PRECIOUS METALS PLUNGE; MONSOON SESSION OF PARLIAMENT IN FOCUS AT HOME
US indices ended modestly higher with the Nasdaq Composite at another record high, on the back of a better-than-expected start to corporate earnings season.
Key highlight was the fall in commodities. Spot gold plunged 4% to $1088 an ounce-its lowest in more than five years- on the back of China offloading. Platinum fell for the fifth straight session to a fresh six-and-a-half year low while palladium settled down 1.4%. Nymex oil fell 1.4% to $50.15 a barrel, the lowest since April 2 and Brent fell 45 cents to $56.65 a barrel.
Back in the US, Morgan Stanley reported an adjusted net profit of 79 cents per share, 5 cents above estimates, with revenue also above forecasts.
European markets gained 0.2%-1.1%. Greece made its payment due to the European Central Bank yesterday. The International Monetary Fund also said Athens repaid all its debt to the fund. Greek banks reopened yesterday after a three-week closure.
After falling nearly six tenth of a percent, benchmark indices recovered in the late noon trade to end just marginally lower. Sensex settled at 28420, down 43 points while Nifty lost 6 points to finish at 8603. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. BSE Realty index plunged 1.9%, becoming top loser among the sectoral indices, followed by 0.5% cut in Metal index. Oil & Gas and Consumer Durable indices gained 0.5% and 0.3% respectively.
Ultratech Cement surged after reporting better-than-expected profit and operational performance. Net profit fell 5.5% fall in April-June quarter to Rs 591 cr. Revenue grew by 7.1% to Rs 6097 cr. Operating margin expanded by 40 bps to 18.9%.
FIIs net bought stocks worth Rs 714 cr but net sold index futures and stock futures worth Rs 134 cr and 686 cr respectively. DIIs were net sellers to the tune of Rs 849 cr.
Rupee depreciated 19 paise to end at 63.66/$.
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.
After rising nearly 4% from the bottom of 8315 made on 10th July and moving very close to the 8670 target on Friday, Nifty consolidated yesterday by ending marginally in the red.
8515, the 38.2% retracement level of 8315-8643 upmove, is the immediate support on the way down, with the stop loss of which trading longs can be held on to. On the way up, upon crossover of 8670, next target to eye would be 8845, the top made in April.
The monsoon session of the Parliament begins today and is likely to end on August 13. The session is expected to be a stormy affair as Congress and other oppositions parties are asking for removal of Sushma Swaraj, Vasundhara Raje and Shivraj Singh Chouhan in the wake of their alleged involvement in Lalitgate and Vyapam scam.
Meanwhile the Joint Committee of Parliament examining the controversial land acquisition bill has been given a fresh extension till the first week of August to submit its report.
HDFC Bank, Infosys, HUL, Idea Cellular and Asian Paint will report their quarterly earnings today.