The Indian markets despite their valiant efforts could not manage a close in green in last session. While there was global concerns weighing on, some weak earnings announcement added fuel to the fire and led the markets lower for the day. Today, the start is likely to be flat-to-positive and some recovery can be expected on the last trading day of the holiday truncated week. Traders are likely to get some support with Planning Commission Deputy Chairman Montek Singh Ahluwalia’s statement that the economy is likely to grow at 5.5 percent this financial year. Also, net direct tax collections went up by 10.37 per cent to Rs1.17 lakh crore during the April-July period of the current fiscal year as against Rs1.06 lakh crore mopped up during the same four months of 2012-13. Meanwhile, the Cabinet Committee on Economic Affairs is likely to consider the allocation of about Rs 2,900 crore for three schemes that include the setting up of cold chains and mega food parks by 2017. The oil and gas sector will be buzzing, as a Parliamentary panel has recommended review of the Government’s decision to raise gas prices and said that Reliance Industries should deliver its shortfall in production of the fuel at the old rate. There will be some action in textile stocks too, as the government has raised the textiles export target to $43 billion for the current fiscal, from $36 billion set earlier.
There will be some important result announcements too, Adani Enterprises, BEML, Bharat Forge, Deepak Fertilizers, Fortis Healthcare, Fresenius Kabi, IRB Infra, Jai Corp, REC, Shipping Corp and Sobha Developers etc will be announcing their numbers today.
The US markets extended their fall and ended lower, though the major indices managed to come off the days’ low with concern about the outlook for the Fed’s stimulus program still weighing on. Asian markets have made a mixed start, though some of the indices are closed but those which are open today, too are not showing any big move. There is some cautiousness ahead of the conclusion of a Bank of Japan policy meeting and Chinese trade data.
Back home, pressurized by feeble global cues, key domestic benchmarks once again ended the volatile day of trade in the red terrain extending their previous session’s losses. The benchmark got off to a flat but positive opening, shrugging the somber sentiments prevailing in Asian markets. However, the indices slipped and entered into the negative territory, even went on to test important psychological 18,550 (Sensex) and 5,500 (Nifty) levels. The key gauges got solid support around those intraday low levels and they convalesced from thereon. The indices tried hard to move back into the positive territory and even got there but only for a brief period as investors took the opportunity to cash in on the bounce back. The bourses finally extended the declining run for the tenth time in previous eleven sessions but finished way above the session’s lows. The investors mainly resorted to the profit booking due to feeble global cues as sentiment across the globe remained dampened on uncertainty about when the Federal Reserve will start to reduce stimulus. Moreover, weak opening in European counterparts too hurt the sentiments as investors remained on the sidelines ahead of Bank of England’s quarterly inflation report. Back home, some revival was seen in the late hour of trade when the frontline counters paring all their intraday losses turned into the green terrain amid expectations that the government may soon announce measures to curb currency drop. Some respite also came in from report that foreign institutional investors (FII) bought Rs 2.13 billion worth of local shares on August 6, 2013, while domestic institutions were net sellers of Rs 3.24 billion of shares. However, the recovery proved short lived as local bourses once again dipped into the red, sentiments got clobbered out of shape as Indian rupee today depreciated by 27 paise to 61.04 against the US dollar at the time of closing of equity markets due to heavy demand for the US currency from importers. Market mood remained subdued on the back of disappointing Q1 numbers from Tata Motors and NMDC. Tata Motors, on consolidated basis, posted a fall of 23.11% in its net profit at Rs 1,726.07 crore for Q1 FY14 as compared to Rs 2,244.91 crore for the same quarter in the previous year. While, NMDC reported 17.51% decline in its net profit at Rs 1572.19 crore for the quarter. Finally, the BSE Sensex lost 68.16 points or 0.36% to settle at 18,664.88, while the CNX Nifty declined by 23.15 points or 0.42% to end at 5,519.10.
There will be some important result announcements too, Adani Enterprises, BEML, Bharat Forge, Deepak Fertilizers, Fortis Healthcare, Fresenius Kabi, IRB Infra, Jai Corp, REC, Shipping Corp and Sobha Developers etc will be announcing their numbers today.
The US markets extended their fall and ended lower, though the major indices managed to come off the days’ low with concern about the outlook for the Fed’s stimulus program still weighing on. Asian markets have made a mixed start, though some of the indices are closed but those which are open today, too are not showing any big move. There is some cautiousness ahead of the conclusion of a Bank of Japan policy meeting and Chinese trade data.
Back home, pressurized by feeble global cues, key domestic benchmarks once again ended the volatile day of trade in the red terrain extending their previous session’s losses. The benchmark got off to a flat but positive opening, shrugging the somber sentiments prevailing in Asian markets. However, the indices slipped and entered into the negative territory, even went on to test important psychological 18,550 (Sensex) and 5,500 (Nifty) levels. The key gauges got solid support around those intraday low levels and they convalesced from thereon. The indices tried hard to move back into the positive territory and even got there but only for a brief period as investors took the opportunity to cash in on the bounce back. The bourses finally extended the declining run for the tenth time in previous eleven sessions but finished way above the session’s lows. The investors mainly resorted to the profit booking due to feeble global cues as sentiment across the globe remained dampened on uncertainty about when the Federal Reserve will start to reduce stimulus. Moreover, weak opening in European counterparts too hurt the sentiments as investors remained on the sidelines ahead of Bank of England’s quarterly inflation report. Back home, some revival was seen in the late hour of trade when the frontline counters paring all their intraday losses turned into the green terrain amid expectations that the government may soon announce measures to curb currency drop. Some respite also came in from report that foreign institutional investors (FII) bought Rs 2.13 billion worth of local shares on August 6, 2013, while domestic institutions were net sellers of Rs 3.24 billion of shares. However, the recovery proved short lived as local bourses once again dipped into the red, sentiments got clobbered out of shape as Indian rupee today depreciated by 27 paise to 61.04 against the US dollar at the time of closing of equity markets due to heavy demand for the US currency from importers. Market mood remained subdued on the back of disappointing Q1 numbers from Tata Motors and NMDC. Tata Motors, on consolidated basis, posted a fall of 23.11% in its net profit at Rs 1,726.07 crore for Q1 FY14 as compared to Rs 2,244.91 crore for the same quarter in the previous year. While, NMDC reported 17.51% decline in its net profit at Rs 1572.19 crore for the quarter. Finally, the BSE Sensex lost 68.16 points or 0.36% to settle at 18,664.88, while the CNX Nifty declined by 23.15 points or 0.42% to end at 5,519.10.
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