Nifty at 5700; Punj Lloyd up 6%, BHEL falls 16% on Q1 nos

Moneycontrol Bureau
Live Market Commentary

11:50 am Alert: JSW Steel said it produced 9. 91 lakh tonne of crude steel in July, up 47 percent year-on-year from its three manufacturing units at Vijayanagar, Salem and Dolvi.

During the period, the company’s production of flat rolled products was up 64 percent to 7.9 lakh tonne while that of long products rose 31 percent to 1.86 lakh tonne.

The firm said its capacity utilisation was lower in July at its 10 MT Vijayanagar plant in Karnataka due to shutdown of one of its furnaces for relining and capacity enhancement. The facility will resume production next month-end.

Also read: Brokerages bearish on BHEL, cut target post poor Q1 nos

11:40 am Market outlook: Though there is a distinct possibility of Indian equities seeing a sharp correction, but there is no solid reason as well for the market to hold at current levels, says Dipen Sheth, head-Institutional Research, HDFC Securities.

“Domestic investors have been net sellers. Foreign investors don't see the macro situation improving, if there is a selloff from on a sustained basis, there will be very little support for the market,” he told CNBC-TV18 in an interview.

11:35 am Weak: Orbit Corporation dropped nearly 10 percent intraday to touch a record low of Rs 11.77 Monday on reports that LIC Housing Finance has sent a Rs 96 crore loan recovery notice to the company.

Housing finance company has curbed Orbit Corp's sale of flats in three Mumbai projects, which are located at Andheri, Lower Parel and Lalbaug, reports CNBC-TV18 quoting agencies.

Don't miss: India service sector PMI falls to lowest since April 2009

The market is slowly picking up steam on strength in FMCG and metal stocks. The Sensex is up 92.72 points at 19256.74, while the Nifty adds 24.05 points at 5701.95. About 871 shares have advanced, 901 shares declined, and 115 shares are unchanged.

Punj Lloyd surges 6 percent after reporting stable numbers in April-June quarter. The company maintained its quarterly run rate of Rs 3000 cr on topline and Rs 250cr on the EBITDA line . Total income was up 8.3 percent at Rs 3006 cr , while the company reported a profit of Rs 40.4 cr vs a loss of Rs 13.4 cr Y-o-Y.

Asian markets are trading with a negative bias. Nikkei is down 1 percent on stronger yen. 

Post the disappointing job data, bond yields dropped to 2.6 percent and dollar fell to 81.995. Euro rose to 1.3275 and japanese yen rose to 98.7.

Indian bonds are also higher as rupee moved up from its all time lows. The slight recovery in US bonds is also helping.
The rupees steerngth is alrgely because of long dolalr unwinding after the greenback's weak showing this mornign across asia

Crude prices fell after disappointing jobs report caused fears about slowdown in oil demand. Brent is at USD 109 per barrel, and Nymex is at USD 107.2. Gold is rangebound at USD 1317 per ounce.