After last week's tumultuous roller-coaster ride in the Indian market, we are likely to witness volatile trading this week as investors look to GDP data and settle this month's derivatives contracts. Read on for more...
European markets closed flat as some traders looked to book profits on the back of a two-day rally with fears over Greece still lurking in the background.
EU Closing: CAC +0.3%; DAX +0.4%; FTSE +0.4%; Italy up +0.4%; Spain up +0.1%
Is Spain in a Soup?
The Spanish government is reportedly considering plans to directly inject its own debt into Bankia to help pay for the troubled lender's 19 billion euro nationalisation which was announced on Friday. Analysts tell the Financial Times the highly unusual plan would see Madrid issuing Spanish government guarantee debt to Bankia in return for equity. The bank will then deposit the bonds with the ECB as collateral for cash. If true, it means that Madrid could avoid borrowing money directly from the bond markets.
Ratings agency Standard & Poor's cut the ratings on five Spanish banks on Friday, another blow to the country's ailing banking sector as the nation's deteriorating finances rattle global investors. S&P lowered its rating on Banco Popular, Bankinter and Bankia to 'Double-B-plus' from 'Triple-B-minus' and cut the ratings of two other banks, Banca Civica and Banco Financiero De Ahorros. BFA is Bankia's parent company.
US markets closed lower in thin trading as investors remain cautious amid ongoing worries in the euro zone. Still, all three major indices posted their best weekly gains for the month, snapping a three-week losing streak. For the week, the Dow gained 0.69%, the S&P 500 rallied 1.74%, and the Nasdaq soared 2.11%.
On the economic data front, the US Consumer Sentiment Index climbed to 79.3 in May, its best level since October 2007. Economists had expected the reading to remain unchanged at the April level of 77.8.
US markets will be shut today following Memorial Day.
US Closing: Dow -0.6% at 12454.8; S&P -0.2% at 1317.8; Nasdaq -0.1%
In Asia, South Korean markets are shut today. Right now, Taiwan is up 0.3%; Hang Seng is up 0.2%; Nikkei is up 0.1% and Shanghai is down 0.6%.
Commodity & Currency Corner
And in the currency space, the euro recovers after briefly dipping below 1.25 on Friday rattled by Greek exit fears. The euro currently is above 1.25 while the dollar index holds above the 82 mark.
Meanwhile, Brent crude prices steady around USD 107 per barrel levels following an upbeat US consumer sentiment data. The rupee movement, which fell to record lows against the dollar in the week gone by and impacted markets, will keep investors cautious. The euro gained against the dollar on Friday while exporters sold the greenback, helping the rupee's cause.
And from the precious metals space, gold inches higher to USD 1574/oz levels.
Experts say the market will see volatile sessions ahead of settlement in May's Futures & Options contracts and GDP data on Thursday.
On Friday, the Sensex fell 4.48 points, to close at 16,217.82 while the Nifty touched an intraday low of 4,889.35, before managing to close above the 4,900 level. The broader markets outperformed the BSE and NSE benchmarks, rising 0.5%.
The forthcoming week is also likely to see stock-specific trading as quarterly corporate earnings pour in. Meanwhile, the government has said it will watch global oil prices and rupee-dollar rate for "a few days" before taking any decision on rolling back the rates.
Stocks to Watch
Government sources indicate that a diesel price hike in June is inevitable and that there could be small frequent hikes instead of a Rs 5-7 per litre hike.
CNBC-TV18 learns that the Future Group management has given a nod for the sale of Future Capital stake to Warburg Pincus. The Future Group-Warburg deal is likely to be announced this week.
Hotel Leela redeems outstanding bonds worth USD 41.6 million.
JSPL drops USD 2 billion Bolivia plan, reports the Times of India.
RIL moves High Court on new consent order rules as it wants to settle insider trading charges via consent, reports the Economic Times.
Pratibha Industries ’ board okays issuing shares on rights basis.
The Reliance Industries versus Ministry spat forces PMO to look at Oil & Gas sectors, with Rangarajan heading the committee, reports the Economic Times.
Lanco will be selling its roads business and power arm to pare debt.
Thomas Cook ’s open offer is priced at Rs 65.48 per share. The offer opens on July 11 and will close on July 24.
Agencies report that trade union representatives in EPFO opposes Reliance AMC stake sale to Nippon Life.
And Tata Motors lowers its production target from 2.5 lakh units/year to only 30,000 units as vendors remain reluctant to take a hit on profitability. Tata Motors says there is no timeline fixed for the Nano Diesel launch. Vendors meanwhile are not accepting lower volumes for the diesel Nano.
Earnings to Watch
In important earnings today, Coal India announces its numbers. According to a CNBC-TV18 poll, the company may see a 21% surge in sales aided by higher dispatches & realisations.
Other Results: IOC, Oil India, NMDC, Britannia, Bharat Forge, Bombay Dyeing, Fortis Healthcare, Neyveli Lignite, Amara Raja Batteries, Trent, Bharti Shipyard, Balrampur Chini, MCleod Russel, Bajaj Electricals, EIH Associated Hotels, Indoco Remedies, NFL, Natco Pharma, Religare Tech, Sundaram Fastners, Sujana Towers, Indian Hotel, Welspun Projects, Axis IT&T, 3M India, Balasore Alloys, Bedamutha, Banco Products, Cantibal Retail, DCM, DQ Entertainment, Dredging Corp, Electrosteel Castings, Engineer India, Excel Infoways, Hercules Hoist, Indian Hume Pipe, Indosolar, Kernex Micro, Mandhana, Man Infra, Monsanto, Mothersons Sumi, Nagarjuna Oil, Precision Pipes, Precision Tyres, Sadbhav Engg, RDB Rasayen, Sicagen, SJVN, Sundaram Finance, Surana Inds and Tilaknagar Inds.
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Dont see mkt going anywhere now; like Bharat Forge: Dipen