Rising crude prices could dent market
Following gains of over 250 points in the last two sessions, the mood is likely to remain optimistic on expectations of good quarterly numbers going further. However, rising crude oil prices in the international market could make investors jittery from taking any fresh positions. The market may open weak as major Asian indices have fallen over 1% each.
The benchmark indices, the Nifty could test its recent high of 2927 on the upside while it has likely supports at 2867 and 2848 on the downside. The Sensex has a likely support at 9466 and could test resistance at 9556.
Disappointing numbers from General Electric and Citigroup followed with a 2% surge in the crude oil prices due to prevailing tensions over Iran's nuclear plans had a telling effect on the US indices. On Friday, the Dow Jones tanked 1.96% or 213 points at 10667 while the Nasdaq tumbled 2.35% or 54 points to close at 2248.
Except Dr Reddy's and VSNL, other Indian floats took a sharp hammering on the US bourses. Rediff led the slump with a loss of 6%. Among other major losers Satyam dropped nearly 6%, Wipro shed 3% and Infosys declined 2%. Tata Motors, ICICI Bank, HDFC Bank, Patni Computers and MTNL were down around 1-2% each.
Crude oil prices continued moving upwards over Iran's nuclear issue and Nigeria's oil facilities facing militant attacks. As a result, the Nymex light crude oil for February delivery rose $1.29 to settle at $68.48 a barrel, while the London Brent crude moved up by $1.20 at $66.43 per barrel. In the commodity segment, the Comex gold dropped $5 to close at $554 an ounce.
ITC declared its Q3 numbers after market hours on Friday. The company reported a 15% rise in its net profit at Rs536.83 crore for the third quarter ended December 31, 2005 as against Rs466.70 crore recorded during the same period last fiscal. The total income rose 36% to Rs2,604.92 crore in Q3FY2006 from Rs1,911.12 crore reported during Q3FY2005.
Reliance Industries is planning a capex of Rs5,000 crore for starting commercial gas production from coal bed methane blocks by mid-2008.
Bajaj Hindusthan is planning an investment of Rs700 crore and will raise funds through GDRs and FCCBs comprising Rs299.65 lakh shares.
Micro Inks may witness action on reports of signing a supply agreement with Hannanprint NSW for Australian $39 million.