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Morning Cues: Mkt may be rangebound with upward bias

The News International Team

The Nifty is likely to marginally open in the green with indicator SGX Nifty at 8193, up 3 points at 7:45 a.m.

In the US, stocks mostly declined, with energy producers leading losses on oil’s drop to a multi-month low, as investors retreated after a fifth week of gains.

And in Europe, shares closed lower after weak trade data from China and concerns about the Scottish independence vote.

In the currency space, the dollar traded at 14-month highs against a basket of major currencies early on Tuesday, benefiting from a run in sterling and after a Federal Reserve study sparked more buying interest. Giving bulls a boost, a research from the San Francisco fed noted that investors are pricing in a lower trajectory for interest rate rises than members of the Fed itself.

In commodities, Brent crude slipped below USD 100 a barrel for the first time in more than a year as Chinese and US data pointed to slower-than-expected growth. Brent is currently trading above USD 100.

From precious metals space, gold hovered near its lowest in three months following a strong dollar, dimming the metal’s appeal as a currency hedge.

In addition, Apple is to announce a big launch later today. The company is widely expected to launch two new iPhones and possibly an iWatch.

And back home, major indices hit historic highs yesterday after consolidating for the last 2 sessions as Sensex rallied nearly 300 points and the Nifty neared 8,200. ( Read more )

Metal and power stocks will be in focus as the Supreme Court hears the coal blocks allocation case today . Meanwhile, the government files its affidavit on coal block allocations in the SC while giving information on producing coal blocks. It also says the court can choose to exempt them by levying a penalty.

Besdies, Cipla  too will be in focus today as the company announces commercial collaboration with UK-based S&D Pharma.

In the meantime, TCS  continues to be the blue-eyed boy for the Tata Group, accounting for nearly 96 percent of the group’s dividend income. While FY14 has been relatively flat for Tata Sons in terms of dividend received from its group companies, CNBC-TV18 reports that new businesses like real estate and insurance are on the verge of a breakout.

In other news, Supreme Court has granted a 15-day extension for Subrata Roy to stay at the Tihar jail outhouse and sell his assets to get bail. Bank of China has threatened to takeover Sahara’s foreign hotels citing doubts over the transactions.

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