Market cues: Watch out for Greece, Iran & domestic earnings

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Market cues: Watch out for Greece, Iran & domestic earnings

The markets closed the week with a flourish with nifty closing above 5300 last week. Has the downtrend of 2011 reversed yet or is this just a relief rally? Let’s take a look at global cues and the likely domestic movers for the day.

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The markets closed the week with a flourish with nifty closing above 5300 last week. Has the downtrend of 2011 reversed yet or is this just a relief rally? Let's take a look at global cues and the likely domestic movers for the day.

Wall Street ended near session highs on Friday with the Dow finishing at its best level since May 2008 after the blowout jobs data. For the week, the Dow climbed 1.59%, the S&P soared 2.17%, and the Nasdaq surged 3.16%.

European markets too rallied after UK services PMI jumped to a 10-month high. The FTSE reached its six-month high on Friday.

Meanwhile, Greece's political parties yesterday agreed to spending cuts worth 1.5% of this year's GDP. That is half a percent more than what creditors were looking for! Prime Minister Lucas Papademos says that the measures will include cut to wages as well as non-labour costs. Party leaders are to meet again today to formally conclude the negotiations. However, the country's Socialist Party says that agreement has not been reached on labour reforms and bank recapitalisation issues. They say the Troika- EU, IMF and ECB- has given them time till noon to come up with the deal.

Iran on the other hand is being a butt for concern across global economies. Anaylsts say that Iran is most likely to drag the US into their nuclear programme issue, thereby intensifying threat of a war. US had placed stringent sanctions on Iran on account of the nation's non-cooperation with inspectors with regard to Iran secretly developing nuclear weapons.

In the commodities space, brent crude prices surged to above USD 114 levels while gold tumbled to USD 1730 levels. In currencies, the euro is weak as Greek leaders will today respond to demands by international creditors on economic measures.

Moving onto some stock specific action, Piramal Healthcare acquired an additional 5.5% stake in Vodafone India at cash consideration of Rs 3,007 crore. Their stake goes up to 11% post the additional stake buy.

In a CNBC-TV18 exclusive, coal ministry sources indicate that they would soon notify competitive bidding of coal blocks.

Also, NMDC yesterday said that it is looking for mineral mines overseas.

FMCG major HUL will declare its third quarter results today. According to a CNBC-TV18 poll, their net sales could see a 17% jump to Rs 5875 crore. However, volume growth will take the centre stage as the management had indicated double-digit volume growth potential in India.

Padma Venkatraman
padma.venkatraman@network18online.com