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Morning cues: Nifty may open in red; IIP, CPI data today

The Indian market is likely to open in red with the SGX Nifty, an indicator of pre-market opening trading in red at around 8:00 hrs, led by weak global cues.

In key macro data to watch today, December CPI is seen slightly higher at 5.2 percent due to base effect. However, core CPI is seen around 5.3 percent. November IIP is expected to grow 2.2 percent due to pick in manufacturing and higher working days.

US stocks dropped on Friday, pulling benchmarks back into the red as the December jobs report topped expectations but hourly earnings declined. Shares extended losses on Friday to close lower, tracking declines on Wall Street after jobs data showed a better-than-expected gain in payrolls but a fall in earnings. All major indices barring the Athens Composite closed lower on the day. And Asia is negative in morning trade.

In the currency space, the dollar nurses losses, having suffered a setback after an unexpected fall in the US.

In commodities, oil prices remain under pressure having hit their lowest since April 2009. Brent crude currently trades below USD 50 per barrel while Nymex slips to USD 47 per barrel.

From precious metals space, gold inches higher to USD 1220 an ounce as dollar declines and as uncertainty in Greece boosted demand for assets seen as safe.

Back home, expect major announcements not just in the Budget but throughout the year, that’s the message delivered by Finance Minister Arun Jaitley to the captains of India Inc. Jaitley defended the government’s ordinance spree saying it was not an extra-parliamentary process and made it clear that the country cannot pay for political tussles. He also slammed the UPA’s Land Acquisition Act terming it as a big impediment to growth.

He also expressed confidence about the divestment drive saying major sell-offs will take place by the end of this fiscal. Jaitley said the government has every intention to maintain the 4.1 percent fiscal deficit target.

Prime Minister Modi highlights the immense possibilities for global investors in India at the Vibrant Gujarat Summit 2015. He pledges to work on ‘ease of doing business’ and says that ‘Make in India’ will help India become a global manufacturing hub.

Gujarat’s annual event sees India Inc in full attendance. Reliance industries’ Mukesh aAmbani says he will invest Rs 1 lakh crore in Gujarat in the next 12-18 months. Kumar Mangalam Birla says they will set up retail and solar businesses in Gujarat. Suzuki chairman, Osamu Suzuki says that Gujarat will drive India’s economic success story in the coming years.

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