RTTNews - Monday, the Indian market may open unchanged with a positive bias on the back of gains in rest of the Asia amid hopes for an earnings recovery. That said, a worse-than-expected 11.5% year-over-year drop in June quarter net profit for market heavyweight Reliance Industries quarter may weigh on investor sentiment.
Considerable amount of profit taking in select index heavyweights after recent gains, caution ahead of RBI's monetary policy review meeting on Tuesday and the settlement of July series futures and options contracts on Thursday may also lead to volatility.
The RBI is widely expected to hold its key policy rates unchanged, but at the same time it may raise its growth target from 5-6 percent to 6-6.5 percent to accommodate the impact of an improving monsoon and various fiscal and monetary stimulus measures provided by policy makers in recent months, including the Union budget announced on July 6.
On Friday, Wall Street rebounded from lower levels and ended around the unchanged line, shrugging off some weak quarterly numbers and a mixed report from Reuters and the University of Michigan, which showed that their reading on consumer sentiment for the month of July was upwardly revised from the preliminary reading but still came in well below the previous month. The Nasdaq ended in the red for the first time in nearly two weeks, slipping by 0.4% to 1,966, while the Dow Jones Industrial Average and the S&P 500 index rose about 0.3% each.
The major European markets also closed on a mixed note Friday, with the German DAX index and the French CAC 40 index finishing down by 0.4% and 0.2% respectively. The FTSE 100 index of the U.K. edged up by 0.4%.
Crude Oil finished a choppy session higher at $68.05 a barrel, up 89 cents on Friday, as traders continued to show optimism the global economy is on the mend, which would improve energy demand. In Asian trading on Monday, light sweet crude for September delivery rose further to $68.45 a barrel on optimism about a global economic recovery.
The benchmark indexes, the BSE Sensex and the NSE Nifty, rose further by over 4% each last week,
primarily due to a string of better-than-expected results announced by top bluechip companies. Strong global cues, signs of improvement in domestic economic activity, as revealed by a strong infrastructure report, and the resumption of FII buying also offered some support.
Stocks to Watch
SBI cut its deposit rates by 25-50 basis points with effect from Monday.
Ranbaxy Laboratories said it will stick to its forecast of about eight billion rupees loss for the current fiscal year, even as it reported a better-than-expected Rs.693 crore consolidated net profit for the June quarter, boosted by large forex gains.
Jaiprakash Associates' net profit for the first quarter ended June jumped nearly four fold to Rs.491.18 crore from Rs.125.21 crore in the year-ago period.
ICICI Bank on Saturday announced a 21% year-over-year rise in its net profit for the three months ended June, helped by a big increase in treasury profits.
Infrastructure firm GMR has emerged as a surprise bidder in the £300-million auction for the UK's biggest coal-fired power station in North Yorkshire, reports suggest.
The Supreme Court allowed Japan's drug maker Daiichi Sankyo to go ahead with the public offer for an additional 20 per cent stake in Hyderabad-based Zenotech Laboratories.
Wockhardt has already secured its immediate financial commitments and therefore it may go slow on its plans to divest non-core assets, including the proposed stake sale of its hospital chain, reports suggest.
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