)
The markets are likely to open on a subdued note this morning post the rally witnessed in the previous session and in wake of the subdued cues from the Asian front. The developments in Greece are likely to dictate the immediate trend in the markets.
On Wednesday, the benchmark indices had rallied around 1% due to a mix of positive cues from the domestic and global front. The Sensex had gained about 240 points to reclaim the 28,000 mark and the Nifty had raced towards the 8450 mark.
Overnight, the US markets had ended higher on the back of better-than-expected economy data and hopes of a resolution between Greece and its creditors. European market had pared early gains, but had still gained 1-2% each on hopes about Greece debt resolution.
The Asian markets are, however, trading with modest gains this morning. Nikkei is trading at one-week high owing to a weaker yen. Kospi index edged up to a one-month high, while Straits Times, Taiwan and Hang Seng indices are also marginally in the green this morning. The Shanghai index has, however shed around 2% in early trades.
At 8.30am, the SGX Nifty was at 8439, down 14 points or 0.1%.
MARKETS & ECONOMY
The growth in eight core sectors increased to 4.4% in May versus a decline of 0.4% in the month of April. The growth was recorded after two consecutive months of decline, thus indicating a recovery in the industrial output. Some support also came after India Meteorological Department (IMD) reported better than normal monsoon figure in the month of June.
"The outlook for inflation has improved in recent weeks, thanks to the strong start to monsoon season. Rains have been 16% above normal in June, resulting in an improvement in sowing patterns for major crops (pulses and oilseeds). While authorities still warn of weak rainfall in July, a crucial month in the season, the good start has improved reservoir levels which are likely to aid agricultural production," said Pranjul Bhandari, chief India economist at HSBC.
"The fall in both PMI input prices and prices charged is a positive indication and coupled with the strong start to monsoons, should provide the RBI more comfort around its 6% CPI target of January 2016," he adds.
Analysts say that the recent rebound in markets despite global uncertainty clearly depicts participants giving more weightage to domestic cues as expected.
"It’s too early to say that the scenario would prevail if global volatility increases in days to come. Hence, we reiterate our advice to maintain positive yet cautious approach as Nifty has almost reached near to crucial hurdle of 8,500 mark and sustainability above the same will trigger fresh upside momentum, otherwise profit taking will resume," said Jayant Manglik, President, Retail Distribution, Religare Securities in a note.
STOCKS ON THE RADAR
Hero MotoCorp has reported sales growth of 5-lakh plus units despite sluggish sentiments on the ground and a slow-down in the rural economy. Keep an eye on this counter!
Ashok Leyland has registered a robust 41% jump in commercial vehicles sales. Watch this space for some activity!
Nestle India is likely to be in limelight on reports that the UK Food Standards Agency has given a clean chit to Maggi, saying that levels of lead in the product was within the EU permissible levels.
Axis Bank may see action on media reports that it is seeking nod to raise up to Rs 35,000 crore on July 24.
Alembic Pharma and Lupin have reportedly received the USFDA nod for antidepressant drug Desvenlafaxine Succinate.
Tata Motors is set to see some action on reports that Fiat Chrysler is set to invest $280 million in JV with the company.
According to reports, Sterlite Technologies has announced investment of Rs 40,000 crore to set up a LCD panel manufacturing plant in the country.
IndusInd Bank will be in focus after the company got Competition Commission nod for buying Royal Bank of Scotland's gems and jewellery financing business in the country.
