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Last Updated : Jul 04, 2016 10:50 AM IST | Source:

Nifty inches towards 8400, Sensex firm; Tata Motors up, ITC down

Tata Motors topped buying list, up more than 3 percent after strong JLR sales data in US while ITC fell nearly 2 percent on profit booking.

Moneycontrol Bureau

10:45 am Buzzing:
Tata Motors shares rallied 3.7 percent intraday after strong growth in Jaguar Land Rover's US sales and India's passenger vehicles business in June.

Jaguar Land Rover, the luxury car maker, sold 8,448 units in June, registering a whopping 44.2 percent growth compared with 5,860 units sold in a year-ago period.

Jaguar sales increased 125.4 percent to 2,743 units and Land Rover rose 22.9 percent to 5,705 units compared with corresponding period of last fiscal.


Overall JLR sales continued to be strong as in May also, it reported a solid 18 percent growth year-on-year by selling 44,946 units. That was largely supported by Jaguar sales (up 90 percent against 49 percent in April), largely driven by F-Pace and XE sales in the US. Land Rover registered a 6 percent growth.

10:30 am China's Yuan at multi-year low:
China's yuan touched a new 5-1/2 year low against the dollar for the second consecutive session today on concerns that the central bank would tolerate a further weakening of the currency, as the bank appeared to have stood aside, traders said.

The yuan hit 6.6642 soon after the open due to a heavy bout of dollar buying in the market. That level was the weakest since December 2010.

Despite the yuan's continued slide, there were no signs of state banks' intervention on behalf of the central bank, with some traders saying "this is a tacit approval from the central bank to let the yuan slide further."

"The market remains calm as usual," said a trader from a Chinese commercial bank in Shanghai. "We all know that the yuan will weaken further. And the central bank got things under control."

10:15 am Gold outlook:
Gold prices may hit all-time highs in the next 18 months amid low to negative global bond yields, said a fund manager on Monday, joining a chorus of bullish calls on the safe haven commodity.

Despite being a non-interest bearing asset with holding costs, gold was attractive in the current climate where there was little trust in the establishment and its policies as demonstrated by the June 23 referendum in the UK when voters chose to leave the European Union, said Swiss Asia Capital's Singapore managing director and chief investment officer, Juerg Kiener.

The continued cratering of bond yields has also blunted the advantage fixed income instruments held over their shiny counterpart.

Also read - Brexit's real pain is still ahead despite rebound: BofA ML

10:00 am Market Check

Equity benchmarks held early gains with the Nifty inching towards 8400, tracking positive Asian cues. Oil, auto, banks, infra and pharma stocks supported the market while FMCG was under pressure.

The Sensex rose 167.51 points or 0.62 percent to 27312.42 and the Nifty climbed 45.50 points or 0.55 percent to 8373.85. The broader markets marginally outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.7 percent and 0.9 percent, respectively.

About three shares advanced for every share declining on Bombay Stock Exchange.

Tata Motors topped buying list, up more than 3 percent after strong JLR sales data in US while ITC fell nearly 2 percent on profit booking.

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First Published on Jul 4, 2016 10:00 am
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