000. Non-farm productivity may come in weak at 0.8% while unit labour costs could see a rise to 1%. Keep a lookout out for the challenger job cut report and chain store sales data. US Federal Reserve Chairman Ben Bernanke will address the US House of Representatives on the economic outlook and the Federal budget situation today.

European Markets

European markets closed at six-month highs, after news that Germany’s manufacturing sector grew in January and on hopes that a Greek debt swap deal was just around the corner.

Asian Markets

Most Asian markets are in the green. Nikkei saw a technical glitch where about 200 shares were suspended due to a system error.

Currency Corner

In the currency space, the dollar traded near a seven-week low versus the euro on a global rally, damping demand for haven currencies. The rupee rose to a three-month high against the dollar at 49.26. Improvement in risk appetite aided the euro to 1.318 this morning from lows of 1.30 plus earlier in the week.

Commodities Basket

In commodities, NYMEX crude slipped to a six-week low after US inventories climbed more than expected and gasoline demand tumbled to a 10-year low. Meanwhile Brent crude remained stable at around USD 112 per barrel after strong economic data from the US.

And from the precious metals space, gold inched higher following a weakness in the US dollar, to close up 0.5% at USD 1747/oz.

Indian Markets

And back home, the Nifty overcame early blues to close with a 33 point gain, to close at 5302. The Sensex closed up 107 points.

Stocks in News

Today is a crucial day as the Supreme Court announces its verdict on the Public Interest Litigation (PIL) to cancel licenses for not meeting rollout norms. The apex court will also decide on Chidambaram's role in the 2G scam (petitioner Subramaniam Swamy has alleged that Chidambram was party to all 2G decisions) and may demand to set up a SIT to oversee the CBI’s 2G probe.

The first meeting of the Pulok Chatterji panel of secretaries to sort out the power sector’s woes took place yesterday. Sources indicated that Coal India may be asked to immediately sign fuel supply agreements (FSA) with power producers.

10 months after the last meet, the EGoM on disinvestment will take up ONGC & BHEL's disinvestment today. The government’s move is seen as the last push for shoring up revenues in FY12.

Mahindra Satyam 's profits surge 29% on the back of a Rs 70 crore forex gain while margins inched towards industry standards. The company hopes to complete the merger with Tech Mahindra by October.

Watch out for Ashok Leyland in trade today after it reported a very weak performance. Margins were down 7.2% due to an unexpected jump in other expenditures.

And in January’s auto sales, Hero MotoCorp came out with numbers post market hours which were slightly lower with total sales down 3.7% to 5.20 lakh units MoM. But the company continues to showcase strength in volumes.

Binani Industries has acquired 100% stake in 3B from Platinum Equity. Binani Industries acquired 3B for 275 million euro. 3B is a Belgium-based fibreglass company.

In a CNBC-TV18 exclusive, sources say HCL Tech is eyeing majority stake in EXL Services. EXL Service has filed with the SEC for share sale by its shareholders and may raise up to USD 180 million via primary share sale.

Bank lenders have converted Air India’s loan into NCDs with government guarantee, according to a report in the Business Standard.

The government may put on hold its plan to transfer assets of SUUTI to AMC, reports the Economic Times.

The Economic Times also says that Lanco plans a countersuit against Perdaman.

Natural gas prices will be raised to USD 7 from the current USD 4.2 under the new policy regime in 2014, reports the Financial Express. Will RIL and ONGC benefit from this?

Lloyds Steel ’s board has approved the issue of preferential shares at Rs 11.65 per share to three non listed entities and State Bank of India.

SIDBI gives Rs 100 crore loan to SKS Microfinance , reports Mint.

Kale Consultant ’s board approves buy back at a maximum of Rs 160 per share.

Finolex Cables board approves investment of Rs 80 crore towards capex in the next two years.

And Dena Bank ’s board will meet on February 6 to consider issue of preferential shares to insurance companies and mutual funds.

Results Today

Marico, Piramal Health, Thermax, Hexaware, Andhra bank, EIH, Gillete, P&G, Manapuram Fin, Astrazenca, Essar Port, Chennai Petro, State Bank of Mysore, Whirlpool, Fresinius Kabi, GNVF, Nesco, Prime Focus, TCIL, Lakshmi Vilas Bank, Fame India, Gokaldas Expo and Ugar Sugar.

Chelsea Saldanha
chelsea.saldanha@network18online.com