Market Outlook for the day – Nifty has been scaling higher from the past eight trading sessions, possibility of profit taking cannot be ruled out. Thus, it is advisable to maintain a cautious view over the market.
The Cabinet approved 49% foreign investment in insurance companies through the FIPB route ensuring management control in the hands of Indian promoters. With the Cabinet approving the amendments to the long pending Insurance Laws (Amendment) Bill, it will now be taken up by Parliament.
The Cabinet has also okayed the Securities Laws (Amendment) Bill. This will empower the Securities and Exchange Board of India to act against ponzi schemes and making mandatory registration for money pooling scheme above Rs 100 crore.
ACC has reported 7% drop in net profit at Rs 243 crore in the second quarter ended June 30, 2014 against Rs 262 crore registered in the same period last year. Net sales were up eight per cent at Rs. 3,009 crore. The company has declared an interim dividend of Rs 15.
Results on July 25,2014: Allahabad Bank, Ashok Leyland, Colgate Palmolive, Gujarat Pipavav, Indian Bank, Indraprastha Medical, Just Dial, LIC Housing Finance, PNB, Raymond, Shriram Transport, Strides Arcolab, Suzlon Energy, Thomas Cook, Uco Bank, Wyeth
Key benchmark indices extended gains in late trade tracking firmness from the European markets. The S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. Gains in the markets were driven by reports that the Union Cabinet has approved hike in the ceiling on foreign direct investment (FDI) in insurance sector to 49% from 26%. Steel stocks gained as measure of manufacturing in China climbed to an 18-month high in July. Shares of other metal and mining companies also gained. Hindalco Industries hit 52-week high. The market breadth indicating the overall health of the market turned positive from negative in late trade.