It's a strong start to the markets with the Sensex up more than 100 points in trade and the Nifty up 30 points at around 5224 levels after falling in the past four trading sessions. Asian markets have shrugged off the overnight losses on Wall Street amid growing speculation of fresh stimulus from China to USA. The US stock markets ended lower while the European markets managed slender gains.
All BSE sectoral indexes are trading in green with ICICI Bank and HDFC Bank pulling the Sensex higher. Dr Reddy's, up 1.7 percent, Hindalco ( up 1.2 percent) and Sun Pharma ( up 1.2 percent) are the big Nifty gainers. Kingfisher is trading flat but it is the top traded counter on NSE.
The rupee too opened higher as Asian shares and other risk assets gained as investors covered short positions while awaiting US Federal Reserve Chairman Ben Bernanke's view on the US economy later in the day. At 9.06 a.m., the partially convertible rupee was at 55.00/01 to the dollar versus its 55.31/32 close on Monday.
Auto,Bankex, PSU, FMCG,Oil and Gas, HC, FMCG,Teck, Metal, Realty, Power, Consumer Durables and Capital Goods indices are the gainers.
The undercurrent has been buoyed by a positive trend across Asian markets, as global investors continue to bet on more stimulus out of the US and China.
The outlook on inflation has just worsened with monsoon being below average. Food prices may rise during the festival season and may stay elevated for a while if monsoon fails to pick up.
The IMF has slashed India’s GDP growth projection to 6.1 percent for 2012. But, the RBI is unlikely to get swayed by slowing GDP as inflation remains sticky. The IMF has cut global growth forecast for 2013 to 3.9% from 4.1% predicted in April.
Rate sensitives are likely to remain under pressure as Reserve Bank of India’s governor D Subbarao has said that the latest inflation numbers show that it is still way above the threshold level where tolerating price rise could lead to growth.
Traders will also be watching for any development in monsoon as Agriculture Minister Sharad Pawar has said that the deficient southwest monsoon would have an impact on the kharif crop this year, though he insisted that there was no drought-like situation in the country yet.
There will be some important result announcements to0. Automotive Stampings, Axis Bank, Bajaj Finserv, Bajaj Finance, GIC Housing, GMM Pfaudler, Hercules Hoist, Kirloskar Pneumatic and Triveni Turbine will announce results today.
Brent crude, which had cooled to $90 per barrel, is back above US$100. BPCL is down over 1% on rising crude oil prices.
Also, thirteen Indian states will sell Rs102800 crore of debt today via multiple price auctions, according to a July 13 statement from the Reserve bank of India.
Meanwhile, the infra sector too is likely to remain under pressure as the planning commission has said the $1-trillion investment target for the infrastructure sector in the Twelfth Five-Year Plan that began this year may be difficult because of the lower-than-expected growth over the plan period.
FII's were buyers in Index Futures to the tune of Rs 57 crore and were sellers in index options to the tune of Rs 773 crore, Stock Futures were sold to the tune of Rs 96 crore.
FII's were net sellers in derivatives segment to the tune of Rs 910 crore compared to selling of Rs 492 crore in previous trading session. Derivative segment saw 8.8% increase in turnover as compared to previous trading session.
Stocks in news
Indian Hotels retains its stake of 71 lakh Orient-Express shares.The investment was part of a strategic attempt to further leverage its global network and become more prominent in foreign markets, says report.
Infosys BPO is scouting for buyouts to double its annual revenues to $1 bn, according to reports. Reports stated that Infosys BPO projected a positive outlook and a strong demand from clients in FY13.
Godrej Properties will develop township project in Panvel. The project will have an estimated saleable area of 3.5 million square feet.
Indian Oil Corp: The nation’s largest refiner increased prices of jet fuel in Mumbai to Rs 63,002.45 a kiloliter starting July 16.
Tata Steel Ltd.: India’s biggest producer of the alloy will sell its 50 percent stake in HKS Scrap Metals to Euro-Scrap Alliance.
Tata Power’s perpetual notes dropped to a six-month low as falling coal prices threaten to curb income from the Indian power company’s mines, prompting Standard & Poor’s to cut the outlook for its debt rating.
Mahindra & Mahindra Financial Services Ltd., the auto-loans unit of India’s largest tractor maker, is counting on normal rains and a drop in interest rates to sustain the best quarterly performance in two years.