Post Session: Quick Review

Monday’s trading session turned out to be extremely sanguine for local equity markets, which going from strength to strength, concluded near day’s highest point speculatively on either window-dressing buying, or buying of relative outperformers on the last day of the month and the quarter. In the rock-solid session of trade, not a single iota of profit-booking was seen, rather benchmarks steadily adding ground, concluded near day’s highest point, with gains of over a percent, which lifted both Sensex and Nifty above the psychologically crucial 25,350 and 7,600 levels respectively. Meanwhile, for HCY2014, both Sensex and Nifty rallied over 20% and among broader space, CNX Mid-Cap index shot up over 35%.

On the global front, Asia's markets mostly ended into positive territory on Monday following a positive lead from Wall Street as investors hoped the raft of U.S. and European macro data due in the week will soothe recent worries over the pace of economic growth. Additionally, European stocks rose Monday, holding to thin gains after a report of steady inflation in the euro zone, and as the markets begin to close the books on the month as well as the second quarter.

Closer home, amidst across the board buying activities, while there were no losers, stocks from Power, Public Sector Undertakings (PSU) and Capital Goods were the prominent gainers. Meanwhile, banking stocks edged higher on renewed buying. Besides, shares of public oil marketing companies, namely BPCL, HPCL and IOC crept up on lower brent crude prices. Globally, Brent futures dipped towards $113 a barrel on Monday, adding to last week's fall as fears of a disruption to supplies from Iraq eased after government forces launched a pushback against a Sunni militant takeover of large areas of the country. However, auto stocks, namely Hero MotoCorp, Mahindra and Mahindra, were trading soft on concerns of weaker monsoon that may impact sales.The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 2118: 940, while 94 scrips remained unchanged. (Provisional)

The BSE Sensex surged 313.86 points or 1.25% to settle at 25413.78. The index touched a high and a low of 25460.96 and 25179.55 respectively. Among the 30-share Sensex, 24 stocks gained, while 6 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 1.89% and 1.80% respectively. (Provisional) 

On the BSE sectoral front, Power up by 2.88%, PSU up by 2.62%, Capital Goods up by 2.18%, Infrastructure up by 2.12% and Healthcare up by 1.80% were the gainers while, there was no loser in the space. (Provisional)

The top gainers on the Sensex were Sun Pharma up 3.91%, Tata Power up by 3.81%, ONGC up by 2.72%, Dr Reddys up by 2.65% and Hindalco up by 2.24%. On the flip side, the key losers were Bajaj Auto down by 1.02%, Maruti Suzuki down by 0.69%, M&M down by 0.55%, Tata Motors down by 0.29% and Wipro down by 0.27%. (Provisional)

Meanwhile, steel Ministry has stated that country’s eastern region will witness large steel production capacity expansion in future with an investment of nearly Rs 9 lakh crore which will push India's steel capacity by an additional 160 million tonnes per annum (mtpa) capacity in the next 10-15 years.

As per the steel ministry estimates, 16 new steel plants are set to come up in mineral-rich eastern states adding 42 mtpa new capacity in coming five years, another 45 mtpa in next five years and further 73 mtpa in about 15 years from now. State wise, 6 new plants are likely to come up in Odisha, 5 in Jharkhand, 4 in Chhattisgarh and one in West Bengal with a cumulative investment of Rs 8.92 lakh crore investments till 2030. A majority of the steel plants are located in the country’s eastern part mainly because of its rich raw material base and locational advantages.

India is world fourth largest steel maker behind China, Japan and the US with 100 mtpa steel production capacity now, up from 75 mtpa four years ago. The ministry has excluded confidence that India has potential to become a global leader both in production and consumption of steel. With Rs 12 lakh crore investment, including Rs 8.92 lakh crore in the eastern region could enhance the country’s total steel production to 300 MT by 2030.  Describing steel as an engine of growth, steel ministry has also pitched for infrastructure status for steel sector and sought for indigenization of design, manufacturing and erection of plants.

Ministry also highlighted the key concerns that are impeding growth such as decline in iron ore production, low priority in coal and gas allocation, delay in statutory clearances and infrastructure bottlenecks. Over the past four years, India’s steel production remained static at 81.2 MT in 2013, 77.3 MT 2012, 73.6 MT in 2011 and 69 MT in 2010 owing to the prevailing economic slowdown impacting domestic consumption.

India VIX, a gauge for markets short term expectation rose 1.38% at 17.87 from its previous close of 17.63 on Friday. (Provisional)

The CNX Nifty gained 102.55 points or 1.37% to settle at 7,611.35. The index touched high and low of 7,623.65 and 7,531.60 respectively. Out of 50 stocks in Nifty, 42 stocks ended in the green and 8 in red. (Provisional)

The major gainers of the Nifty were BPCL up 5.32%, IDFC up by 5.30%, PNB up by 4.31%, Sun Pharma up by 4.03% and Tata Power up by 3.85%. On the flip side, the key losers were MCDOWELL-N down by 3.87%, Maruti Suzuki down by 0.70%, Bajaj Auto down by 0.61%, M&M down by 0.48% and Tata Motors down by 0.40%. (Provisional)

European markets were mostly trading in green; UK’s FTSE 100 up by 0.11% and Germany’s DAX up by 0.40%, while France’s CAC 40 was down by 0.18%.

The Asian markets concluded Monday’s trade mostly in green, with the regional benchmarks heading for the biggest quarterly rally since September. Shanghai Composite Index rose after the government cut reserve-requirement ratios for some banks and introduced mini-stimulus including infrastructure spending to prevent a property slowdown from endangering Premier Li Keqiang’s target of 7.5% growth this year. Annual growth in China’s industrial profits slowed to 8.9% in May to 512.7 billion yuan ($82.6 billion) from a year earlier, slowing from a 9.6% rise in April, the weakest pace this year, signaling challenges facing Chinese firms despite signs of stabilization in the economy. Taiwan’s dollar had the biggest quarterly advance in more than two years and stocks rallied as foreign investors boosted equity holdings amid optimism the island’s economic expansion is gathering pace. Thailand Trade Balance rose to a seasonally adjusted 1.63B, from 0.56B in the preceding month.

Japan’s unemployment rate hit a 16-year low in May, suggesting the economy will rebound in the third quarter from a sales tax hike and consequent slump in consumer spending. The jobless rate in the world’s third-largest economy fell to 3.5%, the lowest since 1997 and a level the Bank of Japan says is near full employment. At the same time, the availability of jobs rose to its highest level since 1992, good news for Prime Minister Shinzo Abe as he tries to cement a recovery after two decades of stagnation. Japan’s industrial production rose to a seasonally adjusted 0.5%, from -2.8% in the preceding month. Japanese Housing Starts fell to a seasonally adjusted -15.0%, from -3.3% in the preceding quarter.