 "10 things you need to know before the opening bell")
Global cues:
Asian shares took a beating on Monday, as emerging markets remained under pressure with the U.S. Federal Reserve poised to continue tapering its stimulus and tighter credit conditions in China raising fears of a slowdown. MSCI’s broadest index of Asia-Pacific shares outside Japan tumbled 1.6 percent to nearly a five-month low. Japan’s Nikkei share average gave up the 15,000-level and dropped 2.7 percent.
US markets had also tumbled on Friday. S&P 500 lost more than 2% to 1,790 on concerns of the impact of the stimulus pullback on the global economy, especially the emerging markets.
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Reuters[/caption]
The dollar slipped to a seven-week low against the yen on Monday as a sell-off in emerging market currencies late last week prompted investors to seek shelter in the safe-haven Japanese currency.
The dollar fell as low as 101.77 yen, its lowest level since early December and last stood at 102.04 yen, down 0.3 percent from late U.S. levels last week. It has fallen 2.4 percent in the past three sessions.
The U.S. Federal Reserve will take center stage in the week ahead with a widely expected cut to its bond-buying stimulus, responding to an improving U.S. economy but also helping fuel a dramatic emerging market sell-off.
Business/Stock news:
Tata Motors will be closely watched. Karl Slym, managing director of Tata Motors Ltd died on Sunday after falling from a high floor of a hotel in Bangkok.
The US Food and Drug Administration (USFDA) has banned Ranbaxy’s Punjab-based Toansa Active Pharmaceutical Ingredients (API) plant. Toansa is the fourth unit of the company that is banned and added to consent decree. With this, all of the company’s India-based plants supplying to US are banned.
Keep an eye on telecom stocks. Thegroup of ministersmeet today may take a final decision on spectrum fee and mergers and acquisitions norms.
Maruti Suzuki India Ltdis bidding to enhance its position in the compact car segment with upcoming modelCelerio. With the new compact car the company is looking to address three issues associated with automatic transmission cars-high cost of acquisition, low fuel economy and maintenance hassles.
Economy news:
Hawkish comments by Reserve Bank of India Governor Raghuram Rajan a few days ahead of a rate decision on Tuesday as well as expiry of January derivatives contracts on Thursday may weigh on Indian shares in the coming week. After the hawkish report on taming elevated retail prices, Rajan was quoted as saying inflation was a “destructive disease” that was forcing the bank to keep interest rates high, according to a Press Trust of India report carried by the Economic Times newspaper’s website.
The Reserve Bank of India will release the quarterly monetary policy review on 28 January.