The News International Team
The Indian equity market is likely to open flat with a slight negative bias, as suggested by SGX Nifty that was trading at 8104, down 13 points.
In the US, stocks cut losses to close mixed as geopolitical tensions lingered ahead of consumer data. Boosted by low oil prices, transports also gained and helped stocks turn positive.
And in Europe, shares closed lower on concerns regarding us military action and the independence vote in Scotland.
In the currency space, the dollar hovered below a 14-month peak against a basket of major currencies as the sell-off in sterling and the euro tapered off, but commodity currencies remained under pressure.
In commodities, crude prices rebounded from multi-month lows as global tensions and profit-taking momentarily outweighed fears about ample supply. Separately IEA expects global oil demand to grow by 0.9 million barrels a day in 2014. That’s a drop of 65,000 barrels per day, compared with last month’s forecast.
From precious metals space, gold logged its fourth straight daily loss yesterday, weighed by increasing speculation that the US Federal Reserve could soon raise rates sooner than expected. It was trading around USD 1240 an ounce.
Back home, Sensex slipped below 27,000 but the Nifty managed to recover most of its losses led by gains in financials . However, it was the mid and small caps that stole the show with a decent rise. ( More details )
In key macro data to watch, IIP for July and CPI for august to be released today. A CNBC-TV18 poll sees IIP falling to 1.7 percent month on month primarily due to weak core sector data and base effect. CPI on the other hand is likely to soften to 7.7 percent mainly on account of food inflation. Core inflation will be key and could surprise with market expectation anywhere between 6.9 percent to 7.3 percent.
Arun Jaitley’s ministries are locking horns over merging the debt-ridden national spot exchange with its promoter Financial Technologies . Corporate affairs ministry says the merger is against the interest of Financial Technologies’ shareholders but Fin Min believes the merger will hasten the recovery process.
In other news, former telecom minister Dayanidhi Maran pressurised and forced Sivasankaran to sell his stake in Aircel to Maxis , says the CBI before the special court. The chargesheet also alleges that Marans received illegal gratification.