Markets snap eight-day losing streak, FinTech jumps 31%

Markets have snapped eight-day losing streak and have ended marginally higher amid volatile trading session led by buying among metal shares and index heavyweights RIL and ITC. However, the upside was capped by engineering major BHEL which slumped by over 19% post the announcement of disappointing Q1 numbers.

The Sensex closed higher by 18 points at 19,182 and the Nifty gained by 8 points 5,685 levels.

BSE Midcap and Smallcap indices gained by 0.3%. The market breadth in BSE ended marginally negative  with 1,128 shares declining and 1,077 shares advancing.

GLOBAL MARKETS

Japan's Nikkei share average fell on Monday in thin volume as the yen strengthened against the dollar after weaker-than-expected U.S. jobs data, prompting investors to take profits after recent gains, with exporters particularly hard hit.

The HSBC/Market Purchasing Managers' Index (PMI) for the services industry stood at 51.3 in July, unchanged from June and just a whisker above a 20-month low of 51.1 struck in April.  

The benchmark Nikkei dropped 1.4% to 14,258.04, giving up some of its 5.8% rise over the past two sessions.

The Topix dropped 1% to 1,184.74. Trading volume for both the Nikkei and the Topix was the lowest since December 2012.

The dollar softened and European shares edged up to a two-month high on Monday after last week's batch of US data left investors less sure the Federal Reserve would start to scale back its stimulus next month. The biggest mover in the currency market, though, was the New Zealand dollar, which slumped to a one-year low following revelations of a milk power contamination scare from Fonterra, the world's biggest dairy products exporter.

European shares started 0.4% higher following a record close on Wall Street last Friday when the latest US jobs report undermined hopes the Fed would begin to trim its $85 billion a month in bond purchase as soon as next month.

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INDIAN RUPEE & FIIs

The Indian rupee trimmed its initial gains but was still quoted up by 14 paise to 60.92 per dollar in late morning session today on selling of the US currency by banks in view of foreign capital inflows into equity market.

Foreign Institutional Investors (FIIs) purchased net Rs 283.79 crore shares on last Friday, as per the provisional figures issued by the stock exchanges.

SECTORS & STOCKS

BSE Metal index surged by nearly 3% followed by counters like Banks, IT, PSU, FMCG and TECk, all gaining by nearly 1% each. However, BSE Capital Goods index plunged by nearly 4% followed by counters like Power, Consumer Durables and Healthcare, all declining by nearly 15 each.

Metal shares were shining in trades today after the latest data indicated China's service industries showed the first pick-up in growth since March.

Coal India moved higher by over 3% to Rs 263, despite of weak April-June (Q1FY14) results, on expectation of earnings improvement by going forward.

Sterlite, JSPL and Tata Steel gained between 1-8%.

FMCG majors ITC gained by 1% each. Index heavyweight RIL ended marginally positive.

Other notable gainers were NTPC, Hero Moto, Wipro, ICICI Bank and TCS.

Shares of capital goods (CG) companies were under pressure with the Bombay Stock Exchange (BSE) CG index hits four-year low, after the sector majors has reported a lower-than-expected net profit growth for the quarter ended June 30, 2013 (Q1).

Bharat Heavy Electricals Limited (BHEL), Larsen and Toubro, SKF India, Crompton Greaves, Siemens and Thermax are trading lower by 1-18% on BSE.

Bharat Heavy Electricals Limited (BHEL) tanked over 19%, its lowest level since December 2005, after reporting a sharp 50% year-on-year drop in its net profit at Rs 465 crore for the first quarter ended June 30, 2013 (Q1), due to lower sales. The power equipment maker had clocked net profit of Rs 921 crore in the year-ago period.

Other notable losers were Bharti Airtel, Bajaj Auto and Tata Motors, all dropping between 1-2%.

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SMART MOVERS

Venus Remedies was locked in upper circuit of 10% at Rs 161 after the company said Venus Medicine Research Centre (VMRC), it’s R&D Centre, and Venus Medicine Research Centre (VMRC) has been accredited for Good Laboratory Practices (GLP) and norms on Organization for Economic Co-operation and Development (OECD) Principles by National GLP and Compliance Monitoring Authority (NGCMA).

Tech Mahindra gained 3% after the company said it has signed a Memorandum of Understanding (MoU) with select Indian Universities to impart industry ready skills in IT Infrastructure Management Services (IMS).

Neyveli Lignite Corporation (NLC) dipped 5% after the government has offloaded 3.56% of its stake through the institutional placement programme (IPP) on Friday.

PI Industries rallied 14% to Rs 140 after reporting more than doubled net profit at Rs 48.54 crore for the quarter ended June 30, 2013 (Q1), on back of strong growth in sales.

Shares in Financial Technologies (India) Ltd rose 31% at Rs 198 in volatile trading after slumping 73% over the previous two sessions. Financial Technologies shares had slumped last week to a record low after commodities exchange unit National Spot Exchange Ltd (NSEL) suspended trading in most one-day forward contracts.