Global markets cheered the Fed's decision to hold interest rates at 'exceptionally low levels' for at least two years hinting at further economic stimulus measures. Can Indian markets rally on the back of this news? Read on for more…
US markets finished lower in thin trading following a disappointing new home sales report as earlier enthusiasm faded over the fed's decision to hold interest rates near zero until at least 2014. The sell-off raised concerns that the stock market rally in early 2012 might be running out of steam.
US Economic Data
Weekly jobless claims gained 21,000 last week to a seasonally adjusted 377,000. Meanwhile, new home sales posted a surprising drop in December for the first time in four months to a seasonally adjusted 307,000. Durable goods orders increased for the second straight month in December.
Data to Watch
The United States GDP is expected to rise to 3.1% in the fourth quarter. Meanwhile consumer sentiment is expected to remain unchanged at 74 for the month of January.
European markets closed up with over 1% gains on speculation of progress in Greece’s ability to avoid a messy default.
Monday is a key day for the euro region as the 27 member group meets in Brussels. Top on the agenda would be to finalise the fiscal compact. Meanwhile Athens is still locked in talks with private creditors over restructuring bond terms but beyond that talks are now turning to a potential write-down of Greek paper for public sector creditors including potentially the ECB.
Eurogroup president Jean Clause Juncker mentioned in a statement that Greece would likely have to be supported by the euro region for over 10 years.
The MSCI index of Asia-Pacific shares ex Japan added 0.1% and hit its highest in nearly three months earlier and was set for a weekly gain of around 2%. Nikkei and Kospi closed flat while Hang Seng was up 0.2%.
Currency & Commodities
The euro held steady at 1.30 to the dollar after hitting a five week high as a dovish stance from the US Federal Reserve supported risk appetite.
Crude prices traded near a one-week high on expectations that fuel demand may increase.
From the precious metals space, gold prices hit six and a half week highs as stock markets, commodities and the euro all rallied after the Fed’s announcement.
Stock Specific News
MSP Steel & Power 's board will meet today to consider issue preferential shares to promoters/non-promoters.
The United States Justice department has filed a "ground-breaking" consent decree for a permanent injunction mandating drug-maker Ranbaxy to adhere to US Manufacturing Standards and ensure integrity of data at its plants in the US and India.
I-T major Infosys ' legal troubles are mounting with the company after certain employees were probed in the US for alleged visa misuse. Infosys told CNBC-TV18 that they were co-operating with authorities in context to the investigation and continue to maintain they do not have a corporate practice of visa misuse.
Sesa Goa sales rose 16% led by liquidation of inventory from both Goa and Karnataka. But the margins and PAT took a hit due to a forex loss of Rs 178 crore on FCCB against a gain of Rs 2 crore in the same period last year. High export duty was also blamed.
Kirloskar Oil ’s board has approved buyback at maximum Rs 170 per share.
According to the Financial Express, Finland’s Amer Sports has terminated its agreement with Pantaloon as exclusive distributors.
ITC Limited Chairman YC Deveshwar confirmed at Davos that he will buy more shares of EIH .
NMDC meanwhile gets a gold mining lease in Tanzania, reports the Business Standard.
Tata Steel has proposed a recovery plan for its tubes business in Europe.
Central Bank of India ’s board will meet on Jan 31 to consider issue of preferential shares to the government of India.
Triveni Engineering will make an additional provision of Rs 79 crore this year post the SC judgment of SAP for season 2006-07.
Results to watch out for: BHEL, NTPC, Bank of India, NHPC, Canara Bank, Petronet LNG, Pfizer, BEL.
Others include: GSFC, Redington, Tata Sponge, Gujurat Alkalies, Inox, Karur Vyasa, Lanco Inds, Sundaram Finance, Blue Star, Micro Tech, Aksh Optifibre, Astra Micro, Atul, Hitachi Home, Jyoti Structures, MSP Steel, Ponni Sugar, Rane Madras, Shanti Gears, Venus Remedies and Wyeth.
READ MORE ON markets, nifty, sensex, US Markets, European Markets, Asian Markets, Crude prices, ONGC, BHEL, MSP Steel & Power, Ranbaxy, Infosys, Sesa Goa, Kirloskar Oil, Pantaloon, EIH, NMDC, Central Bank of India, Triveni Engineering
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