Rolls-Royce working on new model!

Equity Market Headlines

The 50-share Nifty index is expected to open lower on Wednesday following muted trend seen in other Asian markets. Tracking the momentum, the index is expected to retest its crucial psychological support level of 7700 in trade today. Stocks in news are Hero Motocorp, Bata India, Jubilant Life Sciences, GMR Infrastructure, Coal India, NTPC, HDIL, IL&FS Engineering, Jindal Steel and power and NHPC

Today’s Headlines

1) Rolls-Royce working on new model; to hit market by mid-2016.
2) Kotak Investment, Ambit Capital & Edelweiss look to raise $500 million each for structured debt fund.
3) Government may take over Goa dairy, if new union is strongly opposed.
4) Power Ministry mulls fund to finance hydro projects.
5) Skymet raises $4.5 million to better R&D services.

Commodity Key Headlines

1) Dirtiest Fuel Threatens 700-Year-Old Villages in Europe.
2) U.K. Plans to Criminalize Energy-Market Rigging With New Laws.
3) WTI Falls to Six-Month Low with Demand Seen Declining.
4) Soybean Futures Fall as Rains in U.S. Midwest Seen Boosting Crop.
5) Silver Falls to Six-Week Low, Gold Drops as Dollar Gains.
6) Copper Caps Biggest Loss in 8 Weeks as Dollar Gains.
7) CME to Start EU Gas Futures as Trayport Remains Independent.
8) Baconholics Undeterred by Pig Prices at 30-Year High.

Currency Key Headlines

1) India’s 10-year sovereign bonds fell the most in four months after central bank Governor Raghuram Rajan left interest rates unchanged and pledged to curb inflation.
2) The pound rose for a second day against the euro as a report showed U.K. services output grew at a faster pace in July.
3) Chile’s economy grew less than analysts expected in June, expanding at the slowest pace since the aftermath of an earthquake in February 2010 that devastated the center-south of the country.

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Expectations for swings in India’s rupee declined!

Currency Market Headlines

1) Expectations for swings in India’s rupee declined to a three-year low as stocks rallied after a pickup in monsoon rains tempered concern inflation will accelerate.

2) The pound rose to the strongest level in 22 months against the euro as a report showing the U.K. jobless rate slid to the lowest since 2008 added to signs the economy can withstand higher interest rates.

3) New Zealand’s dollar slumped the most in seven weeks after the consumer price index increased less than economists forecast and a gauge of dairy prices dropped to the lowest level since 2012. 

Debt Market Key Headlines

1. Continuing to bet big on the reform agenda of Narendra Modi-led government, overseas investors have poured in nearly Rs 17,000 crore in the Indian markets since the beginning of the month.

2. Net investments by foreign investors in equity market stood at Rs 7,505 crore ($1.25 billion) till July 11. Net inflow for the debt market was Rs 9,286 crore ($1.55 billion), taking the total amount to Rs 16,791 crore ($2.8 billion), shows the latest data.

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Technical: Wait & Watch & Good time to Switch

Nifty future has broken its crucial supports of 7640 & 7530. The markets may fall further and Nifty may hover between 7300-7450. At these levels, 7300 is a strong support and can be broken only if there is a very strong negative event.

We reiterate that lower levels will offer an attractive investment opportunity for equities. Immediate market movements are based on risk aversion and escalation in tensions in Middle East. Money is moving from risk assets to safety of gold. The hike in Rail fares has increased fears of inflationary trend & interest rates have moved up by 20 basis points in the last one week.

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The dollar fell for the first time in three days!

1) The dollar fell for the first time in three days versus the yen before data this week economists said will show U.S. output and new home sales slowed, supporting the case for the Federal Reserve to hold rates near zero.

2) The pound was 0.2 percent from the highest level in more than five years against the dollar as data showed speculators increased their bets on its appreciation to the most since 2007.

3) The rupee fell toward a seven-week low on concern a rally in oil prices amid tensions in Iraq will widen India’s trade deficit and spur inflation.

Read detail analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf

The rupee fell toward a seven-week low!

1) China will allow the Yuan to be exchanged directly for British pounds from today in Shanghai as the world’s second-largest economy promotes the use of its currency in global trade and finance.

2) U.K. government bonds advanced for the first time in five days as minutes of the Bank of England’s June 4-5 meeting showed no policy makers voted to raise the benchmark interest rate from a record low.

3) The rupee fell toward a seven-week low on concern India’s trade balance will deteriorate and inflation will quicken as violence in Iraq boosts oil prices.

Read full report here: - http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf