Market Likely To Consolidate

For the most part of the day, Indian equities market traded in a tight range and closed in red Tuesday after rising more than a percent in previous session on Greece bailout package. The fall in June wholesale price inflation also failed to boost the sentiment, but they cushioned the fall. The Sensex declined 28.29 points to 27932.90 and the Nifty slipped 5.55 points to 8454.10. However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising marginally.

The wholesale price index-(WPI) based inflation fell to -2.4% lower than previous month's number of -2.35% and 5.66% during the corresponding month of the previous year. However, Analysts were still hopeful of one more rate cut in the current fiscal year after the quarter-percentage point reduction in June. But they don't see it happening next month. According to them, RBI to watch entire monsoon before taking call on rate cut.

U.S. stocks steadily drifted higher for a fourth consecutive session of gains Tuesday amid optimism overseas crises have eased, while Treasuries rose and the dollar fell as weak retail sales data fueled the case for keeping interest rates on hold for longer. Core retail sales slipped 0.1%, much worse than economists' forecasts for a 0.4% rise. The S&P 500 added 9.35 points, or 0.5%, to close at 2,108.95. The Dow Jones Industrial Average gained 75.90 points, or 0.4%, to close at 18,053.58. The Nasdaq Composite moved up 33.38 points or 0.7% to finish at 5,104.89.

In oil trading, WTI crude rose 84 cents to close at USD 53.04 a barrel in New York. Brent crude oils rose 66 cents to close at USD 58.51 a barrel in London.

European stocks rose slightly Tuesday extending gains into a fifth consecutive session. The Stoxx Europe 600 SXXP reversed course and ended up 0.5% at 398.30. France’s CAC-40 added 0.7% and Germany’s DAX gained 0.3%. The U.K.’s FTSE 100 UKX rose 0.2% to 6,753.75. Spain’s IBEX 35 picked up 0.3% at 11,258.30. But Italy’s FTSE MIB remained in the red, falling 0.3% at 23,097.51.

Shanghai stocks widened losses on Wednesday despite a better-than-expected second-quarter growth report while the rest of Asian markets rose in cautious trade. Japan's benchmark Nikkei index rose 0.44% to its highest level since July 3, extending gains into a third session, despite a slightly stronger currency. Australia’s S&P/ASX 200 Index added 0.92% and New Zealand’s NZX 50 Index rose 0.72%. South Korea’s Kospi index gained 0.31%. The Shanghai Composite Index extended losses into a second day following a volatile session on Tuesday.

A SGX CNX Nifty Index future for July delivery was up 19 points at 8,483. Indian markets likely to consolidate. Cera Sanitaryware, Everest Ind, Greenply Ind, Hatsun Agro, Ht Media, Zee Entertainment and Zensar Tech would be reporting third quarter earnings today.