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Global cues negative; choppy Nifty expiry seen today

Today is expected to be volatile day on account of multiple cues. The US Federal Reserve has made it clear that no rate hike is imminent.

The Indian equity market is likely to open in the red today with the SGX Nifty trading at 8873.50, down 25.5 points. The Nifty was at a kissing distance of 9000-mark intraday but saw some sharp cuts to end Thursday marginally in green ahead of January F&O series expiry today .The 50-share index closed at 8914.30, up 3.80 points while the Sensex was down 11.86 points at 29559.18.

Today is expected to be volatile day on account of multiple cues. The US Federal Reserve has made it clear that no rate hike is imminent. US markets declined as Nymex crude prices sunk to 6-year lows. The CBOE Vix tumbled 19 percent. The US Fed stuck to its vow to be “patient” on hiking interest rates and raised its view of the economy and labor market.

European markets ended mixed after seesawing for much of the session, with indices pressured by a staggering slump in Greek banking stocks. Asian market is following US markets trading in the red in early trade.

In the currency space, New Zealand Dollar slumped to four-year lows as investors priced in a greater chance of rate cuts there, while the USD is firm post the Fed statement

In commodities, Nymex Crude prices slipped to 6-year lows after the Fed’s reiteration that it will be “patient” in raising rates. And precious metal gold remained largely unchanged, currently trading around USD 1280 dollars an ounce.

Back home, the decks have been cleared for the 3G spectrum auction. The cabinet sides with the telecom commission and rejects the regulator’s call for a lower base price. It has set the reserve price at just over Rs 3,700 crore, 11 percent higher than the price set for 2010 auctions.

In important earnings today, HDFC may see a 15 percent net interest income (NII) growth while profit growth could be impacted by deferred tax liability year on year (YoY). Meanwhile, Asian Paints may see 30 percent growth in profits due to favorable raw material costs.
 
In what is a major relief for Vodafone in the Rs 3,200 crore transfer pricing case, the government has declared truce and said it will not appeal against the Bombay High Court ruling against the taxman. The  Centre believes the move will boost investor sentiment and it could set a precedent for Shell and other transfer pricing cases.

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