Wipro and Jet stand out in a cautious market. Here's why
Indian markets opened in the red this morning ahead of the Reserve Bank of India's monetary policy review on July 31.The RBI will announce its first quarter review of monetary policy on Tuesday. It is widely anticipated that the RBI may keep policy rates and the cash reserve ratio unchanged.
"In the quarterly monetary policy review on July 30, the RBI is likely to keep repo rate and CRR unchanged. Therationale is that RBI, at this stage, is preferring indirect tools to tighten liquidity rather than outright monetary policy instruments - CRR or repo rate- which are moredifficult to reverse," Edelweiss Research said in a report.
"Since these indirect measures, recently announced, appear to be working, the RBI would likely prefer a wait and watch approach this time," the report added.
While the Sensex opened32 points down at 19716, the Nifty openeddown 13 points at 5876. The big index losers includeFMCG, banking, metals and capital goods.
The benchmark S&P BSE Sensex tanked a whopping 402 points last week to hit a two-week low of 19,748.19,breaking four weeks of uptrend, following disappointing Q1 results amid steps taken by RBI to stem the rupee's fall.The rupee, however, continued its upward march for thethird straight week, rising by 31 paise to close at one-monthhigh of 59.04 during the week under review.
Stock markets are likely to remain range-bound ahead of the policy review, analysts said.
Corporate earnings from blue-chips like ICICI Bank and Bharti Airtel will be among the key drivingfactors for stock markets this week.Among major earnings this week will be NTPC, Dr Reddy's Laboratories, ICICI Bank and Bharti Airtel.
"In coming sessions, 5,870 shall be crucial deciding level for Nifty in near-term, and the index is likely to witness further selling below this level," said Rakesh Goyal,Senior Vice President, Bonanza Portfolio.
Movement of rupee, trend in overseas fund investment will also be important for the domestic equity markets.
Stocks in news
Wipro shot up 5 percentafter the India's third largest software exporter posted a net income of Rs.1,623 crore, an increase of 11% from a year ago. While the net profit lagged estimates, the St was positively surprised by the company's better-than-expected guidance for the second quarter.
ONGC is the top BSE gainer, up 1 percent and RIL is up 0.7 percent after state-owned company Oil and Natural Gas Corp said on Saturday that it has signed an agreement with Reliance Industries to explore possibility of hiring Mukesh Ambani-run firm's infrastructure facilities on the East coast.
Jet Airways Ltd is up nearly 7 percentafter the government will take a call on the largest FDI in civil aviation later today when the Foreign Investment Promotion Board (FIPB) holds a crucial meeting to consider the Rs 2,058-crore deal of Abu Dhabi-based Etihad picking up 24% stake in Jet Airways.
Godrej Properties is up 1.02 %, after the realty firm reported more than two-fold jump in its consolidated net profit at Rs 39.47 crore in the first quarter of this fiscal on account of sharp rise in other income.
HUL is down 2.6 percent afterHUL's Q1 total income grew lower than expected 7% YoY to Rs 6809 cr & volume growth fell to 4% vs 6% QoQ
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Indian equity markets gave up all its gains to close in the red on profit booking by investors. Experts believe global liquidity that is driving the market towards its record high, but the Nifty may see sharp correction after hitting 6300 level.
The BSE Sensex opened at 20680, down 46 pts, or 0.21 percent; while the Nifty opened at 6144, down 20 points, or 0.32 percent.
The BSE Sensex opened at 18987.60, up 0.85 percent while the Nifty opened at 5751.70, up 0.92 percent.