Indian Markets
The frontline Indian stock indices have slipped in the early morning trade, hurt by the disappointing Q3 results in USD terms from IT major Infosys. The Bangalore-based software giant has also announced a muted guidance for the fourth quarter.
The Infosys stock is down sharply along with other IT peers like TCS, Wipro and HCL Tech. The IT index on both BSE and NSE is down more than 4%. If you keep aside the IT basket, the rest of the market is not doing that badly. There are no major losers in the two main equity benchmarks except the software companies.
Markets took a breather after Tuesday’s stellar rally as investors appeared reluctant to commit ahead of the IIP data and Infosys results. IIP for November is expected to rebound from a disastrous October reading. One has to see if there is any upward revision of the October print of -5.1%.
Weekly food inflation is also due today. It is likely to stay in the negative zone, mostly owing to the statistical phenomenon called ‘base effect’. more important will be the inflation report for December, which is due on Monday.
US and European Markets
U.S. stocks recovered from earlier losses to end little changed on Wednesday as concerns about Europe's weak economy and debt crisis weighed on the market. The Dow Jones industrial average lost 13 points, or 0.1%, to end at 12,449. The S&P 500 edged up less than 1 point to 1,292. The Nasdaq gained 8 points, or 0.3%, to 2,711.
European equity markets dropped on Wednesday, as energy stocks fell along with crude prices and as concerns about the euro-zone sovereign debt crisis weighed on sentiment. While DAX ended lower by 0.2%, FTSE & CAC ended lower by 0.5% & 0.2% respectively.
Asian Markets
Today the Asian indices are trading on a mix note. While Shanghai & Nikkei are trading lower by 0.6% & 0.7% respectively. Hang Seng, Kospi & Strait Times are trading in the green by 0.2% each. Taiwan is trading marginally higher by 0.1%. SGX Nifty is trading down by 6 points.
Currencies
The Indian Rupee snapped a three-day rising streak to end down on Wednesday, after see-sawing through the day, tracking choppy shares, with Dollar demand from oil importers and a weak euro weighing. A fragile European economy could further hurt sentiment and keep investors at bay, dragging the rupee lower against the dollar in coming days.
Commodities
Among the metals, Aluminium & Copper gained 0.3% & 0.7% respectively, while Zinc & Nickel ended lower by 0.2% and 0.1% respectively. Oil for February delivery slipped 51 cents to end at $101.71 a barrel. Gold futures for February delivery rose $9 to $1,640.50 an ounce.
Key events to watch for today
India - IIP
India -WPI
Outlook
Today, the Indian market are likely to open marginally lower and takes cues from the Infosys Q3FY12 results, the IIP numbers for the month of November and weekly inflation data due today. Among the sectoral indices, Realty, Metals & Banks look good, while FMCG could underperform. Better than expected results from Infosys could drive the IT index higher today.
Sources- HDFC SEC, India Infoline
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