Pre-market: Market to open weak on global cues

Market is likely to open lower tracking weakness in global markets. Asian shares were in a defensive mode on Tuesday after Wall Street fell overnight, though still-vague hopes of a new stimulus plan in China could improve investor sentiment.
 
Also, Nifty futures at the Singapore Exchange (SGX Nifty) were trading at almost 12 points lower at 6597 levels indicating a weak start.
 
A day before key stock indices closed at their record high levels on strong foreign buying. On Monday, FIIs net-bought shares worth Rs 1,465.62 crore, according to provisional data. The BSE Sensex touched an all-time high of 22,074 but closed lower at 22,055, up 300 points, or 1.4 per cent, from previous close.

The NSE Nifty hit its all-time high at 6,591, up 89 points, or 1.4 per cent. The rupee closed at 60.78 a dollar, up 0.2 per cent from its Friday close.

What to watch

The F&O expiry will keep investors cautious for swings on either side. The rupee movement will also be eyed. Tracking strong performance in Indian stocks, the rupee on Monday appreciated 14 paise against the dollar to end at an over six-and-a-half month closing peak of 60.79, buoyed by sustained capital inflows. The RBI Governor Raghuram Rajan and deputy governors will attend a monetary policy strategy meeting later today.
 
Global mix

U.S. President Barack Obama and major industrialized allies warned Russia on Monday it faced damaging economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine following the seizure of Crimea.
 
On Wall Street, the Nasdaq Composite Index led the losses with a fall of 1.2 percent to five-week low, as investors took some money off recent top performers such as biotech shares. The S&P500 fell 0.5 percent to 1,857.44.
 
Concerns over Ukraine and soft U.S. manufacturing were cited as possible catalyst, though market players noted the selling could also reflect unwinding of positions ahead of the quarter-end.
 
The survey on U.S. manufacturing by financial data firm Markit also showed U.S. manufacturing activity slowed in March.
 
U.S. President Barack Obama and major industrialized allies warned Russia on Monday it faces additional economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine following the seizure of Crimea.


Stock play

Oil & gas behemoth Reliance Industries will be in focus after the Election Commission has deferred the notification of the new gas price until general elections , which was to take effect from April 1.

GAIL will be in focus after it signed an MoU with Japanese Chubu Electric for joint LNG procurement.

Brand Finance, the world’s leading brand valuation firm has recognized TCS as the fastest growing IT Services brand globally, said reports.

BHEL has won an order worth Rs.3000cr from an upcoming power project in Odisha. The contract has been placed on BHEL by NTPC Ltd. for setting up the 2×800 MW Steam Generator (SG) package at Darlipali in Odisha.

 

SGX Nifty

sgxnifty.org@imediaone.com

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