Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Weak global cues hurt indices
Wed, 3 Jul Closing

While selling pressure was witnessed across the board, the Indian markets featured as the second biggest losers in Asia today, after Hong Kong. Profit booking in, power, infrastructure and commodity stocks dragged the key indices in Indian equity markets lower since early trades. While the BSE-Sensex closed lower by 286 points (down 1.5%), the NSE-Nifty closed lower by 87 points. The BSE Mid Cap index and the BSE Small Cap index lost about 1.5% each.

As regards global markets, while Asian indices closed deep in the red today the European indices have also opened lower. The rupee was trading at Rs 60.38 to the dollar at the time of writing.

In a bid to offset rising input cost due to depreciation of rupee, engineering major Voltas has raised its air conditioners' prices by up to 5%. The company already has increased prices for some models and other models would follow suit in the near future. Voltas' ACs are priced at a range of Rs 13,000 to Rs 50,000 across different models. The company had increased prices of its products in March this year. Last year too, Voltas had to increase prices twice due to cost pressures. Voltas' order book has declined by 12.2% YoY and 13.4% YoY for FY12 and FY13 respectively. Further, influx of competitors in air conditioning segment is likely to hurt its earnings.

As per the Finance Minister, PSU banks will aim to open more than 8,000 branches in FY14. This is in pursuit of the government's plans to directly transfer cash benefits to bank accounts of beneficiaries by expanding the banking network. Currently, more than 40% of the 1.2 bn population is not covered by the banking system. Financial inclusion, particularly in rural areas is expected to accelerate the direct cash transfer scheme. For the PSU banks, however, the addition of franchise will mean higher operating costs in the near term.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Weak global cues hurt indices". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.