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Indices may open trade with small gains

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Last Updated : Jul 05 2017 | 9:47 AM IST

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 14.50 points at the opening bell.

Overseas, Asian stocks were mixed as geopolitical concerns came to the fore a day after North Korea launched a long-range ballistic missile. North Korea claimed today, 5 July 2017 the missile it launched on Tuesday was an intercontinental ballistic missile capable of carrying a heavy nuclear warhead. The missile launched on Tuesday, 4 July 2017 landed in Japan's exclusive economic zone (EEZ).

On macroeconomic data front, the Caixin services Purchasing Managers' Index (PMI) showed on that growth in China's services sector slowed in June. The Caixin services PMI fell to 51.6 from the 52.8 figure seen in May. The June composite PMI, which takes into account both the services and manufacturing sectors, fell to 51.1 compared with the 51.5 number seen last month.

Activity in Japan's services sector accelerated from the previous month to expand at its fastest pace in almost two years, a private survey showed. The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.3 in June from 53 in May as new business, outstanding business and hiring expanded.

US markets were closed yesterday, 4 July 2017 for Independence Day.

On macroeconomic data front back home, Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in June 2017 at 10:30 IST today, 5 July 2017. The Nikkei Services PMI in India rose to 52.2 in May 2017 from 50.2 in April 2017.

Among corporate news, Wipro announced that the company and Ramot, the business engagement centre at Tel Aviv University (TAU) partner for joint research in emerging technologies. The announcement was made before market hours today, 5 July 2017. TAU is Israel's largest institution of higher learning.

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Mahindra & Mahindra (M&M) announced revised prices of its vehicles pursuant to the implementation of goods & services tax (GST), with immediate effect. The announcement was made after market hours yesterday, 4 July 2017.

The prices of vehicles for end-customers on large utility vehicles (UVs) and sports utility vehicles (SUVs) have been reduced by an average of 6.9%, while those that come under small car segment have been reduced by an average of 1.4%. Similarly, end-customer prices have been reduced by an average of 1.1% for small commercial vehicles and 0.5% for light commercial vehicles (LCVs) and HCVs.

Since the GST rates on hybrid vehicles are significantly higher than that in the pre-GST regime, the prices for the end-customers of hybrid vehicles have been increased marginally. These price changes to end-customers will vary across states or even cities within a state, due to the differing levels of pre-GST local taxes.

The effect of the imposition of GST for tractors, which were not levied an excise duty, should be neutral given the input tax credits that would be available to OEMs. Hence there will be no change for end-customer prices for tractors.

Key benchmark indices settled with small-to-minor losses in a quiet session of trade yesterday, 4 July 2017. The Sensex fell 11.83 points or 0.04% to settle at 31,209.79, its lowest closing level since 30 June 2017.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 834.36 crore yesterday, 4 July 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 295.88 crore yesterday, 4 July 2017, as per provisional data.

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First Published: Jul 05 2017 | 8:38 AM IST

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