Market cues: Asia up; watch telecom, banks & infra space

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Market cues: Asia up; watch telecom, banks & infra space

The cold wave that blows in North India seems to be blowing at the stock markets too. Worries over an expanding fiscal deficit and slowing economy brought the Sensex to end down at a 28 month low of 15379.

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ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Tata Motors BSE | NSE 01/06/12 Are Mutual Funds betting on Tata Motors? Other Stocks in this news Steel Authority of India | Coal India | Axis Bank | Larsen and Toubro | Idea Cellular | Kingfisher Airlines | Network 18 Media & Investments | GMR Infrastructure | Mahindra Satyam | Tech Mahindra | Ranbaxy Laboratories |

The cold wave in North India seems to be blowing at the stock market too. Worries over expanding fiscal deficit and slowing economy has brought the Sensex down to a 28-month low of 15379.

A bad start to the week for international markets too. Global markets were off the day's high as ECB President Mario Draghi made no hint at bond-buying in his speech to the European Parliament although European Finance Ministers have agreed to provide 150 billion euros to the IMF. Previously, Draghi warned on the euro zone break-up, the first time an ECB official discussed the issue.

Dow Jones ended down 100 pts at 11766 while Nasdaq closed 32 pts down at 2523. S&P too was down 14 points. US financials continued to be a drag on the markets. Financial index came in down 2.3% at the lowest level since the end of November and Bank of America broke below USD 5 per share to set its lowest level in more than two years.

In Europe, the FTSE, CAC and DAX closed off day's highs, each down about 0.5%.

Nonetheless, Asian markets are trading firm this morning. The Kospi is up 1%, Taiwan, Nikkei and Hang Seng each up about 0.5%. Asian stocks rose after Federal Reserve Bank of Richmond President predicted the US economy will grow 2-2.5% next year.

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In the currency space, the dollar is firming against the euro at 1.3 and the yen is down 4 basis points against the dollar at 78.

Meanwhile, gold finished flat near USD 1597 per ounce and crude rose a meager 0.4% at USD 93.88/bbl.

Moving on to domestic cues for today...

Tata Motors stock was up 4.4% as fresh longs got built while SAIL recorded gains of nearly 3.5%, closely followed by Coal India at 2% as the market did a short covering move on these. Watch out for further action on these stocks.

Also keep an eye out for Axis Bank and L&T that saw short covering drag the stock down 6% and 4%, respectively.

The Oil Ministry has proposed a cut in excise duty on petrol by Rs 2 from the current Rs 14.35/litre. The new tax may hit diesel cars.

The Foreign investment promotion board has rejected Mauritius-based Axiata's bid to hike stake in Idea Cellular , newspaper reports say. Axiata currently holds 19.97% stake in Idea.

Reports say that Kingfisher Airlines has been asked to pay dues for more loans within the fortnight before banks start lending it more money. Kingfisher had very recently grounded 15 aircrafts and sent home nearly 50 pilots.

Lipitor sales have plunged by half after the start of generic competition. Watch out for moves on Ranbaxy .

There is wind that Mukesh Ambani is in talks to buy Network18 . Remember that Thomson Reuters had just expressed interest in picking up stakes in Newswire18, an entity of Network18.

There's good news for GMR that is struggling with a legal battle over collecting airport development charge at the Male airport in Maldives. The Maldivian govt has issued a statement today that they will stand by all agreements with foreign entities.

Mahindra Satyam is set to soon merge with Tech Mahindra . The merger will create India's 6th largest IT services exporter with around USD 2 billion revenues.

Padma Venkatraman
padma.venkatraman@network18online.com