Nifty above 5400 on July F&O expiry

Today's major news

Food inflation eases to 9.67%

Oil & Natural Gas Corporation's Q1 net profit slips 24% yoy; the stock closes 1.07% lower

Steel Authority of India’s Q1 net profit dips 12% yoy; the stock ends 1.61% down



Global signals

The European shares rose on Thursday, boosted by strong corporate earnings. FTSE 100 was trading higher by 0.73%.

All the major Asian indices closed in the positive territory except Kospi and Nikkei. SGX Nifty closed 15 points higher.

The US stock index futures pointed firm opening at the Wall Street on Thursday ahead of jobless claims data for week ended July 24, 2010. The investors are eagerly waiting for results of the companies like Moody’s Corp, Colgate- Palmolive, Kellogg Co, Mcafee, MetLife and Motorola.

Indian indices

The Indian bourses closed the July F&O expiry day marginally higher. The markets witnessed a listless session with mild volatility. The inflation fell in single digit to 9.67% for the week ended July 17, 2010 from 12.47% seen in the previous week lifting the market sentiments. The revival of monsoons in July also led to optimism. Positive opening of the European markets and recovery in the Asian indices boosted the sentiments further, with the Nifty regaining significant levels of 5400.

The Sensex started the day flat at 17962 mere four points higher. The index turned negative and traded in a narrow range for most part of the morning session owing to subdued Asian cues to hit the day’s low of 17903. The Sensex pared all its losses and turned green in the afternoon session owing to easing inflation. In the late trade, the index extended its gains to hit the day’s high of 18013 on account of positive global cues.

At closing bell, the Sensex ended below 18000 levels at 17992, 35 points higher. The Nifty closed above 5400 levels at 5409, 11 points up.

Market Outlook: US economic data to be announced today. Weekly jobless claims while earnings releases include Amgen, Barrick Gold, Colgate-Palmolive, Exxon, Goodyear and Potash and international highlights include Shell, Sony, Vale and Volkswagon.

Market sentiment

The market breadth was marginally negative as declining stocks outdid the advancing ones. Of the 3,018 shares traded on the BSE, 1,476 shares declined whereas 1,410 shares advanced. Hundred and thirty-two shares closed unchanged.

Sectoral & stock screening

Of the 13 sectoral indices, only five sectors closed in the green. BSE Oil & Gas was down by 0.76%, followed by BSE TECK that slid by 0.42%. On the flip side, BSE PSU surged the most with gains of 1.62% and BSE Bankex that gained by 0.92%.

In 'A' group stocks, the top-3 gainers were - MMTC shot up by 21.56% on strong Q1 earnings, Petronet LNG surged by 10.60% and Tata Teleservices Maharashtra Ltd (TTML) rose by 6.79% on good Q1 numbers.

The top-3 losers - Tata Communications fell by 5.04% on poor Q1 earnings, Suzlon Energy slid by 3.51% and Welspun Corp shed 2.90%.

Viewing volumes

Industrial finance company - IFCI was the most actively traded share with over 1.42 crore shares changing hands on the BSE, followed by PSU firm - Petronet LNG (0.60 crore shares), Tata Group's telecom firm - TTML (0.56 crore shares), wind turbine major - Suzlon Energy (0.30 crore shares) and India's second largest developer - Unitech (0.21 crore shares).