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Markets are likely to trade subdued following negative cues from the global peers. At 8:35 AM, SGX Nifty is trading marginally flat, up 0.07%.
Markets ended nearly 2% lower on Monday. The 30-share Sensex ended down 551 points at 27,561 and the 50-share Nifty was down 161 points at 8,361. It would be interesting to see if the Nifty reclaims 8,400 in today’s session.
The trend in Chinese equity markets amid lacklustre corporate earnings could weigh on the markets.
Also, the US Federal Open Market Committee (FOMC) begins its two day meeting today; the meeting will be closely followed by the market participants in the hope of getting further signals on US rate hike amid the strengthening of US economic data.
Bank of America Merrill Lynch (BofA-ML) has said in a report that it expects the Reserve Bank of India to maintain its interest rates unchanged during its bi-monthly policy review meeting in early August, citing the poor monsoon season so far.
Meanwhile, the derivatives expiry for the month of July later this week would keep the markets volatile.
The Foreign Portfolio Investors (FPI) were net sellers to the tune of Rs 860 crore on Monday, as per the provisional stock exchange data.
EXPERT VIEW
A morning note from Angel Broking said, “The trend deciding level for the day is 27,736 / 8,402 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 27,943 – 28,324 / 8,452 – 8,542 levels. However, if NIFTY trades below 27,736 / 8,402 levels for the first half-an-hour of trade then it may correct towards 27,355 – 27,148 / 8,311 – 8,261 levels.”
GLOBAL MARKETS
Asian stocks fell to three-week lows on Tuesday as a deepening rout in Chinese stocks erased risk appetite - sending investors flocking to safe-haven instruments such as government bonds and the Japanese yen.'
On Tuesday, Japan’s Nikkei 225 is trading nearly 1% down while Shanghai continues to trade in a southward direction, with 3% losses. Hang Seng, however, is trading 1.5% higher.
Overnight, the Dow Jones dropped 0.7% and Nasdaq fell 1% while share indices in Frankfurt and Paris tumbled more than 2.5% each.
STOCKS IN FOCUS
In the banking sector, Bank of India, HDFC, Punjab National Bank and Union Bank(I) are expected to announce their quarterly results today.
Other companies that are set to announce the results are Maruti Suzuki, J Kumar Infra, Tata Communications, Pidilite Industries, Dish TV.
IndusInd Bank: has completed the acquisition of the diamond and jewellery financing business and related deposit portfolio of Royal Bank of Scotland (RBS).
Tech Mahindra: The company reported a consolidated net profit of Rs 676 crore, up 7.2% year-on-year and 43% sequentially.
Rajesh Exports: India’s largest bullion and jewellery house by revenue, has acquired Valcambi, the world’s largest precious metals refinery, in an all-cash deal of $400 million (Rs 2,600 crore).
with Reuters input
