 "Markets open flat with a negative bias; RIL Q2 numbers eyed")
Although the Asian markets are displaying strength, benchmark indices continue to struggle. However, the downside is capped due to buying in capital goods and auto shares. The market participants are on edge ahead of September quarter results of Reliance Industries, which will be unveiled later in the day.
At 10:40 AM, the Sensex was at 26,989, down by 22 points while the Nifty was at 8,174, down by 6 points.
The top losers on the Sensex are Bharti Airtel, Lupin, Tata Steel, ITC and Vedanta, all down between 1-2.3% each while the gainers on the Sensex are NTPC, Maruti Suzuki, Tata Motors, L&T and Reliance Industries, all up between 0.7-1.7% each.
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(updated 9:40 AM)
Markets opened flat thus shrugging off the strength in the global peers as the consumer price data in the US and the decline in the jobless claims have calmed the nerves on Wall Street overnight.
The market participants would keenly await the announcement of September quarter results of Reliance Industries, which will be unveiled later in the day.
At 9:40 AM, the Sensex was at 26,933, down by 77 points while the Nifty was at 8,158, down by 20 points
The broader markets are outperforming their larger peers with BSE Midcap and Smallcap indices up by 0.1-0.2% each. The market breadth is positive with 921 advances against 521 declines on the BSE.
On the currency front, the rupee has depreciated 19 paise to quote at Rs 65 against the greenback as the US dollar strengthened against a basket of currencies post the firming up of price data and drop in the jobless claims.
MARKET OUTLOOK
According to a morning note by SMC Investments and Advisors, “The market may edge higher in early trade on firm Asian stocks. Asian stocks followed U.S. shares higher, with the regional benchmark index heading for a third straight weekly advance, as technology and financial companies led gains”
On the outlook for Nifty, the note says, “All emerging markets are trading in green. The coming session is likely to witness a range of 8100 on declines and 8250 on advances.”
RESULTS CAPSULE
Among the key results today, Reliance Industries would be keenly watched. So far, the results of bluechips have been muted.
Other companies to announce their Q2 results today are Edelweiss Financial, Foods Limited, NIIT Tech., R. S. Software, Swaraj Engines, Tata Metaliks and Tata Sponge
GLOBAL STOCKS
Asian shares are gaining following strength in the Wall Street's after firm US price and jobless claims numbers calmed the nerves of the investors regarding the strength of the US economy. Nikkei, Hang Seng and Shanghai Composite are trading higher between 0.7-1.5%.
Equities in the US market surged after U.S. consumer prices declined the most in eight months as gasoline costs fell in September, but a rise in core CPI, which strips out food and energy costs, suggested inflation was starting to firm. Unemployment benefit claims fell in the last week, pointing to a strong labor market.
TRENDING STOCKS
Sectorally, BSE FMCG index is down 0.5% followed by BSE Healthcare, down by 0.2%. On the other side, BSE Auto, Power and Oil&Gas have gained 0.4% each
Reliance Industries is in focus today as it announces its quarterly results later in the day. The stock has gained 0.8%
Tata Motors has extended is gains from yesterday and has gained 1.6%. The automobile company reported 21% increase in its global sales, including that of Jaguar Land Rover (JLR) vehicles, at 97,102 units in September.
Oil marketing companies on Thursday announced a rise of 95 paise in diesel rates, but kept the petrol prices unchanged to align the domestic prices with global product prices. Now, diesel will cost Rs 45.9, including local taxes, in Delhi. The new rates will be effective from Thursday midnight. BPCL , HPCL, IOC, OIL have all gained between 0.5-2% each on the Sensex.
Bharti airtel (1.2%) and Idea Cellular (0.5%) have edged lower after the sector regulator indicated that the telecom operators may have to pay consumers Rs 1 as compensation for every call drop experienced.
The Australian environment ministry on Thursday cleared the way for Adani Group’s $7-billion Carmichael mine and rail project in the Queensland province. Adani Enterprises has extended the gains and is up 2.6%
