Indian Markets
The Indian main indices have lost ground early on with the NSE Nifty dipping below the 4750 mark while the BSE Sensex lost 100 points. But, the broader market is faring relatively better and therefore the market breadth is even.
Gail India is trading slightly up after it was inducted into the Sensex. Gail replaces Jaiprakash Associates, which is in the red after market regulator SEBI penalized its promoters for alleged insider trading. Reliance Power is up on reports that Northern Coalfields (NCL) has agreed to surrender land required to mine two blocks attached to the Sasan ultra mega power plant.
This week is crucial as the Government will announce the latest IIP and inflation data. Also, the Q3 earnings season will kick off in the right earnest. Infosys and HDFC will release their numbers on Thursday.
Meanwhile, the Election Commission is likely to reschedule the first phase of the Uttar Pradesh assembly polls. It was to begin on February 4. The new date of the first phase will be announced shortly.
US and European Markets
US equity benchmarks pared weekly gains on Friday despite an encouraging report on the country's labour market. Investors chose to focus on the worsening credit crisis in the eurozone. The euro dropped below $1.27 for the first time since September 2010, sliding 1.7% for the week. The dollar index rose above 81, hitting one-year high. Most European stock indices fell on Friday as Italy’s 10-year government bond yield surged above 7%. The ECB reportedly intervened in the secondary markets to buy Spanish and Italian bonds. A yield of more than 7% is generally viewed as unsustainable for the debt-strapped governments in the euro area.
Asian Markets
Today the Asian indices are trading in the red except Shanghai, which is up by 1.3%. Kospi is trading lower by 1.5% while Strait Times is down 1%. Hang Seng and Taiwan are down by 0.8% and 0.7% respectively. SGX Nifty is trading lower by 33 points.
Currencies
The Indian Rupee closed stronger vis-a-vis the Dollar on Friday, ending the week with a 0.7% gain as foreign investors bought local debt.
Commodities
Among the metals, Zinc lost 0.3% while Copper gained 0.7%. Aluminium and Nickel rose by 0.5% each. Oil for February delivery lost 53 cents to $101.28 a barrel. Gold futures for February delivery fell $3.30 to $1,616.80 an ounce.
Outlook
Today, the Indian market is likely to open on a flat to negative note. It could trade in a range with a negative bias. Among the sectoral indices, Banking and Oil & Gas stocks could underperform while FMCG stocks could do well.
Sources- HDFC Security/ India Infoline/ Rh Morning market update
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