 "10 things you should know before the opening bell")
Global cues:
Asian shares fell to a four-week low on Monday as a surprise surge in U.S. jobs growth heightened expectations the Federal Reserve will start reducing stimulus by year-end, boosting the dollar against the euro, yen and emerging currencies. China’s CSI300 Index .CSI300 fell 0.5 percent, touching a 2-1/2 month low. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent, hitting its lowest since October 11 and extending Friday’s 1 percent drop.
The US economy shrugged off the government shutdown by adding a massive 204,000 jobs in October, surpassing analyst expectations. But it also increased the chances of the US Federal Reserve slowing its asset purchases in December, leaving traders wary of piling on equities.
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Representational image. Reuters.[/caption]
The US stock market’s rally could be put to the test next week if comments from Federal Reserve officials including Janet Yellen add to views the central bank could be scaling back its stimulus plan sooner rather than later.
Business news:
Tata Motors Ltd shares will be in the limelight after September quarter profit surged 71%, boosted by demand for luxury Jaguar Land Rovers although domestic sales remained sluggish. Net profit rose to Rs.3,542 crore, beating Bloomberg estimate of Rs.2,777 crore.
Kingfisher Airline Ltd shares will be under pressure as it piled up losses of Rs.716 crore in the September quarter with planes remaining on the ground and the airline reporting zero sales.
Telecom stocks will also be in focus today after Telecom Minister Kapil Sibal announced that the government may finally announce much awaited, first-ever policy on mergers and acquisitions for the telecom sector this week.
Economy news:
Rating agency Fitch said the Reserve Bank’s recent wholly-owned subsidiary (WOS) guidelines for foreign banks will not change the landscape of the Indian banking space but portend well for sector in the long run. “As such, the recent rules are a good beginning - but insufficient, by themselves, to shake up the domestic banking landscape. But what it potentially signals is that further banking reforms - currently being considered - are not too far off,” the agency said in a statement.
Foreign investors poured in almost Rs 3,000 crore in the Indian equity market so far this month amid renewed optimism about the economy and a delayed tapering of the US monetary stimulus.