Opening bell: Will weak Asian cues & RBI measures hurt mkt?
Indian stocks gained for the third consecutive session Monday with the BSE Sensex reclaiming the 20000-mark for the first time since May 30. Better-than-expected monthly inflation and positive global cues helped the market.
The market is likely to be volatile today on the back of mixed global cues. Indian stocks gained for the third consecutive session Monday with the BSE Sensex reclaiming the 20000-mark for the first time since May 30. Better-than-expected monthly inflation and positive global cues helped the market.
The 30-share Sensex rose 76.01 points to close at 20034.48, and the 50-share Nifty gained 21.80 points to end at 6030.80, but the broader markets outperformed benchmarks.
On the macro front, the RBI steps in to curb the rupee volatility. The central bank has enhanced marginal standing facility rate to 10.25 percent, 300 basis points above the policy repo rate. It will supply only Rs 75,000 crore in the repo window. In addition, it will conduct open market sales of bonds worth Rs 12,000 crore on July 18.
The power sector looks towards the Empowered Group of Ministers (EGoM) with bated breath. EGoM is going to take up proposal to put power companies and fertiliser companies on par for gas. It may allow diversion of KGD6 gas from fertiliser companies to power plants.
Stocks in news
Tata Motors June global wholesales have come in higher at 84,458 vehicles vs 81,241 units last month. June JLR wholesales are higher at 30,536 vehicles and commercial vehicles wholesales are at 41,577 units.
The government has filed affidavit in IGL vs PNGRB case in the Supreme Court. According to the government affidavit, PNGRB has no powers to fix transmission fee and cannot fix tariff unless third party uses network. It also says that PNGRB cannot fix tariff for city gas distribution companies like IGL. The next hearing is on Thursday.
More trouble for Jet-Etihad. Agencies report that accoprding to the FIPB, the deal is 'not in conformity' with some FDI norms and it's unclear how 'effective control' norms are being met. Jet should have taken prior nod of DGCA on the Etihad deal.
Market regulator SEBI has approved Tamil Nadu government’s proposal to buy 5 percent stake in the company.
Andhra Bank will cut base rate by 25 bps to 10 percent with effect from July 22.
Asian markets were trading lower. China's Shanghai Composite shed 0.23 percent or 4.71 points at 2,054.68. Hong Kong's Hang Seng was down 0.14 percent or 30.17 points at 21,273.14. Japan's Nikkei added 0.73 percent or 105.34 points at 14,611.59. Singapore's Straits Times was flat at 3,234.90.
In the US, markets finished modestly higher in lackluster trading as investors digested a handful of mixed economic data and ahead this week's slew of earnings reports. The US markets have seen eight straight days of gains so perhaps a pause is inevitable. The CBOE Volatility index closed below 14.
On the earnings front in the US, Citigroup rose after the financial giant delivered another positive surprise in the banking sector, posting profit of USD 1.25 per share against estimates of USD 1.17. Other financials slated to post quarterly results this week include Goldman Sachs, Bank of America and Morgan Stanley.
Retail sales rose just 0.4 percent in June missing expectations for a gain of 0.8 percent. Meanwhile, growth in New York state's manufacturing sector accelerated to 9.46 in July from 7.84 in June.
In Europe, major indices close higher after China GDP relief. In Europe, the top three political parties in Portugal set a deadline of July 21 to push through bailout reforms. Meanwhile, French President Francois Hollande said Europe's second-largest economy was recovering.
Other asset class
In the currency space the dollar rises but gains were trimmed as US retail sales rose less-than-expected in June. The euro is above 1.30 to the dollar. The dollar index is around 1.30.
Brent crude inches higher to USD 109 per barrel. Nymex too rises to USD 106.
Gold continues to trade around 1280 dollars an ounce.