Morning Bell.......The market is eagarly awaiting the credit policy to be declared today

Indian Markets

The Sensex opened with 70 points gap up amid volatile trade on Tuesday. The market is eagarly awaiting the credit policy to be declared today. While opinions are mixed, some feel that the RBI is likely to cut cash reserve ratio (CRR), many still feel that for now the central bank will maintain a status quo with a dovish outlook

US & European Markets

U.S. stocks closed the day flat, after drifting above and below the break even line Monday. Investors grew jittery amid uncertainty surrounding Greek debt talks. Dow Jones closed down 12 points, or 0.1%. S&P 500 gained 0.6 points, or 0.05%. Nasdaq moved down 3 points, or 0.1%.

European stocks rose on hopes that attempts to address the latest phase of the Greek debt crisis would be successful. Britain's FTSE 100 closed up 0.9%, DAX in Germany added 0.4% and France's CAC 40 ticked up 0.6%.

All the Indian ADRs ended in the green except Wipro, which fell by 0.9% while Satyam gained the most 3.3%. Tata Communications and MNTL rose by 2.8% each while ICICI Bank rose by 1.5%. Dr Reddys and HDFC Bank ended higher by 1.4% and 1.2% respectively while Infosys rose by 1%. Tata Motors rose marginally by 0.1%.

Asian Markets

Today, among the Asian indices, only the Japanese index Nikkei is open and is trading higher by 0.4%. SGX Nifty is trading higher by 19 points.

Currencies

The Indian Rupee jumped 21 paise to a two-and-a-half month high of Rs 50.10/11 against the US Dollar on the back of sustained capital inflows and weakness in the American currency overseas.

Commodities

Oil for February delivery slipped $2.28 to $98.11 a barrel. Oil for March delivery, which becomes the active contract at the close of trade Friday, lost $2.21 to $99.33. Gold futures for February delivery added $9.50 to $1,664.00 an ounce.

Key events to watch for today

India - Third Quarter Review of Monetary Policy

Outlook for Today

Today, we expect the Indian Markets to open in the green and later trade in a range through the day. Support on Nifty is at 5,000 while resistance is at 5,100. Among the sectors, Bankex could do well today also while Oil & Gas stocks could underperform.

Sources- hdfc sec, moneycontrol