Sensex strong, Nifty tests 5800; Financial Tech tanks 42%

Moneycontrol Bureau
Live Market Commentary

9:55 am Divestment: The government's 3.56 percent stake sale of Neyveli Lignite Corporation  (NLC) through the institutional placement route will hit the markets on August 2 and is expected to fetch around Rs 350 crore to the exchequer. The stock is up 3 percent on the BSE.

9:50 am RBI action: The RBI likely sold dollars via state-run banks in early trades on Thursday after the currency weakened tracking the dollar's strength in Asia, dealers said.

The Reserve Bank of India was seen selling dollars from 60.75 rupee levels, three dealers told Reuters.

9:40 am Market outlook: Sanjay Dutt, Director, Quantum Securities is bullish on market and is confident that the next 6-12 months will be much better. In an interview to CNBC-TV18 he says that the index may not move but select stocks will see gains.  As an investment strategy, he suggests buying Jindal Saw and avoid JP Associates.  He prefers Idea among telecom stocks.  

9:35 am Weak: Wockhardt loses another 5 percent on the BSE as media reports suggest that Maharashtra Foods and Drugs Administration has registered an FIR in Pune against the company clearing and forwarding outlets for the alleged illegal sale and distribution of spasmo-proxy-von capsules.

9:30 am Earnings: Liquor manufacturer United Spirits posted a dismal performance during the first quarter with the net profit falling 19 percent year-on-year to Rs 118 crore.

The company also disappointed with its revenue, operational and volume performance while escalating raw material prices caused margin contraction.

Revenues grew by 6 percent to Rs 2,207 crore during April-June quarter from Rs 2,073 crore in a year ago period. The stock, however, is up around 3 percent on the BSE.

9:20 am Downgrade: Goldman Sachs downgraded its rating on Indian stocks to "underweight" on concerns about delayed growth recovery and rising vulnerabilities for the economy, reports Reuters.

The external funding environment has also become challenging causing RBI to tighten liquidity, the investment bank said in a note.

Goldman Sachs also expects corporate earnings to grow at 5 percent for the current fiscal year and 11 percent for the next year, below consensus estimates.

Read what Udayan Mukherjee says about the market

The market has opened in the positive terrain led by short covering. The Sensex is up 128.76 points at 19474.46, and the Nifty adds 34.90 points at 5776.90. About 217 shares have advanced, 53 shares declined, and 24 shares are unchanged.

RBI will auction 7-day cash management bills worth Rs 3,000 crore today. RBI says cash management bills auction is based on multiple price method.

The Indian rupee opened at 60.78 per dollar versus 60.40 yesterday.
Mohan Shenoi, Kotak Mahindra Bank said, "Expectations of a liberalized FDI policy, PSUs raising funds in overseas markets, rise in import duty of luxury items and export promotion measures will have a soothing impact on the rupee. The range for the day is seen between 60.20-60.80/USD."

Meanwhile, July auto sales data are due today. Retail sales could see a decline for all segments especially 2-wheelers led by fuel price hike, high rates and weak economic sentiment. Car volumes are seen declining by 4-5 percent year on year.

The FOMC meet is a non-event for the market as the Federal Reserve said it will maintain its bond-buying policy in its ongoing effort to bolster the economy.

In the currency space, the euro holds above 1.32 to the dollar. The dollar index is around 81.60 levels. The dollar yen is at 98

Brent crude hovers around USD 107. Nymex rises to USD 105 levels. Gold continues to trade around USD 1330 an ounce.