Cues that can direct Indian market today

The US markets closed higher amidst thin, choppy session, but ongoing worries over the Euro zone crisis limited gains. Both the Dow and S&P 500 clocked gains, but lacklustre action among tech stocks left the Nasdaq to end narrowly above the neutral line.

US economic data:

The latest weekly initial jobless claims count totaled 390,000, which is less than 400,000 claims that had been expected, on average. The latest tally is also 10,000 less than the prior week's total.

The trade deficit contracted to USD 43.1 billion in September from USD 44.9 billion in the prior month. This is lower than the USD 45.9 billion deficit expected.

Data to keep an eye on:

Watch out for the University of Michigan's Consumer Sentiment Index for November. There are expectations that it will be higher, around 61.5 as compared to the previous month's 60.9.

European markets:

European markets ended lower in choppy trade as concerns that political wrangling in debt-laden Italy to form a national unity government and high bond yield levels in the country may deepen the region's two-year old debt crisis.

Former ECB vice president Lucas Papademos has been confirmed at Greece’s next prime minister overseeing a coalition government.

Italy prepares for a change in leadership and Mario Monti former European Commissioner is tipped to become the next prime minister. He could be appointed as the premier as soon as Sunday as lawmakers vote on economic reforms for this weekend. Monti is seen as leading an interim government until the elections are called.

Asian markets:

Asian markets staged modest rebound after yesterday's strong sell-off.

At 7: 50 am (IST), Asian markets were trading firm. China's Shanghai Composite was up 0.15% or 3.64 points at 2,483.17. Hong Kong's Hang Seng rose 0.54% or 103.55 points at 19,067.24.

Japan's Nikkei was down 0.16% or 13.30 points at 8,487.50. Singapore's Straits Times was flat at 2,787.12.

Currency check:

The euro sees some easing in Asian trade after having bounced off a one-month low against the dollar on signs that the political deadlock in Rome and Greece could be easing. The dollar index meanwhile continues above the 77 mark.

Commodities market:

Oil rebounded as investors saw some progress in Italy’s efforts to solve its debt problems and slight improvement in US data supported appetite for risk. NYMEX prices climbed to USD 97 per barrel while Brent prices hovered around USD 113 per barrel.

Gold fell close to USD 1,750 per barrel as fears about political turmoil in Italy and a deepening Euro zone debt crisis prompted investors to raise cash by liquidating some positions in the bullion market.

Local market:

On Wednesday, the Sensex fell over 200 points to close at 17,362 while the Nifty shut shop at 5,221.05, down 68.30 points.

Stocks in news:

It was a disappointing set of numbers from Tata Steel . Tata Steel Europe posted almost 6% drop in revenue owing to falling price realisations. Indian operation further added to the disappointment on rising raw material costs.

In other metal earnings, Hindalco reported better than expected top-line, but margins saw some erosion.

DLF too posted disappointing numbers. Its profit slumped 11% hit by the rising interest rates. DLF has also not managed to reduce its debt and the management is optimistic about doing the same in the coming quarters.

Mahindra Satyam , Eicher Motor and Cadila will also in focus after numbers yesterday.

Banking stocks are going to be in focus. Rating agency S&P has taken a contrary view to rival Moody's and upgraded the Indian banking sector to group-5 status. It says India’s domestic regulations are in line with international standards and corporate governance in the sector is also stable. However, it has warned that India’s economic resilience is constrained by its weak economic structure.

Six months after the first chargesheet in the 2G scam, the trial is finally set to begin from today. While it is the CBI's intention to finish examining the 28 witnesses by November 30, the outcome could depend on the trial courts decision on the objections raised by some of the accused.

Infosys ' visa woes continue- a court in the US has denied arbitration in the case filed by former Infosys employee where he had alleged that Infosys was misusing H1-B visa norms.

Earnings today:

Some key numbers to watch out for today include Jet Airways , Lanco , GMR and IVRCL .

Vini Amesar.
vini.amesar@network18online.com