Here are cues that will pave way for Nifty's course today

On the economic data front, new home sales fell 8.4% in June to a seasonally adjusted 350,000-unite annual rate. Weekly mortgage applications gained last week as record-low interest rates fueled demand for refinancing.

Key data to watch in US

The initial jobless claims could see a slight dip to 380,000 from 386,000 the previous week.

The June pending home sales is seen contracting to 0.9% compared to 5.9% reading for May. The numbers had seen a sharp bounce back in May. 

Meanwhile the June new durable goods order will also be released today. New orders are expected to come in lower at 0.6% from 1.1% in May.

European markets

European markets erased earlier gains and ended mixed  due to the disappointing results from tech giant Apple.

Euro zone crisis

Ratings agency Egan Jones has downgraded Italy further into junk territory by three notches. It is now at triple c plus from b plus earlier. Egon Jones also went on to suggest that Italy may have to do something like Spain to help its banks. 

Bond Auction

Rome would face a key market test today as it looks to auction 2-year paper. It hopes to raise between 2-3 billion euros from that.

Asian markets

Asian markets opened in the green today morning.  At 7: 41 am (IST), China's Shanghai Composite was flat at 2,134.63. Hong Kong's Hang Seng was up 0.17% or 32.04 points at 18,909.37.

Japan's Nikkei was flat at 8,371.38. Singapore's Straits Times was up 0.41% or 12.17 points at 3,003.09.

South Korea's Seoul Composite was up 0.27% or 4.71 points at 1,774.02. Taiwan's Taiwan Weighted was down 0.16% or 11.34 points at 6,967.79.

Back home, it was a quiet session ahead of F&O expiry, the Nifty held 5100 after an early dip. Outside the index the breadth remained woeful.

Key earnings in India

According to a CNBC-TV18 poll BHEL could see moderation in revenue growth due to sluggish inflows, delays in execution. The tepid order inflow number is expected to continue.

From FMCG space ITC may post strong results with a 19% growth in profits.

Sterlite Industries and JSW Steel will also announce their earnings. From midcap space, Bata and Thermax will declare results today.

Currency

The euro gained versus the dollar following an ECB member's comments that he could see grounds for giving the euro zone bailout fund a banking license that would increase its crisis fighting firepower. The dollar index was above the 83 mark.

Commodities

Crude prices rebounded reversing earlier losses amid speculation that Europe’s financial rescue fund will receive a banking license to help solve the region's debt crisis.

From the precious metals space, gold prices gained more than a percent on stimulus hopes for US and Europe. 

Stocks in news

CNBC-TV18 learnt that the department of divestment will finalise 5% stake sale in Neyveli Lignite. The company expects to raise about Rs 500-600 crores, timing for stake sale not yet confirmed; cabinet note in 4-8 weeks.

The oil ministry sources have indicated that a final note on Essar and Reliance's CBM pricing will be ready shortly and that the ministry will send a note on CBM pricing to CCEA within a month

Harsha Jethmlani
harsha.jethmalani@network18online.com