The BSE Sensex yesterday closed the day a bit low and our markets continued trending lower. Yesterday, the Nifty closed flat, with no direction either way to end the day below 5900. One can expect day of trade due to Chinese lunar New Year across Asia.
The equity markets closed the previous session on a poor note, with no direction either way.
On the earnings front, companies like HPCL, Oil India, Power Grid, JSPL and Lanco Infra will announce their numbers today later in the day. One has to see in which direction the market moves post announcement of numbers.
The IIP numbers are expected today which according to CNBC-TV18 poll are expected to be at 1.1 percent, and is not likely to impact the market movement. Asian markets were trading mixed. Japan's Nikkei gained 2.35% or 261.61 points at 11,414.77.
South Korea's Seoul Composite was down 0.12% or 2.25 points at 1,948.65. Shanghai Composite, Hang Seng, Straits Times and Taiwan Weighted markets shut today.
On the global front, the US markets, closed marginally lower just off of the high point of the day and the trading volume were the lightest seen this year. The drift lower was led by energy stocks. Infact, some pressure also came from Goldman Sach's extremely bearish report on global equities, cutting their global equity rating to neutral from overweight for a three month horizon.
These markets have rallied nearly 6% from the start of the year, so some amount of profit booking cannot be ruled out at this point. Shares of Apple closed higher on news that the tech major was developing a wristwatch like gadget which would operate on the same operating system as the iPhone and the iPad.
The European markets too paused for breath after the heady rally these indices have seen since the start of the year. The French CAC closed flat, supported by the industrial production data which was better than expected. The FTSE was supported by a rise in mining stocks. Investors are on the sidelines as they await news from the euro zone finance ministers meet which is currently underway in Brussels.
A proposed aid package for Cyprus, having one of the largest exposure to Greek debt is on the agenda. In the peripheral markets, the Italian FTSE fell nearly 1% on ongoing worries regarding the political developments ahead of the presidential elections slated for the end of the month.
In commodities, Brent crude cools off to 118 dollars. Gold is currently trading slightly lower at 1644 levels.
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Market technically overbought; paper supply to weigh: Dutt