SENSEX NIFTY
Jul 22, 2013, 08.52 AM IST | Source: Moneycontrol.com

Opening bell: Factors that may keep Nifty above 6000 today

In earnings to watch, L&T will announce April-June numbers today. According to a CNBC-TV18 poll, revenues may see 14 percent growth to Rs 13,643 crore. Profits too may surge 15 percent. Also watch out for margins, it may barely touch double digits. Asian paints too will declare earnings today.

Key corporate earnings are likely to keep the market volatile once again this week. It was a quiet day of trade on Friday. The Nifty hovered in a very narrow range and closed virtually unchanged at 6,029. The Sensex ended the day up around 21 points at 20,150.

In earnings to watch, L&T will announce April-June numbers today. According to a CNBC-TV18 poll, revenues may see 14 percent growth to Rs 13,643 crore. Profits too may surge 15 percent. Also watch out for margins, it may barely touch double digits. Asian paints too will declare earnings today.

The EGoM on gas allocation will meet again to find a solutions for the gas starved power plants. It will explore if extra gas can be given to power companies.

Reliance Industries will be in focus today as the company  posted a 19 percent year-on-year rise in June quarter profit to Rs 5352 crore, boosted by stronger margins in its main oil refining business and higher other income.

Sales have, however, declined to Rs 87645 crore, down 4.5 percent Y-o-Y on lower output from KG-D6 basin which has recorded a 50 percent decline to around 15 million standard cubic metres per day.

Saroj Poddar's Texmaco has finally launched the open offer for Kalindee Rail. Texmaco rail board has approved the acquisition of 19.37 lakh shares or 15.63 percent of Kalindee rail promoters. Texmaco will buy Kalindee rail promoters' stake at Rs 65 a share. They would make open offer for up to 49.52 lakh shares or 30 percent of Kalindee.

Agency reports indicate that FIPB will consider the Jet-Etihad deal on July 29.

US Vice President Joe Biden will land in India today for a 4-day visit. Sources say that the visit is to lay the ground work for Obama's visit to India later this year. Biden will meet Prime Minister Manmohan Singh and opposition leader Sushma Swaraj. The buzz is that the anti outsourcing bill will be diluted.

In the debt market, after allowing a T-bill auction and its open market bond sale to flop on Wednesday and Thursday. The RBI on Friday accepted nearly 11,500 crore of bids at its weekly auction of 15,000 crore of government bonds. Around 3,527 crore of 10 year, 19 year and 29 year bonds were allowed to remain unsold and devolved on the underwriters.

However post auction bond prices rose and yields fell sharply to end at 7.94 percent on the ten year. The market is still worried about possible announcement of further steps to tighten the market over the weekend.

Global cues

In the US, markets ended mixed, largely unchanged in lackluster trading Friday, with the S&P 500 squeezing out a small gain to finish at another record high, but a batch of disappointing tech earnings weighed. 

In Europe, markets end lower weighed by some weak earnings and as investors booked profits after recent market gains, but still finished higher for the fourth week. In the peripheral markets, it was only the Italian index that ended with gains.

Asian markets were trading firm. Japan's Nikkei was up 0.22 percent or 31.63 points at 14,621.54. Singapore's Straits Times added 0.69 percent or 22.04 points at 3,235.30. South Korea's Seoul Composite rose 0.93 percent or 17.36 points at 1,888.77. 

The People's Bank of China announced its biggest step yet towards financial reform on Friday. The Chinese central bank scrapped controls on lending rates, which means banks are now free to set their own rates, with a few exceptions. However, banks are selling off this morning leading the shanghai index lower as this move is being seen as a negative for commercially driven banks in the long term.

Japan PM Abe's Ruling Party Bloc wins upper house elections. The victory was widely expected but Abe can now proceed with passing legislation smoothly, boosting hopes for economy recovery. The Japanese PM says that he will stay on course of economic, fiscal and monetary changes even after the election.

Other asset class

In the currency space, the euro rises to 1.31 to the dollar. The dollar index is below 82.50 mark. The dollar-yen is around 99.

In commodities, Brent crude trades above USD 108 a barrel. Nymex too is hovering around USD 108 a barrel.

From precious metals space, gold rises to a one-month high amid US stimulus hopes, above USD 1310 an ounce.

READ MORE ON  BSE, sensex, nifty, nse, market, L&T

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