Stocks 2 Watch: On last day of trade, how will Nifty fare?

Recession in European Markets?

European markets ended mixed after an EU official said the region's economy is heading for its second recession in three years, overshadowing earlier optimism that German business sentiment rose to its strongest level in seven months in February.

ECB President Mario Draghi warns countries against relaxing austerity measures. He was concerned that countries would scale back on reforms in order to boost growth. The block has been split on whether belt tightening is the right prescription for Europe’s crisis.

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Draghi's warning comes as the European Commission forecasted contraction for the eurozone economies this year.

Europe Closing: DAX down 0.5%; CAC flat; FTSE up 0.4%

US Markets

Helped by better-than-expected economic data, US stocks neared peaks not seen since before the 2008 collapse of Lehman Brothers. Claims for unemployment benefits stood steady at four-year lows at 351,000 for last week.

US Closing: Dow up 0.4% at 12985; S&P up 0.4% at 1363.5; Nasdaq up 0.8%

Data to Watch

- US Consumer Sentiment
- US New Home Sales

Asian Markets

It’s a lacklustre session across Asia with most markets flat to quietly negative. Straits and Nikkei are up 0.2%, Hang Seng and Shanghai are flat while Taiwan is down 0.4%.

Currency Corner

In the currency space, the euro touches its strongest level in more than 10-weeks against the dollar ahead of the German report forecast that may show the economy expanding for an eighth quarter.

The euro is trading at a 10-week high against the dollar, just below the 1.34 mark. The dollar index slipped below 79.

Commodity Plays

And in commodities, crude prices hit a fresh nine-month high and a record in euro terms, renewing concerns for cash-strapped Europe on heightening tensions between Iran and the West.

Brent Crude came off marginally from yesterday's highs, but was still holding strong just shy of USD 124 per barrel. Meanwhile, NYMEX crude is trading above USD 108 per barrel.

Gold rose to a three-month high, extending to a fourth straight day of gains, as a dollar drop and expectations of easy monetary policies underpinned gold's inflation hedge appeal.

Indian Markets

And back home, it was a weak expiry session for the markets which saw the Nifty lose 22 points to shut at 5,483. The Sensex too closed in the red with a loss of 66 points.

Stock Specific Action

Citigroup is set to break-off its six-year long affair with HDFC . The company looks to sell its 10% stake for around USD 2 billion. Deepak Parekh says Citi may be selling out to meet its Basel III capital needs.

The EGoM on gas allocation may suspend gas supply to Deepak Fertilizers , RCF and GSFC . Power plants from Lanco & GMR too may be in the firing line.

It’s been 18 months since the empowered group of ministers on gas last met. Headed by the finance minister, the EGoM will meet today at a time when the KG-D6 gas output is at a record low and is expected to fall further to 22.6 mmscmd next year.

Sources tell CNBC-TV18 that there will be a crucial meeting on the Supreme Court's 2G cancellation order at the finance ministry today.

From 2G to 3G, the big verdict from the Delhi High Court is the dismissal of DoT’s plea in the 3G intra-circle roaming case.

Vedanta has its eyes set on the government’s residual stake in Hindustan Zinc . Sources indicate that Vedanta's offer to buy the governments 29.5%residual stake in Hindustan Zinc is being considered seriously.

Tata Steel seeks shareholder approval to up its borrow limit to Rs 50,000 crore.

Dewan Housing ’s QIP issue was successfully oversubscribed. The issue is likely to formally close by Monday. The lead managers to the issue are Religare Capital Markets, Standard Chartered, Motilal Oswal and Enam.

The Andhra Pradesh High Court stays Mahindra Satyam 's I-T department attachment order.

SBI says the preferential issue to the government is at around Rs 2,192 per share and will be completed by March 31.

Reliance Industries raises USD 500 million via overseas bond issue.

MCX IPO closes today. The overall issue subscribed 4.5x on the final day. Bids are at an upper range of price band Rs 860 -1032 per share.

Tata Communications signs technology pact with Formula 1.

Zuari , Chambal eye UB group’s 30.4% stake in Mangalore Chemicals, reports the Business Standard.

BPCL and Videocon to hold onto “High Value” Mozambique block stakes, reports The Economic Times.

Orbit Corp will consider acquisition of Mazda Construction on February 28.

Vijaya Bank will consider preferential issue of Rs 147 crore to LIC.

Bank of Baroda is considering allotment of preference shares on February 27 to LIC/MF's Aventis.

Shasun Pharma will consider allotment of preference shares on February 27.

Gujarat Gas recommends special dividend of Rs 12 per share for FY11.

Chelsea Saldanha
chelsea.saldanha@network18online.com