SENSEX NIFTY
Apr 18, 2012, 09.22 AM IST | Source: Moneycontrol.com

Market Analysis: Global cues that may help Nifty scale 5300

Here is a look at top cues that will determine market momentum today.

Moneycontrol Bureau

It was a volatile day on Dalal Street but the Nifty managed to finish off with 1% gains. The Sensex hit a double century to end at 17,358.

Wall Street ended near session highs, with all three major averages logging their best rally in a month. The Dow is now back above the 13,000 level after gaining 1.5% yesterday. European markets too closed with 2% gains after a well-received Spanish debt auction.

On back of global exuberance, Asian markets opened strong today.

Listen to the accompanying audio for more pre-market cues..

Currency Corner

The euro holds steady above 1.31 to the dollar after a successful Spanish debt auction. The dollar index remains below the 80 mark.

Commodities

Nymex crude was near its highest close in two weeks, propped up by easing concerns of a global slowdown. Meanwhile, Brent is above the USD 118 per barrel level.

Among metals, gold continues to hover around the USD 1650 mark. Copper gained 0.5% and is now back above USD 8000 per tonne.

Global cues

Spain's short-term debt costs leaped on Tuesday after the treasury sold 2.09 billion euro of the 12-month bill and 1.09 billion euro of the 18-month bill. On Thursday, the debt laden country tackles the more challenging sale of its 2-year and 10-year bonds.

The International Monetary Fund yesterday raised its forecasts for world economic growth to 3.5% from its earlier forecast of 3.3%. The IMF, however, still believes that the eurozone will shrink during 2012.

Housing starts in the US tumbled an unexpected 5.8% to a seasonally adjusted annual rate of 654,000 units last month. Industrial production was flat for a second-consecutive month in March

Positive earnings continue for the US markets. IBM reported a fiscal first-quarter profit of USD 3.1 billion on revenue of USD 24.7 billion. It raised its full year outlook after it posted a 15% rise in first quarter earnings. Yahoo reported better-than-expected earnings driven by cost controls and profits from overseas investments. It posted a profit of USD 286 million.  But Intel was the weak performer as its first-quarter profit sank 13% as the chip maker saw higher expenses, along with sliding revenue in all three of its major segments.

Domestic Cues

The IMF sees the Indian economy expand 6.9% in 2012 and 7.3% next year, growing slightly below the revised forecasts of January as a result of weak demand and higher interest rates.

Telecom giant Vodafone yesterday served a notice to the Government of India threatening to launch arbitration proceedings against the proposal to tax international mergers via the retrospective amendment.

The RBI yesterday cut key policy rates for the first time in three years by a surprising 50 basis points. It also announced a slew of other measures aimed at boosting the slowing economy. However, it indicated that the window for further cuts in the future is narrow.

Stocks in News

State-run oil companies have served an ultimatum to the government. They say they will raise petrol prices by Rs 9.6 per litre unless excise duty is not cut or they are not provided compensation for Rs 49-crore per day loss on fuel sale.

In earnings action, watch the banking space today as big boy HDFC Bank is expected to deliver another stable quarter with 30% net profit growth. Also keep an eye out for HCL Tech, whose revenue growth is seen 2.4% higher than its peers.

IFCI yesterday reported net profit of Rs 219 crore versus Rs 233 crore a year ago. This was below expectations.

Anisha Mappat
anisha.mappat@network18online.com

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