RAJAN SET TO ROLL-OUT HIS LAST POLICY; STAY LONG WITH THE STOP-LOSS OF 8610

RAJAN SET TO ROLL-OUT HIS LAST POLICY; STAY LONG WITH THE STOP-LOSS OF 8610

WORLD MARKETS                             

US indices fell 0.1%-0.2% yesterday as gains in energy sector were offset by healthcare losses.

US oil rose 3% to $43.02 a barrel amid a report of renewed calls by some OPEC members to restrain output. Media reports suggested OPEC President Mohammed bin Saleh al-Sada confirmed a September meeting.

European markets gained upto 0.7%, supported by gains in banking and mining stocks.

Earlier data showed China's July exports fell 4.4% y-o-y and imports declined 12.5%. However iron ore imports rose 8.3% month-on-month in July to hit its second-highest on record.

AT HOME

After a gap up opening, benchmark indices traded in a narrow range through rest of the session and finally ended higher by about a third of a percent. Sensex settled at 28183, up 104 points while Nifty added 28 points to finish at 8711. BSE mid-cap and small-cap indices gained 1% and 0.7% respectively. Except a 2.3% plunge in Telecom index, all the BSE sectoral indices ended in green with Oil & Gas and Energy indices leading the gain, up 1.5% and 1.4% respectively.

FIIs net bought stocks and index futures worth Rs 436 cr and 404 cr respectively but net sold stock futures worth Rs 612 cr. DIIs were nets buyers to the tune of Rs 616 cr.

Rupee depreciated 7 paise to end at 66.84/$.

The Lok Sabha on yesterday approved the amendments to the Goods and Services Tax (GST) Constitutional Bill which were cleared by the Rajya Sabha last week. Now the Bill will be sent to President Pranab Mukherjee for a stamp of approval after which states will have to get it approved in their respective assemblies.

Hero MotoCorp reported 18.1% growth in net profit at Rs 883 cr, which was in-line with estimates while revenue and operational performance beat expectations. Revenue rose 7.7% to Rs 8011 cr and EBIDTA margin expanded 134 bps to 15.35%. Realization per unit rose 1.5% to Rs 45900.

Idea reported 36% fall in standalone net profit at Rs 497 cr, dented by depreciation and finance cost. Revenue grew 8% to Rs 9487 cr. Operating profit rose 3.2% to Rs 3074 cr but margin contracted by 150 bps to 32.4%.

The government will put a total of 2,354.55 megahertz of mobile airwaves frequencies for auction across 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 Mhz bands. All the airwaves being put for auction can be used for high speed 4G services. Bidding rounds for the country's biggest-ever spectrum auction will begin from September 29, in which mobile airwaves worth Rs 5.63 lakh crore at the base price value will be put up for sale.

OUTLOOK

Today morning Asian markets are trading mixed with modest change and SGX Nifty is suggesting a flattish start for our market.

After Nifty took out the immediate hurdle of 8630, we had said that 8711, the top made last week, is the immediate target, above which 8845 would be the next target to eye.

The benchmark, after touching a high of 8723 in the initial trade, ended at 8711, achieving the 8711 target. 8845 continues to be the next major target to eye. Immediate support on the hourly chart is placed at 8610, which should serve as the stop-loss for trading longs.

RBI governor Raghuram Rajan, in his last monetary policy, is expected to leave key rates unchanged. The apex bank is expected to maintain its "accommodative" stance and also leave its growth its inflation and growth forecasts unchanged. Markets however would watch out for the liquidity policy which has been easy for past some time. Steps for the corporate bond market might also be announced.

Lupin and Adani Port will report their quarterly earnings today.