Top cues: Asian markets mixed, India inflation and more

Asian markets traded mixed on Monday morning as China injected liquidity into the financial system. The Chinese central bank cut cash reserve ratio for banks to support growth. Asian markets rebounded from Friday’s lows and the Japanese Nikkei index rose. Key Asian markets like Japan and Singapore would witness key economic data released this week.

Oil prices ease

Crude oil prices traded at a five-month low on Monday. The WTI futures fell to nearly 1 per cent to the lowest level in 2012. OPEC's Al-Naimi has called for $100 Brent Crude. Brent is likely to drop as crude supply outweighs demand, according to OPEC. The agency says that the supply outweighs demand by 1.3 to 1.5 million barrels a day. Saudi Arabia increased output last month to the highest level in three decades. The Nymex near month crude futures fell to a low of $95.35 against $96.13 on May 11. Oil priccs have shed 3.4 per cent in 2012 so far.

Central bank needs Rs 14,000 crore to meet Basel III norms

State-run Central Bank of India has said it will be requiring over Rs 14,000 crore of fresh capital to meet the Basel III guidelines, which will kick in from the next fiscal year. When asked how the bank, which posted a net loss of Rs 105 crore for the March quarter due to a jump in stressed assets, will fund it, Central Bank chairman M V Tanksale said it will depend a lot on the proposed follow-on public offer (FPO).

Rupee seen holding firm

Treasury officials see the rupee, which saw its all-time low level at closing last week, gaining strength and hovering in the 52.80-53.50 range against the dollar this week on the back of the recent measures taken by the Reserve Bank of India (RBI). After the measures relating to the exchange earners' foreign currency account (EEFC), the rupee is likely to appreciate in the near-term though there is no change in the fundamentals, experts said.

Market awaits sober inflation data

Investors are looking forward to the government's inflation data for April this Monday to lift sagging market sentiments in the wake of disappointing IIP data for March that has renewed concerns over fundamental weakness in the economy, analysts have said. India's benchmark equity indices declined for a third week in a row as both the Sensex and the Nifty reported highest weekly losses (over 3 per cent) for the year so far. A weak rupee, fears over the euro-zone crisis and contraction in industrial production data pulled down the Sensex by 538 points to 16,298.98 last week.