Nifty may slip below 5100, but keep long positions: Sukhani

Technical analyst Sudarshan Sukhani of s2analytics.com expects Nifty to slip below 5,100 levels today. However, he hopes that long positions taken yesterday would be maintained since Nifty has a strong support at 5,100 level.

It was completely listless trade on Wednesday as Nifty remained in a narrow range due to lack of global and local cues. It gained 10.25 points to end 5,128.20.

"At this point, having a short position especially at a strong support level is not something I am keen at. I am maintaining small volumes in my long positions," he elaborated.

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Weak monsoon to impact consumption, FMCG names: Nine Rivers

Apart from the weak data emerging from the eurozone, Indian equities have domestic headwinds to contend with as well. Lack of government action, sluggish growth and high inflation has plagued the market for the past many months, but now a more serious issue has cropped up.

Weak monsoon this year has hit sentiment in the country, increasing worries about the country’s economic development. The Indian Meteorological Department has said that rain deficit average is 22%, but some parts of the country are approaching drought like conditions.

This situation will pose as a hurdle for the market going forward, says Sangeeta Purushottam, managing director of Nine Rivers Capital. In an interview to CNBC-TV18, she says that the street cannot shrug this off because of the impact that it has on the economy.

“I think at the economic level, a poor monsoon will impact consumption and the FMCG pack could see down trading happening,” she said, adding that “whatever is linked to monsoon, be it tractors or be it fertilizers etc, will be pockets which will get affected.”

However, from the FMCG space, Purushottam is positive on HUL for the near-term. Valuations are stretched, but she believes this will sustain because of the company’s earnings growth. “Where it gets a little dangerous is if you are buying it with a long-term perspective, because then you have very little room for error here,” she said.

She is also positive on HCL Tech , but has a bearish outlook for Maruti .

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Monsoon situation almost drought-like: Ashok Gulati

by CNBC-TV18 | 24th-Jul-12 19:53

With hopes of monsoon revival fading, Ashok Gulati, Chairman, Commission of Agricultural Costs & Prices, said that government must take steps to save crops.

"The issue as it stands today is very close to a drought situation and I feel the time to wait is almost over. It is time to act and save the crop wherever we can," Ashok Gulati said. 

With western India facing the dearth of rain the most, it seems that only magical recovery of rain in the coming weeks can change the situation.

Now, with the government ringing the warning bell of a possibility of drought, it seems that the time has come to take measures to save crops from adverse effects of depleted monsoon. 

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Wipro says market share gains likely in 12-18 months

Wipro , India's No. 3 software services exporter, reported an 18% rise in quarterly net profit, meeting expectations, as customers outsourced more work to the company to cut their operational expenses.

Consolidated net profit rose to Rs 1,580.2 crore for the fiscal first quarter ended June 30 from Rs 1,481 crore a year earlier for Wipro , which counts Citigroup Inc and Cisco systems Inc among its clients.

India's USD 100 billion export-driven outsourcing sector faces diminishing hopes of an early revival in demand as their biggest markets, the United States and Europe, grapple with an uncertain economic and political climate.

We managed to maintain pricing despite tough environment, CFO Suresh Senapaty told CNBC-TV18 in an interview.  

Earlier this month, Infosys Ltd, the no. 2 software exporter, made a bigger-than-expected cut in its revenue growth forecast for the current fiscal year. But sector leader Tata Consultancy Services Ltd beat expectations with a 38% rise in quarterly net profit.
 
Wipro managed a constant currency dollar revenue growth at 0.3% quarter-on-quarter, inline with their guidance. The first quarter cross currency impact stood at USD 25 million.  

The IT major said its top five clients grew by around 5% sequentially. "Our focus was on client mining," TK Kurien, CEO (IT business) & Executive Director says adding, "market share gains likely in 12-18 months."

Wipro added one USD 100 million client in Q1 and has a total of eight such clients now. "The retail banking division is showing good growth but we have seen some pricing decline in investment banking," the management told the channel.

Delayed projects and overall slump in the IT services segment are forcing tech majors to push back joining dates of freshers. IT majors such as Infosys and Mahindra Satyam are all grappling with their existing bench before they can accommodate fresh recruits.

However, Wipro says it is not looking to cut back on hiring to protect margins. "We expect margins to hover in a narrow band," the company officials say.

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दिसंबर तक निफ्टी होगा 6000 पर: रिदम देसाई

बाजार की नजर अब आरबीआई के साथ-साथ प्रधानमंत्री मनमोहन सिंह पर भी टिकी हुई हैं। 31 जुलाई की क्रेडिट पॉलिसी के नतीजे अर्थव्यवस्था की दिशा तय करेंगे। वहीं प्रधानमंत्री मनमोहन सिंह आर्थिक सुधार का जादू चलाकर बाजार का मूड सुधार सकते हैं। ऐसे में बाजार के दिग्गजों को क्या आशाएं सरकार और आरबीई से, जानते हैंमॉर्गन स्टेनली इंडिया के एमडी रिदम देसाई की राय।

रिदम देसाई के मुताबिक रिजर्व बैंक की नजर देश के बढ़ते वित्तीय घाटे और बेलगाम महंगाई पर है। मौजूदा समय में महंगाई के स्तर को देखते हुए, 31 जुलाई को आरबीआई की क्रेडिट पॉलिसी में दरों में कटौती की उम्मीद बेहद कम है। वहीं अब वह समय आ गया है जब सरकार को आर्थिक सुधारों की ओर कड़े उठाने की जरूरत है।

बाजार के दिग्गज जानकार रिदम देसाई के अनुसार सरकार को मल्टीब्रांड में एफडीआई जैसे मामलों को जल्दी निपटाना चाहिए। क्योंकि मल्टीब्रांड में एफडीआई आने से यह भारतीय बाजारों के लिए एक बेहद सकारात्मक कदम होगा। साथ ही विदेशी निवेशकों के लिए भी भारतीय बाजारों से अच्छे संकेत जाएंगे। वहीं वित्तीय घाटे की खाई को पाटने के लिए सरकार को सब्सिडी के खर्च पर काबू करना चाहिए।

रिदम देसाई का कहना है कि सरकार को जीएसटी जल्द से जल्द लागू करना चाहिए। तेल कंपनियों के घाटे को कम करने के लिए डीजल की कीमतों में बढ़ोतरी जैसे फैसले भी लेने जरूरी हैं। इसके अलावा पावर सेक्टर को राहत देने के लिए सरकार पावर कंपनियों को पर्याप्त कोयला मुहैया कराए। इससे उर्जा क्षेत्र के हालातों में सुधार लाने में मदद मिलेगी। सरकार यदि इऩ सुधारों पर ध्यान देती है और समय रहते जरूरी कदम उठाती है दिसंबर तक निफ्टी 6,000 के स्तर पर पहुंचने की क्षमता रखता है।

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Rupee at 3-week low; global risk assets reel

The rupee fell on Tuesday to its lowest against the dollar this month, as the euro and other global risk assets remained under pressure after Moody's downgraded Germany's sovereign outlook to negative.

At 9:07 a.m., the rupee was at 56.02-56.03 to the dollar versus its last close of 55.9650-55.9750. It fell to as low as 56.10 in early trade, its lowest since June 29.

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Sensex, Nifty choppy; HUL gains 4%, Wipro down 3%

Indian equity benchmarks were completely lacklustre in trade today following mixed Asian cues. FMCG major HUL topped the buying list, rising nearly 4% after stronger than expected numbers in June quarter while third largest software services exporter Wipro fell over 3% as the company could not report stellar performance in the first quarter of FY13.

The BSE benchmark was up 32 points at 16,909.24 and the NSE benchmark gained 8 points at 5,126.20. The broader markets too were choppy in trade.

Siddharth Bhamre of Angel Broking believes that the global factors would decide the future course of the market. "We will be more on the mercy of global cues rather than internals of markets because internal market statistics are not working accordingly," he said.

Though the direction of market is not very clear at this point of time, his outlook is not very bearish. He expects to see some bounce back in the Nifty till the July series expires.

Cigarette major ITC, private sector lender ICICI Bank and software services exporter Infosys gained over 0.5%.

Top car maker Maruti Suzuki gained 1.5% as traders covered their short positions. The stock fell more than 11% since last Thursday due to stoppage of work at its Manesar plant.

Private steel maker Sterlite Industries rallied over 2%.

However, country's largest software services exporter TCS declined 0.55%. Engineering and construction major Larsen & Toubro was down 0.3% and state-owned power equipment manufacturer BHEL lost 1.2%.

Advancing shares outnumbered declining by 639 to 539 on the National Stock Exchange.

In the second line shares, Cholamandalam, Wockhardt, Prestige Estate, Tata Global Beverage and Welspun Corp gained 3-5% whereas Responsive Industries, Elantas Beck, Anant Raj Industries, HDIL and Jaypee Infra fell 3-6%.

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