Will weak global cues, India's Q4 GDP data weigh on Nifty?
The Q4 GDP figures will be announced today; it assumed more importance after economists gave a slew of FY13 GDP downgrades. According to a CNBC-TV18 Poll, India's Jan-March quarter GDP is expected to remain flat at 6.1%.
Moneycontrol Bureau
All the three indices in the US ended sharply lower yesterday, wiping out all of the previous session's gains. All of them lost about a 1.5% on the back of growing worries over rising bond yields in Spain and Italy. Fears over Greece's possible euro zone exit also kept investors on edge with yields soaring in both the peripheral countries. Risk aversion was quite evident when the yield on the 10 year US treasury fell to 1.62%, a 60 year low. The CBOE volatility index surged nearly 15% to finish above 24.There was disappointment on economic data front; pending home sales dropped 5.5% in April to a four-month low. The US home mortgage applications also fell last week as refinance demand faltered. Key data to watch out for in the US todayThe first quarter US GDP is expected to slow down to 1.9%. Consensus estimates also indicate weekly jobless claims to remain unchanged at 370,000.The European markets too closed sharply lower on euro zone banking concerns and following disappointing housing data from the US. Spanish yields are at 6.5%, the highest levels in 6 months while the Italian 10 year yields are at 6.11%.Markets across Asia opened in red today with the Nikkei and Kospi opening down nearly 2%.Back home, Sensex closed at 16312.15 down 126.43 points and the Nifty lost 43.15 points to close at 4946.95. Domestic cueThe Q4 GDP figures will be announced today; it assumed more importance after economists gave a slew of FY13 GDP downgrades. According to a CNBC-TV18 Poll, India's Jan-March quarter GDP is expected to remain flat at 6.1%.Eye on Greek electionsThe opinion poll shows that both pro and anti bailout parties are neck in neck ahead of the June 17 elections, but the uncertainty is hitting the country hard. Reports indicate Greek refiners are finding it tough to find anyone willing to sell them oil while two of the world's biggest trade insurers say they are not going to offer new insurance cover for exporters who are hipping goods to Greece.Currency The euro fell to the lowest level in almost two years against the dollar as Spain struggled to rescue its troubled banks. The euro slipped below 1.24 to the dollar, meanwhile the dollar index spooked to the 83 mark.The Indian rupee tumbled for third consecutive day and fell below the psychological mark of Rs. 56/$ on Wednesday. Heavy demand for USD and its strength over euro amid concerns regarding euro zone weakened the rupee.CommoditiesCrude prices plunged more than 3% to the lowest level in nearly six months as fears about the euro zone crisis sparked erosion in risk appetite across markets. Brent prices are down more than USD 15 dollars a barrel so far in May, heading for the biggest monthly decline since October 2008, right after the collapse of Lehman Brothers. Nymex feel to USD 87 levels. From the precious metals space, gold prices fell for a second straight day, dipping to a 1 week low and currently trading around USD 1562 an ounce. Gold prices are poised to lose about 7% this month.Result impactUtility vehicle maker Mahindra & Mahindra beat street expectations on Wednesday, with standalone net profit of Rs 874 crore, up 44% from a year ago, helped by one time gains and lower tax provisions, apart from strong sales growth.The Mahindra-group company's revenue in the fourth quarter rose 39% from a year ago to Rs 9,387 crore.Shares of Tata Motors tumbled over 10% on Wednesday as weak margins at its luxury Jaguar Land Rover unit, despite strong sales growth, left investors disappointed.Speciality Restaurants revives primary marketSpeciality Restaurants ended with smart gains on the listing day. The issue price was fixed at Rs 150 per share. The IPO of restaurant chain operator was subscribed 2.54 times. Bharat Bandh call todayThe N-D-A is organising a nationwide shutdown today to protest the petrol price hike. In Mumbai, the Shiv Sena will try and enforce the bandh in some of its strongholds. The city's dabbawalas will be joining in as well. But public transport won't be affected as autos, taxis, best buses and railway unions have decided not to join the bandh. In Delhi the picture will be a bit different, the BJP says it will block traffic at about 100 junctions across the city. Harsha Jethmalani
harsha.jethmalani@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!
