Markets Likely To Open Flat; RBI Policy Eyed
Indian equities market closed higher for the fourth consecutive session on Monday ahead of the RBI’s monetary policy review on Tuesday, mainly driven by a strong rally in banking, auto and realty stocks. The BSE Sensex and NSE Nifty gained 0.26% and 0.12% to 28,187.06 and 8,543.05, respectively. The broader markets outperformed with the BSE MidCap index hitting a record high for a second consecutive session at 11,392.69 in intra-day trade on Monday. The index closed 0.51% higher at 11,330.91. The BSE Smallcap index gained 0.93% to 11,941.20.
Jet Airways and Spicejet were once again seen soaring high on the back of lower operational cost expectations as Indian Oil stated that it would cut aviation turbine fuel (ATF) prices by 8.4% – 9.7%. The share price of SpiceJet and Jet Airways gained 1.10% and 2.05%, respectively.
U.S. stocks fell Monday, Monday following weak economic data and a further slump in crude-oil prices, but managed to pare early losses. The Dow Jones Industrial Average ended down 91.66 points, or 0.5%, to 17598.20. The S&P 500 declined 5.8 points, or 0.3%, to 2098.40 and the Nasdaq Composite shed 12.90 points, or 0.3%, to 5115.38.
WTI crude fell USD 1.95, or 4.1%, to close at USD 45.17 a barrel in New York. U.S. crude has been sliding since reaching a high this year of USD 61.43 a barrel on June 10. The Commerce Department on Monday said personal spending by U.S. consumers rose 0.2% in June, while personal income grew by 0.4%. However, the Institute for Supply Management’s July manufacturing index fell to 52.7% from 53.5% in June.
Europe’s major benchmarks were mostly higher on Monday, appearing to shrug off a plunge in Athens as Greek trading resumed after a five-week shutdown. The Stoxx Europe 600 SXXP closed up 0.8% at 399.44. Germany’s DAX 30 DAX finished up 1.2% at 11,443.72, while France’s CAC 40 rose nearly 0.8% to 5,120.52. The FTSE 100 dipped 0.1% to 6,688.62. Greece’s Athex Composite index, which had been closed since June 29 as the country’s debt crisis intensified, plunged 16%.
Asian shares mixed on Tuesday after downbeat economic data pressured Wall Street ahead of key U.S. jobs data later this week that could provide a key clue to the timing of the U.S. Federal Reserve's interest rate increase. Japan's Nikkei 225 index nudged down in early trade. China's Shanghai Composite index opened flat. South Korea’s Kospi index gains 0.30%. Australia's S&P ASX 200 index reversed up negative early trade and now gains 0.7%.
A SGX CNX Nifty Index future traded at flat. Indian markets likely to open flat. All eyes are on the Reserve Bank of India (RBI) third bi-monthly monetary policy review is scheduled on Today at 11.00 a.m. JK Tyre, Hexaware, Hinduja Ventures, Kanori chemicals, Bharti Airtel, Shivam Auto, Grindwell, AFL, Jaysree Tea, TN Petro, TV Today, Sangam India, Indian Human pipes, Torrent Power, EI Hotel, ENIL, Astra Zeneca, EID Parry, Britannia, Orient Cement, MEP and Future Lifestyle Fashions are some of the major companies would be reporting first quarter earnings today.