Opening bell: Morning cues that may drive Nifty today
Wipro delivered inline results for the April-July quarter. However, the dollar revenue was almost flat at 0.2 percent is lagging peers quite significantly.
It is a very important week for the market with the macro events lined up with the Fed meeting tomorrow and RBI monetary policy review on July 30. Key earnings expected this week are likely to keep the market keen. A lot of measures that the RBI had taken will be effective from today.
The Fed's two-day policy meeting kicking off on Tuesday is likely to decide on how best to prepare financial markets for a reduction of their bond-buying program,
CNBC-TV18 Managing Editor Udayan Mukherjee says that influence of the Fed meeting results will be most on Indian market than what RBI decides in its monetary policy review.
"The Fed meeting is going to be very important because while we have been celebrating the fact that the rupee has come down 59 because of what the RBI has done, it has also happened because the dollar has been quite weak over the last few days. So I think over the next couple of days the answer to where the dollar index continues to drive lower in the near term or it stages some kind of a pullback is going to be absolutely crucial for emerging markets this week," he adds.
Meanwhile, on Friday post market hours Wipro delivered inline results for the April-July quarter. However, the dollar revenue was almost flat at 0.2 percent is lagging peers quite significantly. Margins are slightly lower than street estimates but that shouldn't worry the street because Wipro's margins have been very stable around 20-21 percent. The first dollar revenue guidance is a big positive. It is higher than consensus estimates at 2- 3.88 percent. It is also the highest they have given in the last few quarters.
In key earnings today, expect a disappointing quarter from Jaiprakash Associates. According to CNBC-TV18 poll, profits may slip 36 percent to Rs 89 crore year-on-year. Meanwhile realisations may come flat sequentially.
Other companies that are expected to announce April-June quarter earnings are Sesa Goa, J P Associates, UltraTech Cement, IDFC, Reliance Capital, Bharti Infratel, MCX, JP Infratech, City Union Bank, Vijaya Bank, Sundaram Finance, Syndicate Bank, Colgate Palmolive, Geometric, Indian Bank, Arvind, Allahabad Bank, Madras Cement, Mahindra Holiday, Prestige Estate, TV18, Network18, Zuari Agro, Subros, Ajanta Pharma, BASF and Noida Toll.
The prime minister is expected to meet industry leaders today to discuss the reform agenda given India’s economic concerns. The government may re-iterate commitment to economic reforms. The PM could address concerns on current account deficit and announcements on infra measures on cards.
Stock in news
The Foreign Investment Promotion Board (FIPB) is scheduled to meet today to study Jet-Etihad deal. They had sought more clarity on ownership structure of Jet Airways and on 'effective control' by Etihad in Jet. Meanwhile CNBC-TV18’s sources indicate that Jet-Etihad could have submitted revised agreement to regulatory bodies including FIPB.
The hearing in the case between Bajaj Auto and the union is scheduled at the Bombay High Court today.
Dr Reddy's has launched the Donepezil Hydrochloride tablets in US. Donepezil Hydrochloride tablet is used in the treatment of Alzheimer's disease.
Natco Pharma receives favourable US ruling on Copaxone patent case. The company says that it may now launch generic Copaxone via Mylan in May 2014, subject to US FDA nod.
Asian markets were trading weak. China's Shanghai Composite shed 1.21 percent or 24.25 points at 1,986.60. Hong Kong's Hang Seng fell 0.46 percent or 101.50 points at 21,867.45. Japan's Nikkei plunged 2.54 percent or 358.85 points at 13,771.13.
Singapore's Straits Times declined 0.52 percent or 16.82 points at 3,219.28.
On Friday, US markets eke out small gains ahead of the fed meet and jobs data due this week.
In Europe, major indices end mixed on Friday, ending the week with a slight loss, after a choppy trading session which saw autos drag European bourses lower following analyst downgrades. Greece gets green light for bailout tranche of €2.5 bn.
Other asset classes
In the currency space- the euro is above 1.32 to the dollar. The dollar index is around 81.50 levels. The dollar yen is around 98 levels.
In commodities, Brent crude prices slip marginally to USD 107 and Nymex slips to sub USD 105 per barrel.
From precious metals space, gold is hovering around USD 1328 per ounce.