YELLEN TESTIMONY, GREECE BAILOUT VOTE IN FOCUS
Dow and S & P 500 gained 0.4% each while Nasdaq rose 0.7%, posting the 4th straight day of gains as second-quarter earnings season kicked off.
JPMorgan Chase gained 1.4% after delivering quarterly earnings that topped expectations. Johnson & Johnson fell 0.49% after the firm reported a 4% rise in quarterly profit. Wells Fargo gained 0.9% after posting earnings per share in-line with estimates on revenue slightly below expectations.
In economic news, retail sales showed a decline of 0.3%, missing expectations of a 0.3% increase.
Iran and six major powers yesterday clinched a historic nuclear deal that will see some sanctions against Tehran eased in exchange for restrictions on its nuclear program.
The Greek finance ministry yesterday submitted a reform bill. The nation's parliament has until Wednesday night to approve the legislation, paving the way for Athens to meet a Monday repayment deadline to the European Central Bank.
European markets, except a 0.3% lower Italy, ended with modest gains on hopes that the Greek parliament will pass the legislation needed to secure a third bailout.
Nymex oil, after falling more than 2%, rebounded to end 1.6% or 84 cents higher at $53.04 a barrel. Brent oil, after touching a low of $56.43, recovered to end at $58.40 a barrel.
Benchmark indices ended marginally lower after a rangebound but choppy trading session. Sensex settled at 27933, down 28 points while Nifty lost 6 points to finish at 8454. BSE mid-cap and small-cap indices however gained 0.1% and 0.4% respectively. BSE Auto index fell 0.9%, becoming top loser among the sectoral indices, followed by 0.6% cut in Realty index. IT and Metal indices were the top gainers, up 0.9% and 0.7% respectively.
FIIs net bought stocks and index futures worth Rs 270 cr and 889 cr respectively but net sold stock futures worth Rs 428 cr. DIIs were net sellers to the tune of Rs 131 cr.
Rupee appreciated 12 paise to end at 63.39/$.
Tata Motors plunged more than 4% today and hit a fresh 52-week low on slowdown worries of China’s luxury car market. China is the most important country for Tata Motor’s JLR after the UK.
India's wholesale price index (WPI) based inflation fell to -2.4% in June as against -2.35% in May and marking the eighth consecutive month in the negative territory.
Today morning, barring a 1.5% lower Shanghai and flattish Hang Seng, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 20 points higher opening for our market.
After Nifty crossed the immediate hurdle of 8440 on Monday, we had advised going long with the stop loss of 8375 for the target of 8561, which is the top made last week.
Yesterday, the benchmark, after touching a high of 8480, slipped to end at 8454.
We maintain the advice of staying long with the stop loss of 8375.
Markets would watch out for Fed Cahir Janet Yellen's semi-annual testimony to Congress today and tomorrow, which may provide more signals about a looming rate rise.
Markets would also keenly watch whether the Greek Prime Minister Alexis Tsipras can pass punishing austerity measures through parliament today. Failure to do so would likely reignite fears that Greece could exit the euro area and upend markets over the near term.
At home, Prime Minister Modi will Launch National Skill Mission today as part of government's efforts to create a large pool of skilled workforce required to sustain 'Make in India' initiative.