 "Markets open flat tracking mixed Asian cues")
Markets have started the session on a flat note tracking mixed trend among global peers. The domestic bourses remained shut yesterday on account of Id-Ul-Fitr.
By 9:40 am, the S&P BSE Sensex gained 52 points at 27,219 and the Nifty50 rose 3 points to trade at 8,339. Broader markets are outperforming the benchmark indices- bSE Midcap and Smallcap indices are up0.2%-0.6%.
On Tuesday, markets finished the session on a lower note with Indices snapping the six-day winning streak after investors booked profits at higher and attractive levels. Also, weakness among global peers and dismal June services sector PMI data dampened investors’ sentiment.
"Consolidation in the market is likely to continue. The earning season will unfold next week and could prove to be the trigger for further market direction. The market is likely to take broader cues from the earnings season." said Gaurang Shah, Vice President, Geojit BNP Paribas Financial Services on Tuesday.
In overseas stock markets, Asian stocks were mixed. US stocks rose yesterday recovering from previous sessions' fall as the most beaten-down sectors in recent weeks logged the biggest gains. The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June to its highest reading since November, a turnaround from earlier in the year.
The minutes from the Federal Reserve's June meeting revealed a split among officials about the health of the economy and how to proceed on interest rate decisions. The officials at the June meeting sparred over the health of the labor market, the outlook for growth and whether inflation is picking up. They agreed that it was “prudent to wait” for additional economic data before deciding when to raise interest rates.
Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 265.63 crore on Tuesday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 447.48 crore on Tuesday, as per provisional data.
Among stocks, Dr Reddy’s Labs, Bharti Airtel, Coal India, SBI and ITC are up 0.5%-1%. NTPC, Bajaj Auto, Cipla, Infosys and Lupin have slipped between 0.3%-1.3%.
Bank shares will remain in focus today as the government finalized interest subvention scheme for farmers for the year 2016-17. The government will provide interest subvention of 5% per annum to all farmers for short term crop loan upto one year for loan upto Rs 3 lakh borrowed by them during the year 2016-17.
Axis Bank turn ex-dividend today for dividend of Rs 5 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.91% based on its closing price of Rs 543.90 on the BSE on Tuesday. Shares of Axis Bank are up 0.3%.
Coal India has moved higher by almost 1% after the company announced that the board will meet on July 11 to consider proposal for buy back of equity shares of the company.
India Ratings and Research has placed state-owned Bharat Heavy Electricals Ltd's (BHEL) "AAA" Rating on Watch Negative (RWN). The Outlook was Stable. The RWN has been caused by Ind-Ra's ongoing evaluation of BHEL's key business parameters, which have declined. BHEL is up over 1%.
GenNext Hub accelerated startup Don't Scratch Your Head (DSYH), a SaaS-based logistics reconciliation platform for e-commerce channels, has raised $250,000 funding from Venture Catalysts (VCats). GenNext Hub is a part of the four-month Scalerator Program backed by RIL and powered by Microsoft Accelerator India. RIL is up over 0.5%.
Telecom stocks are in focus after the Narendra Modi government at the centre appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Bharti Airtel, RCom and Idea Cellular are up 1% each.
Claris Lifesciences rallied 13% to Rs 246 in early morning trade on the BSE after the company said that it has received the Abbreviated New Drug Application (ANDA) approval for Tobramycin Injection USP, 80mg/2mL and 1,200mg/30mL multiple dose vials, in the US.
