Morning cues: Things you should know before market opens

Morning cues: Things you should know before market opens 

It was a positive session on Wall Street on Monday as strong gains in materials and energy offset weak housing data and European markets ended mixed.

Indian equity benchmarks rallied and the Sensex closed at 19,169.83, up 153.37, up points over the previous close. The Nifty gained 51.30 points to close at 5834.40. Meanwhile, Asian markets were trading on a cautious note today morning.

In key earnings to watch, HDFC Bank will report its numbers today. A CNBC-TV18 poll sees a 17% growth in net interest income. Profits are expected to clock in 30 percent gains to Rs 1890 crore year on year. Margins will either be stable or moderate by 10 bps sequentially and asset quality will be closely watched.

Cairn India reported its fourth quarter earnings on Monday. Its revenues came in-line with estimates, up 1.2% to Rs 4363 crore. Profits and margins came in below estimates despite no major forex loss and profits declined 23 percent to Rs 2564 crore.

EBITDA margin came in at 66% vs 76% QoQ. Margin declined due to unsuccessful and general exploration costs of Rs 366 crore versus Rs 28 crore. Also, the share of expenses in production came at Rs 300 crore vs Rs 193 crore.

US markets ended on a positive, reversing their earlier declines, as strong gains in materials and energy offset weak housing data. The CBOE volatility index declined below 15.

On economic data front, existing home sales ticked lower by 0.6 percent in March to a seasonally adjusted annual rate of 4.92 million.

In key data to watch out for in the US today new home sales are seen coming slightly higher at 419,000. Also watch out for data from the PMI manufacturing index flash.

European markets close mixed after disappointing corporate and macroeconomic reports from the US dented upbeat momentum from Italy after its successful presidential elections.

In the currency space, the euro is steady above 1.30 to the dollar. The dollar index is at 82.70 mark. Meanwhile the yen is firms versus the dollar.

In commodities, Brent crude is back above USD 100 a barrel. From the precious metals space, gold prices rebound, currently at USD 1425 an ounce.

Sources:Money Control.com