Post Session: Quick Review

Local equity markets puffing up gains of over half a percent rose to record high levels, which was its third consecutive all time high in as many sessions as market-participants lapped up risk equities on prevailing optimism of some bold measures by the new government in its maiden budget. Sentiments were also buttressed after reports which suggested of overseas investors pumping in a staggering $20.4 billion into the Indian market in the first half of the year. Additionally, three-week low prices of brent crude also whetted the risk appetite of investors. Crude oil futures, extending its southbound journey traded at three weeks low level, as Libya prepared to resume exports from two terminals and amid speculation that Iraq’s crude supplies remain unaffected from violence.

In the magnificent session of trade, bourses after witnessing consolidation during afternoon deals spurted late in trade due to hectic buying activity. In the extremely rock-solid session of trade, there appeared no iota of profit-booking, with late hour buying further heaving the benchmark equity indices to-day’s high point. By close of trade, both Sensex and Nifty ended above the psychologically 26,100 and 7,750 levels respectively. Meanwhile, broader indices too, gathering some steam, settled with gains in the range of 0.15%-0.60%.

On the global front, Asian stocks showed a mixed performance on speculation over when the Federal Reserve may hike interest rates, leaving investors devoid of any major catalysts after recent gains. Additionally, European shares too were reeling under pressure on Monday amid a lack of trading cues and little economic news. The U.S. markets were closed on Friday for the Independence Day public holiday.

Closer home, markets clearly overlooking reports of uncertainty over monsoon, drew much of relief from lower crude prices. According to reports, monsoon rainfall continued to be deficient or scanty, with the county receiving rainfall that was 53% less than the 50-year average. Central India and the southern peninsula remained the driest, receiving rainfall that was 74% and 62% less than normal, respectively.

On the BSE sectoral front, while majority of the sectoral indices on BSE settled into positive territory, nevertheless Information Technology, Technology and Infrastructure counters were the prominent gainers of the session. On the flip side, Banking, Oil & Gas and Public Sector Undertaking counters were the weak links of trade.Oil & Gas stocks ran out of steam after Oil Minister Dharmendra Pradhan underscored that there were no plans to hike LPG and kerosene prices and that the government will think of new measures to remove subsidy burden. While, shares of information technology (IT) companies witnessed strong demand in otherwise subdued market on expectation of strong revenue growth during the recently (April-June) concluded quarter. Besides, Railway stocks hogged maximum limelight as investors lapped up stocks ahead of Railway Budget on Tuesday, July 8. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1712: 1371, while 93 scrips remained unchanged. (Provisional)

The BSE Sensex gained 138.02 points or 0.53% to settle at 26100.08. The index touched a high and a low of 26123.55 and 25992.73 respectively. Among the 30-share Sensex, 20 stocks gained, while 10 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.12% and 0.60% respectively. (Provisional) 

On the BSE sectoral front, IT up by 2.63%, TECk up by 2.16%, Infrastructure up by 1.41%, Power up by 1.12% and Healthcare up by 0.80% were the top gainers, while Bankex down by 1.21%, Oil and Gas down by 0.91%, PSU down by 0.22% and Realty down by 0.14% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Sun Pharma up 4.02%, TCS up by 3.41%, Tata Power up by 3.36%, Infosys up by 3.20% and Dr Reddys up by 2.63%. On the flip side, the key losers were HDFC Bank down by 2.03%, ONGC down by 1.64%, GAIL down by 1.08%, Axis Bank down by 0.90% and RIL down by 0.87%. (Provisional)

Meanwhile, the government has removed the quantitative ceiling on exports of organic sugar in order to help cash-starved sugar industry. Earlier, the government had kept a ceiling of 10,000 tonnes on organic sugar exports.

The Directorate General of Foreign Trade (DGFT), in its notification highlighted that the quantitative ceiling for export of organic sugar has been removed till the time export of sugar is permitted freely. However, Agricultural and Processed Food Products Export Development Authority (APEDA) would permit export of organic sugar subject to registration of quantity with DGFT and certification.

The DGFT has also permitted Indian Sugar Exim Corporation to export of 8,100 tonnes of raw sugar to the US under tariff rate quota (TRQ), a quota for a volume of exports that enter the US at relatively low tariffs. After the quota is reached, a higher tariff is applied on additional imports from India.

India, the second largest producer of sugarcane after Brazil, holds about 5 million hectares of land under sugarcane with an average yield of around 70 tonne per hectare. India produced 25.14 million tonnes of sugar in the crop season ended September 30, 2013, almost 4.5% less than the previous year because of low rainfall in Maharashtra, Karnataka and Tamil Nadu in 2012. The Indian Sugar Mills Association (ISMA) has estimated Indian sugar production at 24 million tonnes for 2013-14.

India VIX, a gauge for markets short term expectation surged 6.89% at 19.40 from its previous close of 18.15 on Friday. (Provisional)

The CNX Nifty rose 35.55 points or 0.46% to settle at 7,787.15. The index touched high and low of 7,792.00 and 7,755.10 respectively. Out of 50 stocks in Nifty, 30 stocks ended in the green and 20 in red. (Provisional)

The major gainers of the Nifty were IDFC up 6.01%, Sun Pharma up by 4.25%, Tata Power up by 3.45%, TCS up by 3.30% and Infosys up by 2.98%. On the flip side, the key losers were Indusind Bank down by 2.19%, HDFC Bank down by 1.98%, Ultratech Cement down by 1.88%, BPCL down by 1.73% and ONGC down by 1.54%. (Provisional)

European markets were trading in red; UK’s FTSE 100 down by 0.16%, Germany’s DAX down by 0.15% and France’s CAC 40 was down by 0.33%.

The Asian markets concluded Monday’s trade mostly in green, with Chinese stock closing flat in quiet trade as investors await the release of Chinese economic data later in the week. Indonesia’s rupiah gained the most since December as local stocks rallied on speculation investors are positioning for Joko Widodo to win next week’s election after he performed strongly in the final leaders’ debate. IMF chief Christine Lagarde stated that global economic activity should strengthen in the second half of the year and accelerate in 2015, although momentum could be weaker than expected, hinting at a slight cut in the fund’s growth forecasts. Lagarde estimated that growth in China this year would be between 7% and 7.5%. Japan’s index of leading economic indicators rose to a seasonally adjusted 105.7.Taiwanese Trade Balance fell to a seasonally adjusted annual rate of 1.89B, from 5.29B in the preceding month. Philippines CPI rose to a seasonally adjusted annual rate of 0.4%, from 0.5% in the preceding quarter.