Post Session: Quick Review

Extending its gaining streak for fourth straight session, Indian equity markets rallying over 1.25%, logged fresh all-time high levels on Wednesday mainly on three factors such as, expectations of a growth oriented Budget, decline in crude oil prices and signs of pick up in monsoon rains. Further, provisional data showing that foreign investors made decent purchases of Indian stocks in previous session also boosted sentiment. Steadily building on gains, both Sensex and Nifty concluded at day’s high, which was past the crucial 25,800 and 7,700 levels. Meanwhile, broader indices also following suit, ended the session with gains in the range of 0.75%-1.10%.

Markets were sanguine since early deals right after Finance Minister Arun Jaitley warned against 'economic populism,' sparking hope for tough fiscal consolidation measures in the annual budget to be unveiled on July 10. Meanwhile, sentiments were buttressed after India Meteorological Department (IMD) in its daily monsoon report underscored that the southwest monsoon has further advanced into entire Uttarakhand, Himachal Pradesh and Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Haryana & Punjab. Further, brent crude which came off from 9-month high level, hit last month, easing concerns about India’s macroeconomic situation, added to positive milieu.

On the global front, Asian stocks scored a three-year peak on Wednesday after a round of upbeat global economic data whetted risk appetites and helped Wall Street taste all-time highs.  The Institute for Supply Management's US factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group's report showed on Tuesday. Readings above 50 indicate expansion. Additionally, European shares rose slightly on Wednesday, following fresh highs in U.S. markets and a three-year peak for Asian stocks, though dashed hopes for deal-making in the French telecoms sector kept a lid on gains.

Closer home, amidst across the board buying activities, none of the sectoral indices witnessed profit-booking, rather prominent gainers were the stocks from Infrastructure, Metal and Power counters.  Realty stocks edged higher on hopes of favorable announcements for the sector in the final Union Budget 2014-15 to be unveiled on 10 July 2014. Besides, Metal and mining stocks extended Tuesday's gains triggered by data showing that China's manufacturing expanded in June at the fastest pace this year. Besides, banking stocks rose on renewed buying. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1896: 1173, while 109 scrips remained unchanged. (Provisional)

The BSE Sensex surged 324.86 points or 1.27% to settle at 25841.21. The index touched a high and a low of 25864.53 and 25660.16 respectively. Among the 30-share Sensex, 28 stocks gained, while 2 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.78% and 1.09% respectively. (Provisional) 

On the BSE sectoral front, Infrastructure up by 2.10%, Metal up by 2.01%, Power up by 1.93%, Healthcare up by 1.88% and Capital Goods up by 1.67% were the top gainers, while there were no losers in the space. (Provisional)

The top gainers on the Sensex were SSLT up 4.30%, NTPC up by 2.87%, BHEL up by 2.79%, HDFC up by 2.38% and Sun Pharma up by 2.30%. On the flip side, the key losers were GAIL down by 0.38% and Infosys down by 0.15%. (Provisional)

Meanwhile, a day after hiking petrol and diesel rates, the price of non-subsidized cooking gas (LPG) were upped by Rs.16.50 per cylinder in the wake of surging international crude oil prices due to the ongoing Iraq crisis.

With this first hike in six months, each non-subsidized 14.2-kg cooking gas cylinder which households buy after depleting their current quota of 12 cylinders will now cost Rs 922.50 in Delhi, against Rs 906 earlier. This price hike also snaps the declining trend that began in February with a price cut of Rs 107 per cylinder, which was followed by cuts of Rs 53.5 in March, Rs 100 in April, Rs 52 in May and lastly Rs 23.50 last month.

However, the price of subsidized cylinder has been left unchanged, which presently costs Rs 414 in Delhi. Losses on LPG have risen to Rs 449 per subsidised cylinder from Rs 432.71 in the previous month.

Separately, oil marketing companies have also upped price of jet fuel or aviation turbine fuel (ATF) at Delhi by Rs 413.78 per kilolitre (kl), to Rs 70,161.76 per kl. This price hike comes after three straight months of reductions, the last one of Rs 1,285.89 per kl, or 1.81%, which came into effect on June 1. However, this development is negative for aviation industry as Jet Fuel accounts for over 40% of an airline's operating costs and the price hike will increase the financial burden of cash-strapped carriers

India VIX, a gauge for markets short term expectation declined 0.52% at 17.57 from its previous close of 17.66 on Tuesday. (Provisional)

The CNX Nifty gained 90.45 points or 1.18% to settle at 7,725.15. The index touched high and low of 7,732.40 and 7,677.30 respectively. Out of 50 stocks in Nifty, 44 stocks ended in the green and 6 in red. (Provisional)

The major gainers of the Nifty were SSLT up 4.64%, NTPC up by 3.23%, BHEL up by 2.87%, Lupin up by 2.71% and Coal India up by 2.48%. On the flip side, the key losers were HCL Tech down by 1.16%, Infosys down by 0.50%, PNB down by 0.47%, Gail down by 0.43% and Tech Mahindra down by 0.15%. (Provisional)

European markets were trading in green; UK’s FTSE 100 up by 0.27%, Germany’s DAX up by 0.24% and France’s CAC 40 was up by 0.06%.

The Asian markets concluded Wednesday’s trade in green, with the indices extending gains from a six-year high. Hong Kong stocks rose, with the benchmark index advancing to its highest close this year, after data showed China’s factory activity expanded at the fastest pace since December. The Hong Kong Monetary Authority, the city’s central bank, stepped in for the first time since December 2012 to prevent the city’s currency from rising against the US dollar, as demand rose on commercial activities. China’s stocks rose for a third day, capping the longest winning streak in three weeks, amid signs government efforts to arrest a slowdown are helping to stabilize the economy. South Korean CPI remained unchanged at a seasonally adjusted annual rate of 1.7%.

Indonesia’s trade balance has swung to a surplus in May, while inflation slowed in June, bolstering Bank Indonesia’s case for keeping its benchmark interest rate steady next week. The country recorded a trade surplus of $69.9 million in May, following a record deficit of $1.97 billion in April, as exports picked up and imports slowed. The consumer price index also eased to 6.7% last month from 7.3% in May. Last month’s inflation rate was the lowest since June 2013, when it stood at 5.9%.