Morning capsule: Cues that may push Nifty to 6k again
The US market major averages post fifth straight week of gains with the Dow closing above 14,000 for the first time since October 12, 2007. With this close, the Dow is now less than 200 points away from closing at an all time high.
February 04, 2013 / 08:44 IST
Moneycontrol Bureau
USThe US market major averages post fifth straight week of gains with the Dow closing above 14,000 for the first time since October 12, 2007. With this close, the Dow is now less than 200 points away from closing at an all time high.In economic data, the US economy added 157,000 new jobs in January; slightly above economists' expectations. The bigger highlight though was the revision of December data from 1,55,000 additions to an addition of 1,96,000 jobs. The unemployment rate rose to 7.9 percent. Economists were expecting the unemployment rate to stabilise at last month's 7.8 percent level. The consumer sentiment index rose to 73.8, showing an unexpected improvement. The ISM manufacturing index also rose to 53.1 in January, bettering a consensus reading of 50.8.EuropeEuropean shares inched up, as investors took advantage of the past two sessions' losses to snap up equities more cheaply, reassured by a run of solid data from China, Europe and the United States.The French president Francois Hollande says that the European Union still has a lot of work to do before reaching a budget deal.AsiaAsian markets kick off trade on a positive note. Back Home, The BSE Sensex fell for the second day on Friday led by declines in Bharti Airtel after its December quarter results missed estimates by a wide margin, while ICICI Bank fell on profit booking, after rising 4.65 percent in January.The BSE Sensex closed down 0.57 percent, while the 50-share Nifty ended down 0.59 percent.CurrencyThe Euro is holding strong above 1.36, while the dollar index is around 79. Commodities Brent Crude holds at 4-month high levels, over USD 116 per barrel. Gold price rose in unison with equities and commodities. It traded above USD 1667 an ounce.January auto salesAuto stocks would be in focus as Tata Motors' passenger car business skids, its sales dropped by half year-on-year to just 15,000 units, Bajaj Auto also registered low single digit growth. TVS Motor record marginal growth while Ashok Leyland saw a big crack in CV sales.Earnings Central In key earnings to watch- Bank of Baroda is likely to post a subdued set of numbers. NII is seen up 11% while NPAs may remain in line with Q2. Jubilant Foodworks will also be declaring numbers today. A CNBC-TV18 poll sees profit growing to 40 crores. Pricing growth and increase in number of stores is likely to result in strong topline growth. The total income is seen up 41%. Margins may however decline owing to expansion costs in Dunkin Donuts vertical. United Spirits and Escorts will also declare numbers today.Stocks in NewsThe government raised Rs 3100 crore by divesting 10% in Oil India through the offer for sale. The issue was subscribed over 2.6 times and got bids for 15.14 crore as against the 6 crore shares that were on offer and got a good response from retail investors. The government also indicated that NTPC stake sale is likely after 7-8 days and divestment in MMTC, SAIL, RCF likely in March.CNBC-TV18 learns that the Jet board has given in-principle nod to the Etihad deal. However, the announcement of the deal may be deferred as there is some clarification required on the final taxation details and board nominations.IDFC declared subdued numbers compared to estimates chalked in. The NII is up 22% to rs 656 cr vs rs 536 cr. The profit has grown 19% to 452 crores vs 381 crores. Asset quality intact with net n-p-a at 0.12% vs 0.13% sequentially
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