Here's what could affect market performance today
Here is a peek at the global mood and newspaper headlines that could affect the market's performance today.
December 13, 2011 / 09:35 IST
The brief rally post the European Union summit is over, signalling the end of the honeymoon period. Investors are now bracing for a likely EU downgrade as ratings agencies are not satisfied with the outcome of the summit.
US markets closed down 1.3-1.5% and major European indices fell between 2-3.5%. The worrying situation is in the bond market in Europe, as bond yields touch all time highs. The Italian 10 year yield is inching close to 7%, and Spanish bond yields are above 6% currently.On the back of the weak cues from the western world, Asian equity markets are trading down.In the currency space, the euro saw a session low of 1.316 against the dollar yesterday, and is continuing its downfall today. Experts believe that if the currency cannot hold onto the October low of 1.314, sharp cuts can be expected. The dollar index is up 1.1%, at 79.60.The Indian currency rose close to 1% in trade yesterday to close at an all time high of 52.84 per dollar. Fears are that the rupee could open lower to breach the 53 per dollar mark today.The popular safe haven for investors, gold, fell over 3% yesterday and is currently at USD 1664 per ounce. Brent crude is at USD 107.20 per barrel, down 1.3%.The key global event to look at today is the US Federal Open Market Committee meet. Experts believe this meet will help ratings agencies decide whether to upgrade or downgrade the US economy.Stocks in newsFinance Ministry sources tell CNBC-TV18 that Vijay Mallya has agreed to pay service tax liability to the tune of Rs 15-20 crore to the government by Tuesday morning. The government has agreed to unfreeze Kingfisher Airlines accounts subject to the payment of the liability.Reports say that the board of Kamat Hotels is set to consider the course of action on outstanding foreign currency convertible bonds. (FCCBs)Cement output for the month of November came in at 13.98 million tonne against 11.91MT the previous year. The Times of India reports that banks are set to recast loans of textile companies.The Mint has reported that Strides Arcolab is in talks to sell all its local and global businesses except the injectables business at a deal size valued at Rs 5,200 crore.The Mint also reports that the Maharashtra state government is planning to raise duty on captive power plants. If this move comes through, it could affect power companies like RIL, JSW Steel, Ultra tech and ACC.On the positive side, GMR Infra has added 384 megawatts to its power grid in Andhra Pradesh.Unitech board has decided to withdraw its scheme of arrangement in Unitech Holdings with Aditya Properties.The board of Gati has opened the issue of FCCBs and plans to raise up to USD 22 million.Anisha Mappat
anisha.mappat@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
