Mkt watch: Global & local cues that will impact Nifty today

Moneycontrol Bureau

The Indian market closed flat to higher on Monday after recouping losses in afternoon trade. The Nifty ended at 5,687.25, up 11.20 points.

A quick look at global and local developments.

Results:

Reliance Industries delivered along street expectations. Net profit saw a 20 percent gain at Rs 5,376 crore. GRMs were up 25% percent sequentially at USD 9.5 a barrel.

In banks, Axis Bank's net interest income came in line at Rs 2,327 crore. However, there is slight deterioration in asset quality, but lesser compared to the previous quarter.

Also read: Reliance results as expected, no surprises, say experts

US markets:

The US markets extended their gains in the final hour of trading to close near session highs, recovering from last week's sharp losses, lifted by a positive retail sales report and strong earnings from Citi Group. The CBOE volatility index dropped near 15.

Citi Group reported its quarterly earnings. It beat analysts' expectations, sending shares higher in premarket trading. The company posted third-quarter earnings excluding items of USD 1.06 per share, down from USD 1.23 a share in the year-earlier period.

Its revenue decreased to USD 19.4 billion from USD 20.83 billion a year ago, however, above expectations.

Key data to watch out for in US today:

Industrial production is expected to rise 0.2 percent in September after slipping 1.2 percent the previous month. Consumer Price Index may come in at 0.5 %. Also watch out for data released from the Housing Market Index.

European markets:

European markets closed higher after strong macroeconomic data out of China, upbeat comments about Greece's future in the Euro zone.

Greece's prime minister has said that the deal with Troika on more spending cuts will be concluded.
 
Merkel also looks at giving Greece the extra two years that it has asked for to hit fiscal targets but the analysts say the key to that is whether she has to go back to parliament for any additional funding that might come with those target delays.

Asian markets:

At 7: 40 am (IST), Asian markets were trading firm. Hong Kong's Hang Seng was up 0.10% or 20.34 points at 21,168.59. Japan's Nikkei gained 0.87% or 74.34 points at 8,652.27. Singapore's Straits Times was up 0.32% or 9.80 points at 3,052.85.

South Korea's Seoul Composite rose 0.39% or 7.44 points at 1,933.03. Taiwan's Taiwan Weighted added 0.31% or 23.28 points at 7,442.18. China's Shanghai Composite was down 0.26% or 5.46 points at 2,093.24.

Currency check:

Euro traded flat versus the dollar as investors await clarity on when Spain may request a bailout. The dollar index was below the 80 mark.

Commodities:

Brent crude prices rose more than a percent to USD 115 per barrel levels on upbeat economic data from the US.

Meanwhile, gold prices slipped a percent, its biggest one-day drop since July, as encouraging US retail sales data prompted funds to reduce their bullish bets in bullion after its recent sharp rally.

Stocks in news:

Tata Motors September global sales were down 4 percent to 1.03 lakh units year on year. JLR sales were down 4% at 26,461 units while passenger vehicles were down 11%. Only CV sales saw a 3 percent uptick at 54,761 units year-on-year.

CNBC-TV18 sources indicated that United Spirits and Diageo may sign a term-sheet in the next 10 days in London. Sources say Diageo may get board majority once the deal is done, but Vijay Mallya is likely to continue as the chairman of the board

Aviation companies will be in focus today as jet fuel prices have been cut by 3%.

BPCL to launch USD 500 million international bond issue. The roadshow for bond issue will begin in London.

Vini Amesar.
vini.amesar@network18online.com