Indian Market
The frontline Indian stock indices are trading with moderate gains in early minutes of trade but the sentiment remains edgy amid concerns about Greece's ability to secure a second bailout package from the international lenders to avert a default. the market also seems to be taking some breather after five straight weeks of gains. Technically, the market does appear to be a little bit overbought. So, traders should be cautious at this juncture and wait for the confirmation of an end to the bear market.
The BSE Sensex was 17,743., up 36 points over the previous close. It had earlier touched a day’s high of 17,828 and aday’s low of 17,720. It opened at 17,813.
NSE Nifty was quoting 5,369, up 8 points over the previous close.It has earlier touched a day’s high of 5,413 and a day’s low of 5,362
The shares of Reliance Industries have edged higher after Goldman Sachs upgraded the index bellwether to a 'Buy' from 'Neutral', citing a potential gain in margins on increased refining and recovering oil demand. Goldman raised its target prices for the oil and gas major to Rs. 970 from Rs. 960 previously.
Shares of Hindustan Unilever Ltd. (HUL) are down a day after the FMCG giant posted better-than-expected Q3 net profit on rising prices and volume growth. However, HUL did warn about headwinds from an uncertain global environment.
HUL said it could have to deal with challenges arising from inflation and currency volatility. However, it vowed to maintain relentless focus on cost management and execution to contain these threats.
Major Results Today:
BILT, Cadila Healthcare, GMR Infra, Hindustan Oil Exploration, ICRA, IL&FS Transportation, JK Lakshmi Cement, M&M, Omaxe, Opto Circuits, Phillips Carbon, Radico Khaitan, Triveni Engineering, UB and VIP Industries.
Global Market
Most Asian markets are down today amid growing tensions over the fate of Greece as the debt-ridden eurozone nation's leaders failed to adhere to the Monday's timeline for accepting the terms of the second round of bailout.
The market is divided over whether the wrangling over Greece's debt restructuring talks would eventually be resolved or trigger contagion across other vulnerable eurozone countries.
US stocks finished flat as Greek political parties failed to agree on terms for a new bailout package. European stocks declined as talks between Greece and various other stakeholders drag on amid rising threat of a default. Willy-nilly, Greece has become a test case for the eurozone as it struggles to rein in a long-running debt crisis.
Other events to watch out for today include: interest rate decision in Australia, industrial production in Germany and Federal Reserve Chairman Ben Bernanke’s testimony.
Currency Update
The Indian Rupee ended a four-day winning streak on Monday, reversing early gains that saw it rise to a more than four-and-a-half month high, as US Dollar demand from local oil refiners and big companies offset a rise in local shares. A report by rating agency Standard & Poor's outlining the numerous hurdles faced by India in maintaining its stable rating outlook and the lingering Greek debt crisis weighed on the unit.
Key Events
The advance GDP estimate for FY12 will be out today. The numbers are unlikely to be upbeat and most of the reasons are well known. The Indian economy is likely to grow by ~7% in FY12 vs. 8.4% in FY11. However, stock market tends to discount events well ahead of time and therefore the GDP data may not hurt sentiment.
Outlook
Today, we expect the Indian Markets to open marginally in the green and than continue to remain range bound during the day. Immediate resistances for Nifty are at 5389 & 5398 levels, while supports are at 5300 & 5275 levels. Among the sectoral indices Realty, Capital Goods and Metal could witness correction during the day.
Sources- India infoline,hdfcsec
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