The Indian equity market is likely to open with a positive bias with the SGX Nifty trading 15 points up at 8333.50 in the morning around 7:30 am.
The equity benchmarks gained strengh on Monday after consolidating last week supported by metals and autos stocks. The broader markets on Monday too participated in an uptrend; though buying at institutional desk remained low due to holidays for Christmas.
In the US stocks closed narrowly mixed, amid fresh lows on oil prices and earlier pressure on European stocks from Greece’s failure to elect a president. The CBoE volatility index traded above 15.
In Europe, shares closed mixed, with Greece struck by renewed political uncertainty after its politicians failed to agree on a new president. France’s cac and the UK’s FTSE both posted modest gains, while the German DAX closed flat.
However, stock indexes in “peripheral” Europe underperformed, led by Greece. The Athens index closed down around 3.9 percent, with the Italian FTSE MIB down 1.1 percent and the Spanish IBEX lower by roughly 1 percent.
Greek stocks and bonds were hit after politicians in the country failed for a third time to endorse Prime Minister Antonis Samaras’ preferred candidate. This means that general elections will occur early next year, potentially jeopardizing Greece’s hard-won economic recovery.
On the currency front, the euro remains rooted close to a 28-month trough against the dollar, but did not dip beneath that low. Greek bond yields shot higher after the vote as investors took fright, with the borrowing costs on 10-year bonds rising to 9.7 percent
In commodities, crude oil prices tumble, with Brent and NYMEX crude hitting their lowest levels since may 2009 on selling by investors convinced that supply disruptions in Libya would not offset a global supply glut.
In the precious metals space gold prices fell, as a strong US dollar and bearish chart signal offset uncertainty over the prospect of fresh elections in Greece.
Back home with the Cabinet approving land acquisition ordinance for PPP projects, realty stocks are likely to be in focus.
Other stocks that could be in focus are IDBI Bank, where the board gets a nod to sell entire 16.6% stake in CARE.
IFCI would be in focus because the cabinet has cleared hiking sake in the company to 51 percent by infusing Rs 60 crore.
Power Grid is also likely to be focus because it would be easier to get electrification projects post land ordinance.