The Indian markets suffered moderate losses in last session, lacking any further leads and sell-off in the global markets. Though, the result season went smoothly and most of the companies reported good numbers. Today, the start is likely to be cautious and the trade may remain range bound, however in the latter part of the day some recovery can be expected. Traders are likely to get solace from Finance Minister Pranab Mukherjee’s statement that Inflation will come down by December as necessary steps have been taken to remove supply-side bottlenecks. Current inflation pressures are because of supply-side constraints of agricultural products,’ Mukherjee told reporters here, adding the government has taken steps to remove supply-side bottlenecks. Also some spurt can be seen in the retail related companies as Commerce and Industry Minister Anand Sharma has informed a business delegation from Italy that India is “seriously considering” to raise 51 per cent foreign direct investment (FDI) cap in single brand retail.
Apart from this there will be lots of scrip specific actions based on their result announcements. Abbott India, ACC, Essar Oil, Divis Lab, Merck, Rolta India, PNB, HPCL and Central Bank will be among the many to announce their numbers today.
The US markets declined on Monday lacking clarity on the European debt crisis plan after Greek Prime Minister George Papandreou called for a confidence vote and a referendum on last week’s EU debt deal, also there was worries after brokerage MF Global filed for bankruptcy protection following a string of losses from European public debt holdings. The Asian markets have made a weak start and most of the indices are trading lower by over half a percent.
Back home, Indian bourses commenced the new week on an unimpressive note as the benchmark equity indices failed to extend the four session northbound journey and settled with moderate cuts of around half a percent. It largely turned out to be a range bound session marred with high volatility as investors indulged in stock specific activities amid a slew of earnings announcement by heavyweights belonging to Banking, IT and FMCG sectors. After accumulating over six percent gains in the previous week, investors looked to consolidate their position for most part of the day, lacking any significant upside cue from the global front. Sentiments remained somber in European as well as Asian markets after optimism over the solution of Euro-zone debt trouble fizzled out and marketmen took a breather post seeing a sharp rally last week. Investors remained concerned that the optimism cannot be sustained since economies like US and Europe are still not firm on their road to recovery. The market participants shifted their attention from Europe to the important US Federal Reserve meet and a slew of economic data that are scheduled to be announced later this week. Meanwhile the intervention of Japanese authorities in the currency market to control the rise of yen against the American dollar too weighed on sentiments as it made the dollar priced commodities costlier for holders of other currencies. Back home, the better than expected earnings of FMCG heavyweight HUL and some banking stocks like Bank of Baroda, UCO Bank etc gave the much needed support to investors’ morale while the IT bellwether Wipro’s strong quarterly earnings too lifted investors’ sentiments in the first half. Earlier on Dalal Street, the benchmark got off to lackadaisical opening and traded around the neutral line without much of deflection. However, the cautious investors booked some profits in oil and gas and automobile counters and dragged the indices to lower levels in mid morning session. There was some recovery evident in noon trades when the key gauges moved closer to the previous closing levels after some encouraging earnings announcement. But some hefty bouts of profit booking in Oil and Gas and Metal counters led the frontline indices snap the four session gaining streak and settle with moderate cuts. Moreover, the broader markets finished on a positive note with gains of around half a percent and outclassed their larger peers by quite a margin. On the BSE sectoral space, the Oil and Gas counter settled as the top laggard in the space after suffering nasty lacerations of over two percent followed by the Metal index which too got pounded by close to two percent. On the other hand, the FMCG pocket went home with over a percent gains being the top gainer in the space after HUL reported encouraging second quarter earnings. While the Banking counter settled with gains of around three fourth of a percent post some upbeat Q2 results and an in-line ICICI Bank earnings announcement. Finally, the BSE Sensex declined by 99.79 points or 0.56% to settle at 17,705.01, while the S&P CNX Nifty shed 34.10 points or 0.64% to close at 5,326.60.
The US markets made a dismal closing of the October month and all the major indices closed lower by about two percent, however, stocks had their best month in almost a decade and it was largest monthly points gain in Dow’s history. The markets fell after a data showed that the Chicago PMI fell more-than-expected to a seasonally adjusted 58.4 last month from 60.4 in the preceding month. Also, on missing details in Europe’s plan to contain the Greek debt crisis. The Dow Jones industrial average lost 276.10 points, or 2.26 percent, to close at 11,955.01. The S&P 500 closed at 1,253.50, down 32 points, or 2.47 percent, while the Nasdaq composite index fell 53 points for the day, or 1.93 percent, and ended at 2,684.
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