SENSEX NIFTY
Dec 13, 2012, 09.39 AM IST | Source: Moneycontrol.com

Morning Cues: Will Nifty open in green?

In the US, markets wiped out their gains in choppy trading session to close narrowly mixed as optimism about Fed's plans to buy more bonds faded, with investor focus returning to the budget deadlock.

Moneycontrol Bureau

US

In the US, markets wiped out their gains in choppy trading session to close narrowly mixed as optimism about Fed's plans to buy more bonds faded, with investor focus returning to the budget deadlock.

The fed unveiled fresh stimulus measures in it's last meeting of the year and  committed to additional USD 45 billion monthly bond buying plan. It takes step of linking interest rates to the state of joblessness.

On the economic data front, import prices dropped0.9 percent in November, posting the biggest fall in five months. Weekly mortgage applications rose last week.

Data to watch out for in the US today

Weekly jobless claims are expected to remain unchanged at 370,000. Producer price index could fall 0.5 % and retail sales may rise to 0.6 % in November

Europe

European markets closed marginally higher as investors were expecting an announcement from the US Federal Reserve on a new treasury purchase plan

EU finance ministers are closer to finding a common ground on a deal for a single bank supervisor. This is after Germany signaled it could support plans to give the ECB powers to supervise the lenders.

Greece

The EU and IMF have hailed the country's buyback as a success despite falling slightly short of targets, meaning that Athens could finally get its next tranche of aid. Ministers will meet later today to formally announce their decision.

Italy

Meanwhile Italy’s first bond action after Prime Minister Monti announced his decision to resign went off without a hitch. Rome's one year borrowing cost fell to a 9 month low as treasuries sold 6.5 billion euros of one year BOT bills with a yield of 1.46%.

Asia

Asian markets were subdued in morning trade.

Back home, key equity benchmarks ended trade directionless on Wednesday, despite a better-than-expected October IIP number. The Sensex closed the session down 31.88 points or 0.16 percent at 19355.26, while the Nifty ended 18.00 points or 0.31 percent down at 5880.80.

It is a big day in the Cabinet today. The cabinet committee on investment and the land bill will be taken up for discussion. The cabinet may also take a call on spectrum price cut on 2g services today.

The government added Rs 6,000 crore to its divestment kitty. The NMDC offer for sale is fully subscribed thanks to strong FIIs and domestic investor participation. On the second day, the Bharti Infratel IPO saw 35 percent subscription,

Meanwhile, RBI’s draft rules on NBFCs tightened capital adequacy, provisioning, NPL norms for NBFCs closer to banks. However, new regime would start kicking in by 2014 only.

On the political front, the crucial first phase of polling in Gujarat begins today. The polling will cover 87 assembly seats of Saurashtra and south Gujarat. The second phase, will see 95 seats going to the polls on December 17.

Currency

The dollar came under pressure after the Fed chairman Ben Bernanke reiterated that monetary policy won't be enough to offset damage from the "fiscal cliff". The dollar index slipped below the 80 mark and the euro stayed put above 1.30.

Commodities

Brent crude prices gained more than a percent to USD 109 dollar despite OPEC's decision to leave its output targets unchanged, despite estimates indicating demand for its crude will be lower next year. 

READ MORE ON  Nifty, sensex, dollar, RBI, rupee

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