Mixed Global Data To Lead To A Soft Opening

The opening on the Indian markets today is expected to be soft considering global economic cues. Mixed data from the US and China has gripped global markets in the red.

The Chicago Purchasing Managers’ Index (PMI) rose to the highest level since April 2012 when it climbed to 55.6% for the month of January 2013. Meanwhile, the Labor Department said the number of jobless claims jumped by 38000 last week to 368,000 thus leaping the most since Hurricane Sandy. All eyes are now on the next set of data scheduled to be released later today. This includes nonfarm payrolls, unemployment rate and the ISM Manufacturing Index.

While Europe tracked the US markets closely, it was also affected by weak earnings. UK remained weak as AstraZeneca and Royal Dutch Shell traded lower due to lacklustre numbers and banks lower as the Financial Services Authority ordered the four largest banks by assets to pay out compensation to small-business customers following failings in how the banks marketed products to reduce interest-rate risks, said a leading financial website.

Asia has been no different when it comes to investing mood. The manufacturing PMI (official government reading )for January 2013 came in at 50.4, indicating expansion, but at a slower pace as compared to December 2012’s 50.6. On the contrary, HSBC’s final reading for the manufacturing PMI has just come in. It shows the index at 52.3 in January 2013, higher than both, the initial reading of 51.9 and December 2012’s reading of 51.5.

Domestically, yesterday the Sensex closed below the 20000 level, at 19894.98, after having declined by 110.02 points (0.55%). The January expiry witnessed a range-bound trade. Individual stock movement too played a major role as a bunch of important result announcements were made.

Amid the mixed global data seen being released yesterday and today we expect markets to see a soft opening. At the same time, results will also take importance. Some of the important earnings scheduled to be announced today are Bharti Airtel, BHEL, Corporation Bank, IDFC, Jet Airways, Marico, MCX and TVS Motor Company.