Post session: Quick Review

Extending previous session’s northbound journey, local equity markets added gains of close to half a percent, lifting both Sensex and Nifty above the psychologically crucial 25,400 and 7,600 levels respectively. Sentiments got a fillip after public oil marketing companies, HPCL, IOC and BPCL, hiked petrol price by steep Rs 1.69 per litre and diesel by 50 paise. Additionally, June factory output data, growing at the fastest pace since February, signaling further rise in inflation that is bound to vex the Reserve Bank of India (RBI), also added to the optimistic milieu.

Markets widely ignoring two dismal set of macro-economic data, April-May fiscal deficit, which reached 45% of the total full year target and eight core Industries that decelerated to four-month low of 2.3% in May, went on adding ground and conclude not far away from day’s high point on heavy buying activities by Foreign Institutional Investors (FIIs). Meanwhile, broader indices too adding gains, ended up in the range of 0.50%-1.50%.

On the global front, European and Asian stocks helped markets get the second half of the year off to steady start on Tuesday, helped by upbeat Chinese data and bets that record-low interest rates will remain in place for some time yet. Investors digested updated euro zone Purchasing Managers' Index and unemployment figures after Chinese factory PMIs earlier had helped reinforce signs of stabilisation in its giant economy. Markit's final euro zone manufacturing PMI fell to 51.8 in June from May's 52.2, its lowest since November, but held above the 50 mark that separates growth from contraction for a full year.

Closer home, benchmarks also got a shot in the arm after price of non-subsidised cooking gas (LPG) were hiked by Rs 16.50 per cylinder and that of jet fuel by over half-a-per cent. In the extremely stable session of trade, most of the sectoral indices on BSE settled into positive territory, with prominent gainers being Auto, Metal and Capital Goods counters. However, losers were the stocks from Information Technology, Technology and Oil & Gas counters. While, Auto stocks jumped on reporting monthly sales figures, Metal stocks shone in trade after as data showed China's manufacturing expanded in June at the fastest pace this year. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1907: 1141, while 111 scrips remained unchanged. (Provisional)

The BSE Sensex surged 102.57 points or 0.40% to settle at 25413.78. The index touched a high and a low of 25571.90 and 25466.77 respectively. Among the 30-share Sensex, 16 stocks gained, while 14 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.58% and 1.16% respectively. (Provisional) 

On the BSE sectoral front, Auto up by 3.24%, Metal up by 2.03%, Capital Goods up by 1.27%, Realty up by 1.03% and Consumer Durables up by 0.98% were the top gainers while, IT down by 0.93%, TECk down by 0.55%, Oil and Gas down by 0.54%, Healthcare down by 0.38% and PSU was down by 0.05% there were the top losers in the space. (Provisional)

The top gainers on the Sensex were Hindalco up 6.70%, Maruti Suzuki up by 5.93%, Tata Motors up by 4.98%, M&M up by 3.93% and Tata Steel up by 2.57%. On the flip side, the key losers were Wipro down by 1.28%, TCS down by 1.01%, Sun Pharma down by 0.98%, NTPC down by 0.87% and RIL down by 0.83%. (Provisional)

Meanwhile, the core sector growth spike in April petered out in May as output of eight core industries decelerated to a four-month low to 2.3% from 5.9% in the same month a year ago on account of dismal performance by steel and power sector. Cumulative growth of the eight core industries during April-May rose by 3.3%.

The deterioration in performance of steel and electricity relative to the previous month were largely responsible for the drag of core sector, which has a combined weight of 37.90% in the Index of Industrial Production (IIP), in spite of improved performance of coal, fertilizers and cement. While, steel production shrank 2% as against a growth of 3.1% in April, electricity generation grew 6.3% as against 11.2% in April.

On the flip side, Fertilizer production grew by 17.6% during the month compared to 11.1% in April, similarly, coal production rose 5.5% during the month as against 3.3% a month ago and contraction of 3.3% during the same period last fiscal. Besides, Cement production also improved during the month, posting a growth of 8.7% against 6.7% in April.

The bad news on the core sector front comes at a time when rains during the month of June have been declared to be 43 per cent deficient. Notwithstanding, the poor show by the steel and electricity sector, the IIP for May is expected to do well, given the robust performance by other sectors like fertiliser and a favourable base effect.

India VIX, a gauge for markets short term expectation declined 1.17% at 17.66 from its previous close of 17.87 on Monday. (Provisional)

The CNX Nifty gained 27.35 points or 0.36% to settle at 7,638.70. The index touched high and low of 7,649.50 and 7,618.15 respectively. Out of 50 stocks in Nifty, 28 stocks ended in the green and 22 in red. (Provisional)

The major gainers of the Nifty were Hindalco up 6.67%, Maruti Suzuki up by 5.93%, Tata Motors up by 4.89%, M&M up by 4.25% and Tata Steel up by 2.33%. On the flip side, the key losers were Tech Mahindra down by 1.97%, BPCL down by 1.85%, Asian Paints down by 1.64%, Wipro down by 1.54% and TCS down by 1.25%. (Provisional)

European markets were trading in green; UK’s FTSE 100 up by 0.45%, Germany’s DAX up by 0.28% and France’s CAC 40 was up by 0.66%.

The Asian markets concluded Tuesday’s trade mostly in green, with the regional index heading for a six-year high, driven by a rally in Japanese stocks after the Bank of Japan released its quarterly tankan business survey result. Although the survey showed deterioration in business sentiment following the recent sales tax increase, the market focused on data showing that large companies raised their combined investment plans for the financial year ending March to a 7.4% increase from a previous 0.1% rise forecast in the March survey. Japan’s Average Cash Earnings rose to a seasonally adjusted 0.8%, from 0.7% in the preceding quarter whose figure was revised down from 0.9%. Hang Seng was closed on account of Hong Kong Special Administrative Region Establishment Day.

China’s manufacturing expanded in June at the fastest pace this year. The Purchasing Managers’ Index was at 51, as per the National Bureau of Statistics and China Federation of Logistics and Purchasing. The final reading of a purchasing managers’ index from HSBC Holdings Plc and Markit Economics rose to 50.7 in June from 49.4 in May. South Korean Trade Balance fell to a seasonally adjusted 5.29B, from 5.30B in the preceding quarter. Thai CPI fell to a seasonally adjusted annual rate of 2.35%, from 2.62% in the preceding month. Indonesian Trade Balance rose to a seasonally adjusted 0.07B, from -1.97B in the preceding month while Indonesian Inflation fell to a seasonally adjusted 6.70%, from 7.32% in the preceding month.