By Keynote Capitals

Views on markets today

-Indian markets closed on positive note yesterday on settlement day for July F&O series after revival of monsoon rains this month and latest data showing easing of food inflation to single digit levels. Positive opening of European markets after strong earnings from AstraZeneca and Capgemini also keep market sentiment upbeat. The upward movement was mainly led by gain in banks, FMCG and auto stocks while oil & gas, consumer durable and capital goods witnessed some selling pressure.

-Market breadth was marginally weak at ~0.95x as investors sold large cap stocks. FIIs were buyers and bought equities worth Rs5.78bn while domestic institutions sold equities of Rs9.2bn.

-Asian markets are tading lower this morning. The Nikkei is down as more signs that the US economic recovery may be stalling, outweighed a wave of upbeat domestic earnings. Despite many upbeat first-quarter results from blue-chip domestic firms, sentiment is not enough to lift the markets. The Hang Seng is also trading lower.

-The Indian markets are expected to open lower in line with global markets.

Key events today

-Closing of FPO of Engineers India (subscribed 11.62x as of July 29, 5PM)

Economic and Corporate Developments

-Food inflation has declined considerably coming to single digit at 9.67% for the week ended July 17, compared with 12.47% in the previous week, mainly due to decline in prices of vegetables, cereals and rice. The fuel price index rose to 14.29% in the same period, as against a 14.27% in the previous week.

Buzzing Stocks

-JSW Steel plans to begin construction of its 10mtpa steel plant at Salboni in West Bengal before end of this fiscal.

-Ashok Leyland is planning to invest around Rs20bn over the next two years, both in its existing plants and in joint ventures.

-Lanco Infratech has bagged a contract from Maharashtra State Power Generation for Balance of Plant package for three new units of 660 MW.

-Essar Oil, Australia's Arrow Energy and Great Eastern Energy will invest $158mn in 7 coal bed methane blocks.

-HCL Infosystems has bagged a Rs400mn order to digitise the data generated from the Census of India project.

-Elecon Engineering has successfully built India's highest rating windmill gearbox for onshore windmills having a capacity of 2 MW.

Results to be announced today

BPCL, Reliance Infra, SCI, Reliance Power, HCC, Indian Hotels, RNRL, Aditya Birla Nuvo, Tata Chemicals, KEC International, REI Agro, Raymond

US markets

The US markets closed negative in volatile trading after weak outlooks from technology companies and downbeat comments from a Federal Reserve official.

St. Louis Federal Reserve Bank President James Bullard said he is worried about the risks the United States could fall into a Japan-style quagmire of falling prices and investment. That pressured stocks before a late session rebound.

US government will release Q2 GDP data and revise data for the past three years today. It will throw up some clues on where the US economy stands right now. So, naturally all eyes are on this report.