Moneycontrol Bureau
Live Market Commentary
12:00 pm F&O trend: Atul Badkar, VP - Institutional Equities - Derivatives Desk at Edelweiss Securities
expects Nifty to be broadly in the range of 5,720 and 5,850 for the next few days.
On specific stocks, he is bearish on Tata Global Beverage and Mahindra and Mahindra and sees them as most lucrative shorting candidates. From the banking space, ICICI Bank , Axis Bank and State Bank of India remain weak, so one can look to short them, he added.
11:50 am Auto update: Bajaj Auto 's total sales plunged 18 percent year-on-year to 2.81 lakh units in July, as motorcycles continued to see lacklusture demand.
The Pune-based motorcycle maker has launched several new models like the Discover ST, Discover 100T in the last several months and more Discover models are around the corner.
Bajaj Auto is the only company that doesn't make scooters and Rajiv Bajaj, the
company's MD has said in the past that it is the motorcycle segment that will be its focus. He maintained that a fall in its motorcycle sales reflects the state of the industry and July is traditionally weak for motorcycles.
The strike at its Chakan plant near Pune did not have any impact on the sales, Bajaj told CNBC-TV18.
11:45 am Market outlook: ICICI Prudential AMC has been underweight on financial companies since 2009, but the scale at which it fell in July forced us to look at adding a bit,
says S Naren, CIO - Equities, ICICI Prudential AMC. However, he continues to remain underweight on the sector, but within the space he’s more positive on private sector.
He told CNBC-TV18, fixed income markets have become extremely attractive at this point of time. He is constructively positive with a one year view because it doesn’t require growth for the returns to come like in equity markets. There is extreme fear in the fixed income market and on the valuation side unlike equity markets where you have norms like price to earnings or price to book, you don't have the equivalent here. According to him, he says, taking one year, the rate at which the government is borrowing minus Wholesale Price Index (WPI) inflation, those numbers today are pretty large and one of the largest it has ever been in the last 10 years.
11:30 am Big fall! Jindal Steel crashes around 8 percent on the BSE. Earlier, the company said that it will cut planned investment by 40 percent in the next two years because of raw-material shortages.
"The company will spend Rs.12,000 crore (USD 2 billion) in the two years through March 2015, scaling back an earlier plan to spend Rs.20,000 crore," CFO K Rajagopal said on Wednesday.
Commodities mkt faces risk of default; FT may see more painThe market refuses to budge higher amidst lacklustre trading. The Nifty is still struggling below 5750, down 0.30 points while Sensex is up 25.00 points at 19342.19. About 628 shares have advanced, 988 shares declined, and 109 shares are unchanged.
Technology and oil & gas stocks are lending support to the indices while metals stocks are extremely weak.
However, there is no respite for Financial Technologies, the stock cracks another 20 percent, but now off its morning lows. Chairman of the forward market commission tells CNBC-TV18 that it will check on NSEL warehouse stocks to find out whether they have inventory worth Rs 6,200 crore.
Meanwhile, Asian markets are buoyant following a record-setting session on Wall Street. Nikkei is up 1.5 percent on weaker yen.
Dollar index surges to 82.4, yen weakens to 99.6. Euro holds above 1.32.
Brent is above USD 109, Nymex is above USD 108 per barrel. Gold retreats marginally, though holds onto USD 1300 an ounce
The rupee started lower on the back of a strong dollar globally. There is two way interest from FIIs with some funds cancelling forward hedges and other buying at the current lower levels. PSU banks were noted offering dollars.
Indian bonds are lower ahead of the Rs 15,000 crore bond auction later today. Sentiment is also affected by the high fiscal deficit number and the higher crude prices.
