RTTNews - The Indian market may open lower on Wednesday on the back of mixed global cues. However, with the RBI's monetary policy statement coming in line with market expectations, battered large- caps, especially those which have announced better-than-expected quarterly earnings, may see some recovery.
Additionally, in a key development which could lift investor sentiment, state-run NHPC said that it will make its first public offering of shares from August 7 in at a price band of Rs.30-36 a share. That said, volatility is likely to continue ahead of the expiry of July series futures and options contracts tomorrow.
Wall Street ended Tuesday's session on a mixed note in reaction to the day's varied earnings and economic reports. Moving in a choppy fashion right through the day, the major averages closed on opposite sides of the unchanged mark, with the tech-heavy Nasdaq posting a modest 0.39% gain.
On the economic front, according to a release from the Consumer Conference Board, the consumer confidence index fell to 46.6 in July, reflecting less favorable assessments of both current conditions and the near-term outlook. Separately, a report from Standard and Poor's showed that although U.S. home prices continued to decline at a significant annual rate in the month of May, the pace of decline in prices slowed for the fourth consecutive month.
Meanwhile, the Indian ADRs closed mostly lower. ICICI Bank tumbled 3.25%, MTNL fell 2.16%, HDFC Bank declined 1.61%, Satyam Computers eased 1.5%, Infosys shed 1.01%, Reddy's Laboratories lost 0.66% and Wipro slipped 0.07%, but Sterlite Industries ended up 0.3%
Crude oil futures finished lower on Tuesday, surrendering some recent gains, on demand concerns after data released by the American Petroleum Institute showed a larger-than-expected increase in crude inventories last week. After settling at $67.23 a barrel, down $1.15 in New York trading on Tuesday, light sweet crude for September delivery dropped further to $66.80 in Asian trading on Wednesday on renewed concerns about the U.S. economy. Traders await the release of inventory report from the U.S. Energy Administration department later in the day.
Ending a 3-day rally, the rupee fell by four paise to Rs.48.20/21 against the dollar on Tuesday, weighed down by month-end demand for the dollar from importers and a lackluster trading in the domestic stock market.
On Tuesday, continued profit taking ahead of the expiry of July series derivative contracts and a lack of surprise from the RBI on the policy front dragged the Indian market, while favorable global cues and net FII buying in the past few sessions helped the frontline indexes end well off the day's lows. The BSE Sensex moved in a range of 15,463-15,241 before finishing at 15,332, down 43 points or 0.28% from its previous close and the S&P CNX Nifty fell 8 points or 0.18% to 4,564. On the other hand, second-line stocks outperformed large-caps significantly, with BSE mid-cap index gaining 1.13% and the small-cap index advancing 1.68%.
Stocks to Watch
Wockhardt said that it has sold its nutrition operations to Abbott Laboratories (ABT), a US-based healthcare company, for an undisclosed sum. The nutrition business includes top-selling brands such as Farex, Protinex, Dexolac and Nusobee.
Reliance Power will raise another Rs.20,0000 crore from banks and financial institutions this financial year to fund various power projects, including the 4,000-MW Krishnapatnam Ultra Mega Power Project, its chairman Anil Ambani told shareholders at the 15th annual general meeting on Tuesday.
State-owned BPCL reported a net profit of Rs 614.12 crore for the first quarter ended June compared to a net loss of Rs 1,066.7 crore in the year-ago period.
Maytas Infra has inked an agreement with a Singapore-based consultancy firm to raise Rs 240 crore for the performance guarantee to be provided for the metro rail project, reports suggest.
For comments and feedback: contact firstname.lastname@example.org