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Nifty likely to open weak; SBI, aviation stocks in focus

With the SGX Nifty trading down 37 points around 8655.00 around 7:35 am in the morning, and most of the global markets closing mixed or lower on Friday, the Indian equity market too is likely to open negative. Back home on Friday, the market sold off after a strong start with the Sensex shedding over 400 points and Nifty tumbled to below 8700 levels.

In the US, Wall Street closed lower on Friday, as a week of mixed economic data, renewed dollar strength and sharply lower oil prices made traders cautious ahead of this week’s fed meeting.

In Europe, equities closed slightly mixed on Friday, as the oil and gas sector took another hit from tumbling prices.

From he currency space, the euro sank to a fresh 12-year low after a recent bounce as investors were still very bearish on the common currency. Persistent weakness in the euro helped the dollar index stretch to a 12-year high of 100.42  

In commodities, NYMEX crude prices tumbled almost 5 percent on Friday to USD 44 per barrel after the International Energy Agency said that a global oil glut is building and US oil production shows no signs of slowing. Brent crude slips to USD 53/bbl levels

Gold, from the precious metal space trades near its lowest in over three months, pressured by a stronger dollar, ahead of a key Federal Reserve policy meet this week that could hint at the timing of any hike in US interest rates.

Amongst the BRIC markets, the Central Bank of Russia cut its key lending rate by 1 percentage point to 14 percent making it the second rate cut this year. The bank said it is more concerned about a recession than high inflation. The latest monetary policy decision came after December’s surprise hike in the key interest rate from 10.5 percent to 17 percent. That was when the central bank was trying to shore up a weakening ruble and combat inflation.

Back home, stocks like SBI , Fortis Health , Blue Star , aviation stocks, Adani Enterprises ,  McNally Bharat and  Zen Technologies will be on focus today.

The SBI Board has approved issue price of Rs295.59/sh for preference issue to Government.

In case of Fortis Health, the Singapore Competition Panel rejects divestment of RadLink-Asia. The company will now explore alternate strategic opportunities with respect to RadLink.

Blue Start will be transferring professional electronics & industrial systems business to arm.

Aviation stocks will be in focus because the government is looking to abolish 5/20 rule and may bring in a new provision for new airlines.

However, in case of Adani Enterprise, SBI is set to turn down USD 1 billio loan request from the company.

McNally Bharat allots 30 lakh warrants to promoter Williamson Magor and in case of Zen Technologies, RBI has removed the company from the ban list for FII purchase.

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