Markets likely to open flat tracking mixed global cues

Markets are likely to make a flat opening tracking mixed trend among Asian peers. The early indicator, SGX Nifty is trading flat at 7,838 levels.

Asian shares took solace from gains on Wall Street and edged higher on Tuesday, though gains were capped by caution over low share trade volume and plunging Brent crude oil prices ahead of this week's holidays.

MSCI's broadest index of Asia-Pacific shares outside Japan inched 0.1 percent higher in early trade, after Wall Street logged solid gains overnight following a losing week.

Japan's Nikkei stock index was down 0.2% in early trade. US and most European markets will close on Friday for Christmas.

Back home, uncertainty over the GST Bill continues following the stand off between the government and the Congress. The winter session of the parliament ends on Wednesday, December 23.

"Nifty is expected to open on flattish note and likely to witness some positive move during the day. Technically, it has an immediate support level of 7770/7740. There is immediate resistance around the 7870 levels on the upside and on a decisive close above expect rally to 7900/7940 levels," points out a morning note from Nirmal Bang.

 

"The focus on the markets will shift to the quarterly results and the associated management commentary. Markets will try to understand whether the improvement in macro scene has started positively impacting the companies in the form of higher demand / order bookings," adds Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities.

CORPORATE NEWS

M&M will commercially launch electric variants of its Verito (pictured) passenger car and Maxximo mini truck by February and is in talks with cab aggregators to boost sales of more environmental-friendly cars in the country.

Cipla has announced the launch of a generic version of anti-hepatitis drug Ledipasvir-Sofosbuvir in the domestic market.

Strides Shasun has received approval from the Drug Controller General of India to produce a generic version of Gilead’s ‘Sovaldi’, used for the treatment of hepatitis C.

Glenmark Pharmaceuticals on Monday announced a patent litigation settlement with Forest Laboratories and Royalty Pharma Collection Trust over anti-depressant drug Savella.

State Bank of India (SBI), the country's largest lender, on Monday said its board of directors had authorised the bank to raise up to Rs 12,000 crore of tier-II capital through Basel-III compliant bonds by way of private placement.

Ratings agency Moody’s has downgraded Union Bank of India’s baseline credit assessment (BCA) from ‘ba2’ to ‘ba3’ reflecting continued deterioration in its asset quality. It also changed the outlook for Central Bank of India’s rating to “stable” from “negative”.

Jindal Steel and Power (JSPL) will resume mining coal from two of its stalled projects in Australia as it expects to get regulatory clearances from Canberra soon, its chief executive said.

Aiming to reduce debt, Anil Ambani's Reliance Communications (RCom) has sold about 150 residential flats in Navi Mumbai for Rs 330 crore.

With Reuters input