8460-8300 IS THE IMMEDIATE RANGE; ICICI BANK, L& T EARNINGS IN FOCUS
While Nasdaq gained 0.3%, Dow ended a tad lower and S & P 500 ended flat in yesterday's trade, digesting more earnings and second-quarter GDP.
The US second quarter GDP came in at 2.3%, below estimates of 2.6% growth. First quarter GDP reading was revised to a 0.6% increase from a 0.2% contraction. Weekly jobless claims increased by 12,000 week-over-week, but were below expectations at 267,000.
Dollar index gained about half a percent to settle at 97.49. Nymex oil fell 27 cents to $48.52 a barrel. Gold fell $4.60 to $1089 an ounce.
European markets, except a 1% lower Spain, gained 0.4%-0.6%
After gaining a percent in the morning trade, benchmark indices gave away nearly half of the gains in the choppy noon session to end higher by half a percent on the expiry day of the July derivative series. Sensex settled at 27705, up 142 points while Nifty added 47 points to finish at 8422. BSE mid-cap and small-cap indices gained 0.8% and 0.9% respectively. BSE Realty and FMCG indices soared 3.5% 2.7% respectively, becoming top gainers among the sectoral indices while IT and Teck indices lost 0.8% and 0.5% respectively.
FIIs net sold stocks, index futures and stock futures worth Rs 171 cr, 212 cr and 65 cr respectively. DIIs were net buyers to the tune of Rs 500 cr.
Rupee depreciated 13 paise to end at 64.04/$.
Bank of Baroda reported 22.8% fall in quarterly net profit at Rs 1052 cr which was better-than-expected. NII rose 4% to Rs 3460 cr. Gross NPA ratio deteriorated 41 bps q-o-q to 4.13% while Net NPA ratio stood at 2.07%, up 18 bps.
ITC reported lower-than-estimated 3.6% rise in quarterly net profit at Rs 2265 cr while revenue dropped 7.1% to Rs 8588 cr. Operating profit grew by 3.3% to Rs 3386 cr and margin expanded by 400 bps to 39.4%.
Dr Reddy's reported better-than-expected 14% growth in quarterly net profit at Rs 626 cr. Total income rose 7% to Rs 3758 cr. Gross profit margin stood at 61.1%, up 180 bps y-o-y.
Kotak Mahindra Bank reported 26% drop in consolidated net profit for the quarter ended June to Rs 517 cr on account of higher provisioning after the completion of its merger with ING Vysya Bank. Consolidated NII grew 43.2% to Rs 2163 cr.
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points higher opening for our market.
In yesterday's report we had mentioned that 8450, the 38.2% retracement level of the recent 8655-8322 fall, is the immediate hurdle, a crossover of which can take Nifty to around 8530, which is the 61.8% retracement level of this downmove.
Yesterday, the benchmark, after touching a high of 8459, eased to end at 8422. A higher opening today would again take the benchmark closer to the high made yesterday. A sustained trading above 8460 would open up the further space till 8530 as mentioned above. On the way down, 8380, the lower level of the gap created by the gap up opening yesterday is the immediate support, below which 8315-8300 would be the important support area.
L & T and ICICI Bank will report their quarterly earnings today.