Markets Trade Lower, Shares In Asia Fall As Chinese Factory Activity Slows

Indian markets opened the day marginally higher, but, dipped into the red as markets across Asia were down, following a private survey which showed Chinese factory activity growth slowing in June. The Caixin/Markit manufacturing Purchasing Managers' Index for June came in at 51.3, lower than 52.0 reading seen in May, 2021.

The Sensex, which has fallen for the last 2-days on the back of some selling pressure from Foreign Portfolio Investors, was lower by 10 points, while the Nifty lost 2 points in trade.

Shares in Dish TV were trading lower by 3%, after the company reported consolidated loss at Rs 1,415.23 crore in the fourth quarter of FY21 against loss of Rs 1,456.25 crore in Q4FY20.

Union Bank of India shares were also in the limelight and up 1%, after the board announced capital raising plans of more than Rs 9000 crores.

Nifty stocks that lost ground in trade were Infosys, IndusInd Bank, Tata Steel and Wipro, while stocks that gained were Bharti Airtel, Asian Paints, Tata Motors and Eicher Motors.

"Nifty valuations at the current juncture is not inexpensive and demand consistent earnings delivery ahead. Any disappointment on the earnings front could weaken the overall positive sentiments. However, we expect the earnings momentum is to accelerate given the pickup in the pace of vaccination and the further opening of the economy. Good monsoon further supports bullish biasedness," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.