 "Indian shares, rupee likely to hold the ground")
The Indian stock markets are likely to be in a consolidation mode now with a positive bias after last week’s extreme volatility.
One of the aspects that could impact the equities is the slightly positive foreign institutional equities inflow the market witnessed yesterday. The FIIs have been selling Indian shares since 16 August.
According to the NSE data, FIIs net bought shares worth Rs 475.92 crore. FIIs have been net sellers over the last three months.
The rupee also settled at 66.00/01 per dollar, weaker than Friday’s close of 65.70/71. However, the currency seems to be holding on to the ground after its nightmarish crash last week.
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It is too early to say whether this is a reversal of the negative sentiment yet, though.
After the dismal GDP figures and a slew of downgrades by brokerages, HSBC Manufacturing PMI, compiled by Markit, for August showed that factory activity shrank for the first time in more than four years.
According to Reuters, the index sank to 48.5 in August from 50.1 in July. The data is giving rise to slowdown fears as anything above the reading of 50 is considered an expansion and anything below that level suggests a contraction.
Global cues
Asian markets marked a second day of gains on Tuesday after a string of upbeat factory data around the globe boosted shares and most commodities, while a delay in a potential U.S. strike on Syria diminished the safe-haven appeal of gold and the yen. (Reuters)
The safe-haven yen started Asian trade at one-month lows against the dollar on Tuesday, having fallen broadly as fresh signs of a pickup in global manufacturing activity helped lift risk appetite.(Reuters)
Gold edged lower for a fourth straight session on Tuesday as its safe-haven appeal was dented by a delay in a potential US strike on Syria and strong global economic data. Spot gold had slipped 0.08 percent to $1,393.19 an ounce by 0002 GMT, while US gold fell about $2 to $1,394.00.(Reuters)
Stocks in news
Radico Khaitan, after a report in the Economic Times that the company is in talks to sell 26 percent stake to Suntory of Japan for Rs 870 crore.
Tech Mahindra, after the Reserve Bank allowed the company to raise the purchasing limit of shares by foreign institutional investors in the company by up to 35 percent of the paid-up capital.
Economy news
The growth of India’s eight infrastructure sectors was 3.1 percent in July, slower than the year ago print of 4.5 percent but higher than 0.1 percent in June.