Nifty may rally, if it closes above 8,060, while Bank Nifty may rally on a close above 17,600
We had mentioned in Monday’s closing report that NSE’s CNX Nifty may remain weak and for it to reverse the downtrend, it has to close above 8,100. On Tuesday, the 50-stock index traded below this level, moving in a narrow range for the entire session.
The S&P BSE Sensex opened at 26,510, while Nifty opened at 8,027. Sensex moved in the range of 26,438 and 26,605, while Nifty moved between 8,005 and 8,057. Sensex closed at 26,481 (down 42 points or 0.16%). Nifty closed at 8,022 (down 22 points or 0.27%).
Bank Nifty opened at 17,413 and moved in the range of 17,393 and 17,561. It closed 17,489.90 (up 57 points or 0.33%). NSE recorded a volume of 68.79 crore shares. India VIX fell 4.63% to close at 18.0100.
Railway Minister Suresh Prabhu has said that the government will invest Rs8.5 lakh crore over the next five years to develop India’s railway services. This is expected to kickstart related manufacturing.
The Reserve Bank of India (RBI) on Monday issued a notification allowing banks to seize control of a company if a debt restructuring fails and sell their stake in the defaulting firm to recover dues. However, this has hardly any impact on banking stocks.
Coming back to stock markets, KEC International rose 16.83% to close at Rs125.65 on the BSE. It was the top gainer in ‘A’ group on the BSE. It announced order wins worth over Rs1,000 crore. Its transmission and distribution (T&D) business secured total orders worth Rs613 crore while its railways business bagged orders worth Rs288 crore for work in Madhya Pradesh from Rail Vikas Nigam. The cables business got orders worth Rs101 crore.
Apollo Tyres fell 8.03% to close at Rs160.90 on the BSE. It was the top loser in ‘A’ group on the BSE. Vedanta rose 3.11% to close at Rs182.55 on the BSE. It was the top gainer in the Sensex 30 pack. Vedanta Resources Plc signalled on Tuesday that it is considering a merger of two or more of its Indian subsidiaries, namely Vedanta and Cairn India, which could provide the debt-burdened units access to cash from other operations.
Cipla fell 3.35% to close at Rs593.50 on the BSE. It was the top loser in the Sensex 30 pack. Mylan launched generic MDI combination inhaler. The product is deemed bioequivalent to GSK's Seretide inhaler and this is the first generic version of GSK's Seretide Evohaler in UK. According to analysts Cipla had launched this product in in certain EU (non-UK) territories in 2014 and was expected Cipla to be the first company to launch its product in United Kingdom. The launch of first generic version by Mylan is negative for Cipla.
On Monday, US indices closed in red. Concern that the Fed could hike rates for the first time since 2006 as soon as September pulled the US indices lower.
Asian indices closed in the red. Jakarta Composite (2.30%) was the top loser. China's consumer inflation eased in May, while producer prices fell for the 38th straight month, raising concerns about growing deflationary pressures as the economy cools. The producer price index fell 4.6%, the National Bureau of Statistics said on Tuesday, flat against the previous month but missing market expectations for a slide of 4.5%.
European indices were trading in the red.
US Futures were trading marginally lower.
HSBC will cut almost 50,000 jobs from its payroll, take an axe to its investment bank and shrink its risk-weighted assets by $290 billion in an effort to improve its sluggish performance, Europe's biggest bank said on Tuesday.