With the markets in the US ending mildly lower and the SGX Nifty in the morning trading soft, down 6.50 points at 8455.50, Nifty is also likely to open flat. The 30-share BSE Sensex tanked 654.25 points or 2.33 percent to 27457.58 and the 50-share NSE Nifty dropped 188.65 points or 2.21 percent to 8342.15.
Equities in the US failed to shake off losses of the last three sessions and investors weighed geopolitical events ahead of earnings season. The jobless claims data shows that the number of Americans filing new claims for unemployment benefit fell by 9,000 last week to 2,82,000. In other data, Markit’s flash reading of service sector PMI rose to 58.6 in March.
In Europe too equities closed sharply lower, extending the previous day’s retreat, with geopolitics once again worrying markets.
On the currency front, the dollar index bounces off a three-week trough led by some upbeat economic data and a rise in u-s treasury yields.
From the commodities space, crude prices rose after Saudi Arabia and its Gulf Arab allies begin airstrikes in Yemen, sparking fears of a bigger West Asia battle that could disrupt world crude supplies.
Gold on the other hand rallied to a three and a half week high as escalating tensions in the West Asia knocked stocks and drove investors into assets viewed as lower risk
On the home front, with the Supreme Court lifting the embargo on the government to announce results of the spectrum auction that concluded on the 25th of March stocks like Bharti Airtel, Reliance Communications and Tata Communications, Idea Cellular would be in focus today.
Sharing the break up of the auction results, telecom minister Ravi Shankar Prasad said that Aditya Birla Group’s Idea Cellular bid most aggressively, followed by Bharti Airtel, Vodafone and Reliance Jio. Having received bids worth over one lakh nine thousand crores, the government has appealed to telcos to make the earnest money deposit of Rs 28,872 crores by March 31 to ease the government’s fiscal burden.
IT cos like Wirpo, Infosys, TCS, HCL Tech would also be on the back of Accenture’s strong second quarter performance. Moreover, Infosys has said it will offer an average of 6.5 percent hike for employees in India effective from April 1, say sources. Last year the company had given average salary hike of 6-7 percent.
Some other stocks that could be in news are Power Grid with is board approving four investment proposals worth Rs 2066.45 cr. Pipavav Defence whose CDR proposal was approved and Cadila Healthcare which acquired 50 percent stake in Zydus BSV Pharma from Bharat Serums and Vaccines. Zydus BSV now becomes 100% subsidiary of the company.
Also JSPL, Balco where the Delhi High Court will today hear their plea against coal block cancellation. The court observed that Prima facie such cancellation is wrong and government’s actions smacks of unfairness.