Global cues positive but Nifty likely to open weak

The Indian equity market is unlikely to open in the green with the market indicator SGX Nifty trading 25.50 points down at 8348 at 7:45 am hinting a weak opening.However, yesterday the bulls powered ahead on Dalal Street, a late surge lifting sentiment and the Sensex rallied over 350 points and Nifty neared 8,400. On the macro front, the goods and services tax could cost the centre an additional Rs 17,200 crore but relief for the industry as tax exemptions will translate into cash subsidy payouts by the centre.

According to Manishi Raychaudhuri, Asia Pacific Strategist, BNP Paribas the recent correction in Indian equities was expected, but its depth and duration were surprising, Raychaudhuri says rising crude prices and the relative attractiveness of other Asian markets are among the reasons for the correction. However, he feels the uptrend in the last few days indicates that FIIs are interested once again.In key earnings today, Tata Power will report its numbers and according to a CNBC-TV18 poll, net sales may come in at Rs 8,875 crores, profits are seen at Rs 91 crores versus a reported loss of Rs145 crores.

The Asian markets have opened with a positive bias because the overnight handover was strong. The Nikkei is trading at three-week high as the yen moved back towards the 120 handle against the US dollar.The Bank of Indonesia (BI) is expected to keep interest rates steady when it meets later today amid accelerating inflation and volatility in financial marketsGlobally, the US markets ended higher with the Dow Jones Industrial Average and S&P 500 ending at new records, as investors shook off earlier concerns about Greek debt and a renewed rise in bond yields. The Nasdaq Composite ended 20 points within its closing record, outperforming the major indices. US treasury yields edged higher, with the 10-year note yield briefly topping 2.23 percentIn Europe too shares closed higher yesterday after trading in and out of the red during the trading session, amid growing concerns about the future of cash-strapped Greece.The real outperformer was the German Dax which closed over 1 percent higher, boosted by a rally in shares of Volkswagen.From other asset classes, crude prices slip marginally as a rallying dollar & bearish price outlook by Goldman Sachs weighs on the commodities complex.And from the currencies, the dollar index rises above 94 mark. However the rupee weakens marginally against the dollar.

Back home, other stocks that could be in focus are L&T Finance Holdings with PE majors Bain Cap, Baring Asia eye USD 500 million stake in company. PE firms are in race for sizable minority stake in company.Sun TV  because the Ministry of Home Affairs (MHA) is unlikely to reconsider rejection of clearances to company's FM radio stations.Suzlon Energy after bagging order from Mytrah Energy to supply 98 MW project in Telangana.