BROADER MARKET TUMBLES TO MULTI-MONTH LOW
Dow gained 0.2% while S & P 500 and Nasdaq fell 0.1% and 0.3% respectively
Bank of America led financial stocks higher after reporting expectation-topping earnings and revenue.
Crude oil plunged after U.S Treasury Secretary Steven Mnuchin said the Trump administration would consider waivers for some countries to allow them to continue buying oil from Iran. WTI oil fell 4.2% to $68.06 and Brent fell 4.6% to a three-month closing low of $71.84 a barrel.
US retail sales rose 0.5% in June, in line with expectations.
European markets, except 0.2% higher DAX, lost 0.2%-0.8%. The euro zone narrowed its trade surplus in May for the third month in a row. The surplus stood at 16.9 billion euros ($19.77 billion) in May from 18 billion euros in April.
Sensex and Nifty fell 0.6% and 0.7% respectively to extend losing streak to second straight day. Sensex fell 218 points to settle at 36323 while Nifty finished at 10936, down 82 points. Nifty mid-cap and small-cap indices nosedived 2.6% and 3.1% respectively to close at the lowest level since 27nd August 2017 and 24th May 2017 respectively. Except a 0.8% higher IT index, all the BSE sectoral indices ended in green with Metal index leading the losses, down 3.7%, followed by 3.3% lower Healthcare and Realty indices.
FIIs net sold stocks and stock futures worth Rs 626 cr and 465 cr respectively but net bought index futures worth Rs 595 cr. DIIs were net sellers to the tune of Rs 70 cr.
Rupee depreciated 5 paise to end at 68.57/$.
India's wholesale inflation grew 5.77% in June, a four-and-a-half year high, driven by some food items and fuel prices.
HUL reported largely in-line with estimated results. Net profit rose 19.2% to Rs 1529 cr while revenue was up 11.2% at Rs 9487 cr. EBIDTA rose 20.6% to Rs 2251 cr and margin expanded 193 bps to 23.7%. Volume growth stood at 12%.
The International Monetary Fund (IMF) has cut India’s growth forecast by 10 basis points to 7.3% for the current year and by 30 basis points to 7.5% for 2019, citing faster-than-anticipated monetary tightening and higher crude prices.
Today morning, Hang Seng and Nikkei are down 0.7% and 0.3% respectively while Nikkei is up 0.5%. SGX Nifty is suggesting a flattish start for our market.
After rising more than 500 points from the 10558 bottom made on 28th June, Nifty has witnessed some profit booking over last two sessions.
We had initiated long on Nifty after immediate hurdle of 10730 was taken out and have been advising holding on to long positions with a trailing stop-loss. On last count, we had advised trailing the stop-loss to 10890 for the next major target of 11171.
Nifty yesterday plunged 82 points to settle at 10936 and is set to open flat today.
10890 continues to be immediate support. 11078, the top made last week, is the immediate hurdle above which 11171, would be the next target to eye.
Traders are advised to hold long positions with the stop-loss of 10890.
ZEEL and Ashok Leyland will report their quarterly earnings today.