NIFTY EKES OUT GAINS WHILE BROADER MARKET BLEEDS;
STAY LONG WITH THE STOP LOSS OF 7645
WORLD MARKETS
US
indices gained between 0.6%-1% on the back of surging tech, airline and biotech
shares.
Retail
sales for July came in flat, missing estimates and marking the weakest reading
since January. Business inventories in
rose 0.4% in June after gaining 0.5% in May.
European
markets climbed between 0.4%-1.4%. June industrial output numbers for the euro
zone showed a fall of 0.3% from the month before. In the Uk, jobless rate fall
to 6.4% in the three months through June.
In
Ukraine, Kiev denounced Russia's dispatch of a humanitarian aid convoy as an
act of unbounded cynicism serving pro-Russian separatists and said the trucks
would not be allowed to pass. However, calming words from Polish Foreign
Minister gave investors some comfort along with reports that the convoy will
travel under cooperation with the Red Cross.
In the
Middle East, Israel and Palestinian factions agreed to extend the truce for
five more days on Wednesday in order to reach a lasting agreement to end the
fighting in Gaza, Reuters reported.
Nymex
crude rose 22 cents to $97.6 a barrel, while gold fell $4 to $1314 an ounce.
AT HOME
Amidst a heavy
sell-off in the broader market, benchmark indices managed to end marginally
higher after a choppy trading session. Sensex gained 38 points to settle at
25919 while Nifty finished at 7740, up 12 points. BSE mid-cap and small-cap
indices plunged 1.7% and 2.4% respectively. BSE FMCG index soared 2.2%,
becoming top gainer among the sectoral indices, followed by 0.8% rise in IT and
Healthcare indices. Realty index collapsed 5.2%, leading the losers' tally,
followed by 2.6% cut in Capital Goods index.
FIIs net bought
stocks, index futures and stock futures worth Rs 718 cr, 718 cr and 248 cr
respectively. DIIs were net buyers to the tune of Rs 22 cr.
Rupee depreciated
14 paise to close at 61.21/$.
Tata Steel reported
a worse-than-expected 70.4% dip in consolidated net profit at Rs 337.3 for the
June quarter, impacted by provision for impairment of non-current assets,
higher tax expenses and interest cost. Consolidated income grew by
higher-than-expected 11% to Rs 36427 cr. Operating margins expanded by 53 bps
to 11.73%, lower than the estimated 12.2% figure.
ONGC reported
lower-than-estimated 19% rise in net profit at Rs 4782 cr impacted by higher
exploration cost written off and depreciation cost. Net sales rose 13% to Rs
21851 cr. EBIDTA margin expanded by 470 bps to 40.5%, but were lower than the
estimated 53% figure.
OUTLOOK
Today morning Asian
markets are trading with modest gains and SGX Nifty is suggesting a marginally
higher start for our market.
In yesterday's
report we had mentioned that having crossed the tredline resistance on the
daily chart, Nifty is headed to 7840, the all-time high made last month. That
continues to be the view. Hold on to trading longs with the stop loss of 7645.
India's WPI for
July will come out today and is expected to ease to 5.16% from 5.43% in June.
Hindalco and Cipla
will report their quarterly earnings today.
Indian markets will
remain shut tomorrow for Independence Day.
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