RTTNews - Tuesday, the Indian market is likely to open higher amid favorable global cues. However, as investors await RBI's monetary policy review later in the day, trading could be volatile and intermittent profit taking is not ruled out.
The rollover of positions ahead of the expiry of July series derivatives contracts on Thursday may also lead to some volatility, while stock-specific buying could be seen following earnings announcements.
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.
In an attempt to push domestic demand with further stimulus measures, finance minister Pranab Mukherjee on Monday announced a 1% subsidy on the interest that commercial banks charge on home loan of up to Rs.10 lakh, extended a tax holiday given to industrial parks by two more years, and exempted repair and maintenance of roads from service tax.
Foreign institutional investors (FIIs) bought shares worth Rs.439.54 crore on Monday, while domestic institutional investors sold shares worth Rs.278.97 crore, provisional data released by the BSE showed. According to market regulator SEBI, FIIs bought shares worth Rs.1,050.60 crore on a net basis on Friday.
On Wall Street, stocks staged a modest rally in late session trading on low volumes. A report from the commerce department showed that new home sales jumped 11% to an annual rate of 384,000 in June from the revised May rate of 346,000, the sharpest increase in nearly nine years. The stronger than expected sales growth came amid a pullback in prices, with the median sales price of new houses sold in June falling 5.8 percent to $206,200 from $219,000 in the previous month. The Dow Jones Industrial Average closed up by 0.17%, the Nasdaq Composite rose 0.1% and the S%P 500 index edged up 0.3%.
The Indian ADRs close mostly higher. MTNL soared 6.91%, Satyam Computers rallied 3.9%, Reddy's Laboratories advanced 1.02%, Wipro gained 0.57%, Sterlite added 0.38% and Infosys edged up 0.12%, but ICICI Bank slipped 0.73% and HDFC Bank eased 1.9%.
Crude oil futures finished a choppy session mildly higher on Monday, as encouraging U.S. housing data sparked hopes that better days may be ahead for energy demand. After settling at $68.38 a barrel, up 33 cents or 0.48% in New York trading on Monday, light sweet crude oil for September delivery is now trading at $68.18 a barrel, down 0.29% in Asian trading.
Meanwhile, despite strong cues from overseas markets, the Indian market closed a volatile session mostly unchanged on Monday, as worse-than-expected quarterly results from Reliance Industries outweighed encouraging earnings announced by a number of other bluechip companies over the weekend. The BSE Sensex moved choppily in a range of 15,463- 15,228 before finishing at 15,375, down 4 points or 0.03%, while the S&P CNX Nifty rose 4 points or 0.08% to 4,572. On the BSE, the broad-based BSE 500 index rose 0.47%, the small-cap index gained 1.53% and the mid-cap index added 1.63%. Advancers outnumbered decliners by 1679 to 957 and 90 stocks closed unchanged.
Stocks to Watch
State-owned NTPC reported a 27% year-over-year rise in its quarterly net profit.
Anil Ambani-controlled Reliance Natural Resources (RNRL) plans to raise around Rs.3,300 crore through qualified institutional share placement, reports suggest.
Glenmark Pharmaceuticals' board approved raising up to $250 million through sale of equity shares or other securities. For the June quarter, the company's profit tumbled around 50% year-over-year due to higher interest costs and forex losses.
MRF reported a four-fold rise in its June-quarter net profit to Rs 125.70 crore from Rs 31.86 crore in the same quarter last year.
Dabur India's consolidated net profit grew 29.4% year-over-year, led by higher sales in its consumer segment.
Tata Motors announced a 58% rise in its quarterly net profit, defying expectations for a fall in net profit.
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