– Indian market indices edged lower level, witnessing an unstable trading session. Benchmark indices trimmed (reduced) losses soon after hitting fresh Intraday low in late trade. Strength in the dollar has raised concerns that it could increase capital outflows from emerging markets accompanied India. The market breadth, indicating the overall health of the market was still positive. Steel stocks went up over the slide in the global iron ore prices. Shares of additional metal companies were assorted. JSW Steel Ltd. rose after the company reported good growth rate of production in August. Most auto stocks declined. European stocks were mixed before US jobs data and cease fire talks in Ukraine. Asian stocks fell down as investors expected the powerful US non-farm payroll data for August.
– India’s consumer price inflation may be below its peak, but is still high due to provide a side constraint, while food prices stay another concern, says Rajan. Rate sensitive stocks like Auto, Realty, Banking & Finance likely to trade lower to flat as RBI has hinted of maintaining the status quo (same interest rate) on rate side.
– JSW steel is planning to buy Italy’s Ilva steel plant, according to union sources. Ilva is the largest steel maker in Europe from out capacity perspective. It supplies its product to the major car companies in there. The revenues are likely to boost up. We should wait for some confirmation from the company.
– Gold and Silver prices faded in Asia and Europe over ECB’s rate cut. The rate cut will strengthen the USD against Euro and less investors would not like to go for physical demand. Overnight, Gold prices moved lower over upbeat US service sector data which went up at its highest since 2005.
– Nickel could go up over shortage of supplies as the Philippine government banned its export. Copper is trading near its resistance level above which buyers could come in.
– Page Industries, Future Retail, Union Bank Profit up. Whereas Reliance Capital, USL profit weigh down. Auto ancillary, OMC’s are still upbeat. Expect 10% growth in FY15, like FMCG, Auto, OMC’s, Pvt Banks, says LIC.