Looks like some of the gains made in Monday’s late rally could be negated this morning as political tensions across Middle-East and North Africa continue to simmer. We are staring at a negative opening amid weak global cues. Things could improve later in the day but on the whole the trend will be choppy and rangebound. RIL will be in focus after striking a mega deal with BP but to an extent the stock already firmed up on Monday.
The turmoil in West Asia has had an impact on world markets. Crude oil has climbed past $92 while gold futures surpassed $1,400. Oil may remain elevated as companies in Libya have shut at least 100k bpd of production. It is trading at level not seen since Oct. 2008.
US markets were shut on Monday. European stocks took a beating after credit ratings of Libya and Bahrain were slashed.
Shanghai stocks touched 3-month high but are in the red today. Japanese shares have slumped after Moody's cut Japan’s outlook to negative from stable.
