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Aug 22, 2012, 09.29 AM IST
Here is a look at the top global cues and domestic newsmakers that could affect market momentum today.
Gushing liquidity pushed Indian equities to a five-month high yesterday, buoyed by high hopes of policy action from the government in the form of a diesel price hike.
The rally took the NSE Nifty above the hurdle of 5400 for the first time since March 16, 2012. The 50-share index rose 54 to close at 5421. Meanwhile, the 30-share Sensex continued its move towards 18,000, surging 194 points to 17,885.
Analysts believe strong liquidity flows could take the Nifty all the way to 5,500-5,600 levels, but believe valuations will be stretched because of lagging fundamentals. Therefore, expectations are that profit-booking will kick in once the market rises another 100-150 points from here.
What could hurt sentiment today is reports saying that the government will not move on deregulation of diesel, LPG and kerosene, a move which could make the task of controlling the fiscal deficit even more harder.
Meanwhile, the Companies Bill is once again likely to miss its date with Parliament. CNBC-TV18 learns that the Ministry of Corporate Affairs is yet to finalise the cabinet note as they are waiting for a reply from the Finance Ministry. Despite being listed on the Lok Sabha's agenda, the Bill, which intends to improve corporate governance in India, may not make it to the parliament during the monsoon session.
However, on a positive note, sources say the government is softening its stance of the Goods and Services Tax.
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The Competition Commission of India yesterday rejected the Aditya Birla - Pantaloon deal as boards of both companies were yet to give consent. So keep an eye out for these two companies in trade today.
Also watch out for Wockhardt as it gets the US FDA's final nod for its generic drug Felodipine. The company says they will launch the anti-hypersensitive drug immediately.
Meanwhile, the National Stock Exchange has said it will exclude Central Bank, NCC, Shipping Corporation of India and South Indian Bank from F&O segment.
Onto the aviation space, DGCA sources indicate that Kingfisher Airlines’ licence cancellation is unlikely. The safety audit report on the company come by week-end, and corrective measures will be suggested to the company.
In some fund action news, Axa World Funds Talents absolute have sold 8.3 lakh shares of United Breweries at Rs 96.46 per share.
US markets ended lower due to a late reversal, dragged down by techs as investors took profits. The S&P 500 to rose to fresh four-year highs in intraday trade, but ended the day down 0.35%.
Investors are now awaiting the release of the Federal Reserve's latest minutes from its July meeting.
Meanwhile, European markets ended higher as investors speculated that the European Central bank will soon start buying Spanish and Italian bonds to help lower their borrowing costs.
In the currency space, the euro surged to a 6-week high ahead of a euro zone regional leaders meet this week to discuss Greece's fiscal adjustment program. The euro rallied 1% to 1.2468 to the dollar, while the dollar index slipped below the 82 mark.
Crude prices gained yesterday, with Brent just shy of the USD 115 per barrel mark, after a report showed that stockpiles had declined the most in three weeks in the US.
In precious metals, gold prices gain more than a percent on further stimulus talks. Platinum too saw strong gains, hitting a three and a half month high.
Over in Greece, Dow Jones sources say Athens is looking to cut its budget more drastically than previously announced. The report says further two billion euro will be cut over the next two years, bringing the targetted saving to 13.5 billion euro. Today, the country's prime minister meets with the president of the euro group to ask for more time to help meet budget targets.
Meanwhile, Madrid overnight sold all of its alloted 4.5 billion euro worth of 12 and 18 month paper on target, although demand was mixed. Spain next sells longer term debts on September 6, which is the same day when the ECB is expected to fully detail plans for addressing the eurozone debt crisis.
May 22 2013, 13:11
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