SENSEX NIFTY
Mar 06, 2012, 08.55 AM IST | Source: Moneycontrol.com

Cues: Election results to set market on a roll

The assembly election results in five states could be the key factor driving markets today. Monday saw markets fall over a percent on fears that a Congress loss in UP could upset the reforms process further.

Moneycontrol Bureau

The assembly election results in five states could be the key factor driving markets today. Monday saw markets fall over a percent on fears that a Congress loss in UP could upset the reforms process further.

CNN-IBN’s the week poll shows that the Samajwadi Party looks set to dethrone Mayawati in UP. The Congress could have an edge in Uttarakhand but in Punjab, it may head for a photo finish. Independents and smaller parties hold the key in the states of Manipur and Goa.

Market news from the international space:

The US markets finished off their worst levels but still ended in the red as renewed concerns over Greece and slowing growth in China overshadowed better-than-expected economic news in the US.

European markets too closed in the red amid continued concerns about the Greek debt swap deal. This comes after Moody's last week downgraded the debt-ridden nation to C, the lowest rating on its bond scale, citing default risk concerns.

The pain doesn’t end there for Europe. Markit's euro zone composite PMI that gauges the activity of manufacturing and services companies, slipped to 49.3 in February from 50.4 in January.

Meanwhile, Asia is cautious in opening trade.

Other other classes:

In the currency space, the euro is steady at 1.32 to the dollar ahead of Europe's GDP report.  Meanwhile, the Rupee hit a six-week low against the dollar, dropping 34 paise to 49.84.

Among commodities, crude gains on speculation that fuel demand may increase and also on the back of concern that tension with Iran will disrupt crude supplies.

Gold meanwhile continues to trade around USD 1710 levels.

Domestic movers and shakers:

Back home, the market has bet big on ADAG stocks on SP's poll victory prospect. All ADAG group stocks rallied yesterday, and Jaiprakash saw a dip. Keep an eye out for these today.

Newspapers report that FDI cap in cable, DTH is set to be hiked to 74%.

Also, Business Standard reports that foreign investors are to be shut out of the REC bond sale that begins today. Watch out for how it affects the stock price.

Dr Reddy 's has finally received the US FDA nod for the generic version of cholesterol drug Antara.

From the banking space, ICICI Bank , Bank of Baroda , LIC and Citigroup have come together to set up India's first infrastructure debt fund. The USD 2 billion fund will invest in PPP projects, roads, railways, ports, airports and other infra plays.

After power companies hiked tariff, Indraprastha Gas has upped CNG prices by Rs 1.9 per kg in Ghaziabad and Greater Noida.

Even as most telcos are yet to roll-out 4G services, the EGoM has decided to free 700 Mhz of spectrum band for 4G. The government is mulling auction of the 4G spectrum in the coming fiscal year. Meanwhile, Trai has recommended Rs 600 crore subsidy to BSNL.

Padma Venkatraman
padma.venkatraman@network18online.com

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