Pre Session- Soft opening likely at Dalal Street on earnings caution
07/07/2015 08:30

Indian equity benchmarks are set to open little changed today as traders resort to profit booking ahead of the start of the corporate earnings season while eyeing events surrounding Greece with the fallout of the contagion threatening to spillover across global financial markets as bets of Grexit rise with the Mediterranean nation struggling to carve out a deal with its creditors to remain afloat. The Q1 FY 2015-16 earnings season begins on Thursday with TCS, the country’s biggest software services exporter set to unveil its June quarter report card. However, analysts have warned that April-June 2015 may have been yet another disappointing quarter for India Inc. with earnings growth likely to have remained lackluster without a meaningful pickup in corporate investment, prompting a cautious approach by investors at Dalal Street. Muted trade in the SGX CNX Nifty Index futures for July delivery which fell 0.02 per cent at 8,532 at 10:35 am Singapore time, signals a subdued opening at Dalal Street on Tuesday. Meanwhile, Asian markets were trading mixed tracking a bearish finish at Wall Street overnight as traders closely watched the EU’s next move after Greece out -rightly rejected demands for more spending cuts and tax hikes tied to fresh rescue aid. Euro area finance ministers and leaders will hold an emergency meeting on Tuesday with German Chancellor Angela Merkel warning that time is running out for Greece to reach a plan to remain a part of the euro while the European Central Bank (ECB) tightened liquidity norms for the cash-strapped Greek banking and financial system. China’s Shanghai Composite resumed a sell-off despite government measures to restore confidence in the stock market including suspension of new share sales and pledge by mutual funds to increase investment in their stock funds. Hang Seng and Japan’s Nikkei 255 rebounded strongly from Monday’s sell-off as a pickup in US services activity in June signaled a strengthening recovery in the world’s biggest economy. The ISM US Non-Manufacturing PMI climbed to 56 in June from 55.7 in May, with a reading above 50 signaling expansion.

The 30-share Sensex rose to the highest level in 12 weeks on Monday, up by 115.97 points or by 0.41 per cent to close at 28,208.76 as investors cast aside Greek concerns even as 61 per cent of Greeks voted against further austerity measures needed to secure new European rescue aid, putting the country on the brink of a financial collapse. However, the impact of the Greek crisis on India may be limited to fluctuations in the rupee-dollar exchange rates. Further, India’s robust forex reserves kitty is expected to cushion the impact of any volatility in foreign capital flows due to global headwinds, supporting sentiment at Dalal Street.

Top traded Volumes on NSE Nifty – State Bank of India 9458200.00, ICICI Bank Ltd. 7783837.00, Vedanta Ltd. 5858932.00, Axis Bank Ltd. 4973984.00 and Coal India Ltd. 4931673.00.

On BSE, total number of shares traded was 28.99 Crore and total turnover stood at Rs. 2769.84 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 774805 with a total turnover of Rs. 20455.56 Crore. Along with this total number of contracts traded in stock futures were 842913 with a total turnover of Rs. 23790.69 Crore. Total numbers of contracts for index options were 7125754 with a total turnover of Rs. 160307.07 Crore and total numbers of contracts for stock options were 318183 with a total turnover of Rs. 9182.33 Crore.

The FIIs on 06/07/2015 stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 2576.49 Crore and gross debt purchased stood at Rs. 724.10 Crore, while the gross equity sold stood at Rs. 2223.43 Crore and gross debt sold stood at Rs. 420.15 Crore. Therefore, the net investment of equity and debt reported were Rs. 353.06 Crore and Rs. 303.95 Crore.