Jewellery stocks sparkle in a subdued market; Gold at 5-year low

Rollout of the GST and passage of the land acquisition bill in the monsoon session of Parliament will be watched keenly

Markets continue to trade in the negative territory on profit booking at higher levels amid weak global cues even as jewellery stocks surged amid easing gold prices. Meanwhile, markets participants will watch out for the rollout of the GST and passage of the land acquisition bill in the monsoon session of the Parliament due to commence tomorrow.

At 11:40 AM, the Sensex was at 28,366, down 98 points while the Nifty was at 8,575, down 35 points. In the broader market, BSE Midcap and Smallcap indices are up 0.2% each. The market breadth is positive with 1,336 advances versus 1,033 declines on the BSE.

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. 

RUPEE

The rupee has weakened by 8 paise to 63.55 against the US dollar as the American currency strengthened on expectations of interest rate hike by US Fed by the end of the year.

GOLD

Gold has dropped 4% to its lowest in more than five years today as sellers in top consumer China sold off the metal on mounting expectations of a US rate hike by the end of the year.

RESULTS CAPSULE

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

STOCK TRENDS

On thesectoral front, BSE Consumer Durables, Oil & Gas and Healthcare indices are trading higher up to 0.5%. However, BSE Bankex and Realty indices are trading lower by 0.7% and 1% each.

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. The company is in talks to launch 4G smartphones, the battle has begun between the country’s major telecom operators.

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%.

Gold stocks are gaining across the board. Gitanjali Gems, TBZ, Shree Ganesh Jewellery, Renaissance Jewellery, PC Jeweller and Rajesh Exports have surged between 2-15%.

Financials are trading weak across the exchange as the RBI is expected to keep the interest rate unchanged in its next fiscal policy review for 2015-16 in the view of sub-normal monsoons, weak IIP numbers for May and the increase in retail inflation data for June.