Views on markets today · June 22: Keynote

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Views on markets today

·      Indian markets snapped three day losing streak and closed positive yesterday largely helped by gains in beaten-down Reliance Industries and export-driven software firms following firmer world markets. The markets also got support from the positive European markets ahead of the crucial Greece Confidence vote. The optimism that the Greek government would push through austerity measures to pave the way for a second bailout loan pushed global markets in positive territory. But, stock prices came off intraday highs after Finance Minister said that the government has resumed talks with Mauritius on a double taxation avoidance agreement. The upward movement was mainly led by gain in IT, oil & gas, pharma and auto stocks while real estate, capital goods, FMCG and power stocks witnessed some selling pressure. GTL and GTL Infra, which had both slumped in the previous session on concerns about debt repayment, pledged shares and fund raising, extended losses despite the chairman's assurances that it had not defaulted and that its business fundamentals remain strong. Lupin gained 0.9% after the US FDA said it approved their generic versions of antibiotic levofloxacin, which treats certain infections.

·      Market breadth was however weak at ~0.67x as investors sold large cap stocks. FIIs sold equities worth `5.63bn while domestic institutions bought equities of `4.31bn.

·      Asian shares posted solid gains on Wednesday, extending an advance made in the previous session as investors gained confidence that Greece issue will be resolved. Both the Nikkei and the Hang Seng are strong today.

·      We expect a positive opening for the Indian markets as the cues from the Asian markets are encouraging. However, the lack of investor confidence which was indicated through yesterday's inverted U turn of the Sensex makes it highly vulnerable. Domestic conditions, particularly relief from the high inflation levels does not seem to be in a near future. We may see some selling pressure on the higher levels.

Economic and Corporate Developments

·      Fitch has retained India’s sovereign rating at investment grade, stating it has “robust growth prospect” and solid external financial condition.