VantageTrade Eagle Eye: Indian benchmarks up on triggers from Asia

After a spectacular close last month, the markets have started July on a flat note on the background of 2% rally on Friday. Mixed global cues failed to provide firm direction to the markets. June sales figures for the auto companies were the mixed bag. Maruti Suzuki India reported a 20% in its monthly sales for the month of June whereas Bajaj Auto reported a 1.38% decrease in its sales. Mahindra & Mahindra gained 1% after total sales rose 16% to 41,322 units in June 2012 over June 2011. Tata Motors fell 1.5% after total sales declined 3% to 64,341 vehicles in June 2012 over June 2011. India's exports in May fell 4.16% YoY to $25.68 billion whereas May imports fell 7.36% YoY to $41.9 billion. The indices today managed to make a higher high and higher low, however, it settled unchanged at Friday's levels.

The Sensex closed at 17,363.04, down 31 points or 0.18%. It touched a high of 17,486.57 and a low of 17,363.04 in trade today. The Nifty ended at 5,278.60, down 0.30 points or 0.01%. It touched a high of 5,302.15 and a low of 5,263.35 in trade today.

ITC was the biggest Sensex loser today. The stock closed 3.42% lower on profit booking as sentiment turned bearish on reports that the Uttar Pradesh government has hiked taxes on tobacco products in the state. The government decided to increase tax from the present 12.5% to 50%, said reports.

 

Wall Street stocks ended higher on Monday, however, as the weak U.S. data raised speculation the Federal Reserve will again step in to boost the economy. The Fed last month extended the duration a programme aimed at forcing longer-term rates down. U.S. manufacturing contracted for the first time in nearly three years.  The Dow Jones industrial average was down 8.70 points, or 0.07%, at 12,871.39. The Standard & Poor's 500 Index was up 3.35 points, or 0.25%, at 1,365.51. The NASDAQ Composite Index was up 16.18 points, or 0.55%, at 2,951.23.

 

Asian shares are trading higher today as manufacturing data around the world highlighted the drag on growth from the protracted eurozone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.  Japan's Nikkei 225 index was trading 0.5% higher at 9,051.75 and Hong Kong 's Hang Seng index was trading higher at 19,627.12, up 0.9%. South Korea's Kospi index was trading 0.8% higher at 1,867.45. China's Shanghai index was trading at 2,224.12, down 0.05%.

 

The BSE Sensex opened more than 70 points higher and the NSE Nifty crossed the 5300 level following positive Asian cues. The BSE benchmark rose 86.26 points or 0.50% to 17,485.24 and the NSE benchmark went up 24.30 points to 5,302.90.

The Indian rupee too appreciated by 17 paise to 55.25 as against the US dollar today.

GVK Power and Infrastructure rallied 3% on various news reports. Company's USD 10 billion coal project may get Australian environment clearance. Business Standard reported that GVK plans to raise Rs 3500 crore from airport stake sale.

Top telecom operator Bharti Airtel shot up nearly 4% as sources said Cabinet will consider four options on prospective spectrum pricing on Tuesday. Tata Teleservices, Reliance Communications and Idea Cellular gained 2-3%.

Shares of pharma companies like Cipla, Dr Reddy's Laboratories and Sun Pharma rose 0.5 per cent on the back of hope that the new healthcare law in US could see a rise in the consumption of generic drugs in US.

 

Other Economic and Political News:

• Mutual Fund industry wants investors to bear service tax burden
• Oil cos. loss on diesel, LPG sale halve on falling global rates
• June PMI highest in last four months
• SIAM announces voluntary vehicle recall policy
• Tata power uses cheaper coal to cut costs at Mundra project
• NCL to invest Rs.150cr in captive power plant
• ICICI Bank sells off its KFA debt worth Rs.430cr

 

 

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