A sharp slump in the overnight US and European indices is likely to have a bearing on the domestic indices even as the Asian indices like Nikkei 225, Hang Seng index, Kospi index and Straits Times index are up nearly 1% each in the ongoing trades. With concerns of rising inflation in the US, investors in the domestic market would be closely watching the inflation data for further cues. Gammon India is expected to announce its earnings numbers today.
Concerns of rising infation spooked the US markets on Tuesday, with the Dow Jones registering its seventh loss in the last eight sessions at 10706, down 86 points, while the Nasdaq declining by 19 points to close at 2072.
Sharp fall in the domestic market weighed heavily on the Indian floats trading on the US bourses. Rediff was the major loser and tanked over 8% while VSNL, MTNL, Wipro, Dr Reddy's, Tata Motors and Patni Computers slumped over 2-5% each. Infosys, Satyam and HDFC Bank ended with losses of over 1% each.
International crude oil prices slipped below $70 mark, with the Nymex light crude oil for July delivery sliding by $1.80 to close at $68.56 per barrel. In the commodity space, the Comex gold for August series plummeted $44.30 to settle at $567 a troy ounce.
Stocks to watch
Tata Steel is considering a proposal to bid for a majority stake in South African firm Highveld Steel and Vanadium Corporation's steel and vanadium businesses.
Tata Motors has received an order worth Rs55 crore from the Congo for revamping the urban transport system of Kinshasa.
Reliance Communications has earmarked around Rs2,500 crore for its GSM foray into new circles.
