The key Indian stock indices have opened on a sedate note and are trading with slim gains in early minutes of trading, as investors assess the wider impact of the Supreme Court's verdict on the 2G scam. While the FII inflows remain robust, there are concerns about the Government's ballooning budget deficit. Sentiment is also edgy ahead of tomorrow's lower court ruling on P. Chidambaram's alleged role in the 2G scam.
The Government’s already scarred image has taken another knock in the form of an adverse Supreme Court verdict which could make matters difficult for the Congress in the crucial UP elections.
Markets could be edgy today as investors await a lower court’s order on the alleged role of P. Chidambaram in the 2G mess. The court is set to deliver its verdict on Saturday.
The SC ruling has also thrown up a few tricky questions that could continue to haunt the telecom sector for a while. Let’s hope that the damage to investor confidence is limited.
On the global front, things have turned quiet ahead of Friday’s US monthly jobs data. While French and Spanish debt auctions went off well a deal on Greece’s debt recast remains elusive.
Just like the RBI governor, his US counterpart, Ben S. Bernanke, has raised a red flag over its government's ballooning budget deficit.
Global Markets
On the global front, Asian markets are cautious as investors await the release of monthly US jobs data on Friday and talks on the proposed debt swap in Greece remain inconclusive. The US markets finished mostly flat overnight while their European counterparts managed moderate gains.
Currencies
Indian Rupee climbed to a 3-month high vis-?-vis the US Dollar after a private report showed the nation?s manufacturing expanded at the fastest pace in eight months. The currency rose for a third day, strengthening past 49 per dollar for the first time since November 4, 2011.
Commodities
The metals ended mixed on the LME with Nickel and Zinc gaining marginally by 0.1% while Aluminium and Copper fell by 0.6% and 0.5% respectively. Oil for March delivery slipped $1.25 cents to end at $96.36 a barrel.Gold futures for April delivery added $9.80 to $1,759.30 an ounce.
Outlook
Today, we expect the Indian Markets to open flat to marginally in the green and trade in a narrow range. With the markets moving up further for the third consecutive session, the underlying trend continues to remain up. Immediate resistance for Nifty is at 5300, while support is at 5200. Among the sectoral indices, IT, Metal & Capital Goods continue to look good, while Healthcare & FMCG could underperform.
Sources-: hdfcsec, india infoline
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