Wednesday, July 26, 2017



WORLD MARKETS                             

While Nasdaq ended flat, S & P 500 and Dow rose 0.3% and 0.5% respectively after major companies reported better-than-expected quarterly results and oil prices rose.

Caterpillar and McDonald's reported quarterly results that beat market expectations.

WTI and Brent crude climbed 3.3% each to $47.89 and $50.20 respectively after U.S. oil producer Anadarko announced plans to cut capital spending

US home prices rose 5.7% in May, according to the S&P CoreLogic Case-Shiller home price index. Consumer confidence data for July beat expectations.

The benchmark 10-year note yield rose to 2.32%, while the two-year yield hovered around 1.382%.

European markets gained 0.4%-0.8%


It was a historic day as Nifty hit the five figure mark for the first time ever at the open though both the key indices ended marginally in the red. Sensex lost 18 points to settle at 32228, while Nifty finished at 9964, down 2 points. BSE mid-cap and small-cap indices m=however gained 0.6% and 0.1% respectively. BSE Telecom and Metal indices climbed 2% and 1.4% respectively, becoming top gainers among the sectoral indices while Capital Goods and Industrial indices were the top losers, down half a percent each.

FIIs net bought stocks and stock futures worth Rs 271 cr and 282 cr respectively but net sold index futures worth Rs 998 cr. DIIs were net sellers to the tune of Rs 210 cr.

Rupee depreciated 4 paise to end at 64.38/$.

Axis Bank reported 16% dip in June quarter net profit at Rs 1306 cr. NII grew by 2.2% to Rs 4616 cr. Advances grew at 12%. Asset quality was stable during the quarter as gross NPA declined to 5.03% from 5.04% q-o-q, though net NPA increased to 2.3% from 2.11%. Total slippages were down to Rs 3519 cr from Rs 4811 cr q-o-q however non-watchlist slippages surged to Rs 2722 cr from Rs 1245 cr.

Bharti Airtel beat expectations of all counts. Net profit rose 31.3% q-o-q to Rs 618 cr. Revenue was flat at Rs 21958 cr. Operating profit fell 2.1% to Rs 7823 cr and margin contracted by 80 bps to 35.6%.

Hero MotoCorp reported mixed earnings with beat on margin but revenue and realization were lower than expected. Net profit rose 3.5% to Rs 914 cr. Revenue rose 7.5% to Rs 8745 cr. EBIDTA rose 5.4% to Rs 1230 cr and margin came in at 16.3% against 16.6%. Realisation was up 1.5%.

Vedanta reported 67% y-o-y jump in June quarter net profit at Rs 2270 cr. Consolidated revenue rose 26.3% to Rs 19342 cr. Operating profit rose 41.6% to Rs 4874 cr and margin improved to 26.6% from 23.8%.

Asian Paints reported 20.2% dip in net profit at Rs 441 cr. Revenue rose 4.9% to Rs 4228 cr. EBIDTA fell 18.5% to Rs 665 cr and margin fell 451 bps to 15.7%.


Today morning, Asian markets are trading with gains of 0.3%-0.7% and SGX Nifty is suggesting about 10 points higher start for our market.

After Nifty crossed the 9928 hurdle, we have been working with the target of 10070. Yesterday, Nifty, after touching a high of 10011, slipped to end at 9965 and is set to open marginally higher today.

10070 continues to be immediate upside target to eye. 9890 continues to be immediate support on the hourly chart, with the stop-loss of which, existing longs should be held on to.

Fed, at the end of it’s two day meeting today, is largely expected to keep monetary policy unchanged. Markets however will parse it’s statement for clues about the unwinding of $4.5 trillion balance sheet and what the Fed thinks about U.S. inflation.

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