Sunday, August 02, 2015

NIFTY INTRADAY VIEW ( 03 / 08 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48670BULL86518304
R38612UP BREAKOUT85828374
R28591UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R18577SELL84638398
PIVOT8501 LAST DAYSTRONG BULL LOW VOLATALITY
S18489BUYOPEN8456
S28475DOWN CAUTIONHIGH8549.0
S38454DOWN BREAK OUTLOW8448.0
S48396BEARCLOSE8532.85
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.2%
R26082LONGNIFTY WEEKLY VOLATALITY2.73%
R15976SHORT EXITNIFTY WEEKLY HIGH8549.0
S15765LONG EXITNIFTY WEEKLY LOW8322.0
S25659SHORTNIFTY DAY MEAN8435.5

THE WEEK AHEAD

Quarterly earnings, outcome of RBI's policy review to dictate trend


Macroeconomic data, progress of monsoon rains, quarterly corporate earnings, developments during the monsoon session of parliament, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the coming week.

Among key domestic events lined up for the week, the Reserve Bank of India's (RBI) third bi-monthly monetary policy review is scheduled at 11:00 IST on Tuesday, 4 August 2015. The RBI had cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review on 2 June 2015.

The near term major trigger for the market is June 2015 quarter corporate earnings. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year.

Berger Paints India, Bharat Forge, HCL Technologies and Hero MotoCorp are scheduled to announce their quarter ended June 2015 results on Monday, 3 August 2015. Bharti Airtel and Britannia Industries are scheduled to announce results on Tuesday, 4 August 2015. Emami, Marico and Shree Cement are scheduled to announce results on Wednesday, 5 August 2015. Bharat Heavy Electricals (Bhel), Mahindra & Mahindra (M&M) and Tata Motors are scheduled to announce their earnings on Friday, 7 August 2015.

Shares of automobile companies will be in focus as companies start announcing monthly sales volume data for July 2015 from Saturday, 1 August 2015.

Shares of public sector oil marketing companies will on Monday, 3 August 2015, react to changes in fuel prices, if any, announced at end of July 2015. PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight. PSU OMCs also review jet fuel prices on the last day of the month based on the average imported oil price for the month.

On the political front, developments during the ongoing monsoon session of Parliament will be closely watched. The Union Cabinet on 29 July 2015, reportedly approved amendments to the Goods and Services Tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee. The monsoon session of Parliament concludes on 13 August 2015.

The progress of monsoon rains will also dictate trend on the bourses in the near term. India's weather office, the India Meteorological Department (IMD), said in a weekly report issued on Thursday, 30 July 2015, that the rainfall was above normal by 21% over the country as a whole during the period from 23 to 29 July 2015. For the country as a whole, cumulative rainfall during the period from 1 to 29 July 2015 was 15% below LPA.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Among key domestic data, the Nikkei India Manufacturing PMI data for the month of July 2015 is due on Monday, 3 August 2015. Growth in India's manufacturing sector output eased in June 2015 as new orders rose at weaker rate. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) dropped to 51.3 in June 2015 from 52.6 in May 2015.

The Nikkei India Service PMI data for the month of July 2015 is due on Wednesday, 5 August 2015. The seasonally adjusted Nikkei Services Business Activity Index declined to 47.7 in June 2015 from 49.6 in May 2015.

Among global news, Eurozone Markit Manufacturing PMI data for the month of July 2015 is scheduled to be released on Monday, 3 August 2015. Eurozone Markit Services PMI data for July 2015 is scheduled to be released on Wednesday, 5 August 2015.

In United States, the crucial US non-farm payrolls data for the month of July 2015 is slated for release on Friday, 7 August 2015.

Saturday, August 01, 2015

THE WEEK THAT WAS

Broad market depicts strength

Volatility ruled the roost as key benchmark indices staged a strong rebound after witnessing a steep slide at the onset of the week. While the first trading session of the week saw a steep slide, the last trading session of the week witnessed a rally. The barometer index, the S&P BSE Sensex, ended almost unchanged in the week ended Friday, 31 July 2015. The 50-unit CNX Nifty clocked small gains. Worries of meltdown in Chinese equities and fears that stock market regulator Securities and Exchange Board of India (Sebi) may tighten rules on Participatory Notes (PNs) triggered a selloff at the onset of the week. The rally on the last trading session of the week materialized after the Department of Industrial Policy & Promotion (DIPP) issued a notification introducing composite caps for simplification of the foreign direct investment (FDI) policy for attracting foreign investments in the country.

The barometer index, the S&P BSE Sensex, regained the psychological 28,000 level after falling below mark. The Sensex gained in three out of five trading sessions in the week ended Friday, 31 July 2015.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 2352.84 crore into secondary equity market during four trading sessions from 27 July 2015 to 30 July 2015. Mutual funds bought shares worth a net Rs 2147.50 crore in four trading sessions from 27 July 2015 to 30 July 2015.

The S&P BSE Sensex rose 2.25 points to settle at 28,114.56. The 50-unit CNX Nifty rose 11.30 points or 0.13% to settle at 8,532.85. Broad market depicted strength. The BSE Mid-Cap index rose 125.03 points or 1.12% to settle at 11,273.02. The BSE Small-Cap index rose 162.68 points or 1.39% to settle at 11,830.80. Both these indices outperformed the Sensex.

A sharp setback in Chinese stocks and fears that the stock market regulator Securities and Exchange Board of India (Sebi) may tighten rules on Participatory Notes (PNs) in the wake of a report by a special investigations team on black money hit sentiment on the domestic bourses adversely on the first trading session of the week on Monday, 27 July 2015. The S&P BSE Sensex fell 550.93 points or 1.96% to settle at 27,561.38, its lowest closing level since 19 June 2015.

Auto, oil stocks and index heavyweight and housing finance major HDFC led losses for key benchmark indices on Tuesday, 28 July 2015. The S&P BSE Sensex fell 102.15 points or 0.37% to settle at 27,459.23, its lowest closing level since 19 June 2015.

IT stocks led gains for key benchmark indices on Wednesday, 29 July 2015. The S&P BSE Sensex rose 104.20 points or 0.38% to settle at 27,563.43, its highest closing level since 24 July 2015.

State-run banks and realty stocks led gains on the domestic bourses on Thursday, 30 July 2015. The S&P BSE Sensex rose 141.92 points or 0.51% to settle at 27,705.35, its highest closing level since 24 July 2015.

Shares of state-run banks and pharma stocks led rally as key benchmark surged on the last trading session of the week on Friday, 31 July 2015. The S&P BSE Sensex rose 409.21 points or 1.48% to settle at 28,114.56, its highest closing level since 23 July 2015.

Bharti Airtel (down 3.58%), Bharat Heavy Electricals (down 0.58%), GAIL India (down 1.55%), Hindalco Industries (down 3.53%), ONGC (down 3.53%) and Tata Steel (down 6.71%) edged lower from the Sensex pack. Coal India (up 3.14%) and Hindustan Unilever (up 1.56%) edged higher from the Sensex pack.

Bank stocks edged higher. HDFC Bank (up 0.39%) and State Bank of India (up 2.61%) edged higher. Axis Bank (down 1.23%) edged lower.

ICICI Bank rose 0.66% at Rs 302.50. ICICI Bank's net profit rose 12.08% to Rs 2976.16 crore on 8.11% increase in total income to Rs 15802.45 crore in Q1 June 2015 over Q1 June 2015. The result was announced during trading hours on Friday, 31 July 2015.

Auto stocks were mixed. Bajaj Auto (up 0.86%) and Mahindra & Mahindra (up 2.34%) edged higher. Tata Motors (down 1.73%) edged lower.

Maruti Suzuki India (MSIL) rose 2.23% at Rs 4,328.25. MSIL's net profit rose 56.5% to Rs 1192.90 crore on 18.1% growth in net sales (net of excise) to Rs 13078.30 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours on Tuesday, 28 July 2015.

Hero MotoCorp (HMCL) fell 2.32% at Rs 2,674.45. HMCL announced during trading hours on Tuesday, 28 July 2015, that HMCL NA, Inc. and HMCL Americas, Inc. (both wholly owned subsidiaries of Hero MotoCorp) have entered into a settlement agreement with the receiver appointed by the Circuit Court, Wisconsin, USA in the matter of Chapter 128 Receivership filed by the Erik Buell Racing, Inc. and Erik Buell LLC (EBR). As per the settlement agreement, HMCL Americas Inc. has agreed to acquire the ownership of certain tangible and intangible assets of EBR free and clear of all encumbrances, for a consideration of $2.8 million. HMCL and the receiver have also agreed to resolve all disputes and fully give mutual releases in terms of the settlement agreement for all subject matters which is in any way related to EBR.

Pharma stocks edged higher. Cipla (up 4.55%) edged higher. Sun Pharmaceutical Industries (down 1.55%) edged lower.

Dr Reddys Laboratories rose 4.06% at Rs 4,065.70. On a consolidated basis, the company's net profit rose 14% to Rs 630 crore on 7% increase in revenue to Rs 3760 crore in Q1 June 2015 over Q1 June 2014. The result was announced during trading hours on Thursday, 30 July 2015.

Lupin rose 1.41% at Rs 1,695.65. Lupin after market hours on Friday, 24 July 2015, announced that it has entered into a strategic asset purchase agreement with TEMMLER PHARMA GMBH & CO. KG (Temmler), a part of the Aenova Group, to acquire Temmler's specialty product portfolio subject to certain closing conditions.

IT stocks edged higher. TCS rose 0.24% at Rs 2,510. TCS announced during trading hours on Tuesday, 28 July 2015, that the Bank of Bhutan has selected its IT product TCS BaNCS for its Core Banking Solution to power its next generation banking services.

Wipro rose 0.47% at Rs 569.15. Wipro announced before trading hours on Wednesday, 29 July 2015, that it has been selected by DSM, a global, science based company active in health, nutrition and materials, as its strategic IT partner to provide Workplace Services.

Shares of Infosys were down 1.03% at Rs 1,078.05.

ITC rose 3.78% at Rs 326.20. ITC's net profit rose 3.61% to Rs 2265.44 crore on 6.11% decline in total income to Rs 8902.71 crore Q1 June 2015 over Q1 June 2014. The result was announced during market hours on Thursday, 30 July 2015.

NTPC fell 1.89% at Rs 134.90. NTPC's net profit fell 2.99% to Rs 2135.35 crore on 8.19% decline in total income to Rs 17323.30 crore in Q1 June 2015 over Q1 June 2014. The result was declared during market hours on Thursday, 30 July 2015.

Vedanta dropped 1.84% at Rs 130.15. Vedanta's consolidated profit after tax (PAT) before exceptional items fell 35% to Rs 866 crore on 1% decline in net sales/income from operations to Rs 16952 crore in Q1 June 2015 over Q1 June 2014. The result was announced at the fag end of the trading session on Wednesday, 29 July 2015.

Reliance Industries (RIL) fell 2.28% at Rs 1,001.65. RIL's consolidated net profit rose 4.44% to Rs 6222 crore on 25.93% decline in total income to Rs 78962 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 24 July 2015.

HDFC fell 1.13% at Rs 1,339.10. HDFC's net profit rose 1.21% to Rs 1360.98 crore on 9.39% rise in total income to Rs 7068.28 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours on Tuesday, 28 July 2015.

Finance Minister Arun Jaitley reportedly said on Monday, 27 July 2015, that the government will not react in a knee-jerk manner on a report by a special investigations team that suggested greater oversight of money laundering in stocks. Jaitley, however, said the government would apply its mind on the recommendations of the Supreme Court-appointed team in due course and would avoid any decision that could hurt investor sentiment, reports added. The Special Investigation Team (SIT) tasked with curbing black money has in its Third SIT Report submitted to the finance ministry has called for identification of beneficial ownership of Participatory Notes (PN).

Meanwhile, the Union Cabinet on Wednesday, 29 July 2015, reportedly approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee.

The Union Cabinet also reportedly approved a proposal to allow foreign investment in alternative investment funds announced in this year's Union Budget.

Meanwhile, the India's weather office, the India Meteorological Department (IMD), said in a weekly report issued on Thursday, 30 July 2015, that the rainfall was above normal by 21% over the country as a whole during the period from 23 to 29 July 2015. For the country as a whole, cumulative rainfall during the period from 1 to 29 July 2015 was 15% below LPA.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

On global front, China's National Bureau of Statistics (NBS) on Monday, 27 July 2015, said that profit at China's industrial firms registered a decline of 0.3% on year-on-year basis in June 2015, after rising the previous two months. For the first six months of 2015, industrial profits were 0.7% lower than a year earlier, the bureau said. Among 41 industrial sectors, 30 sectors had year-on-year growth in the first half of this year, while 11 recorded drops.

After a two-day policy meeting, the Fed said in a statement on Wednesday, 29 July 2015, that the world's top economy had expanded "moderately" in recent months and the jobs market had strengthened, but it noted continued "soft" business investment and exports. The Fed left room for a September rate hike.

Meanwhile, latest data showed the US economy picked up its pace in the second quarter, leaving the Federal Reserve on track to raise interest rates as soon as September. Solid consumer spending offset a drag from weak business investment in the June quarter, resulting in the United States' gross domestic product (GDP) rising by an annualised rate of 2.3%. A separate report by the US Labor Department revealed fewer Americans than expected filed claims for jobless benefits last week. Applications for unemployment payments rose by 12,000 to 267,000 in the week up to 25 July 2015. The prior week's figure of 255,000 jobless claims marked a 40-year low.

Friday, July 31, 2015

THE END SESSION ( 31 / 07 )

Key indices strike highest level in more than a week


Shares of state-run banks and pharma stocks led rally as key benchmark indices surged on the last trading session of the week. The rally materialized after the Department of Industrial Policy & Promotion (DIPP) issued a notification yesterday, 30 July 2015, introducing composite caps for simplification of the foreign direct investment (FDI) policy for attracting foreign investments in the country. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in more than a week. The Sensex moved past the psychological 28,000 level. The market breadth indicating the overall health of the market was positive. The Sensex garnered 409.21 points or 1.48% to settle at 28,114.56. Key benchmark indices hovered in positive zone throughout the trading session today, 31 July 2015. The BSE Mid-Cap index rose 1.03%.

The notification from DIPP follows a decision by the Union Cabinet on 16 July 2015 allowing clubbing of foreign direct investment, foreign portfolio investment and investments by non-resident Indians in companies into a composite cap. However, DIPP has clarified that foreign portfolio investment by FIIs/FPIs/QFIs will remain at 49% of the total paid up capital for private sector banks. In the defence sector, foreign portfolio investment will remain at 24% of total paid up capital of the company. Portfolio investment in the defence sector will be under automatic route.

PSU bank stocks surged on reports that the government has sought approval for an additional allotment of Rs 12110 crore from the Parliament to be used for the recapitalization of public sector banks. Most private sector banks rose. Titan Company tumbled after weak Q1 outcome. Shares of Dr Reddy's Laboratories edged higher, with the stock extending gains registered yesterday, 30 July 2015, triggered by good Q1 earnings.

Key benchmark indices edged higher for the third straight trading session today, 31 July 2015.

Foreign portfolio investors offloaded shares worth a net Rs 125.44 crore into the secondary equity markets yesterday, 30 July 2015, as per data released by the depositories. Domestic institutional investors (DIIs) bought shares worth a net Rs 499.65 crore yesterday, 30 July 2015, as per provisional data released by the stock exchanges.

The S&P BSE Sensex rose 409.21 points or 1.48% to settle at 28,114.56, its highest level since 23 July 2015. The index jumped 455.82 points at the day's high of 28,161.17 in late trade. The index gained 109.16 points at the day's low of 27,814.51 in opening trade.

The CNX Nifty rose 111.05 points or 1.32% to settle at 8,532.85, its highest level since 23 July 2015. The index hit a high of 8,548.95 in intraday trade. The index hit a low of 8,448 in intraday trade.

The BSE Mid-Cap index rose 114.62 points or 1.03% to settle at 11,273.02. The BSE Small-Cap index rose 106.92 points or 0.91% to settle at 11,830.80. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,658 shares rose and 1,214 shares fell. A total of 129 shares were unchanged.

The total turnover on BSE amounted to Rs 3886 crore, higher than turnover of Rs 3359.07 crore registered during the previous trading session.

Among sectoral indices on BSE, the S&P BSE Realty index (up 2.89%), the S&P BSE Healthcare index (up 1.99%), the S&P BSE Auto index (up 1.80%), the S&P BSE FMCG index (up 1.78%), the S&P BSE Metal index (up 1.71%) and the S&P BSE Bankex (up 1.68%), outperformed the Sensex. The S&P BSE IT index (up 1.33%), the S&P BSE Teck index (up 1.26%), the S&P BSE Consumer Durables index (up 0.53%), the S&P BSE Capital Goods index (up 0.39%), the S&P BSE Oil & Gas index (down 0.27%) and the S&P BSE Power index (down 0.60%), underperformed the Sensex.

Larsen a Toubro (L&T) rose 0.75% to Rs 1,789.55. The company's consolidated net profit fell 37.3% to Rs 606.19 crore on 6.53% increase in total income to Rs 20509.53 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours today, 31 July 2015. L&T said that its net profit for the corresponding quarter of the previous year included divestment gains of Rs 1383 crore.

L&T's gross revenue rose 7% to Rs 20460 crore in Q1 June 2015 over Q1 June 2014. International revenue during the quarter at Rs 6609 crore constituted 32% of the total revenue. The company successfully won new orders worth Rs 26376 crore at the group level during the quarter ended 30 June 2015. International orders during the quarter at Rs 8110 crore constituted 31% of the total order inflow. Major orders during the quarter were secured by infrastructure and hydrocarbon segments. The consolidated order book of the group stood at Rs 2.38 lakh crore as on 30 June 2015, higher by 22% on a year-on-year basis. International order book constituted 26% of the total order book.

L&T said in a statement that the business environment stays challenging in the short term while the prospects in urban infra, transportation infra, power transmission, water, renewable energy and defence manufacturing remain promising in the medium term. The management is hopeful of the company benefitting from the growth opportunities as they emerge. The domestic infrastructure sector awaits the translation of various policy and budgetary initiatives into a definitive capital expenditure programme. While visibility of outlay by public sector/government undertakings has improved, private sector investment in the industrial sector is constrained by weak demand, low commodity prices and under utilisation of the existing capacities, L&T said.

PSU bank stocks surged on reports that the government has sought approval for an additional allotment of Rs 12110 crore from the Parliament to be used for the recapitalization of public sector banks. Union Bank of India (up 8.06%), IDBI Bank (up 6.47%), Bank of Baroda (up 5.34%), United Bank of India (up 5.32%), Canara Bank (up 5.16%), Allahabad Bank (up 4.37%), Punjab and Sind Bank (up 4.35%), Bank of India (up 4.09%), Andhra Bank (up 3.71%), Indian Bank (up 3.68%), Syndicate Bank (up 3.43%), UCO Bank (up 3.33%), Corporation Bank (up 3.11%), Central Bank of India (up 2.09%), Vijaya Bank (up 1.74%), Dena Bank (up 1.70%), Bank of Maharashtra (up 1.32%) and Punjab National Bank (up 0.67%), edged higher.

State Bank of India rose 5.25% at Rs 270.40. The stock hit a high of Rs 273.30 and a low of Rs 257.80 so far during the day.

Finance Minister Arun Jaitley has reportedly sought parliamentary approval today, 31 July 2015, to spend a net additional Rs 25500 crore in the current fiscal year, with almost half of it earmarked to inject capital into state-run banks struggling with bad debts. In the annual budget in February, Jaitley provided Rs 7940 crore to bolster capital reserves of the state-banks.

Most private sector banks rose. Yes Bank (up 2%), Axis Bank (up 1.38%), IndusInd Bank (up 0.45%) and HDFC Bank (up 0.30%), edged higher. City Union Bank (down 0.3%), Federal Bank (down 0.88%) and Kotak Mahindra Bank (down 2.86%), edged lower.

ICICI Bank rose 3.97% to Rs 302.50. The bank's net profit rose 12.08% to Rs 2976.16 crore on 8.11% increase in total income to Rs 15802.45 crore in Q1 June 2015 over Q1 June 2015. The result was announced during trading hours today, 31 July 2015.
ICICI Bank's net interest income (NII) rose 14% to Rs 5115 crore in Q1 June 2015 over Q1 June 2014. The bank's net interest margin (NIM) improved to 3.54% in Q1 June 2015, from 3.4% in Q1 June 2014. Non interest income rose 5% to Rs 2990 crore in Q1 June 2015 over Q1 June 2014.

ICICI Bank's cost-to-income ratio stood at 37.8% in Q1 June 2015 as against 38.4% in Q1 June 2014.

The bank's current and savings account (CASA) ratio stood at 44.1% as on 30 June 2015, lower than 45.5% as on 31 March 2015 and higher than 43% as on 30 June 2014. The average CASA ratio improved to 41.1% in Q1 June 2015 from 39.9% in Q4 March 2015 and 39.5% in Q1 June 2014.

Provisions and contingencies rose 31.58% to Rs 955.39 crore in Q1 June 2015 over Q1 June 2014. The bank's provision coverage ratio, computed in accordance with RBI guidelines, was 58.2% as on 30 June 2015. Including cumulative prudential/technical write-offs, the provisioning coverage ratio was 69.7%.

ICICI Bank's net non-performing assets stood at Rs 6402 crore as on 30 June 2015, which was higher than Rs 6325 crore as on 31 March 2015. The net non-performing asset ratio was 1.4% as on 30 June 2015, unchanged from the level as on 31 March 2015. Net loans to companies whose facilities have been restructured stood at Rs 12604 crore as on 30 June 2015, higher than Rs 11017 crore as on 31 March 2015.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 16.37% as on 30 June 2015 and Tier-1 capital adequacy was 12.26%, well above regulatory requirements.

Titan Company declined 4.65% to Rs 323.85 after net profit dropped 14.78% to Rs 151.06 crore on 6.6% drop in total income to Rs 2724.13 crore in Q1 June 2015 over Q1 June 2014. The result was announced during trading hours today.

Titan Company said sales dropped in Q1 June 2015 largely on account of an extremely weak consumer sentiment and absence of the Golden Harvest scheme in jewellery this year. The company's profit before tax (PBT) dropped 15.3% to Rs 203.61 crore in Q1 June 2015 over Q1 June 2014. The company has put together plans to stimulate demand for all of its product categories through innovative advertising campaigns and new product launches in the coming quarters.

The income of watches business rose 9.1% to Rs 484.54 crore in Q1 June 2015 over Q1 June 2014. The jewellery business income witnessed a decline of 10.9% to Rs 2072.03 crore in Q1 June 2015 over Q1 June 2014. The jewellery business continues to face regulatory pressures that have an adverse impact on sales. Eyewear business grew 19.7% to Rs 106.77 crore in Q1 June 2015 over Q1 June 2014.

Phama stocks edged higher. Glenmark Pharmaceuticals (up 5.59%), Wockhardt (up 5.06%), Aurobindo Pharma (up 4.84%), Lupin (up 4.26%), Piramal Enterprises (up 2.38%), Divi's Laboratories (up 1.79%), Strides Arcolab (up 1.09%) and Sun Pharmaceutical Industries (up 1.04%), edged higher. Cipla (down 0.13%), Cadila Healthcare (down 0.34%) and IPCA Laboratories (down 2.53%), edged lower.
Shares of Dr Reddy's Laboratories edged higher, with the stock extending gains registered yesterday, 30 July 2015, triggered by good Q1 earnings. The stock jumped 4.05% at Rs 4,065.70. The stock hit a record high of Rs 4,084.95 in intraday trade. The stock had jumped 5.23% to settle at Rs 3,907.55 yesterday, 30 July 2015. On a consolidated basis, the company's net profit rose 14% to Rs 630 crore on 7% increase in revenue to Rs 3760 crore in Q1 June 2015 over Q1 June 2014. The result was announced during trading hours yesterday, 30 July 2015.

GlaxoSmithKline Pharmaceuticals fell 0.48% to Rs 3,507.75 after net profit dropped 5.09% to Rs 93.28 crore on 4.8% drop in total income to Rs 668.19 crore in Q1 June 2015 over Q1 June 2014. GlaxoSmithKline Pharmaceuticals said there was a decline in net sales of the pharmaceutical business by 5.6% in Q1 June 2015 over Q1 June 2014. The quarterly performance was impacted by supply constraints. The result was announced during market hours today, 31 July 2015.

Key indices edged higher for the third straight trading session today, 31 July 2015. The Sensex has risen 655.33 points or 2.39% in preceding three trading sessions from a recent low of 27,459.23 on 28 July 2015. The Sensex clocked gains of 333.73 points or 1.2% in this month. The Sensex has risen 615.14 points or 2.24% in this calendar year so far (till 31 July 2015). From a 52-week low of 25,232.82 on 8 August 2014, the Sensex has risen 2,881.74 points or 11.42%. The Sensex is off 1,910.18 points or 6.36% from a record high of 30,024.74 hit on 4 March 2015.

Meanwhile, in the global commodities markets, Brent crude oil futures edged lower amid concerns over global oil supply glut. Brent for September settlement was currently off 64 cents at $52.67 a barrel. The contract had fallen 7 cents or 0.13% to settle at $53.31 a barrel during the previous trading session.

India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 64.1250, compared with its close of 64.04 during the previous trading session.

Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a weekly report issued yesterday, 30 July 2015, that the rainfall was above normal by 21% over the country as a whole during the period from 23 to 29 July 2015. A deep depression caused extremely heavy rainfall over Gujarat and south Rajasthan during the second half of the week. Region wise, the rainfall was 68% above the Long Period Average (LPA) in Central India, 33% above LPA in Northwest India, 50% below LPA in South Peninsula and 22% below LPA in East & Northeast India during the period from 23 to 29 July 2015.

As per IMD's extended range forecast till 19 August 2015, rainfall activity is likely to be normal to above normal over Central and Northwest India till 9 August 2015. Rainfall activity is likely to be normal to above normal over northeast and adjoining east India from 5 to 14 August 2015.

For the country as a whole, cumulative rainfall during the period from 1 to 29 July 2015 was 15% below LPA. Region wise, the rainfall was 46% below the LPA in South Peninsula, 16% below the LPA in East & Northeast India, 13% below the LPA in Central India and 5% above the LPA in Northwest India during the period 1 to 29 July 2015. July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops.

The IMD in its separate daily monsoon update issued yesterday, 30 July 2015, said that the southwest monsoon was vigorous over West Rajasthan and was active over Gangetic West Bengal and East Rajasthan during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 4% below the Long Period Average (LPA) until 30 July 2015. Region wise, the rainfall was 19% below the LPA in South Peninsula, 9% below the LPA in East & Northeast India, 2% below the LPA in Central India and 12% above the LPA in Northwest India until 30 July 2015.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

In overseas markets, European stocks edged higher in volatile trade today, 31 July 2015. Key benchmark indices in Germany and France were up 0.07% to 0.31%. In UK, the FTSE 100 index was off 0.22%.

German retail sales in June dropped 2.3% from May, adjusted for inflation and seasonal swings, but rose 5.1% from the year earlier-period, Destatis said in a statement today, 31 July 2015.

Asian stocks edged higher after data overnight showed the US economy picked up its pace in the second quarter. Key benchmark indices in Taiwan, South Korea, Hong Kong, Indonesia and Japan were up 0.16% to 1.91%. In China, the Shanghai Composite was off 1.13%. Singapore's Straits Times was down 1.45%.

China recorded a service trade deficit of $14.9 billion in June, down from $18.3 billion in May, official data showed today, 31 July 2015. For the first six months of the year, the country saw a service trade deficit of $91.6 billion, the State Administration of Foreign Exchange said in a statement on its website. China had a merchandise trade surplus of $47.6 billion in June and a surplus of $255.4 billion in the January-June period, according to the foreign-exchange regulator's data.

Consumer prices in Japan gained 0.4% on year in June, the Ministry of Internal Affairs and Communications said today, 31 July 2015. The price rise was lower from 0.5% in May. Meanwhile, the unemployment rate in Japan came in at a seasonally adjusted 3.4% in June.

US stocks ended little changed after witnessing high intraday volatility yesterday, 30 July 2015, after the latest data showed the US economy picked up its pace in the second quarter, leaving the Federal Reserve on track to raise interest rates as soon as September. Solid consumer spending offset a drag from weak business investment in the June quarter, resulting in the United States' gross domestic product (GDP) rising by an annualised rate of 2.3%. A separate report by the US Labor Department revealed fewer Americans than expected filed claims for jobless benefits last week. Applications for unemployment payments rose by 12,000 to 267,000 in the week up to 25 July 2015. The prior week's figure of 255,000 jobless claims marked a 40-year low.

NIFTY AND BANK NIFTY DAILY PRICES JULY 2015

Thursday, July 30, 2015

NIFTY INTRADAY VIEW ( 30 / 07 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48428BULL85588157
R38408UP BREAKOUT84588258
R28401UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R18396SELL84248337
PIVOT8365 LAST DAYSTRONG BULL LOW VOLATALITY
S18354BUYOPEN8366
S28350DOWN CAUTIONHIGH8382.0
S38342DOWN BREAK OUTLOW8338.0
S48322BEARCLOSE8375.05
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY0.53%
R26082LONGNIFTY WEEKLY VOLATALITY4.0%
R15976SHORT EXITNIFTY WEEKLY HIGH8655.0
S15765LONG EXITNIFTY WEEKLY LOW8322.0
S25659SHORTNIFTY DAY MEAN8488.5

Tuesday, July 28, 2015

NIFTY INTRADAY VIEW ( 29 / 07 / 2015 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48421BULL86468167
R38387UP BREAKOUT85268287
R28374UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R18366SELL84938396
PIVOT8352 LAST DAYSTRONG BEAR LOW VOLATALITY
S18308BUYOPEN8371
S28300DOWN CAUTIONHIGH8397.0
S38287DOWN BREAK OUTLOW8322.0
S48253BEARCLOSE8337.0
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY0.9%
R26082LONGNIFTY WEEKLY VOLATALITY4.0%
R15976SHORT EXITNIFTY WEEKLY HIGH8655.0
S15765LONG EXITNIFTY WEEKLY LOW8322.0
S25659SHORTNIFTY DAY MEAN8488.5

NIFTY INTRADAY VIEW ( 28 / 07 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48540BULL86768213
R38462UP BREAKOUT85838306
R28434UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R18416SELL85798480
PIVOT8411 LAST DAYVERY STRONG BEAR
S18306BUYOPEN8492
S28288DOWN CAUTIONHIGH8492.0
S38260DOWN BREAK OUTLOW8352.0
S48183BEARCLOSE8361.0
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.68%
R26082LONGNIFTY WEEKLY VOLATALITY3.63%
R15976SHORT EXITNIFTY WEEKLY HIGH8655.0
S15765LONG EXITNIFTY WEEKLY LOW8352.0
S25659SHORTNIFTY DAY MEAN8503.5

Sunday, July 26, 2015

NIFTY INTRADAY VIEW ( 27 / 07 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48607BULL86688452
R38572UP BREAKOUT86258495
R28559UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R18551SELL86298529
PIVOT8542 LAST DAYSTRONG BEAR LOW VOLATALITY
S18492BUYOPEN8588
S28484DOWN CAUTIONHIGH8589.0
S38471DOWN BREAK OUTLOW8514.0
S48437BEARCLOSE8521.55
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY0.88%
R26082LONGNIFTY WEEKLY VOLATALITY1.84%
R15976SHORT EXITNIFTY WEEKLY HIGH8655.0
S15765LONG EXITNIFTY WEEKLY LOW8499.0
S25659SHORTNIFTY DAY MEAN8577

BANK NIFTY INTRADAY VIEW ( 27 / 07 )

BANKNIFTY INTRADAY LEVEL BANKNIFTY PROBABLE HIGHBANKNIFTY PROBABLE LOW
R418906BULL 1913918374
R318792UP BREAKOUT 1898618527
R218751UP CAUTION LEVEL FOR LONGLEVEL FOR SHORT
R118723SELL 1899718682
PIVOT18705  LAST DAYSTRONG BEAR LOW VOLATALITY
S118549BUY OPEN18832
S218521DOWN CAUTION HIGH18861.0
S318480DOWN BREAK OUT LOW18614.0
S418366BEAR CLOSE18635.85

BANKNIFTY


The Banking Sector Index

 BANKNIFTY DAILY VOLATALITY1.33%
 BANKNIFTY WEEKLY VOLATALITY2.87%
 BANKNIFTY WEEKLY HIGH19149.0
 BANKNIFTY WEEKLY LOW18614.0
 BANKNIFTY DAY MEAN18881.5

THE WEEK AHEAD

Market may remain volatile ahead of F&O expiry



The macroeconomic data, progress of monsoon rains, quarterly corporate earnings, developments during the monsoon session of parliament, policy decision by the US Federal Reserve, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the coming week.

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.

The near term major trigger for the market is June 2015 quarter corporate earnings. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year. Ambuja Cements announces Q2 results on Monday, 27 July 2015. Tech Mahindra also announces Q1 results on Monday, 27 July 2015. HDFC, Maruti Suzuki India and Punjab National Bank unveil Q1 results on Tuesday, 28 July 2015. Yes Bank unveils Q2 results on Wednesday, 29 July 2015. Bank of Baroda, Dr Reddy's Laboratories, IDFC, ITC, Kotak Mahindra Bank and NTPC announce Q2 results on Thursday, 30 July 2015. ICICI Bank and L&T announce Q2 results on Friday, 31 July 2015.

On the political front, developments during the ongoing monsoon session of Parliament will be closely watched. The monsoon session which started its proceedings this week concludes on 13 August 2015. The Parliament proceedings have so far been washed out as a combative Opposition sought to force a discussion with the ruling NDA government on corruption in the wake of the Lalit Modi case and the Vyapam scam. Meanwhile, the Rajya Sabha Select Committee on Goods and Services Tax Bill submitted its report to the House on Wednesday, 22 July 2015 amid uproar in the house. The GST Bill has been passed by the Lok Sabha and was referred to the Select Committee by Rajya Sabha, where the ruling NDA government does not enjoy majority.

The progress of monsoon rains will also dictate trend on the bourses in the near term. India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued on 23 July 2015, for the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 23 July 2015. Region wise, the rainfall was 13% below the LPA in South Peninsula, 12% below the LPA in Central India, 6% below the LPA in East & Northeast India and 6% above the LPA in Northwest India until 23 July 2015.

The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Meanwhile, a fortnightly review of fuel prices from PSU OMCs is due at the end of the month. PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight. PSU OMCs also review jet fuel prices on the last day of the month based on the average imported oil price for the month.

On global front, the policy decision by the US Federal Reserve will be closely watched. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 28-29 July 2015, to decide on interest rates in the United States.

On macro front in US, data on durable goods orders for June 2015 is due on Monday, 27 July 2015. The headline Consumer Confidence Index for July 2015 and the Markit Services PMI Flash index for July 2015, indicating health of business activity will be out on Tuesday, 28 July 2015. Data on pending home sales for June 2015 is due on Wednesday, 29 July 2015. Data on gross domestic product (GDP) for Q2 June 2015 will be out on Thursday, 30 July 2015.

THE END SESSION ( 24 / 07 )

Sensex, Nifty settle at 1-1/2 week low


Key benchmark indices dropped sharply on last trading day of the week. After trading with small losses in first half of the day's trade, key benchmark indices extended fall and hit fresh intraday low in late trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, settled at their lowest level in 1-1/2 weeks. The Sensex lost 258.53 points or 0.91% to settle at 28,112.31. The market breadth indicating the overall health of the market was negative. Key benchmark indices edged lower today, 24 July 2015, as complete washout of Lok Sabha proceedings in the first week of the monsoon session, because of a political tussle between the National Democratic Alliance (NDA) government and the Congress party triggered concerns about the passage of key reform bills.

Bank stocks were mixed. Axis Bank slipped in volatile trade after declaring Q1 result. Capital goods stocks dropped. Metal and mining stocks declined. IT major Wipro dropped after the company reported a muted growth in IT services revenue in dollar terms on sequential basis in Q1 June 2015.

In overseas markets, European stocks edged higher following further evidence of a modest recovery in the eurozone economy. Asian stocks fell after a survey of Chinese manufacturing activity was weaker than expected, while US jobs data underpinned the dollar as it bolstered bets that the US Federal Reserve is on track to hike interest rates later this year.

Key benchmark indices edged lower today, 24 July 2015, as complete washout of Lok Sabha proceedings in the first week of the monsoon session, because of a political tussle between the National Democratic Alliance (NDA) government and the Congress party triggered concerns about the passage of key reform bills. The House was adjourned for the day till Monday, 27 July 2015 minutes after it assembled morning today, 24 July 2015 No business has been transacted since the session began on 21 July 2015, witnessing adjournments after adjournments over the opposition uproar. The constitutional amendment bill for Goods and Services Tax (GST) needs the support of two-thirds of the members in both Houses of Parliament. The government is targeting the rollout of GST starting on 1 April 2016. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 294.62 crore from the secondary equity market yesterday, 23 July 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) sold shares worth a net Rs 276.69 crore yesterday, 23 July 2015, as per provisional data.
The S&P BSE Sensex fell 258.53 points or 0.91% to settle at 28,112.31, its lowest closing level since 14 July 2015. The index lost 287.08 points at the day's low of 28,083.76 in late trade. The index rose 31.80 points at the day's high of 28,402.64 in early trade.

The CNX Nifty fell 68.25 points or 0.79% to settle at 8,521.55, its lowest closing level since 14 July 2015. The index hit a high of 8,589.15 in intraday trade. The index hit a low of 8,513.50 in intraday trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,582 shares declined and 1,276 shares gained. A total of 105 shares were unchanged.

The BSE Mid-Cap index fell 68.20 points or 0.61% to settle at 11,147.99. The BSE Small-Cap index fell 68.01 points or 0.58% to settle at 11,668.12. The fall in both these indices was lower than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 3405 crore, slightly higher than turnover of Rs 3402.78 crore registered during the previous trading session.

Index heavyweight Reliance Industries fell 1.78% ahead of Q1 June 2015 result today, 24 July 2015.
GAIL (India) lost 2.47%. GAIL (India)'s net profit fell 31.74% to Rs 424.14 crore on 6.65% decline in total income to Rs 12643.86 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 23 July 2015. GAIL (India) said that the decline in profit was mainly due to lower price realization of liquefied petroleum gas (LPG), other liquid hydrocarbons and petrochemicals and reduced production of LPG, reduced production of petrochemicals due to shut down in Pata petrochemical plant and increase in interest and depreciation charges due to commissioning of petrochemical expansion.
There was no subsidy sharing burden for GAIL (India) in Q1 June 2015. The company had shared Rs 500 crore towards LPG subsidy in Q1 June 2014.

Bank stocks were mixed. Among PSU bank stocks, State Bank of India (SBI) (down 2.23%), Canara Bank (down 2.25%), Union Bank of India (down 2.13%), Bank of India (down 0.84%) and Punjab National Bank (down 0.36%) fell.

Bank of Baroda rose 1.18%. The Reserve Bank of India (RBI) yesterday, 23 July 2015, announced removal of Bank of Baroda from caution list for the purpose of purchases of the shares of the state-run bank by foreign institutional investors (FIIs). The RBI said that the aggregate share holding by FIIs/Registered Foreign Portfolio Investors (RFPIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO) under Portfolio Investment Scheme in Bank of Baroda has gone below the prescribed threshold caution limit under the extant FDI policy. Hence, the restrictions placed on the purchase of shares of the state-run bank are withdrawn with immediate effect, the RBI said. As per current norms, the ceiling on investment by FIIs/Registered Foreign Portfolio Investors (RFPIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO) under Portfolio Investment Scheme is 20% for all state-run banks in India.

Among private bank stocks, Kotak Mahindra Bank (up 0.23%) and IndusInd Bank (up 0.55%) rose. HDFC Bank (down 0.09%), ICICI Bank (down 3.61%) and Yes Bank (down 1.6%) declined.

Axis Bank shed 0.45% to Rs 581.20. The stock witnessed intraday volatility after the results hit the market in mid-afternoon trade. The stock hit high of Rs 593.50 and low of Rs 576. The private sector bank's net profit rose 18.69% to Rs 1978.44 crore on 22.58% growth total income to Rs 12234.41 crore in Q1 June 2015 over Q1 June 2014. Axis Bank announced the first quarter results during trading hours today, 24 July 2015.
Axis Bank's provisions and contingencies (net) jumped 190.16% to Rs 1121.77 crore in Q1 June 2015 over Q1 June 2014.

Axis Bank's gross non-performing assets on absolute basis edged higher to Rs 4251.18 crore as on 30 June 2015 from Rs 4110.19 crore as on 31 March 2015 and Rs 3463.27 crore as on 30 June 2014. The ratio of gross non-performing assets to gross advances stood at 1.38% as on 30 June 2015, higher than 1.34% each as on 31 March 2015 and 30 June 2014. The ratio of net non-performing assets to net advances stood at 0.48% as on 30 June 2015, higher than 0.44% each as on 31 March 2015 and 30 June 2014.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 14.5% as on 30 June 2015, compared with 15.09% as on 31 March 2015 and 15.53% as on 30 June 2014.

IDFC rose 2.58%. IDFC during market hours today, 24 July 2015 said that the Reserve Bank of India yesterday, 23 July 2015 granted banking licence to IDFC Bank for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949.

Capital goods stocks dropped. BEML (down 1.87%), Bharat Heavy Electricals (Bhel) (down 1.21%), L&T (down 1.38%), Thermax (down 0.58%), Crompton Greaves (down 4.77%) and Siemens (down 0.66%) declined.

ABB India lost 3.28% as the company's order intake fell 6.14% to Rs 1895 crore in Q2 June 2015 over Q2 June 2014.

ABB India's net profit rose 20.46% to Rs 57.45 crore on 6.03% increase in total income to Rs 1932.64 crore in Q2 June 2015 over Q2 June 2014. ABB India announced its Q2 June 2015 results during trading hours today, 24 July 2015.

ABB India's revenue rose 6.03% to Rs 1932 crore in Q2 June 2015. The company said the growth in revenue was on account of efficient execution and conversion of order backlog across divisions. ABB India said that over the years, the company's initiatives towards operational excellence have been yielding results, fortifying profit margins.

ABB's operational EBITDA jumped 17.29% to Rs 156 crore in Q2 June 2015 over Q2 June 2014. Operational EBITDA margins were reported at 8.1% in Q2 June 2015, higher than 7.3% in Q2 June 2014.

Bazmi Husain, Managing Director, ABB India said that the company delivered a steady performance in a market where investments are still to gather momentum.

Metal and mining stocks declined. Vedanta (down 2.58%), Tata Steel (down 2.15%), Steel Authority of India (Sail) (down 1.19%), National Aluminium Company (down 1.46%), Hindustan Zinc (down 1.39%), JSW Steel (down 1.65%), Jindal Steel & Power (down 3.56%), NMDC (down 0.39%), Hindustan Copper (down 0.83%) edged lower. Hindalco Industries rose 0.28%.

Pharma major Cipla rose 1.21%. With reference to the earlier letter dated 21 May 2015, Cipla during market hours today, 24 July 2015 said that that Cipla (EU) has re-negotiated the terms of the agreement and have entered into an amendment for upfront payment of the consideration amount instead of payment in tranches over a period of five years. Accordingly, the revised consideration is approx. $26 million payable upfront upon completion of conditions precedent.

IT stocks were mixed. Tech Mahindra rose 2.45%. Infosys fell 0.81%.

TCS rose 0.48%. TCS today, 24 July 2015 announced a new global partnership with 1Q, a leading analytics software company, to enable clients to purchase and implement FICO solutions through TCS. This alliance will accelerate the development of innovative decision centric applications, enable faster turnaround for implementation and increase user productivity for agile digital transformation programs. The announcement was made after market hours today, 24 July 2015.

TCS and FICO will develop a Center of Solutions Excellence (COSE) across TCS' global delivery centers to allow installation of FICO solutions provided to TCS. The COSE will provide an environment for training, application development, integration practices, delivery resources, testing, support, and maintenance.
Wipro dropped 3.7% after the company reported a muted 1.1% growth in IT services revenue in dollar terms on sequential basis in Q1 June 2015. Wipro announced Q1 June 2015 results after market hours yesterday, 23 July 2015.

Wipro's consolidated net profit rose 4% to Rs 2190 crore on 10% in increase in gross revenue to Rs 12240 crore in Q1 June 2015 over Q1 June 2014. The results are as per International Financial Reporting Standards (IFRS). IT services revenue rose 1.1% to $1,794.1 million in Q1 June 2015 over Q4 March 2015. Wipro expects revenue from its IT services business to be in the range of $1,821 million to $1,857 million in Q2 September 2015. Wipro added 36 new customers in Q1 June 2015.

Commenting on the company's first quarter results, T K Kurien, Member of the Board & Chief Executive Officer of Wipro said that Wipro continued to win deals which deploy Wipro HOLMES, which is its Artificial Intelligence platform to drive down costs for customers. Designit's design capabilities in synergy with Wipro's scale in technology services will position Wipro uniquely in Digital, as an integrated design & technology player, Kurien said. It may be recalled that Wipro had early this month announced the acquisition of Designit, one of the largest independent global strategic design firms.

HCL Technologies slipped 1.44%. Global IT leaders CSC and HCL Technologies today, 24 July 2015 announced the signing of a definitive joint venture agreement to form a banking software and services company. The joint venture will invest in platform modernization and product functionality enhancement and will capitalize on the proven capabilities of both companies in addressing the multi-billion-dollar, global core banking software market. The announcement was made before market hours today, 24 July 2015.

The jointly owned entity will be able to draw on the collective vision and expertise of CSC and HCL to capitalize on the huge opportunity the market offers. The combination of the unique assets from both companies will allow banking customers to better seize on the power of risk-managed modernization and take advantage of a more scalable global services footprint.

Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 23 July 2015, that the Southwest Monsoon has been vigorous over Saurashtra, Kutch & Diu and active over Gangetic West Bengal, Odisha, Jharkhand, Gujarat region, Vidarbha and Chhattisgarh during past 24 hours ending until 8:30 IST.

For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 23 July 2015. Region wise, the rainfall was 13% below the LPA in South Peninsula, 12% below the LPA in Central India, 6% below the LPA in East & Northeast India and 6% above the LPA in Northwest India until 23 July 2015.

The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Meanwhile, the India Meteorological Department (IMD) said in its weekly monsoon report issued yesterday, 23 July 2015, that the rainfall was below normal by 12% over the country as a whole during the period from 16 July 2015 to 22 July 2015. Region wise, the rainfall was 20% below the Long Period Average (LPA) in Northwest India, 12% below the LPA in Central India, 11% below the LPA in South Peninsula and 3% below the LPA in East & Northeast India during that period.

The IMD expects rainfall to be above normal over northwest & central parts of the country on many days during the period from 23 July 2015 to 29 July 2015. Near normal rainfall is likely over eastern & northeastern parts of the country during 23 to 29 July 2015. Rainfall is likely to be below normal over interior peninsula till 4 August 2015, as per IMD's Extended Range Forecast.

Meanwhile, the Ministry of Water Resources said today, 24 July 2015, that water storage available in 91 important reservoirs of the country as on 16 July 2015 was 58.96 billion cubic metres (BCM) which is 37% of total storage capacity of these reservoirs. This storage is 115% of the storage of corresponding period of last year and 108% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years. The total storage capacity of these 91 reservoirs is 157.799 BCM which is about 62% of the total storage capacity of 253.388 BCM which is estimated to have been created in the country.

In overseas markets, European stocks edged higher today, 24 July 2015 following further evidence of a modest recovery in the eurozone economy. Key indices in France and UK rose 0.12% to 0.36%. In Germany, the DAX index shed 0.03%.

Preliminary figures today, 24 July 2015 showed the pace of eurozone business activity growth slowed marginally in July, but output remained close to four-year highs despite the ongoing Greek crisis. The Markit Flash Eurozone Purchasing Managers Index was 53.7 in July, down from 54.2 in June. A reading above 50 indicates expansion.

Greece yesterday, 23 July 2015 reportedly moved another step closer to receiving its third bailout package, after the country's parliament approved a second set of economic overhauls required by lenders. The legislative approval is a precondition by the Greece's international creditors for starting official negotiations on the 86-billion-euro ($94.51 billion) aid program, aimed at helping the country stave off a debt default and get back on an economic-growth track.

Meanwhile, officials from the lender institutions the European Commission, the European Central Bank and the International Monetary Fund (formerly known as the Troika) will be in Athens today, 24 July 2015 to open detailed discussions with the Greek government.

Asian stocks edged lower today, 24 July 2015 after a survey of Chinese manufacturing activity was weaker than expected, while US jobs data underpinned the dollar as it bolstered bets that the US Federal Reserve is on track to hike interest rates later this year. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea fell by 0.11% to 0.93%.

In Mainland China, the Shanghai Composite index reversed gains, falling 1.29%. Hong Kong's Hang Seng index dropped 1.06%.

China's factory sector contracted by the most in 15 months in July as shrinking orders depressed output, a preliminary private survey showed today, 24 July 2015. The flash Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) dropped to 48.2, the lowest reading since April last year. It was the fifth straight month below 50, the level which separates contraction from expansion. June's final reading was 49.4. China's Caixin Media Co is publishing the PMI for the first time this month after replacing HSBC as the sponsor of the survey.

The flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 51.4 in July from a final 50.1 in June, suggesting economic growth is picking up after an expected slump in the second quarter.

US equities edged lower for the third consecutive session yesterday, 23 July 2015 as weak earnings from industrial bellwethers weighed on the market.

In US economic data, the weekly employment data yesterday, 23 July 2015 showed that initial jobless claims declined 26,000 to a seasonally-adjusted 255,000, the lowest since November 1973.