Market Likely To Trade In A Range Bound

Indian equities market slipped after its previous session sharp pull-back rally following fall in country’s exports the rupee value, and poor monsoon rainfall and diminishing hopes of a rate cut disappointed investors. The BSE Sensex and NSE Nifty fell 189.04 points and 41.25 points at 27,878.27 and 8,477.30, respectively. The BSE Mid-Cap index rose 34.54 points or 0.3% to settle at 11,488.32. The BSE Small-Cap index gained 24.83 points or 0.21% to settle at 11,791.61. Both these indices outperformed the Sensex.

Disappointing macro numbers as India's exports contracted for the eighth straight month by 10.3% in July to USD 23.13 billion, thus pushing trade deficit to USD 12.81 billion amid continuing fall in Rupee amid lack of definite trigger cautioned the investor’s sentiment.

Though banking index gained as well as PSU banks spurted on government announcement of an 'Indradhanush' plan to revive the ailing public sector banks amid a Rs 20,000-crore capital infusion. The CNX PSU Bank index advanced 6.2%.

U.S. stocks rebounded from early losses, ending Monday’s as upbeat U.S. housing data helped Wall Street shrug off a weak manufacturing report, while the prospect of higher U.S. interest rates lifted the dollar for a third day. The Dow Jones industrial average ended up about 68 points, or 0.4%, after initially dropping more than 100 points at the open. The S&P 500 SPX closed 10.90 points, or 0.5%, higher at 2,102.44 and the Nasdaq Composite ended the day up 43.46 points, or 0.9%, at 5,091.70.

European stock markets ended a choppy session in mixed territory on Monday after a duo of U.S. data sent conflicting signals about the strength of the country’s economic recovery. After swinging between gains and losses, the Stoxx Europe 600 index rose 0.3% to close at 387.26. Germany’s DAX index was down 0.4% and France’s CAC 40 index rose 0.6%. Britain’s FTSE 100 was down less than 0.1%. Greece’s Athex Composite Index rose 1% to 680.94, after trading as high as 688.59 earlier on Monday.

Asian shares eked out marginal gains early Tuesday, buoyed by a positive handover from Wall Street overnight, and as investors digested China's latest home price data. Japan’s Topix index was little changed, swinging between gains and losses whereas South Korea’s Kospi index down 0.36%. Australia’s S&P/ASX 200 Index up 0.15%. New Zealand’s NZX 50 Index rose 0.30%. China's Shanghai Composite index reversed a brief positive open to sag 0.46%.

A SGX CNX Nifty Index future for August delivery was up 18 points at 8,502. Indian markets likely to trade in a range bound.