Views on markets today
- Strong Asian and European markets helped Indian markets to close positive on Friday. Both FIIs and domestic institutions were net buyers and bought banks, IT, capital goods and consumer durables stocks.
- Market breadth was positive at around 1.7x led by the large cap stocks. FIIs and domestic institutions bought equities worth Rs551Cr and Rs333Cr.
- Asian markets are moderately gained today after a choppy session in the US markets on Friday. Markets look directionless in the absence of positive news flow to fuel sentiment of investors. The Nikkei opened weak reacting to economic data release that May industrial output increased less than expected. However, fresh buying helped to recover. The Hang Seng has also recovered after weak initial trades.
- We expect Indian markets to trade higher today following the cues from the Asian markets. Investors continue to build long positions in frontline stocks ahead of the budget early next week. Stocks to see momentum are Suzlon Energy and Tata Motors.
Economic and Corporate Developments
- The rupee (INR) declined today from 48.10/11 on Friday 48.14/15 today.
- NYMEX Crude Oil (CL) is currently trading at $68.77 per barrel.
- Cement prices are expected to soften by Rs3-5 per 50 kg bag next month due to excess supply and lower demand.
- Dewan Housing plans to raise Rs300Cr through placement of shares with QIBs.
Buzzing stocks
- Wockhardt Ltd. has signed an agreement to divest its Animal Healthcare Division to Vetoquinol, France. The division reported net sales of Rs77Cr for year ended December 2008. This is an initiative to divest its non-core business and step towards its continuous growth plan.
- Suzlon Energy in the talks of selling stake in Hansen in early stage. It cut debt by $111mn via buyback exchange mechanism and is looking to delist REpower according to sources. Suzlon's board approved Rs50bn fund raising programme.
Results to be announced today
Gujarat Alkalies, TV18, Dredging Corporation, Apollo Hospitals, Orchid Chemicals
US markets
The Nasdaq rose in choppy trading on Friday on strong demand for Palm's Pre smartphone, while the S&P 500 and the Dow industrials dipped due to a fall in energy shares. However, financial stocks gained. Investors are waiting for June's job report which would be helped in determining whether the recent rally would continue or not. The data would be announced on Thursday instead of Friday this week. Consumer confidence, the Institute for Supply Management's June index on U.S. manufacturing activity, and domestic car sales are among the major indicators on tap.
