Monday, June 1, 2015



WORLD MARKETS                             

US indices lost about six tenth of a percent as investors digested economic data and remained cautious on continued concerns about Greece.

Chicago PMI unexpectedly fell to 46.2 in May versus a read of 52.3 in April. Consumer sentiment showed a final read of 90.7 for May, the lowest since November and below April's 95.9 print.

The second read on first-quarter GDP showed a decline of 0.7%, roughly in-line with estimates, as the economy struggled under heavy snow storms and the renewed strength in the dollar. Fourth quarter growth was 2.2%.

European markets tumbled 0.8%-2.5%. Greece continues to dominate market sentiment, with the prolonged reform-for-aid talks topping the agenda for finance chiefs of the Group of Seven (G7) meeting in Dresden, Germany.

Nymex oil climbed 4.5% to $60.30.

For the week Dow and S & P 500 lost 1.2% and 0.9% respectively while Nasdaq fell 0.4%. European markets lost 0.7%-3.4% with DAX leading the tally.


After a flattish start, benchmark indices saw a smart upmove through the session and finally ended with hefty gains of more than a percent. Sensex soared 322 points to settle at 27828 while Nifty finished at 8434, up 115 points. BSE mid-cap and small-cap indices gained 1.5% and 1.2% respectively. Except a 0.1% cut in BSE Realty index, all the sectoral indices closed higher with Auto and Healthcare indices leading the tally, climbing 2.1% and 1.6% respectively.

FIIs net bought stocks and index futures worth Rs 2284 cr and 3823 cr respectively but net sold stock futures worth Rs 1250 cr. DIIs were net sellers to the tune of Rs 2268 cr.

Rupee depreciated 1 paise to end at 63.81/$.

For the week, Sensex and Nifty lost 0.5% and 0.3% respectively.

India's economy grew 7.5% during the March quarter, compared to the revised growth of 6.6% (7.5% earlier) for the December quarter. For the year as a whole, GDP grew 7.3%, a shade below the government's estimate of 7.4%, compared to 6.9% the previous year. Agriculture sector declined 1.4% in the March quarter. Services growth stood at 10.16% Vs 9.1% y-o-y while Industries growth came in at 4.05% Vs 4.5%.

M & M in-line-with estimated 39.4% dip in March quarter net profit at Rs 586 cr. Consolidated revenue fell 19.2% to Rs 9123 cr. Operating margin fell 300 bps y-o-y to 11%.

L & T reported worse-than-expected 27% fall in March quarter consolidated net profit at Rs 2070 cr. Net sales rose 3.7% to Rs 28023 cr. Operating margin stood at 12.9% Vs 16% y-o-y. Order intake for the fourth quarter was up 39% y-o-y at Rs 47582 cr.


China's official manufacturing PMI came in at 50.2, in line with forecasts and rose slightly from April's 50.1. The services PMI fell slightly to 53.2 from 53.4 in April.

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

In Friday's report we had mentioned that 8375 is the immediate hurdle, a sustained trading above which would generate a buy on the hourly chart and can take benchmark to around 8490, the top made the previous week.

Nifty on Friday soared 115 points to end at 8434, taking out immediate hurdle of 8375 and moving towards 8490 target.

8490 continues to be immediate target above which 8530, where the trendline adjoining tops made in March and April is placed, would be the next target to eye.

Immediate support on the hourly chart is placed around 8350, with the stop loss of which trading longs should be held on to.

Auto companies will report their May sales figures.

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