By Keynote Capitals
Views on markets today
- Indian markets ended lower yesterday led by a sell-off in heavyweights like Reliance Industries and L&T. Despite a 32% rise in net profit, Reliance Industries shed ~3% on gas production concerns and lower-thanexpected gross refining margins. BSE Sensex and NSE Nifty closed below 18,000 and 5,400 level ahead of F&O expiry. The downward movement was mainly led by loss in oil & gas, real estate and capital goods stocks while auto and pharma witnessed some buying activities. Aster Silicates closed with a premium of 68.73% on its debut against its issue price of Rs118.
- Market breadth was weak at ~0.71x as investors sold large cap stocks. FIIs were buyers and bought equities worth Rs5.93bn while domestic institutions sold equities of Rs6.9bn.
- Asian markets are opened lower today on profit taking from the investors. The Nikkei dropped as weak orders for U.S. durable goods and a downbeat take on the US economy from the Federal Reserve spurred profittaking. However, the markets showed some strength after the weak opening.
- We expect a weak opening for the Indian markets following the cues from the Asian markets. Further, inflation data to be announced today will add the volatility in the market. However, the strong corporate results will provide some support to the markets.
Key events today
- Announcement of food and fuel price inflation data
Economic and Corporate Developments
- Infrastructure growth slips to 3.4% in June.
- Finance Ministry has proposed dedicated debt funds to channelise foreign savings into the infrastructure sector.
Buzzing Stocks
- RIL and Essar Oil join race to buy BP’s Africa assets.
- HDFC Bank, Lakshmi Vilas Bank and Central Bank set off a round of deposit rate hikes.
- Reinsures have settled Aban’s $235mn claims for its semi-submersible rig.
- EGoM cancels KG gas allocation for ONGC.
- Adani Enterprise to invest Rs65bn in coal mining.
- Unitech plans to buy AIM-listed group company for over Rs7.5bn.
- Cholamandalam Investment plans to raise Rs2.5bn via QIP or preferential share issue.
Results to be announced today
ONGC, SAIL, Hero Honda, Siemens, BOB, Aban Offshore, GE Shipping, Ultratech Cement, Petronet LNG, HDIL, Nagarjuna Fertilizers, Kalpataru Power
US markets
The US market closed negative after weak durable goods figures and a downbeat assessment of the economy from the Fed's Beige Book. The US Federal Reserve's Beige Book, a summary of national economic conditions, added to the disappointment. It indicated activity was not as robust in a few districts and had lost steam over the past several weeks.
New orders for long-lasting US manufactured goods unexpectedly fell for a second straight month in June, posting their largest decline since August 2009, a reminder of the challenges faced by the economy. Boeing Co also disappointed investors after it forecast full-year earnings slightly below estimates. The plane maker's shares fell 1.9%.
