Drawing to a close

Let us watch well our beginnings, and results will manage themselves.

– A Clark

The glorious Olympic Games ended on a spectacular note with India getting 6 medals. The Q1 result season is also drawing to a close but nothing really spectacular here. Expectedly, results are showing the effects of a slowing economy, sticky inflation, elevated borrowing costs and political impasse.

All eyes are on the Government as to what measures it takes to breathe some life into the sputtering economy. Among the steps being contemplated include revival of the Government’s disinvestment plan, faster approvals for core sectors and booster for the comatose capital market. Markets are still awaiting the announcement on diesel price hike though. What’s worse, the Centre’s plan to allow FDI in multi-brand retail remains in a limbo.

We expect a subdued start owing to mixed global cues. WPI data for July is due on Tuesday. Markets will be shut on Wednesday on account of the Independence Day.

High crude oil prices are a cause for concern. At the same time, FII inflows have been pretty robust in the past few weeks. 

The short point is this: liquidity-driven rally may not persist for long and needs further ammo in the form of urgent and decisive policy measures.

ADR/GDR
	Latest (US$)	Price % chg	% Prem/Disc
Dr. Reddys	29.9	(0.1)	0.4
HDFC Bk	35.6	0.7	8.9
ICICI Bk	34.9	(0.1)	1.1
ITC	4.8	0.7	(0.0)
Infosys	41.8	0.5	(0.1)
Ranbaxy	8.7	(5.5)	(0.8)
Reliance	28.1	(0.9)	(0.7)
Wipro	8.2	1.0	28.8
SBI	75.2	(3.6)	10.1
Tata Motors	21.0	(1.4)	0.3
Sterlite	8.1	0.8	0.3
L&T	25.7	(0.7)	(0.1)

Indian market		% change
	Last close	1 day	3 mth	YTD
Sensex	17,558	(0.0)	7.8	13.6
Nifty	5,320	(0.3)	7.9	15.1
BSE 100	2,147	(0.1)	6.9	16.0
BSE 200	6,707	(0.1)	6.4	16.1
CNX Midcap	7,240	(0.4)	3.6	18.5
BSE Smallcap	6,550	(0.3)	2.4	18.0
Developed market		% change
	Last close	1 day	3 mth	YTD
Dow Jones	13,208	0.3	3.0	8.1
Nasdaq	3,021	0.1	3.0	16.0
S&P 500	1,406	0.2	3.9	11.8
FTSE	5,847	(0.1)	4.9	4.9
CAC	3,436	(0.6)	9.8	8.7
DAX	6,945	(0.3)	5.5	17.7
Hang Seng*	20,138	0.0	0.9	9.2
Nikkei*	8,899	0.1	(0.6)	5.3
S&P/ASX200*	4,296	0.4	0.3	5.9
* Markets are open
Emerging market		% change
	Last close	1 day	3 mth	YTD
Shanghai Comp	2,159	(0.4)	(9.8)	(1.8)
Brazil Bovespa	59,281	0.8	(0.3)	4.5
Mexico Bolsa	40,850	0.4	5.0	10.2
Kospi*	1,941	(0.3)	1.2	6.3
Micex	1,442	(1.0)	4.0	2.8
Taiwan*	7,450	0.1	0.7	5.3
Straits*	3,057	0.1	6.0	15.5
* Markets are open
Institutional activity
(Rs cr)	Cash	F&O	MTD	YTD
FIIs	317	(847)	3,867	42,194
MFs	14	-	(513)	(8,560)
FIIs Prov.	83
MFs Prov.	(537)
Commodities		% change
	Last close	1 day	3 mth	YTD
Crude (US$/bbl)	93.5	0.7	(2.7)	(5.4)
Gold (US$/oz)	1,623	0.2	2.7	3.8
Copper (US$/mt)	7,484	(0.6)	(8.8)	(1.4)
Aluminium (US$/mt)	1,841	(1.1)	(8.2)	(7.7)
Zinc (US$/mt)	1,819	(1.5)	(7.5)	(0.5)
Advance/Decline stocks
(Nos)	A	B	S	Total
Adv	81	843	258	1,182
Dec	119	1,144	314	1,577
Unch	1	96	32	129
A/D ratio (x)*	0.7	0.7	0.8	0.7
*A/D excluding Unch
Trade value
(Rs cr)			% chg
Cash NSE	10,499		(6.8)
Cash BSE	2,148		4.9
Total Cash	12,648		(5.0)
Delivery (%)	43.2		-
Derivatives	93,733		(9.0)
Currency		% change
	Last close	1 day	3 mth	YTD
Rs/US$	55.29	(0.0)	(3.4)	(4.0)
Rs/EUR	67.85	(0.3)	1.8	1.3
US$/GBP	1.57	(0.1)	(2.6)	0.9
US$/EUR	1.23	0.1	(4.1)	(5.1)
Yen/US$	78.28	0.0	2.0	(1.8)
Bond market
	Last Close (%)		Bps chg
10yr Gsec	8.17		0.03
Call rate	8.05		0.05