Morning Cues: Stocks that might help Nifty hold 5200 today
Here is a look at the top global headlines and dometic newsmakers that will determine if the Nifty will hold on to the 5200 level today.
April 16, 2012 / 09:10 IST
Moneycontrol Bureau
An onslaught of weak economic data accelerated the sell off in US markets in the final hour of trading, forcing key indices to close at session lows, logging their worst weekly decline for the year. European markets too extended their losses, led lower by euro zone banking stocks on fresh concerns about the finances of Spain and Italy. The DAX, CAC and FTSE fell between 1-2.5%, while Spain and Italy saw bigger cuts of around 3.5%.Back home, weak results from IT major Infosys, funding concerns from Spain and concerns of growth slowdown in China pushed the Sensex down nearly 240 points. The Nifty lost 70 points to close at 5207, despite having breached the 5300 mark during trade.Currency CornerThe European debt crisis and slower-than-expected Chinese growth worried investors causing the euro to weaken 0.83% to 1.3078. The dollar index is back above 80 on risk aversion.The rupee appreciated ended at 51.30 to the dollar on Friday.CommoditiesCrude prices fell following a slip in US consumer confidence and Chinese GDP data. Brent is back to USD 120 per barrel levels, while WTI was down 0.8% at USD 102.8/bbl.Gold prices slipped to USD 1660 per ounce following a recovery in dollar, while copper fell over 4% for the week.Economic CuesHurt by rising gasoline prices, US consumer sentiment declined in early April to 75.7 from 76.2 in March. Keep an eye out for retail sales for March which is expected to slowdown to 0.3 %. Also watch out for the Empire State Manufacturing index which is expected to slip to 18 levels in April.China Q1 GDP came in at 8.1%, the weakest the country has seen in three years, prompting fears of a global slowdown.Spanish CDS’ hits a record 500 basis points, and the10 yr inches closer to 6% as gross bank borrowing from the ECB in March doubles to 316.3 billion euro versus 169.8 billion euro the previous month. According to a CNBC-TV18 poll, WPI inflation may come in at 6.68% for March. Key point to look out for is if there is an impact of the excise hike and how much of it has been factored in. Core inflation is likely to come in sub 5% levels, which will cement the case for a rate cut by the RBI.Stocks in NewsCoal India board will meet today to consider the model agreement with power producers for assured supply of fuel in the wake of presidential directive for signing fuel supply pacts.The Supreme Court accepted the Government of India’s review petition on 2G cancellation and is set to hear the petition on May 1.In earnings action, Mindtree is expected to post flat dollar revenues due to lack of one-time transition revenues in the third quarter. Margins are also expected to be flat.DCB posted a good Q4 numbers with a 52% jump in profits at Rs 17.3 crores. Improvement in asset quality resulted in decline in provisions, however, margins were under pressure due to high cost of funds.From the cement space, ACC says they will mull merger of ACC Concrete with company on April 19.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!
