Check out: Cues that will influence Indian market today

Moneycontrol Bureau

The US markets finished flat in a thin, lackluster session as investors took a breather following a strong rally in the previous week.

The Dow ended flat while the S&P 500 eked out a small gain to end at 1,265.43, logging its first five-day winning streak since mid-September.

US economic data:

Consumer confidence gained in December to 64.5 from a downwardly revised 55.2 in November. This is higher than analyst estimates

However, home prices declined in most major cities for the second straight month in October. The S&P case Schiller fell 3.4% on a year-on-year basis.

Europe:

In Europe, markets closed higher on very low volumes. UK markets were shut yesterday.

European financials were under pressure and the Italian 10-year yield hovered near 7% ahead of the upcoming Italian auctions.

Greece's Conservative New Democracy Party has withdrawn demand for elections in February.

Instead it says that it now wants polls to happen at latest by Greek orthodox Easter which falls on April 15. The move would give Prime Minister Lukas Papademos more time to pass reforms and secure a vital debt restructuring deal.

Asian markets:

Asian shares eased on Wednesday in low volume with many market players away for year-end holidays. Japan's Nikkei stock average opened down 0.17% in light trading, on track for a 17% decline this year.

Currency check:

The euro hovered above an 11-month trough against the dollar with thin year-end trade set to keep the greenback subdued. Investors are also awaiting for the outcome of an Italian bond sale due later today and tomorrow.

Commodities space:

Oil rose on news that Iran threatened to block the Strait of Hormuz. This added to already lingering concerns about supplies from West Asia. Brent crude is trading around USD 109 per barrel dollars at the moment

Gold fell in light holiday trade as technical weakness, options-related selling and a lack of fresh economic news failed to stimulate buying interest in the final week of the year.

Local market:

Yesterday was a lacklustre session for our markets with the Nifty closing at 4,750.

Stock specific action:

Tata Power is in focus as it signs share purchase agreement to acquire 51% BP alternative energy holdings equity in Tata BP Solar

Three major projects of Adani Power totalling 6,500 mega watt have been have been put on hold. This is mainly due to non-availability of coal and no clarity on coal linkages. The company plans to add 10,000 mega watt by 2013.

Power Grid board has approved investments worth Rs 5368.41 crore.

ARSS Infra board will consider and approve CDR from banks today.

Vini Amesar.
vini.amesar@network18online.com