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Domestic equity benchmarks BSE Sensex and NSE Nifty ended registering minor losses by the closing bell on Thursday, backed by high FII sell-off, along with muted corporate earning numbers, ahead of July F&O expiry.
"The recent decline is reflecting participants' disappointment to the earnings season so far. Markets were already struggling with a lot of domestic and global issues and lack of support from the earnings front has further deteriorated the sentiment," quoted Ajit Mishra Vice President, Research, Religare Broking Ltd.
Equity bourses opened on a bullish note, with benchmark BSE Sensex rallying over 300 points in early trade, although erased gains and traded choppy by the afternoon session.
"Firm global markets combined with upbeat local cues triggered a strong start, but it couldn't sustain for long and gradually drifted lower as the session progressed," Ajit Mishra added.
On the currency front, the Indian rupee opened marginally higher against the US dollar in early trade on Thursday amid positive opening in the domestic equity market. However, by the afternoon session, the domestic currency declined to 69.035 against the US dollar amid high foreign fund outflows and rising crude oil prices that weighed on the domestic currency.
"While 10-year yield inched higher and the rupee weakened due to lack of clarity over India's sovereign bond issuance and likely delay in Jalan report," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
In a separate development, Reuters poll of economists suggested that RBI is likely to cut interest rates by 25 basis points to 5.50% at the August 7 MPC meeting. This cut will make RBI the most aggressive amongst dovish central banks in Asia.
Non-residents have pulled out about $1.5 billion from Indian equities so far in July, data from the Institute of International Finance showed on Wednesday.
In other stock-relative news, crisis-hit Dewan Housing Finance Corporation Limited (DHFL) has again defaulted on bond repayments worth Rs 8.07 crore.
On the contrary, Reliance Capital announced that it cleared an outstanding Commercial Paper amounting Rs 75 crore on July 24.
Maruti Suzuki stock price fell to its 52-week low of Rs 5,701, despite the vehicle manufacturer denying the news report captioning "Suzuki Gujrat plant to drive fewer cars" on a reply to clarification notice by the exchanges.
The stock price of Bajaj Finance fell over 5% intraday after the company posted Q1 net profit of Rs 1,195 crore as compared to Rs 836 crore recorded in the corresponding quarter last year.
Tata Motors, India's biggest automaker by revenue and the top Nifty loser today, posted quarterly figures after trading hours, reporting Q1 net loss at Rs 3,679 crore and 7.7% fall in revenue year-on-year, impacted by demand slowdown, higher axle loads, liquidity stress, low freight availability for cargo operators, as per company's investor presentation.
Bank of Baroda, Biocon, Bajaj Finserv, Tata Steel BSL, Tata Coffee, Gruh Finance, Jubilant Industries, Foseco India, Persistent Systems, Taj GVK Hotels, PVR, MphasiS, Central Depository Services (India), South Indian Bank are among the significant listed companies due to post their quarterly results today.
On the global front, U.S. equity futures traded higher on Thursday amid corporate earnings, accompanying European stocks that climbed ahead of a European Central Bank meeting that could signal monetary easing as growth in the currency zone falters. Similarly, Asian indices like the Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the green in their respective closing sessions.
Major global cues that are going to dictate terms to the domestic market include the crucial European Central Bank (ECB) policy statement to be released later on Thursday, US second-quarter preliminary GDP print on Friday and the Federal Open Market Committee (FOMC) meeting on July 31.
Another major event that market participants are betting on is the long-awaited meet between the US and China for trade negotiations in Shanghai on Tuesday and Wednesday next week.
Brent crude futures, the global oil benchmark, started at $63.30 per barrel and later rose to trade at $63.88 per barrel.
Edited by Rupa Burman RoyMore on Market News