The markets are expected to open on a soft note, tracking their global peers following conflicting signs from Euro-zone to resolve the debt crisis.
Overnight, US stocks fell and the euro edged lower on Wednesday after optimism faded that European leaders will make substantial progress on resolving the euro zone debt crisis at their summit meeting this weekend.
The Federal Reserve's Beige Book report suggesting the US economic outlook was barely growing in September also dampened sentiment. The Dow Jones industrial average ended down 75.49 points, or 0.65%, at 11,501.56. The Standard-and-Poor's 500 Index was down 15.63 points, or 1.28%, at 1,209.75. The Nasdaq Composite Index was down 54.41 points, or 2.05%, at 2,603.02.
Asian stocks fell on Thursday, as growing investor caution about taking risks ahead of a key European leaders' summit at the weekend weighed on riskier assets across the board and supported safe-haven government bonds. The Japan’s Nikkei Stock Average has declined 1%, Hang Seng and the Shanghai Composite are down almost 2% each.
MSCI's broadest index of Asia Pacific shares outside Japan fell 0.6%, with the materials sector leading the decline, falling 1.5%. Back home, analysts suggest that for the bullish momentum to continue, the Nifty will have to sustain above 5,140. “Negative global cues can put downward pressure, with the likelihood of the index re-testing the 5,000-level,” they add. At 8:30 am Indian Standard Time, the S-G-X Nifty was trading at 5101, down 48 points.
Among individual stocks, G-V-K Power and Infrastructure could be in focus today after it announced acquisition of an additional 14% stake in Bangalore International Airport for 613.82 crore.
Moser Baer has resolved all issues related to revision in bonus and wages between a section of its associates and the management at its Noida plant. The move is likely to generate some investor interest in the counter.
SAIL could also hog limelight as the company has decided against issuing fresh equity, though the government will go ahead with its proposal to offload 5% stake in the firm.
Also Bajaj Auto, YES Bank, Piramal Healthcare, Thermax and Hexaware Technologies will be in focus as these companies announce their respective September 2011 quarter results today.
