Markets to extend losses on weak cues from Japan

Markets are likely to track weak cues from Asian markets such as Japan and Singapore

Markets are likely to extend losses on Wednesday tracking sharp fall in Japanese shares and volatile session on Wall Street in overnight trades.

At 8:35am, the early indicator SGX Nifty was down 67 points at 7,262.

Foreign institutional investors remained sellers in equities worth Rs 681 crore on Tuesday, as per provisional stock exchange data.

GLOBAL MARKETS

Asian markets were trading sharply lower on Wednesday on concerns over health of the banking sector in the euro zone. Some of the markets like Singapore and Indonesia have re-opened  after the Lunar Year holidays. Japanese shares lost further ground with the Nikkei down 2.5% while Singapore's Straits Times was down 1.9%.

Stocks on Wall Street ended flat amid a volatile trading session mirroring the movement in crude oil prices. Shares in healthcare and materials space helped in containing further downside. Meanwhile, investors would look forward to comments from Federal Reserve Chair Janet Yellen in her address to the US Congress later today. The Dow Jones industrial average ended down 0.1% at 16,014, the broader S&P 500 slipped 0.1% at 1,852 and the tech-laden closed 0.4% lower at 4,269.

STOCKS IN FOCUS

Britannia is likely to firm up after consolidated net profit rose 51% to RS 208 crore while total income was higher by 10% at Rs  2,240 crore.

SpiceJet may be in focus after the Competition Appellate Tribunal today stayed penalties totalling Rs 106 crore imposed by fair trade watchdog CCI on leading carriers IndiGo and SpiceJet for alleged cartelisation in fixing fuel surcharge on air cargo.

Aurobindo Pharma may gain after net profit rose 39% to Rs 535 while total income rose 10% to Rs 3,495 crore.

Hindalco may see some action after net profit of its overseas arm Novelis dropped to $6 million in the Oct-Dec 2015 quarter compared with $46 million in the same quarter last year.

Apollo Tyres is likely to firm up after net profit for the third quarter was up 51% to Rs 279 crore even as total income was marginally lower by 3.5% at Rs 2,942 crore.

Prestige Estates may see some pressure after net profit for the third quarter was down nearly 37% to rs 64 crore while total income was lower by 19% at Rs 980 crore.

Eros International is likely to edge lower after consolidated net profit dropped 65% to Rs 38 crore while total income was lower by 32% at Rs 335 crore.

Central Bank is likely to remain weak after net loss widened to Rs 837 crore on the back of higher provisions amounting to Rs 1,499 crore. Gross NPAs were up at 8.95% compared with 6.86% quarter-on-quarter. Net NPA were higher at 5.3% versus 3.8% quarter-on-quarter.

Gulf Oil Lubricants may gain after net profit rose 44% to Rs 26 crore in the third quarter ended December 2015 while total income rose 9% to Rs 260 crore.

Essar Oil is likely to firm up after net profit for the December 2015 quarter surged to Rs 364 crore compared with Rs 52 crore in the same quarter last year.

Ramco Industries may firm up after consolidated net profit rose sharply to Rs 35 crore in the December 2015 quarter compared with Rs 8 crore in the same quarter last year.

Allahabad Bank may see some action after the Board of Directors of the Bank approved for raising of equity capital of Bank aggregating upto Rs. 1000/-crore (one thousand crore only) including premium through preferential issue of equity shares to Govt. of India.