Will any of these cues help Nifty recover?

The Dow Jones tumbled for a sixth-consecutive session. The blue-chip index has slipped more than 3% in the last six sessions.

On the economic data front, wholesale inventories rose a less-than-expected by 0.3% in March to USD 480 billion and weekly mortgage applications gained last week  as purchase demand rose for the third week.

Key data to watch out for in US today

Weekly jobless claims are expected to remain largely unchanged at 366,000 and consensus estimates indicate that the international trade gap could shrink to USD 49.5 billion for the month of March.

The European markets ended mixed with political turmoil in Greece, plus the rising costs of fixing Spain’s banks fuelling euro zone fears.

Meanwhile, reports suggest that Madrid will tell its banks to set aside further 35 billion euros to cover losses to the property sector. Initially, they were to set aside 54 billion.

The yields on Spanish 10-year bonds crossed 6% for the first time in two weeks, while the nation's stock market tumbled to close near nine-year lows.

Back home, it was a day of red on Dalal Street. The Nifty slipped 25 points to close at 4,974 on Wednesday.

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Currency corner

In the currency space, the euro hits 3 and a half month lows versus the dollar on Greek political concerns, meanwhile the dollar index inches back above 80.

The Indian rupee fell to a record lows on big dollar buying by oil companies, corporates and even FIIs. Some analysts feel the rupee could depreciate towards 56 to 57 per dollar levels.

Commodities

Crude prices were weak pressured by data showing that US Crude stockpiles increased for the seventh straight week. Brent is hovering around USD 112 per barrel levels and Nymex has slipped below USD 97.

Gold is below USD 1,600 an ounce, nearly wiping out gains for 2012 as political uncertainty in Greece and Spanish bank worries prompted investors to sell bullion.

Domestic Cues

The Department of telecom (DoT) sources indicate that TRAI's final 2G recommendations will come by end of the week. Also, it is expected that the Supreme Court will set up bench on 2G presidential reference soon.

Meanwhile, the cabinet could meet in parliament today evening. They could consider coal regulatory bill and take up divestment proposals.

Earnings Central

Cipla will announce numbers today. According to a CNBC-TV18 poll, a stable quarter is expected from Cipla. Its revenues may come in 10% higher driven by domestic formulations business. Sluggish exports could surprise on the upside.

Lupin, Escorts and Apollo Tyres are the other numbers to watch out for.

Stocks in News

Reliance has raised USD 2 billion loans from nine banks. The company says that the loan will be used to finance goods, services from German suppliers.

Jet Airways has said that dues reflected by Airport Authority of India require correction. They say that the payment is not fully recorded by the AAI.

Another stock to watch would be Ranbaxy as it plans to set up greenfield facility in Nigeria and its total forex derivatives exposure is at USD 1.5 billion as on March 31.

ICICI Bank has returned 2.85 crore shares (29.3% of paid-up cap) to GTL Promoters due to invocation of the NDU / pledge.

Harsha Jethmalani
harsha.jethmalani@network18online.com