Money Jul 2, 2012
The Indian markets open a slightly negative note as domestic macro-economic headwinds are negating the positive vibes set off by the EU summit. The raingods seem to be in a rather uncharitable mood this year if the shaky start to the southwest monsoon is anything to go by. Brace for some rougher ride on the bourses if monsoon doesn't look up in the next few days.
The Sensex opened a tad lower, down 26 points to trade at 1740 levels while the NSE Nifty opened six points lower at 5272 levels. The rupee opened stronger for the third straight session today, buoyed by the surge in regional stocks after European leaders agreed to shore up the region's troubled banks. Gains were mild as the euro gave up some of its gains amid concerns that the debt crisis is still far from over. At 905 am, the rupee was at 55.57/60 as against 55.6050/6150 last close.
Cairn India gained 1 percent amid large volumes as crude oil prices spiked quite sharply on Friday.
L&T, M&M, Bharti, Cipla PNB, Kotak Mahindra Bank, Axis Bank, Tata Power and Reliance Infrastructure gained.
However, BPCL fell 1.3% on rising crude oil prices. WTI crude shot up 9.4% in a single session at around USD 85 a barrel on Friday.
Technical analyst Sudarshan Sukhani, s2analytics.com is now approaching the market carefully and cautiously. "From now onwards, I am assuming that markets will be much more volatile and that means we will see downside moves also," he said in an interview to CNBC-TV18. He suggests that one should buy only on sharp corrections and not rush into a gap open.
The Nifty broke the 5080-5200 trading range after three weeks. The breakout point of 5200 could turn into a strong support. Data on IIP, inflation, corporate earnings and the RBI's month-end policy meeting will drive the sentiment all through July.
Asian markets are mostly steady despite weak Chinese manufacturing PMI data. Markets are shut in Hong Kong today. US stocks rallied on Friday, along with their European counterparts in the wake of the EU summit.Markets across the world will focus on the latest manufacturing PMI data, along with the ECB policy meeting and US jobs report. US markets will be shut on Wednesday for Independence Day.
Brace for some rougher ride on the bourses if monsoon doesn't look up in the next few days. After all, monsoon is likely to be the biggest headache in the near term, be it for the Government, farmers, consumers or companies.
There will be buzz in the auto sector stocks based on their monthly sales performance. leading auto maker Tata Motors has reported a 3 percent drop in June auto sales. The stock is down 1 percent at Rs 240.80 today. The company sold 64,341 units and did not report any significant gains over May 2012. Both commercial and passenger vehicle sales have declined in June 2012 and could disappoint the street.
Cement companies too will be announcing their monthly sales and despatches number.
There is likely to be buzz in the retail related stocks too as, the government plans to give a big push to foreign direct investment in multi-brand retail after the presidential polls this month.
Meanwhile, the telecom stocks may come under pressure as the department of telecom is preparing to seek an extension of the August deadline for the auction of spectrum from the Supreme Court if the panel of ministers fails to finalise spectrum pricing issues by this week.
Stocks in news
There will be some stock specific movements too, as Kingfisher Airlines is facing fresh pressure from lenders and airport authorities and in a latest development ICICI Bank has sold its entire debt in the near bankrupt airline.
Jet fuel, which constitutes over 40 percent of the operating profit of an airlines, has been cut by 2 percent on Saturday. Shares of Jet Airways, Spice Jet could react positively.
GVK Power & Infrastructure said the financial closure for its $10-bn Alpha coal and rail project in Queensland, Australia, was expected by March 2013, as opposed to the original deadline of December 2012.
Steel Authority of India will invest Rs3000 crore to quadruple capacity of its Gua iron ore mine in Jharkhand to 10 million tonnes per annum (mtpa) and set up a 4 mtpa pelletisation plant.
Reliance Industries has decided to reopen over 50 fuel pumps in Gujarat.
Allahabad Bank is planning to increase its footprint in South India by opening 100 of the 250 branches proposed for the current year in the south.
To retain its market leadership, Japanese motor giant Suzuki is innovating. It could launch a fuel efficient diesel engine for a small car. This should attract new long-term investors to the Maruti Suzuki stock.For Maruti Suzuki, this could well be the game changer in the small car segment which makes up for 45% of the market.
In the midst of a slowdown in the economy Hindalco Industries, is on an aggressive drive to raise funds for its biggest greenfield project in Odisha. The country's largest non-ferrous metals producer plans to tap about Rs.90bn for the project which is being re-configured mirroring the ambitions of its peer, Vedanta Aluminium.
Indian makers of dairy products are scouting for investors to fund their expansion plans, setting the stage for potential private equity (PE) deals in the world's biggest milk-producing nation.
Bharti Airtel, Idea Cellular and others are looking to shift a part of their data services to wi-fi hotspots, freeing up scarce 2G and 3G airwaves for mobile telephony.
Mahindra & Mahindra's June vehicle sales rolse to 16 percent to 41,322 vehicles from 35,584 vehicles a year ago.
FMCG major Dabur India said its subsidiary Dabur International Ltd has divested its entire stake in UAE-based group firm Weikfield International.