SENSEX NIFTY
Jan 09, 2013, 09.43 AM IST | Source: Moneycontrol.com

Global markets lackluster; will Nifty hold 6k today?

In the US, markets finished lower for the second session, dragged by telecoms, as investors remained on the sidelines ahead of what is expected to be a weak fourth-quarter earnings season. The CBOE volatility index ended below 14, closing lower for the sixth-straight session.

Moneycontrol Bureau

US

In the US, markets finished lower for the second session, dragged by telecoms, as investors remained on the sidelines ahead of what is expected to be a weak fourth-quarter earnings season. The CBOE volatility index ended below 14, closing lower for the sixth-straight session.

The earnings of aluminium giant Alcoa were in line with expectations at 6 cents a share, but revenue was better than expected and it was able to muster a USD 242 million profit due to cost cutting measures that helped compensate for a slight dip in aluminium prices and flat orders for new metal last quarter.

On economic data front, consumer credit gained in November by USD 16.05 billion, rising for the fourth-straight month.

Europe

European markets dipped tracking losses on Wall Street  as investors braced for sluggish corporate results in the upcoming earnings season. The DAX lost about half odd percent after German exports declined more than forecast in November. Falling 3.4 percent (MoM), the steepest decline seen in over a year. In other data, the euro zone unemployment has reached fresh highs at 11.8% vs 11.7% last month.

Meanwhile, there has not been a crisis with regards to the European debt situation in a while now, but there are still lingering concerns about those economies. There has been a lot of worry about corporate profits and the economy in the euro zone.

Asia

In Asia, Japanese market struggles hurt by a rebounding yen. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent. Australian shares rose 0.2 percent, breaking a three-day losing streak. South Korean shares opened up 0.2 percent.

Equity benchmarks bounced back in late trade on Tuesday. Nifty closed above 6000 level for the first time in last three sessions on some short covering, rising 13.30 points to 6,001.70. Meanwhile, Sensex was up 51.10 to 19,742.52.

Currency

The euro continues to hover around 1.30 to the dollar. Meanwhile, the dollar index is at 80.30 levels.

Commodities

Brent crude rose to USD 112 levels while Nymex slips towards USD 93 levels as the beginning of the annual rebalancing of a key commodities index widened the spread between the two contracts. From the precious metals space, gold hovers around USD 1,660 levels.

Stocks in News

Earnings season kicks off with IndusInd Bank reporting its earnings today. In a CNBC-TV18 poll their net interest income is expected to rise 28 percent to Rs 550 crores, while profits may rise to Rs 272 crores. NIMs expected to expand this quarter.

Kingfisher Airlines is in focus again and the Mumbai airport authorities have given away 6 out of 11 of Kingfisher's airport slots to Indigo.

Meanwhile news reports suggest the government's attempts to monetise a portion of the shares held by the specified undertaking of UTI (SUUTI) appears to be gathering steam. The finance ministry is considering a proposal to sell some shares of ITC, and Larsen & Toubro, held by SUUTI - the restructured unit of the erstwhile UTI - as the government rushes to meet its disinvestment target for the current financial year.

The proposal involves selling stake through an offer for sale in axis bank. It could also look at the possibility of creating a basket of the three stocks and sell it through the secondary market. These proposals are still on the drawing board and the ministry is yet to take a decision on the matter, sources said.

 

READ MORE ON  Nifty, Sensex, dollar, yen

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