After hitting intra-day high of 7600 in early trades on Monday, indices constantly struggled to find any specific direction. A lot will hinge upon what the RBI governor does and says today. Bank stocks will again be in focus given the policy meeting event. The currency movement will also be closely tracked.The Institute for Supply Management (ISM) said that its manufacturing index rose to 48.2 in January from 48, above forecasts but still below the reading of 50 that signals expansion.
The market has more or less factored in a pause by the RBI on any monetary policy activity till the budget gets out of the way. After a cumulative 125 basis points cut in the repo rate by RBI during past 12 months, slowing economic conditions definitely demand further fall in the interest rates. However, growing concerns over fiscal prudence and rise in food inflation has left this option less desirable for now. Elsewhere, ECB president Mario Draghi expressed his concern over the state of EM economies terming them a ‘risk.’
The outlook is a flat start. After hitting intra-day high of 7600 in early trades on Monday, indices constantly struggled to find any specific direction. A lot will hinge upon what the RBI governor does and says today. Bank stocks will again be in focus given the policy meeting event. The currency movement will also be closely tracked. Key results in focus will be Amara Raja Batteries, Cera Sanitaryware, Crompton Greaves, Cummins India, DLF Ltd, Godrej Properties, HSIL Ltd, OCL India, Navneet Education, Shree Cement, Snowman Logistics, Tata Communications and Welspun India.
US indices erased steep early losses to close nearly unchanged amid fresh signs of weakness in the Chinese economy and lingering worries over plunging oil prices. US crude oil price crashed over 6%. Weak US manufacturing PMI data fueled expectations of a protracted status quo on interest rates by the Federal Reserve. The Institute for Supply Management (ISM) said that its manufacturing index rose to 48.2 in January from 48, above forecasts but still below the reading of 50 that signals expansion.
The Dow Jones Industrial Average reversed a 160-point loss to close 17.12 points, or 0.1%, lower at 16,449. The S&P 500 index closed flat at 1,939. The Nasdaq Composite index gained 6.41 points, or 0.1%, to settle at 4,620.
India Ratings and Research (Ind-Ra) has maintained a stable outlook on the auto industry for FY17. This is based on the resilient financial profiles of industry players, likely sustained growth in car demand, bottoming out of the sales decline in light commercial vehicles and continued growth in medium heavy commercial vehicles (MHCV) although at a lower rate than seen in FY16. The stable outlook is also supported by the improved profitability and higher cash flows of original equipment manufacturers (OEMs) on the back of low commodity prices.
Grasim Industries Ltd. will spend more than Rs. 4,000 crore on capacity expansion of its various businesses - cement, chemicals and VSF - in the coming financial year.
Life Insurance Corporation (LIC) has invested Rs. 53,000 crore in the equity markets so far in FY16, up 36 per cent over the amount invested in FY15, Chairman S.K. Roy said on Monday.
ASSOCHAM expects the Reserve Bank of India (RBI) to at least take note of the fact for well over a year, the Wholesale Price Index (WPI) for several industrial products has remained in a deflationary mode, requiring an urgent infusion of life –saving consumer demand.
Sun Pharma announced the launch of Imatinib Mesylate Tablets (therapeutic equivalent to Gleevec for indications approved by the FDA) in US market. Sun Pharma’s subsidiary received final approval for Imatinib Mesylate from FDA in December 2015. Being a First-to-File product, it was granted 180 days of marketing exclusivity by FDA from the time of its launch.
Petrol price was reduced by 4 paise a litre and diesel by 3 paise a litre as the government raised excise duty.
