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First look: Your 10-sec guide to market action

The News International Team

The Nifty is likely to marginally open in the green with indicator SGX Nifty at 7754, up 14 points at 8:01 a.m.

In US, markets closed higher for the third time in four days as a rally in tech, airlines and biotech firms helped lead gains. Weak US retail sales fuelled speculation that the Fed is unlikely to be aggressive in tightening its policy stance in the near-term.

In Europe, shares closed higher, backed by a rally in the insurance sector, as investors remained focused on geopolitical tensions. Germany’s DAX was the highest-climbing index, closing almost 1.5 percent higher.

In the currency space, dollar slipped against most currencies after data showed flat US retail sales in July after gains the previous month. The report suggesting Federal Reserve not being hard-pressed to raise interest rates any time soon, pushed the dollar to one-week lows against a struggling euro.

In commodities, Brent crude prices rose above USD 103 as turmoil in Iraq and Libya kept concerns about potential supply disruptions in focus.

Back home, it was a choppy session yesterday as markets went into consolidation mode and major indiced ended with marginal gains. The Sensex was up 38.18 points at 25918.95 and the Nifty ended up 12.50 points at 7739.55. ( More details )

On the macro front, July WPI will be released today . A CNBC-TV18 poll expects July WPI softening to 5.16 percent on lower fuel inflation with less impact from rising vegetable prices. Core WPI could be ranging in current levels of 3.8 to 3.9 percent.

Meanwhile, the PM has directed 3 new international airports, 300 kilometres of new rail line, and 8,500 kilometres roads in FY15 . He has set aggressive targets to bolster India’s infrastructure and for coal production with power generation.

In other news, Lanco Infra will sell its Udupi power plant to Adani Power for Rs 6,000 crore . The deal will help Lanco reduce its debt and enable Adani Power to enter the south Indian market taking over 90 percent of power generation in Karnataka.

Earnings Central

In result reaction, Tata Steel  posted a mixed set of first quarter numbers. Net profits tumbled nearly 70 percent as operations in India and south-east Asia disappointed, even as better European earnings cushioned the fall. ONGC  profits also missed estimates due to higher write-offs.

In key earnings today, metal major Hindalco  is expected to post a 40 percent growth in its topline and an 80 percent rise in its EBITDA driven by significant improvement in its aluminium business.

In the meantime, Cipla  is likely to report over 20 percent growth in revenues aided by incorporation of medpro but low margin sales and higher costs could lead to a near 30 percent fall in the bottomline.


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