The News International Team
The Indian market is likely to open in green despite a sharp sell-off on Thursday led by fall in European markets that dragged the Indian equity benchmarks near two-month closing low in late trade. The SGX Nifty was trading in green, up 52 points to 7808 at 8:10 hrs.
The 30-share BSE Sensex closed below the 26000-mark to 25999.34 weighed down by broadbased selling and the 50-share NSE Nifty closed at 7748.20, down 115.80 points.
Stocks ended little changed, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports.
Claims for jobless benefits dropped to a 14-year low last week, falling by 23,000 to 264,000, lowest since 2000. Separately, US industrial production rose 1.0 percent in September, versus expectations of 0.4 percent.
In Europe, shares closed lower after trimming losses in late afternoon trade, tracking US markets which partially recovered after visiting correction territory, even as fears surrounding Greece’s stability resurfaced.
Asia remained subdued in morning trade.
In the currency space, the dollar recovered given the relative strength of the US economy and the Federal Reserve’s commitment to tighten monetary policy.
In commodities, Brent crude rises to USD 86 per barrel buoyed by robust economic data and as US gasoline inventories last week fell to their lowest in nearly two years.
From precious metals space, gold prices hold steady around USD 1238 an ounce.
Back home, Prime Minister Narendra Modi appointed Arvind Subramanian as India’s new Chief Economic Advisor. Subramanian is a former chief economist at the Asian Development Bank, has also worked for the World Bank, IMF and the WTO amongst other global institutions.
IT major, TCS misses lofty expectations. The dollar revenue at 3.9 billion falls shy of estimates but net profit comes in-line with the street view. Consolidated operating margins at 26.8 percent also meet expectations.
From the auto space, Hero Moto reports good set of numbers with profit surging 58 percent boosted by termination of license fees to Honda and higher other income. Revenues were strong due to solid 20 percent volume growth.
In key earnings today, HCL Tech may see a 3.2 percent dollar revenue growth. However, profits may fall 5 percent to Rs 1,742 crore. Expect margin decline impacted by wage hikes. Among banks, Axis Bank may see a 14 percent growth in net interest income while profits may rise 18 percent.
Last but not the least, the wait for Apple’s latest gift to India is finally over. The California-based multinational launched its much awaited Iphone 6 and Iphone 6 plus in India at 12 am at starting price of Rs 53,500 and Rs 62,500 respectively.