The market is likely to open on a weak note. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could slide 68 points at the opening bell. Asian stocks edged lower today, 6 July 2015 as Greece voted against accepting further austerity, increasing the risk of the country's exit from the euro zone.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.29 crore on Friday, 3 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 220.61 crore on Friday, 3 July 2015, as per provisional data.
Shares of cigarette makers will be in focus after the Reserve Bank of India (RBI) on Friday, 3 July 2015, clarified that foreign direct investment (FDI) is prohibited in manufacturing of cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes. The RBI clarified that the prohibition applies only to manufacturing of these tobacco products and that FDI in other activities relating to these products, including wholesale cash and carry, retail trading etc. shall be governed by the sectoral restrictions laid down in the FDI policy framed by the Department Of Industrial Policy & Promotion, Ministry of Commerce and Industry, Government of India and in the Schedule 1 of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 as amended from time to time.
Shares of FMCG companies will be in focus after the weekly data released by the Ministry of Agriculture after trading hours on Friday, 3 July 2015, showed a pick up in planting of Kharif crops. Increase in agricultural production could boost rural income which in turn could boost demand for consumer goods. FMCG companies derive substantial revenue from rural India.
Shares of companies engaged in manufacturing of defence equipment will be in focus after the Minsitry of Commerce & Industry said in a statement issued after market hours on Friday, 3 July 2015, that the Department of Industrial Policy & Promotion (DIPP) has so far issued 73 industrial licenses in defence sector during last one year (since June 2014), against 50 licenses granted during 2011 to May 2014. These include 16 proposals with proposed investment of Rs 613 crore, cleared in recent Licensing Committee meeting chaired by Secretary, DIPP, held on 10 June 2015, the statement from the Ministry said.
ACC said after market hours on Friday, 3 July 2015 that the limestone mining operations at company's Chaibasa cement works has been suspended on account of requirement of further clearances from the Government of Jharkhand. The company is in discussion with the concerned authorities in this regard and expects that limestone mining operations would resume shortly, ACC said. Cement grinding continues with transfer of clinker from sister works/purchase of clinker, it added. The impact of the closure of the mining operations at Chaibasa is not expected to be material, ACC said.
Shares of JSW Steel turn ex-dividend today, 6 July 2015, for dividend of Rs 11 per share for the year ended 31 March 2015.
Shares of Vedanta turn ex-dividend today, 6 July 2015, for final dividend of Rs 2.35 per share for the year ended 31 March 2015.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 3 July 2015, showed that the sowing of Kharif crops is gathering pace. The total sown area for Kharif crops as on 3 July 2015 stood at 306.06 lakh hectares compared with 194.25 lakh hectares at this time last year.
Asian stocks edged lower today, 6 July 2015 as Greece voted against accepting further austerity, increasing the risk of the country's exit from the euro zone. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.38% to 1.75%.
In China, the Shanghai Composite index surged 3.6% after China's government and central bank launched a wave of drastic policies over the weekend to help save the markets, including the People's Bank of China vowing "liquidity support" to the state-backed margin-finance entity, as well as a reported suspension of initial public offerings.
US markets were closed on Friday, 3 July 2015 in observance of the Independence Day holiday.
In Economic data, US Markit PMI Composite index for the month of June is due today, 6 July 2015.
In Europe, Greeks overwhelmingly voted against their international creditors' conditions for further bailout aid, in a result that could deepen the rift between Greece and the rest of Europe and push the country closer to bankruptcy and an exit from the euro.
More than 61% of Greeks voted no in Sunday's referendum on austerity measures and other overhauls that European and International Monetary Fund officials had demanded in recent talks.
Meanwhile, the European Central Bank's Governing Council is reportedly due to meet in Paris today, 6 July 2015 to discuss on whether to keep supporting Greece's lenders. Seperately, European Union leaders have also reportedly called a euro-area summit tomorrow, 7 July 2015 to discuss their next move as investors fear "Grexit" could encourage anti-euro sentiment in other countries.
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