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Markets are likely to open flat with stock specific action seen in early trades with focus on earnings and key economic data released after market hours yesterday.
At 8:30AM, the SGX Nifty was up 12 points at 6,106
Asian shares pared early gains and were trading lower amid profit taking after gains in the previous few sessions. Earlier, shares had firmed up on the back of better-than-expected China's January trade data. Japan's Nikkei was down 0.8%, Hang Seng slipped 0.4% and Shanghai Composite also eased 0.2%. However, the Straits Times was up 0.1%.
MSCI's broadest index of Asia-Pacific shares outside Japan was trading flat, having erased all of its losses since late January, sparked by fear over emerging markets.
US stocks ended mixed on Wednesday after investors booked profits at higher levels. Further, Procter & Gamble which cut its earnings and sales guidance for the year also dampened sentiment.
The Dow Jones ended down 31 points at 15,964, the tech-laden Nasdaq ended up 10 points at 4,201 while the broader S&P 500 ended nearly unchanged at 1,819.
European shares ended firm on Wednesday after encouraging earnings from banking majors. The FTSE ended up 2 points at 6,675, the CAC-40 gained 22 points at 4,305 and DAX closed 61 points higher at 9,540.
Among the key economic data released late Wednesday, consumer Price Index-based inflation, a widely tracked rate after a Reserve Bank of India (RBI) panel recommended targeting it, has declined for a second month in a row. The rate of price rise fell to a two-year low of 8.79 per cent in January from 9.87 per cent in the previous month. The inflation had reached a record 11.16 per cent in November and was blamed for the Congress’ rout in the recent assembly elections.
Dragged down by manufacturing, particularly of consumer durables, industrial production shrank by 0.6 per cent in December 2013 as against 1.3 per cent in November, the third straight month of contraction, official data showed on Wednesday.
STOCKS IN FOCUS
Coal India will be in focus after an decline in offtake, lower e-auction realisation and an increase in production cost, had an impact on the performance of state-run Coal India Ltd (CIL) which on Wednesday reported an 11.4 per cent drop in consolidated net profit at Rs 3,894 crore for the financial year's third quarter (October-December) versus Rs 4,395 crore in the corresoponding period last year.
FMCG and Consumer Durable shares may witness action after the consumer price inflation dipped to a two-year low.
Cipla will be in focus after it reported a drop in net profit. Though its consolidated revenues were up 22 per cent year-on-year to Rs 2,581 crore in the financial year’s third quarter (October-December), on the back of a strong exports performance, higher costs dented profitability, leading to a 16.5 per cent fall in net profit to Rs 284 crore for India’s third largest drug maker, Cipla. Domestic revenue grew 12.6 per cent to Rs 1,044 crore on account of growth in respiratory, anti-infectives and cardiology segments.
Eicher Motors will be in focus aftet net profit rose 32% while Apollo Tyres will also see some action on better-than-expected earnings with profit up 87% in the third quarter.
Tata Communications will be in focus after Q3 profit rose to Rs 140 crore from Rs 67.6 crore in the same quarter last fiscal.
Among the results to be announced today, ONGC, United Spirits, Sun Pharma, Hindalco and Britannia Industries will see action.
