 "Markets end flat amid lacklustre trades")
Markets finished the last trading session on a flat note as investors booked profits in the frontline stocks at attractive valuations. However, a firm trend across the Asian peers coupled with sustained foreign capital inflows after government eased FDI rules capped the downside.
Provisionally, the Sensex ended unchanged at 28,476 levels up 29 points and the Nifty closed flat at 8,614 levels up 6 points.
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(updated at 2:50 PM)Benchmark indices continue to trade in a narrow range Sensex and Nifty oscillating between negative and positive zone.
Investors have booked profits in the frontliner stocks at higher levels amid monsoon woes. Meanwhile, losses in private banking shares after government decided to keep banks out of the composite foreign investment cap have offset gains in technology and healthcare stocks.
At 14:50PM, the 30-share Sensex was up 54 points at 28,500 and 50-share Nifty was up 15 points at 8,623.
The broader markets are, however, outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-0.5%.
The market breadth is positive. Out of 2,837 stocks traded on the BSE, there are 1,435 advancing stocks as against 1,275 declines.
Further, foreign portfolio investors (FPIs) bought shares worth a net Rs 745.81 crore yesterday as per provisional data released by the stock exchanges.
RUPEE
The rupee recovered by 3 paise to 63.48 against the US dollar on fresh selling of the American currency by exporters amid increased foreign capital inflows.
MONSOON
The southwest monsoon was 32% below normal in the first 15 days of July, key month for sowing of kharif crops. Large tracts of central and southern India remained dry.
This could have serious impact on the final output of pulses and oilseeds, unless there is a pick-up in the second half of this month. July is traditionally when there is the largest amount of rain in the four-month monsoon.
GLOBAL MARKETS
The dollar was set for its biggest weekly rise since May on Friday as economic data reinforced expectations for a US rate hike by the end of 2015, with euro zone shares steadying after strong gains as Greece looked set to secure a bailout.
Euro zone shares were steady as a relief rally over Greece's bailout agreement ran out of steam. The Euro STOXX 50 was flat on Friday but has rallied 8% over the last two weeks, its biggest fortnightly gain since January.
The MSCI World Index, which tracks stocks from developed economies, is up 2.2% this week, its biggest weekly gain since May.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4% as Chinese shares recovered further after a series of government support measures to halt their recent crash.
SECTORS & STOCKS
BSE IT index has gained over 1% followed by counters like FMCG, Healthcare, Auto, Capital Goods, Consumer Durables and Power, all gaining by 1% each. Sectors like Banks, Metal and Realty have declined between 0.1-0.2%.
Yesterday, the Cabinet cleared a proposal to merge the limits of foreign direct and portfolio investments into composite caps to make foreign investment regime easier. Composite caps have been suggested for sectors like agriculture, tea plantations, petroleum and natural gas, manufacturing, airports, real estate, telecommunications, mining, non-banking financial companies and pharmaceuticals.
The top gainers on the Sensex are Vedanta, BHEL, Infosys, Tata Motors, M&M, ITC, Tata Steel and Lupin.
Capital Goods majors BHEL and L&T continue to rally in today’s trade. BHEL and L&T are up 0.2-2%.
Lupin has gained over 1% after receiving an approval from the US Food and Drug Administration (U SFDA) for generic PrandiMet, also known as Prandin used in type 2 diabetes.
Shares of Sun Pharma are trading higher by 0.5% after CLSA upgraded the stock. Among its peers, Lupin and Cipla are up 1% each.
Oil and Gas major ONGC is trading higher by almost 1% on news stating that after its overseas arm ONGC Videsh is in a race to acquire two out of 14 blocks being offered by Mexico in historic auctions that are part of the Latin American nation’s energy reforms. RIL is up 0.6%.
Telecom major Bharti Airtel has surged around 1% on unveiling 4G trials in Hubli and Dharwad.
Tata Steel is up over 1% after the company announced its plans to refocus its speciality and bar business on high-value markets such as aerospace.
Tata Motors is up over 1% as it has proposed to raise Rs.4,400 crore from non-convertible debentures during the current fiscal to meet its expansion plan.
On the losing side, HDFC has plunged over 2%. Coal India, HUL, Bajaj Auto, Wipro and Axis Bank have slipped between 0.5-2%.
With Reuters input