The Indian markets open flat with the Sensex down 18 points at 1760 levels while the Nifty is down 12 points at 5230 levels as the global concerns have resurfaced and traders may opt to remain on sideline going for a weekend. The undertone is cautious yet a tad optimistic as investors examine corporate results and await announcements on pending reforms. Monsoon deficit, sticky inflation and high twin deficits are among the negatives.
Reliance Industries is set to report its third straight fall in quarterly profit today; numbers expected to be out after market hours. The stock is down half a percent on the bourses ahead of its quarterly results.
Most BSE indices are trading in the red; oil and gas index is the biggest loser, down 0.7 percent.
Dr Reddy’s stock is the biggest Sensex loser; down 1.4 percent as the pharma company posted slightly lower-than expected quarterly net profit yesterday.
The Maruti stock extends losses, down 1.7 percent today. The stock ended down 9 percent yesterday after the firm decided to shut its Manesar plant.The stock is likely to remain in the limelight even today. A likely hike in diesel prices and currency fluctuations could also weigh on the stock in the near term
The rupee fell , tracking weaker regional currencies, as the euro fell against the dollar undermined by worries about Spain’s fiscal woes and recent falls in shorter-term euro zone interest rates.
At 9.01 a.m., the rupee was at 55.26/28 to the dollar versus its last close of 55.12/13.
Meanwhile, the Cabinet has approved 21% import duty on power equipment, demerger of VSNL land and disinvestment in SAIL. It may take up FDI in aviation soon. The Centre is also working on building consensus on FDI in multi-brand retail. The monsoon session of parliament begins on August 8.
The telecom stocks too will be watched as the ministerial panel on spectrum is expected to finalize its much awaited recommendations on spectrum reserve price and usage charges.
Meanwhile, it has been reported that the DoT may tell the high-powered inter-ministerial panel that reserve price for airwaves can be reduced by about Rs 1000 crore for every 1% increase in revenue share.
Sugar stocks too will be buzzing after the cabinet approved a 17% hike in sugarcane price that mills pay to farmers to Rs 170 per quintal for 2012-13.There will be lots of result announcements including the earnings of market heavy weight Reliance Industries slated to be announced after market hours.