Market may open with decent gains

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 34.60 points at the opening bell as most Asian stocks gained.

In overseas stock markets, Asian shares rose as the chances of a US interest-rate increase diminished, after the nation's economic growth for the second quarter came in below expectations. The odds of a September US interest rate rise dropped to 12% from 18%, Fed Funds futures data showed, after the US economy grew at just 1.2% in the second quarter from a year earlier, well below estimates, data showed on Friday, 29 July 2016.

 

China's official nonmanufacturing purchasing managers' index, a gauge of activity outside factory floors, climbed to 53.9 in July from 53.7 in June, the National Bureau of Statistics said today, 1 August 2016. A reading above 50 indicates an expansion, while a figure below that level indicates a contraction. China's official manufacturing purchasing managers' index slipped below 50 in July, indicating a contraction in the nation's factory activity for the first time in five months, official data showed today, 1 August 2016. The index fell to 4 9.9 in July from 50.0 a month ago.

Strong earnings from Amazon and Google parent Alphabet lifted US stocks mostly higher on Friday, 29 July 2016, countering a disappointing report on second-quarter US economic growth.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 14.02 crore on Friday, 29 July 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 148.34 crore on Friday, 29 July 2016, as per provisional data.

Among corporate news, ICICI Bank's net profit fell 24.99% to Rs 2232.35 crore on 6.06% increase in total income to Rs 16759.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016.

The bank's gross non-performing assets (NPAs) stood at Rs 27193.58 crore as on 30 June 2016 as against Rs 26221.25 crore as on 31 March 2016 and Rs 15137.61 crore as on 30 June 2015. The ratio of gross NPAs to gross advances stood at 5.87% as on 30 June 2016 as against 5.82% as on 31 March 2016 and 3.68% as on 30 June 2015. The ratio of net NPAs to net advances stood at 3.35% as on 30 June 2016 as against 2.98% as on 31 March 2016 and 1.58% as on 30 June 2015.

The bank's provisions and contingencies (excluding tax provisions) rose 163.19% to Rs 2514.52 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank was at 57.1% as on 30 June 2016.

The bank said it continued to achieve robust growth in current and savings account (CASA) deposits. ICICI Bank's total CASA deposits increased by 18% to Rs 191348 crore as on 30 June 2016 over 30 June 2015. The bank's CASA ratio was 45.1% at 30 June 2016 compared to 45.8% at 31 March 2016 and 44.1% at 30 June 2015. The average CASA ratio was at 41.7% in Q1 June 2016 compared to 40.5% in Q4 March 2016 and 41.1% in Q1 June 2015. Total deposits increased by 15% to Rs 424086 crore at 30 June 2016 over 30 June 2015. The bank had a network of 4,451 branches and 14,073 ATMs at 30 June 2016.

On a consolidated basis, the bank's net profit fell 22.17% to Rs 2515.85 crore on 9.03% increase in total income to Rs 24483.75 crore in Q1 June 2016 over Q1 June 2015.

Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for June 2016 from today, 1 August 2016.

L&T's consolidated net profit rose 46% to Rs 610 crore on 9.1% growth in gross revenue to Rs 21874 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016. L&T's consolidated order book increased by 8% on year-on-year (YoY) basis to Rs 2.57 lakh crore as on 30 June 2016. International order book constituted 29% of the total order book.

On future business outlook, L&T said that on the international front, the company will continue to target select prospects in the space of core infrastructure and oil & gas sector in the Middle East, Africa and other neighboring countries. The company said it has recently finalised its strategic plan for five years with a focus on profitable growth. L&T said it remains well placed to benefit from emerging opportunities with its execution capabilities and leadership position in various sectors.

NTPC said that its board approved issuing secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures (bonds/NCDs) upto Rs 15000 crore. The announcement was made after market hours on Friday, 29 July 2016.

Among domestic macro economic data, Markit Economics will announce the India Manufacturing PMI for July 2016 today, 1 August 2016.

Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the government on Friday, 29 July 2016, listed the much-awaited GST bill for consideration and passage in Rajya Sabha's agenda for this week. Minister of state for parliamentary affairs Mukhtar Abbas Naqvi, while making a statement regarding government business for the week starting 1 August in the Upper House, reportedly said that the GST constitutional amendment bill will be taken up for consideration and passage in the Rajya Sabha. The government is keen to get the GST Bill approved during the Monsoon Session of Parliament ending on 12 August 2016.

The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax.

Losses in telecom stocks and index heavyweights HDFC and Reliance Industries led losses for key benchmark indices on the last trading session of the week on Friday, 29 July 2016. The Sensex lost 156.76 points or 0.56% to settle at 28,051.86, its lowest closing level since 27 July 2016.

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