Pre-market: Stock specific action to continue

Asian Paints, Axis Bank, CEAT, Hexaware Technologies, ING Vysya Bank to announce their June quarter results today

It could be yet another range-bound day for the markets as they perform in line with their global peers on rising geopolitical concerns. However, stock-specific action is likely to continue as the markets react to corporate results.

Asian stocks edged up in early trading on Tuesday, though the upside was capped by lingering concerns about the Ukraine crisis and violence in Gaza which pressured US yields and the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan was up slightly in early trade, while Japan's Nikkei stock average rose 0.6%.

US shares slumped overnight, as the rising global tensions offset some upbeat US earnings. So far this reporting period, 66% of S&P 500 companies have topped Wall Street's profit expectations, according to Thomson Reuters data, above the 63% average since 1994.

Back home, Idea Cellular is likely to be in focus today. India’s third largest telecom operator by subscriber base reported a 57% jump in profit after tax at Rs 728 crore in the quarter ended June, beating analysts’ estimates.

At 8:10am Indian Standard Time, the SGX Nifty was trading at 7,709 levels – up 0.4%, or 29 points.

F&O WATCH

Nifty (July) futures' premium decreased from 5.45 points to 2.00 points on Monday. The total open interest in the market was Rs 2,07,433 crore and Rs2,098 crore was added in open interest. Nifty call options added 2.44 lakh shares in open interest whereas put options added 8.06 lakh shares in open interest.

Around 2.49 lakh shares were added in open interest with an increase in prices, indicating market participants built long positions for the fifth consecutive day. On the options front, the implied volatility decreased marginally by 100-200 basis points.

STOCKS IN FOCUS

NHPC could also see some action on reports that the Disinvestment Department will soon appoint three merchant bankers for selling 11.36% stake sale in the company.

Pharma player Indoco Remedies on Monday said it has received a nod from the US Food and Drug Administration (FDA) for two of its facilities in Goa. This could see the stock come back to limelight in trade today.

Bajaj Finance Ltd has decided to exit the construction equipment (CE) financing business due to muted profitability prospects.

Financial Technologies could remain in focus on reports that it plans to sell 24.89% stake in IEX, appoints Axis Capital to look for a buyer.

In important results today, Asian Paints, Axis Bank, CEAT, Hexaware Technologies, ING Vysya Bank and Thermax are likely to announce their June quarter numbers.