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Global markets weak, Nifty may open in red; JSPL in focus

With the SGX Nifty down 21 points at 8550 around 7:45 am on Tuesday, the Indian equity market is likely to open weak. Most global markets too closed down.

Stocks in the US closed lower as investors looked ahead to a light week of economic reports amid some consolidation in currency and oil prices. The US 10-year treasury yield traded near 1.91 percent.

Meanwhile vice chair of the Fed Board of Governors, Stanley Fischer said that a Fed Fund rate increase is likely this year. A hike will be appropriate when the Fed sees “further improvement in the labor market” and is “reasonably confident” that inflation is moving back to 2 percent, he said before the economic club of New York.

In Europe, the CAC and Dax were lower but FTSE outperformed.

Greece was in the spotlight as Greek and German leaders meet amid tensions over Athens’ bailout program.

Back home too the market continued its downtrend for the fourth consecutive session on Monday, dragged by banks and index heavyweights like Reliance Industries & Infosys. It was overall a consolidation day for the market ahead of expiry of March derivative contracts this week. The 50-share NSE Nifty managed to hold the 8550 level amid consolidation, down 20 points to 8550.90.

Meanwhile, from the currency space, the US dollar fell against a basket of major currencies after traders unwound bullish dollar positions on the likelihood that Federal Reserve policy will be accommodative over the near term.

In commodities, crude prices gain marginally as a declining dollar offsets global oversupply concern

Gold from the precious metal space continues to gain following weakness in dollar.

In India, stocks that could be in the focus today are JSPL, Gammon India, Shasun-Strides, GMR Infra, Aarti Industries and JSL Stainless.

With regards to JSPL, the Delhi HC issues notice to government on plea with respect to cancellation of blocks and restrains government from allotting Tara coal block to Coal India

In case of Gammon India, Sebi passes order against promoter Abhijit Rajan. He will continue to be restrained from accessing capital markets.

CCI approves merger of Shasun Pharma with Strides Arcolab.

For GMR Infra, Rs1,400 cr rights issue opens today, to close on April 8.

Aarti Industries is likely to be in focus on back of news that US FDA has released import alert for supply of drugs from Palghar facility.

And JSL Stainless gets nod from stock exchanges to restructure business. Restructuring would include demerger and listing of a subsidiary.

Moreover, the Indian government announced its borrowing calendars for first half of FY16.

67% of the total borrowing of Rs 6 lakh crores will be completed in the first half of the fiscal which is in-line with market expectations, and is expected to help pave the way for the private sector and state governments to raise money in the second half of the next fiscal.

The government has also announced issuance of long term bonds of 40 years from the next financial year. FY16 is expected to see a high redemption pressure of almost Rs 1.50 lakh crores with a large part of it expected to come up for repayment between April to September in the next fiscal.

The government has also decided to switch bonds worth Rs 50,000 cr in FY16. Switching of bonds helps the government stretch the period of repayments on its borrowings. Finance Secretary Rajiv Mehrishi said the borrowing would help fund a fiscal deficit of 3.9 percent of GDP for the year.

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