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Market may extend gains today despite mixed global cues

The News International Team

The Indian equity market is likely to open flat today with the SGX Nifty with a positive bias, an indicator of the market opening, was trading at 8130, down 4 points at 7:42.

In the US, markets closed mixed with the S&P 500 holding above 2,000 after rising to another intraday record, as energy companies dropped along with the price of oil and investors fretted whether the European Central Bank would make further monetary policy moves this week.

In Europe, European shares slipped to close marginally lower, as investors monitored events in eastern Ukraine and reacted to economic data from the region.

In other asset classes, Brent crude slipped to a 16-month low, falling 2.5 percent to just above USD 100 per barrel while US crude hit a 7-month low. With the dollar index at a 14-month high, a strong dollar and the prospect of slowing oil demand were seen as the key reasons for the fall. Gold too was at its lowest level since mid-July, breaking through key support as the dollar hit a one-year high against the euro.

Back home, the bull run continued on Dalal Street with the rally pushing benchmark indices further into unchartered territory. Nifty managed to conquer the 8100 mark on an intraday basis yesterday and looks all set to make a higher high today. ( Read more )

In important market voice, Ridham Desai of Morgan Stanley believes we are in a midst of a multi-year bull run with a 40 percent probability of Sensex hitting 33,900 by June 2015.

Also, power minister Piyush Goyal yesterday met representatives of 5 states which are reeling due to coal shortage. Sources say states will be asking power developers to increase power generation. Adani Power and Tata Power, which also supply power to these 5 states, approached the minister to seek an early resolution in the compensatory tariff matter. However, sources suggest the Centre is unlikely to intervene.

In other news, the Bombay High Court has stepped up the NSEL recovery process by setting up a 3-member panel comprising of a judge, an auditor and a lawyer to recover money for investors.

In earnings action, United Spirits  will announce the earnings today.

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