Apr-Jun GDP disappoints; auto, oil stocks to be in focus
Global markets ended lower on Friday. Asian markets were trading on a positive note today morning.
September 02, 2013 / 09:20 IST
India's first quarter GDP growth was the slowest in four years. It came in at a lower-than-expected 4.4 percent as the manufacturing and mining sectors contracted. But policy-makers are unfazed about growth coming in below 5 percent for the third quarter in a row and they growth will pick up in the second half of the year. GDP data was announced after market hours on Friday.
Meanwhile, it was a great beginning for September series as the market rallied more than one percent amid volatility. Sensex surged 624 points in two days. It closed at 18619.72, up 218.68 points from previous close. The Nifty gained 62.75 points to end at 5471.80. Undeterred by the UK Parliament's rejection of a strike against Syria, president Obama will seek Congressional sanction on a possible strike when the house returns from recess on September 9. US markets closed lower with the Dow Jones and the S&P 500 closing out their worst month in over a year on Friday. European shares also ended about 1 percent lower across the board.Asian markets gained on positive Chinese data today morning. Stocks to watch Watch for OMCs in trade today. For the sixth time in three months, petrol prices have been hiked by Rs 2.35 per litre and diesel by 50 paise per litre excluding VAT. The focus is likely to now shift to whether the one-time diesel price hike comes through post the monsoon session.August auto sales indicated a weak trend with Tata Motors reporting a degrowth in total sales at a little over 49,600 units versus nearly 72,000 (yoy). M&M too showed a similar trend with total sales slowing to 37,900 units versus over 45,800 units last year. From the two wheeler stable, TVS Motor showed a slight improvement.Hero MotoCorp will be in focus this morning as the strike called by its Haridwar unit workers has been resolved. Remember, the workers had earlier called for a strike leading to no production on Friday. Haridwar unit produces 8000 units per day which is higher in comparison to its Gurgaon and Daruhera plants.Promoters of Fortis Healthcare have released 4.07 crore pledged shares. With this release the pledged shares percentage comes down to sub 40 percent of the total number of shares from 48 percent as of the quarter ended June 2013. Indraprastha Gas and Wockhardt will be holding their AGMs todayAlso, it's the last lap for the Monsoon Session; government may push the pension bill to woo investors, upper house of parliament to vote on amendments to FEMA which is crucial for FDI in retail.US Markets closed lower on the final trading day of august, with the DOW and S&P 500 posting their worst monthly declines since May 2012, as investors held off making large bets ahead of a long holiday weekend amid escalating worries over Syria. Remember, the US market shut will remain shut today on account of labour day. Dow Jones tumbled 4.5% percent while the S&P 500 lost over 3%. The Nasdaq fared a little better though.The 10-year treasury yields gained on weaker than expected economic data, with the possibility of a military strike against Syria adding to a safety bid ahead of a holiday-lengthened weekend.On the economic data front, consumer sentiment retreated to 82.1 in August from 85.1 July. Meanwhile, consumer spending ticked up 0.1% in July versus estimates of gain of 0.3%. Business activity in the Midwest rose to levels of 53 in August from 52.3 in July. EuropeShares closed lower on Friday losing about 1 percent across the board and also finishing August at a loss overall, as a reduced chance of an immediate military strike on Syria weighed on energy equities via weaker oil prices. Euro zone business sentiment showed optimism had improved sharply in august with an increase of 2.7 points to 95.2. However, unemployment remained at a record high with a figure of 12.1% for July.Currency The dollar traded at a 4-week high of 82.26 on safe haven buying and conversely, the euro slipped to 1.31. After a volatile session, the rupee made a strong recovery to end stronger for the second day running shutting shop 85 paise stronger, at 65.70 per dollar on Friday. Help came in from dollar-selling by PSU banks, presumably on behalf of the RBI.CommoditiesBrent prices retreat further to USD112/barrel levels. While nymex slipped to sub USD 106/barrel mark on uncertainty over the Syria strike. Oil prices record their biggest monthly gain in a year, with Brent up more than 6 percent in August. From precious metals space, gold prices slid below USD 1400/oz on a stronger dollar and as investors squared month end positions. Gold has gained nearly 5.6 percent this month. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
