Thursday 20 February 2014

Opening bell: Weak global cues likely to drag Nifty today


The Indian equity market is likely to break its winning streak today after four straight days of gains with SGX Nifty ((down 46 points at 6121)) indicating a negative opening for the 50-share index. 
Meanwhile, global cues are unlikely to add some support as the US markets sunk to session lows on Wednesday after Federal Reserve officials weighed whether it might be time to drop the notion that a 6.5 percent unemployment rate would be enough to consider raising rates, indicating that officials discussed the possibility of raising interest rates sooner than expected. Higher interest rates would bolster the dollar and pressure demand for precious metals. 
European markets ended mixed while Asian markets have opened weak with trade deficit data weighing on the Nikkei. 
In other asset classes, the dollar holds firm against a basket of major currencies, drawing support from minutes of the US Federal Reserve which showed policymakers remained committed to reducing its massive stimulus at the current pace. The euro was at USD 1.3731 pulling back from seven-week highs of USD 1.3773 against the greenback. 
Meanwhile, crude prices trend mixed with Nymex trading near a four-month high at above USD 103 a barrel ahead of data from the United States and china that may give cues for fuel demand in the world's two largest oil consumers. 
And the precious metal gold bounced back after falling nearly 1 percent in the previous session.

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