GEOPOLITICAL CONCERNS WEIGH ON WORLD EQUITIES
WORLD MARKETS
US indices plunged
between 1%-1.4% yesterday as investors fled equities and other risky assets
after the crash of a passenger plane in Ukraine and as Israel launched a ground
offensive in Gaza.
A Malaysia Airlines
passenger plane carrying 295 people crashed over eastern Ukraine after being
hit by a surface-to-air missile. Both the Ukrainian government and the
pro-Russia separatists fighting in the region denied responsibility.
Subsequently,
Israeli Prime Minister Benjamin Netanyahu announced the start of a ground
campaign in Gaza. The decision came as a surprise as officials from the
Palestinian authority and Israel were believed to be progressing in talks in
Egypt aimed at a lasting cease-fire.
Earlier, US
equities began the session in the red after the US and European Union imposed
sanctions on Russian banks, energy companies and defense companies in another
try at getting
Russia to stop its backing of Ukrainian rebels. Russian President Putin
responded by saying that relations between the U.S. and Russia are in danger of
reaching a "dead end" and could damage U.S. business interests in his
country.
Economic reports
had housing starts unexpectedly falling in June, applications for jobless
benefits declining last week and a gauge of manufacturing activity in the
Philadelphia region expanding in July.
European markets
lost anywhere between 0.7%-2.2%. A final reading of euro zone inflation data for
June came in as expected on Thursday, with consumer prices rising 0.5 percent
from the year before.
Gold jumped 1.3% to
$1,316.90 an ounce, Nymex crude shot up 1.9% to $109.2 a barrel, dollar gained
and the yield on the benchmark US Treasury note fell 7 basis points to 2.457%.
AT HOME
Benchmark indices
ended marginally higher after a rangebound trade, extending the rising streak
to third straight day. Sensex gained 11 points to settle at 25561 while Nifty
finished at 7640, up 16 points. BSE mid-cap and small-cap indices however
outperformed significantly, gaining 1.4% each.
BSE
Metal and Power indices climbed 2.5% and 2.4% respectively, becoming top
gainers among the sectoral indices while Realty and Oil & Gas indices lost
0.8% and 0.4% respectively.
Tata Power surged
after the Delhi Electricity Regulatory Commission approved a tariff hike of
8.32% for the three electricity distribution utilities (discoms), BSES Yamuna,
BSES Rajdhani and Tata Power Delhi Distribution Ltd for the fiscal 2014-15.
Bajaj Auto reported
weaker-than-expected quarterly numbers. Net profit was almost unchanged y-o-y
at Rs 738 cr, dented by weak operational performance and higher depreciation
charge. Revenues grew 7% to Rs 5252 cr. EBIDTA Margin slipped 170 bps y-o-y to
19.6%.
FIIs net bought
stocks, index futures and stock futures worth Rs 1912 cr, 520 cr and 115 cr
respectively while DIIs were net sellers to the tune of Rs 1316 cr. However the
figures for the cash segment should be adjusted for M & M deal where Goldboot holding sold 1.9% stake
for Rs 1400 cr.
Rupee depreciated 6
paise to close at 60.18/$.
OUTLOOK
TCS, after market
hours, reported better-than-expected 5.5% sequential dollar revenue growth for
June quarter at USD 3964 mn. Consolidated net profit, as against the
expectation of an 11% dip, fell 4.5% to Rs 5057 cr. EBIDTA margin stood at
26.3%, down 285 bps q-o-q but better than the expectation of 25.7%.
Today morning Asian
markets are trading with average cuts of half a percent and SGX Nifty is
suggesting about 35 points lower opening for our market.
Immediate support
on the hourly chart is placed at 7525 which should serve as the stop loss for
trading longs. 7731, followed by 7808 continue to be the targets on the way up.
No comments:
Post a Comment