Fed booster shot help Nifty climb 11,550

Indian markets bounced back on July 11, a day after it breached its 100-day exponential moving average (EMA) on the downside. Nifty snapped its 4-day losing streak and closed above 11,550 and Sensex rallied over 260 points.

The final tally on D-Street – Sensex rose 266 points to 38,823 and Nifty closed 84 points higher at 11,582 thanks to positive global cues.

World stocks rallied and global bond yields fell after the US Federal Reserve Chairman Jerome Powell bolstered expectations the Fed would cut U.S. interest rates soon, said a Reuters report.

Back home, the broader market also witnessed buying. The S&P BSE Midcap index rose 0.56 percent while the S&P BSE Smallcap index rose 0.41 percent.

The S&P BSE Auto index rallied 1.8 percent, followed by the S&P BSE Metal index that was up 1.8 percent, and the S&P BSE Realty index gained 1.3 percent.

Positive global cues helped Indian market climb crucial resistance levels but all eyes will be on earnings. After muted TCS Q1 show, investors will keep a close eye on Infosys results for the quarter ended June.

Infosys is scheduled to announce its Q1 results on July 12. Investors will also keep a close eye on inflation data for the month of June, which is scheduled on July 12 as well.

“We expect the markets to remain choppy in the near term in the backdrop of weak domestic cues. Given the economic slowdown, we expect the earnings season to be tepid which will lead to stock-specific volatility. Further, CPI inflation and IIP data (scheduled tomorrow) will provide direction to the markets,” Ajit Mishra Vice President, Research, Religare Broking Ltd told Moneycontrol.

“On the global front, the on-going geo-political issues between US and Iran as well as crude oil prices and currency movement will keep the market participants on edge,” he said.

Top Sensex gainers include names like Hero MotoCorp, Tata Motors, IndusInd Bank, SBI, and Vedanta while on the losing front Bajaj Auto, and Tech Mahindra dropped over 1 percent each.

Stocks in news:

GTPL Hathway zoomed 20 percent on July 11 after the company reported stellar earnings performance for the quarter ended June 2019.

Dish TV ended with gains of over 17 percent on July 11 after CARE upgraded its credit rating on bank facilities. The company said CARE Ratings has revised the rating for the banking facilities of the company from CARE A3 to CARE A3+.

Reliance Power shares closed with gains of over 5 percent after the company announced a recast of loan for Samalkot project.

Reliance Infrastructure shares zoomed nearly 11 percent on July 11 after 16 lenders signed the Inter-Creditor Agreement (ICA). As per the RBI Circular of June 7, 2019, 100 percent of its lenders have signed the ICA for the resolution of the company’s debt, the company said.

Premier Explosives shares ended higher by 4 percent intraday on July 11 after the company received an order from Bharat Dynamics (BDL) in defence space.

Global update:

Asia markets mostly closed higher on July 11 after US Federal Reserve Chairman Jerome Powell signalled overnight that the US central bank could be cutting interest rates soon.

Shanghai composite rose fractionally to 2,917.76, while the Shenzhen component declined 0.15 percent to 9,152.77. Hang Seng index gained 0.75 percent.

Nikkei rose 0.51 percent to close at 21,643.53, while the Topix gained 0.47 percent to 1,578.63. The Kospi added 1.06 percent to close at 2,080.58.