Morning Cues: Stocks, news to keep an eye out for today

Wall Street suffered a rough Monday as key indices dropped more than 1% on worries over the effect the European debt crisis on the global economy. The Dow slipped 1.1% to 12502.7, and the S&P and Nasdaq fell 1.6% and 2% respectively.

European markets also posted big losses as investors doubted a European summit would find a solution to the region's escalating debt crisis. The DAX and CAC lost around 2%, while UK markets slipped 1%. But the biggest losers were Greece, Spain and Italy which were deep in the red.
 
Back home, the Sensex and Nifty reversed gains in last hour of trade as the measures announced by the Reserve Bank of India to curb rupee's slide played spoilsport.

Asian markets start off trade on a negative note, with the Nikkei and Shanghai down close to percent. Straits, Kospi and Hang Seng open flat.

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Currency Corner

The euro slipped to its lowest level in almost two weeks ahead of the EU summit. However, by the end of trade is managed to stabilise around 1.25. Meanwhile, the dollar index held steady above 82.

The Indian rupee bounced back from its all time low closing of 57.15 a dollar in early trade yesterday, but came under pressure again to close above the 57 mark.
 
Commodities

Oil came off lows as short-covering countered an easing of concerns that tropical storm Debby would batter US production platforms. In the precious metal space, gold held strong above USD 1580 per ounce ahead of the EU summit on Thursday.

Global Cues

New home sales in the US in May rose 7.6%, or 369,000 units, beating expectations. The rise in new home sales to their highest levels since April 2010 provided a ray of hope in an otherwise gloomy economic picture.

Keep an eye out for the consumer confidence index for June, which is seen slipping slightly. Consensus estimates are at 63.5 compared to the 64.9 reading in April.

The S&P Case Shiller index for home prices meanwhile could provide some optimism. The April reading is seen higher at 0.4% compared to 0.1% in March. 

In manufacturing data, the Richmond Fed manufacturing index for June is seen slightly higher at 5 after it fell 10 points to 4 in May.

Stocks in News

In a setback to the company, the Gujarat High Court rejected Essar Oil’s petition on sales tax and directed the state government to expedite the recovery of the company's sales tax deferral liability of about Rs 8,000 crore, including interest and penalty. The company plans to appeal the HC's decision in sales tax case to the Supreme Court.

Baring India PE fund has raised its stake in Manappuram Finance to 5.94% from 4.99%.

The State Bank of India, Punjab National Bank and seven more public sector lenders have formed a infra funding consortium. The consortium will fund infra projects above Rs 1,000 crore.

Fortis Healthcare will be in focus today as reports suggest the company is eyeing a 26% stake in renewable energy companies through its subsidiary Fortis Malhar.

The Aditya Birla Group has emerged as the front runner for JP Associates’ cement business valued at USD 1 billion.

The Economic Times reports that the Future Group has shelved its plan to sell a 49% stake in its sourcing and manufacturing operation to Japanese firm Lawson.

Power Finance Corporation has raised Rs 3000 crore via bond issue.

C&C construction has bagged an order worth Rs 151 crore from IRCON International.

Anisha Mappat
anisha.mappat@network18online.com