US EQUITIES SCALE RECORD HIGH ON STRONG EMPLOYMENT
REPORT; NIFTY CONSOLIDATES AFTER FOUR DAYS OF UPMOVE
WORLD MARKETS
US indices climbed
nearly half a percent with the Dow closing above the 17000 mark for the first
time, buoyed by the strong employment report.
US economy added
288,000 jobs in June while the unemployment rate dropped to 6.1%, its lowest
since September 2008. Other reports had ISM non-manufacturing index for June
coming in at 56 vs estimate of 56.5 and Markit's final U.S. June services
Purchasing Managers Index at 61.0 versus a preliminary estimate of 61.2.
Dollar index
climbed to 80.20 from 79.94.
European markets
gained between 0.7%-1.2%. The European Central Bank kept monetary policy
unchanged as expected following last month's measures to stimulate the economy.
Eurozone composite PMI for June came in at a six-month low of 52.8, in line
with a flash estimate. Separate data revealed that euro zone retail sales for
May came in flat month-on-month, below forecasts for a 0.2% rise.
AT HOME
After gaining
nearly half a percent in the initial trade, benchmark indices saw a sustained
downward move through rest of of the session to end marginally lower, breaking
4-day rising streak. Sensex lost 17 points to settle at 25824 while Nifty
finished at 7715, down 10 points. BSE mid-cap and small-cap indices lost 0.2%
and 0.1% respectively. BSE Realty and Oil & Gas indices lost 1.5% and 1.2%
respectively, becoming top losers among the sectoral indices, while Healthcare
and Auto indices gained 1.1% and 0.8% respectively.
India's HSBC
services PMI for June jumped to a 17-month high of 54.4 in June from 50.2 in
May. The composite PMI climbed to 53.80 from 50.7.
FIIs net bought
stocks worth Rs 851 cr but net sold index futures and stock futures worth Rs
267 cr and 677 cr respectively. DIIs were net sellers to the tune of Rs 624 cr.
Rupee appreciated 4
paise to close at 59.73/$.
OUTLOOK
Today morning Asian
markets are trading with modest gains and SGX Nifty is suggesting about 20
points higher opening for our market.
After touching a
high of 7755 in the initial trade, Nifty eased to end at 7715 yesterday. This
should however, be considered healthy consolidation after a good runup over
previous four trading sessions.
Immediate target of
7800-7850 remains intact. Immediate support on the hourly chart has moved up to
7600, with the stop loss of which trading longs should be held on to.
U.S. markets will
be shut today for the July 4 holiday.
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