 "Markets open flat ahead of Q2 GDP numbers; RBI policy eyed")
The index heavyweights are applying brakes to the markets due to which the rally in the auto shares is not able to drive them higher.
Meanwhile, the traders would keenly watch out for the September quarter GDP data, which the economists believe to have accelerated. However, with the RBI expected to maintain status quo on it monetary policy that will be announced tomorrow, the markets have lost steam.
At 10:25 am, the Sensex was at 26,120, 14 points down while the Nifty was at 7,931, 11 points down.
The top gainers on the Sensex are Bajaj Auto, Maruti Suzuki, Tata Motors, M&M and ICICI Bank, all up between 1-2% each.
The losers that are driving the markets below are ITC, HDFC, Reliance Inds, Infosys ,and Sun Pharma, all down between 0.6-1.5% each.
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(updated 9:40 AM)
Markets have opened the first day of the week on a tepid note tracking global cues. However, hope is ignited on the passage of the crucial Goods and Services Tax (GST) bill in the current session of the Parliament.
The announcement of the central bank’s fifth bi-monthly monetary policy and the expectations from Q2 GDP numbers, which will be unveiled later today will dictate trend for the day.
At 9:40 am, the Sensex was at 26,226, 98 points up while the Nifty opened at 7,960, 18 points up.
According to a morning note from Anand Rathi, “Now if the Sensex sustains above 26000 levels then bounce back may continue towards 26250 and 26500 levels while holding below 25900 may drag the index towards 25750 and 25500 levels.”
Further, “ Nifty50 needs to hold above 7920 zones with follow up buying interest to continue the bounce back move towards 8000 and 8050 levels. However if it fails to hold 7900 levels then the index may again get trapped in the grip of bears drift towards 7850 and 7800 levels.”
Investors will eye the proceedings of the winter session of the Parliament after the Prime Minister Narendra Modi invited Congress president Sonia Gandhi and former Prime Minister Manmohan Singh and extended an olive branch to end the deadlock over GST bill and other crucial legislations.
The government is set to release the September quarter GDP numbers later today. India's GDP grew 7% in Q1 June 2015 over Q1 June 2014. According to a Reuters' poll, India's economy expanded to 7.3% in the September quarter.
Market participants will also keenly watch out the happenings around the world. With the US Federal Reserve expected to increase the interest rate in just about two weeks from now and central banks in Euro and Japan contemplating of infusing fresh stimulus in their economies will keep the traders on their toes.
Also, starting tomorrow the automobile companies will release their sales numbers for the month of November.
TRENDING STOCKS
Sectorally, rate sensitive indices are in focus ahead of the RBI monetary policy. BSE Auto, Bankex and Realty are up between 0.5-1% each.
According to most of the analysts and economists, there won’t be any action in RBI’s monetary policy that is scheduled for tomorrow. The central bank is expected to maintain status quo on the policy rate. Axis Bank, ICICI Bank, SBI are all up between 0.5-1.4% each
The automobile companies are set to release November sales numbers tomorrow. Bajaj Auto, Hero Motocorp, M&M are up nearly 1%.
Tata Motors has accelerated nearly 2%. Jaguar Land Rover has phased out its most-affordable sports utility vehicle (SUV) offering in India, the Freelander 2, a little over 30 months after launching it in the country.
Maruti Suzuki, which aims to increase its annual sales to about 2 million units by 2020, will invest Rs 15,000 crore over the next five years in procuring land for doubling its dealership network and expanding stockyard, warehouse and transportation infrastructure. The stock has jumped 1.5%
YES Bank has invoked 3.02% of United Breweries’ stake pledged by Vijay Mallya and valued at Rs 770 crore for loans defaulted by the defunct Kingfisher Airlines. Yes Bank is up 0.7% while United Breweries has slipped 1.5%
Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged the central government to work out medicines for oil barter arrangement with Venezuela. Sun pharma has lost 1.3% while Dr. Reddy’s is up 0.6%
