Market Commentary and Intraday News

Indian Shares To Fall On Global Cues

251 days ago

(RTTNews) - Indian shares are poised to open lower on Tuesday following weak global cues as investors wait for a key German ruling on the euro zone's bailout funds and the Federal Reserve's next move to bolster U.S. growth. Investors also await cues from IIP and inflation data due this week for clues on whether the RBI will take a call on cutting interest rates.

Indian shares moved in a lackluster manner on Monday, as a lack of progress on fiscal reforms to cut down the government's expenditure on wasteful subsidies kept investor mood subdued ahead of industrial output and inflation data due on Wednesday and Friday, respectively. The benchmark BSE Sensex ended the session up 17 points or 0.1 percent at 17,767, while the broader Nifty index ended 5 points or 0.09 percent higher at 5,363.

Corporate News

The acquisition of Lodestone Holding AG, a Swiss management consultancy firm, will help Infosys strengthen its capabilities in Europe, and is in line with the Infosys 3.0 strategy, Chief Executive Officer and Managing Director S. D. Shibulal said.

In its quest to become one of the largest stock exchanges in the country, Financial Technologies-promoted MCX Stock Exchange has announced lower transaction fee structure as compared to other exchanges for its exchange platform.

CPM general secretary Prakash Karat and NDA constituents BJP, JD(U) and Akali Dal came down heavily against the coal block allocation to Jindal Steel and Power and demanded scrapping of its mining rights, saying the company is not passing the benefit of lower cost of fuel to consumers.

Mahindra Satyam has launched HealthConnection, a health insurance exchange solution, in the American market.

Mortgage lender HDFC said it has converted Rs 3,285 crore worth warrants along with non-convertible debentures, which were issued in August 2009 into equity shares.

Asian Markets

Asian markets are edging lower as traders cashed in on the recent strength in the markets ahead of the Fed's two-day monetary policy meeting. The Fed is due to announce its latest decision on monetary policy Thursday afternoon followed by a news conference by Chairman Ben Bernanke.

Besides uncertainty over the prospects of economic stimulus from the Fed, traders are keeping a close eye on Europe, as Germany's Constitutional Court is expected to rule on a request for a temporary injunction against Europe's permanent bailout fund.

Key benchmark indexes in China and Malaysia are down about a percent each, while Japan's Nikkei index is moving down 0.8 percent, Hong Kong's Hang Seng is declining 0.6 percent and South Korea's Kospi average is edging down marginally.

U.S. And European Markets

U.S. stocks ended notably lower overnight, with profit taking after recent gains and apprehensions ahead of the Federal Reserve's upcoming monetary policy meeting contributing to the weakness. The Dow slid 0.4 percent, the tech-heavy Nasdaq dropped a percent and the S&P 500 edged down 0.6 percent.

Major European markets also ended on a subdued note on Monday after Greece's international creditors rejected part of Greece's austerity plan, mounting pressure on the coalition government to redesign some of the proposed measures to win the next loan installment. The German DAX and the U.K.'s FTSE 100 ended largely unchanged with a negative bias, while France's CAC 40 shed 0.4 percent.

Crude

U.S. crude futures saw a late-session rally to end higher on Monday, notwithstanding demand growth concerns following disappointing industrial output and export data from China. Light sweet crude for October delivery gained $0.12 or 0.1 percent to close at $96.54 a barrel on the New York Mercantile Exchange.

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