 "Markets have a muted start; Nifty hovers at 8,550")
At 9.40am, the Sensex was at 28,151, higher by 38 points or 0.1% and Nifty was at 8,543, up 10 points. The broader markets are outperforming their largecap peers; the midcap and smallcap indices have advanced by 0.6% each at 11,348 and 11,894 respectively. The market breadth is strong, with 1,244 advancing stocks as against 522 declines.
The BSE Sensex had soared by more than 400 points to reclaim the 28,000 mark and Nifty had settled above 8,500 at the start of the August derivatives series on Friday due to capital infusion in banks and expectations of a rate cut by the apex bank.
The trading day is likely to be volatile ahead of the RBI's third bi-monthly monetary policy review scheduled on August 4, 2015. The central bank had cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% at its monetary policy review on June 2, 2015. A reduction in the interest rates could act as a short-term trigger for the markets in general. The market participants would also be keenly watching the proceedings in Parliament for any developments on the GST front.
"The Sensex needs to hold above 28,000 levels for the bulls to take the index towards 28,250 and 28,500 levels. However, if it fails to hold its psychological 28,000 mark, then bears may drag the index towards 27,750 and 27,500 levels", according to a morning market report by Anandrathi Technicals.
Among key corporate earnings, Berger Paints India, Bharat Forge, HCL Technologies and Hero MotoCorp are scheduled to announce their Q1 results during the day. The shares of automobile companies are also likely to be in focus amid monthly sales data announcement.
RUPEE
The rupee has recovered in the early trade on Monday, opening higher by 12 paise at 64.01 per dollar as against 64.13 on Friday.
GLOBAL MARKETS
Asian markets were trading lower tracking weakness in global markets. Japan's Nikkei was down 0.5% while Shanghai Composite was down 1.5% and Hang Seng eased nearly 1% while Straits Times was trading marginally lower.
US stocks had ended lower on Friday amid weak earnings from oil majors such as ExxonMobil and Chevron and further easing of crude oil prices. The Dow Jones had ended down 0.3% and S&P 500 had ended lower by 0.2%.
SECTORS AND STOCKS
Select auto stocks are trading firm amid monthly sales data announcement. Maruti Suzuki Maruti Suzuki has gained about 2% after the country’s largest passenger vehicle manufacturer reported a 22.5% growth in domestic sales for July. Tata Motors has also strengthened by 1%. Financial stocks have also taken off from where they left on Friday, with SBI, ICICI Bank and HDFC gaining 1-2% each.
On the other hand, L&T has weakened by more than 2% to top the loser's list on the BSE on weak earnings. The company's consolidated net profit declined by 37% to Rs 606 crore, against Rs 967 crore in the corresponding period last year.
Hero Motocorp has weakened by 1% ahead of its first quarter earnings today. ONGC, Gail and Lupin are the other major losers on the BSE.