Opening Bell: Cues that will decide Nifty's course today
Global markets ended lower on Monday on the back of Syria concerns. Mirroring Wall Street, Asian markets were weak today morning.
August 27, 2013 / 09:18 IST
Parliament approved the historic Food Security Law after just six hours of debate on Monday night. Food minister KV Thomas tweaked several key proposals including assuring states that their existing schemes will not be tampered with and they will get to select the beneficiaries. The total food grain requirement is projected at 62 million tonnes for an estimated expenditure of around Rs 125000 crore this year.
The market closed with marginal gains amid volatility on Monday. Sensex was up 38.69 points at 18558.13, and the Nifty rose 4.75 points to 5476.50.Meanwhile, in the global space - Syria concerns led US stocks to reverse earlier gains in the last hour of trading with the Dow and S&P 500 ending about half a percent lower. In Europe, shares closed slightly lower with fears of a government collapse in Italy dragging down the Italian index.Asian markets were trading lower today morning following a lackluster lead from Wall Street and fears of a possible confrontation with Syria.Stocks to watch The Department of Industry Policy and Promotion (DIPP) has cleared the decks for 100 percent FDI in the telecom sector.Sesa Goa will replace Sterlite in the Sensex. Sesa Goa's weightage will also increase in the Nifty and FTSE. Sterlite has seized to trade on the bourses. Financial Technologies continues to be in focus - NSEL is due for its 2nd tranche payout amounting to Rs 174.72 crore, of which they have managed to collect only Rs 12 crore so far. In the first payout as well, NSEL had managed only Rs 92 crore. Watch for any further weakness in IDFC today after it dropped over 8.5 percent yesterday as it decreased the ceiling on FII investment. IDFC had advised custodian banks not to make any further purchases of the company’s shares through secondary markets on behalf of Fll & NRI clients with immediate effect. Also, look out for what comes out of the two big AGMs to be held today. Maruti Suzuki at 10am and the ADAG group including Rel Communication, Reliance Capital, etc.US The Dow fell below the psychologically-important 15,000 level. The 10-year treasury yields fell for a second straight session on Monday as weaker-than-expected data on manufactured goods appeared to argue for the Federal Reserve to begin trimming its bond purchases later this year, rather than soonerOn the economic data front, durable goods orders slumped 7.3 percent in July vs estimates of a 4 percent fall. This is the biggest drop in nearly a year after snapping three straight months of gains. The data now suggests economic growth this quarter will probably not accelerate as much as economists had forecast. CurrencyThe dollar index was trading at 81.28 while the euro drifted lower to USD 1.3368, partly weighed by worries about Italy.CommoditiesBrent crude prices fell from a near five-month high of more than USD 111 a barrel despite the increasing possibility of a western-led military response to Syria. Nymex too fell to USD 106/barrel levels. From precious metals space, gold breaks above USD 1,400 an ounce for the first time since June 7 recovering over USD 200 in that duration. Technical factors suggest further upside for bullion. 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!
