After yesterday’s rebound, Indian markets are trading in the negative as other global markets too are trading in red.
The US markets suffered sharp cuts on Tuesday, Dow extended its triple digit decline for the third straight session amid concerns about the ongoing debt crisis in Europe and a round of disappointing profit outlooks, though there was some recovery in last minutes on a report that Fed was nearing to announce a stimulus.
The Asian markets have made another weak start with most the indices trading lower by about half-to-one percent. Japanese market was down by over a percent as the yen rose against all its major peers on concern Greece won’t meet its debt-reduction targets.
Sensex is down around 87 points, trading below the 16900 levels at 16828 levels while the Nifty is down 25 points at 51031 levels.
Top Sensex losers are Maruti Suzuki ( down 1.2 percent) and HUL, down 1 percent. JSPL tanked 3% and Sesa Goa lost 1.5% after disappointing numbers in Q1.
HCL Tech surged 5.7 percent to Rs 507 after posting a 42 percent rise net profit quarter-on quarter. Its April-June earnings showed positive signs such as more outsourcing orders and a sequential increase in revenue.HCL Technologies also signalled optimism about the software services exporter’s prospects for its 2013 fiscal year.
The BSE IT index has been boosted by strength in HCL Technologies. Capital Goods, Metals, Realty and Auto indices are pacing the decline followed by Consumer Durables, Power, Oil & Gas and PSU indices.
Traders will be watching government actions after the swearing in of Pranab Mukherjee as India’s 13th President later in the day.
There is some hint of diesel price hike as the petroleum ministry is planning to move the Cabinet Committee on Economic Affairs for a hike in diesel and domestic LPG cylinder prices.
Traders will also be eyeing the movement of rupee which has again gone on a southward journey, breaching the 56-mark in last session.
The NSE’s decision to exclude 51 stocks, including Essar Oil, MTNL and Oil India, from its derivative segment with effect from Friday following Sebi’s new guidelines, too will keep the markets buzzing. The exchange said that contracts for new expiry months in these securities would not be available for trading after expiry of existing contract months. “However, the existing unexpired contracts for the month of July, August and September 2012 would continue to be available for trading till their respective expiry and new strikes would also be introduced in these existing contract months,” NSE said.
State-run oil marketing companies will be in the spotlight amid reports that IOC has revised fuel rates by tweaking state taxes.
Key Results Today: Biocon, GTL Infra, Gujarat Industries Power Company, HCL Tech, Indiabulls Real Estate, Jay Shree Tea, JSW Ispat Steel, Jubilant FoodWorks, Kirloskar Inds, MRF, NIIT, Novartis India, Power Grid Corp, Raymond, SANOFI, SRF, Tata Teleservices, Vardhman Textiles, Vijaya Bank, Yes Bank.
Telecom stocks are likely to show some reaction too, as Decision on spectrum fee by the EGoM headed by Home Minister P Chidambaram has been deferred.
The RBI is due to review its policy on July 31. The RBI policy, action (or lack of it) on pending reforms and corporate earnings will drive the sentiment in the near term.