The frontline Indian equity benchmarks are trading marginally lower in early afternoon trade, as market participants digest monthly auto sales numbers besides data on merchandise trade and manufacturing PMI. The BSE Sensex and the NSE Nifty are trading in a very tight trading range so far in the session even as the broader indices have extended their recent out-performance. Market breadth is positive while the INDIA VIX is up more than 2.5%.
At 12:40pm (IST), the BSE Sensex was at 17,374, down 55 points over the previous close. It had earlier touched a day’s high of 17,464 and a day’s low of 17,364. It opened at 17,438.
NSE Nifty was quoting at 5,267, down 11points over the previous close. It earlier touched a day’s high of 5,289 and a day’s low of 5,263. It opened at 5,283.
Wipro,Tata Steel, Tata Power, L&T,HDFC Bank, Maruti, Bharti Airtel, M&M, BHEL,Cipla are among the top gainers in Sensex and Nifty.
Infosys, TCS, ICICI Bank, ONGC,Dr Reddys Lab,HUL, Hero MotoCorp, Jindal Steel are among the notable losers in Sensex and Nifty.
The BSE Small-Cap index and BSE Mid-Cap index was trading up at 1%.
HC, Teck, Power, PSU, Teck, Pharma, Realty, Capital Goods, Consumer Durables, FMCG indices were the leading gainers.
Bankex, Auto, Metal, Oil and Gas and IT indices are the gainers.
Consumer Durables and Realty indices are pacing the gains with both the indices on the BSE up ~1% each. Pharma, Power and Capital Goods indices too are trading with a positive bias. Auto, Oil & Gas, Metals, IT and Banking indices are among the biggest laggards. The rest of the sectoral indices are more or less subdued.
Shares of Maruti Suzuki have advanced after the company reported a 20% jump in its June vehicle sales, buoyed by rising demand for its recently launched MPV Ertiga, Swift and Swift Dzire. On the other hand, shares of Tata Motors and Bajaj Auto are in the red after reporting disappointing sales for last month. TVS Motor is also down after announcing a 9% drop in June sales while M&M has wiped out early gains. Hero MotoCorp. shares are also trading lower ahead of its sales numbers.
Asian markets were mixed, with the key indices in Japan, South Korea China closing flat while that in Australia ended higher. Markets in Hong Kong were shut for a public holiday today.
European stock indices opened nearly unchanged after manufacturing indicators in Japan and China beat forecasts. The euro fell and oil declined from a one-month high.
The 19th EU leaders' summit in Brussels yielded a plan for a single financial supervisory mechanism for the debt-strapped region to help stabilize jittery financial markets. But investors remain cautious as details are thin and implementation could be politically challenging.
The final reading of HSBC's China manufacturing Purchasing Managers' Index (PMI) for June dropped to 48.2 from 48.4 in May, according to the final result of a survey by HSBC released on Monday.
The print was slightly better than HSBC's preliminary reading of 48.1, but remained below the 50-point level, indicating that business conditions worsened at Chinese factories.
Meanwhile, Japan’s large manufacturers became less pessimistic, as declines in commodity prices lifted profitability, boosting the outlook for the world’s third-biggest economy even as a stronger yen crimps exports.
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. After all, monsoon is likely to be the biggest headache in the near term, be it for the Government, farmers, consumers or companies.
July is supposed to be a crucial month for various summer crops (kharif). A normal southwest monsoon also helps in the winter farming season (rabi) as it builds up the reservoirs across the nation.
For the day we had expected a cautiously optimistic start as domestic macro-economic headwinds are negating the positive vibes set off by the EU summit.
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.
Auto and cement stocks will be in focus today as investors react to latest monthly sales numbers.
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.
Trend in FII flows: The FIIs were net buyers of Rs 30.46bn in the cash segment on Friday. Some of this FII buying was due to the block deal in Cairn India. The domestic institutional investors (DIIs) were net sellers of Rs 2.50bn, as per the provisional figures released by the NSE.
The FIIs were net buyers of Rs 21.60bn in the F&O segment on Thursday, according to the provisional NSE data.
The foreign funds were net sellers of Rs 6.94bn in the cash segment on Thursday and the mutual funds were net buyers of Rs 3.52bn on the same day, according to the SEBI figures.
Global Data Watch today: Japan Tankan large manufacturers' survey, Japan vehicle sales, HSBC China manufacturing PMI, UK Halifax house prices, Germany Markit manufacturing PMI, Eurozone Markit manufacturing PMI, UK Markit manufacturing PMI, Eurozone unemployment report, US ISM manufacturing PMI, US construction spending and FOMC Member Williams' speech.