Markets remain weak; Infosys, Axis Bank down over 1%

Benchmark indices continue to trade weak dragged down by index heavyweights HDFC and Tata Motors and financial shares.

At 10:50 AM, the BSE Sensex was at 28,405, down 58 points while the CNX Nifty was at 8,583, down 27 points.

The on-going result season will have an important bearing on the market movement during the day and the week ahead, given that index heavyweights such as Infosys, HDFC Bank, Hindustan Unilever, Bajaj Auto, Wipro, Axis Bank and Reliance Industries are to announce their earnings during the week.

Also, the monsoon session that begins today in the Parliament will also be eyed.

The top losers on the Sensex are Tata Motors, HDFC, BHEL, Infosys and Axis Bank, down between 0.8-1.3% each on the Sensex

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(updated 9:40 AM)

Markets have commenced the week on a flat note owing to the mixed trends in the Asian markets.

At 9:40 AM, the BSE Sensex was at 28,408, down 55 points while the CNX Nifty was at 8,590, down 20 points.

The broader markets are, however, outperforming their larger peers with BSE Midcap and Smallcap indices up by 0.2% and 0.1% respectively. The market breadth is positive with 1,084 advances against 682 declines on the BSE.

The Sensex had risen 2.9% and Nifty had gained 3% in the bygone week.

The on-going result season will have an important bearing on the market movement during the day and the week ahead, given that index heavyweights such as Infosys, HDFC Bank, Hindustan Unilever, Bajaj Auto, Wipro, Axis Bank and Reliance Industries are to announce their earnings during the week.

Also, the monsoon session of the Parliament that begins on July 21 will also be eyed.

Meanwhile, the Indian rupee was at 63.54, weaker by 7 paise against the US Dollar.

“CNX Nifty opened positive and witnessed a dizzy session above 8600 levels. It has been making higher highs – higher lows from last six consecutive days and holding the gains above 200 DMA. Now, it has to hold above 8560 zones to witness a buying interest towards 8650 and 8680 levels. However, if it fails to hold 8520 zones then weakness may be seen towards next major support of 8480 and 8440 levels. Traders are required to be cautious as volatility is likely to remain ahead of the Quarterly results season,” said a note from Anandrathi Technicals

RESULTS CALENDAR

Ultratech Cements, LIC Housing Finance, Kajaria Ceramics, and Welspun India are expected to announce their quarterly earnings for the period April-June today.

ECONOMY

The monsoon session of Parliament will begin on July 21. The government is expected to introduce 8 new bills along with 11 pending bills that include the Land Bill as well as the GST bill.

Further, the progress of monsoons will be closely watched by the market participants. The India Meteorological Department (IMD) has said that the total rainfall for the country so far has been 6% below the Long Period Average (LPA).

The uncertainty over monsoon, the Index of industrial Production (IIP) for May and the retail inflation data for June might push the Reserve Bank of India (RBI) to keep the interest rates unchanged in its next bi-monthly policy review meeting in August.

GLOBAL MARKETS

Japan's Nikkei was trading 0.25% higher at 20,650 and Hang Seng index was trading 0.2% higher at 25,464.

On Friday, the Nasdaq composite had pushed further into record territory, gaining 46 points, or 0.5%, at 5,210 on strong results from Google. The Dow Jones however was down 33 points, or 0.1% at 18,086.

Currently, the Singapore SGX Nifty was up 4 points at 8,636.

SECTORS & STOCKS

Sectorally, BSE IT, Consumer Durables and Bankex indices are trading lower between 0.3-0.6%

Axis Bank, Wipro and Infosys are down by 1% each ahead of their quarterly results due later this week.

The HDFC is planning to raise up to Rs 85,000 crore this fiscal and for the same the company will be seeking shareholders nod in the Annual General Meeting (AGM) to be held later this month. The stock is down by 1%

Bharti Airtel has gained 1% and is the highest gainer on the Sensex.

HUL has advanced 0.3% ahead of its result while Bajaj Auto is trading flat. Other notable gainers on the Sensex are HDFC Bank, Hindalco, Tata Steel, all up between 0.3-0.5%.

On the flip side, SBI, ITC, Tata Motors, Coal India have lost between 0.3-0.6% on the Sensex.

On the flip side, SBI, ITC, Tata Motors, Coal India have lost between 0.3-0.6% on the Sensex.

Among other shares, ACC was lower by 3% on the NSE in early morning trades after the company reported a 45% year-on-year (YoY) decline in its consolidated net profit at Rs 133 crore for the second quarter ended June 30 (Q2), on account of subdued demand.

Shares of Federal Bank slipped nearly 10% on the NSE in early morning trades, after the bank reported a 36% year-on-year (YoY) decline in its standalone net profit at Rs 141 crore due to higher provisions for non-performing assets of a large customer.


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