Post Session: Quick Review

Extending their northward journey to fifth day in a row, Indian equity benchmarks ended at lifetime closing high levels on Monday, which took Nifty above its crucial 7,850 mark, while Sensex surpassed the psychological 26,350 mark with gains of over a percent. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Earlier, after a sluggish start, markets gained traction and started moving towards north as investors continued hunt for fundamentally strong but oversold stocks. Sentiments got boost as Prime Minister Narendra Modi, in his Independence speech, presented government’s business-friendly side and invited global businesses to make India their manufacturing base. Some support also came on report that overseas investors bought shares worth 6.25 billion rupees on Thursday, provisional exchange data shows.

Positive opening in European counters too supported the sentiments with CAC, DAX and FTSE were trading with a gain of 0.50-1 percent after Russia said that ‘certain progress’ was reached on all issues discussed at Ukraine crisis talks in Berlin between the two countries’ foreign ministers and their counterparts from Germany and France. However, Asian markets ended mostly in the red as another bout of tensions in the Ukrainian conflict sapped investor confidence.

Back home, rally in Infrastructure stocks too supported the sentiments after Centre said it is ready to invite bids for Dholera investment region in Gujarat in the next three months and for integrated industrial townships in Greater Noida and Vikram Udyogpuri in Madhya Pradesh along the Delhi-Mumbai Industrial Corridor. Shares related to textile space too remained on buyers’ radar as foreign direct investment (FDI) of $199 billion was made in India’s textile sector in the financial year 2013-14. Additionally, shares of oil and gas, including oil marketing companies were trading higher by up to 4% on the bourses due to decline in Brent crude oil price. The market breadth on the BSE remained in the favour of advances; advances and declining stocks were in a ratio of 1926:1004, while 99 scrips remained unchanged. (Provisional)

The BSE Sensex surged 287.73 points or 1.10% to settle at 26390.96. The index touched a high and a low of 26413.11 and 26075.28 respectively. 24 stocks gained against 6 declines on the index. (Provisional)

The BSE Mid cap and Small cap indices too were ended in the green; the BSE Midcap was up by 1.80%, while the BSE Small cap index was higher by 2.27%. (Provisional) 

On the BSE sectoral front, PSU up by 2.83%, Oil & Gas up by 2.64%, Bankex up by 2.36%, Capital Goods up by 2.33% and Infrastructure was up by 1.87% while, FMCG down by 0.44% and IT was down by 0.41% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Cipla up by 5.02%, ONGC up by 4.92%, Axis Bank up by 4.47%, Tata Motors up by 4.21% and ICICI Bank was up by 3.76%. On the flip side, ITC down by 1.67%, Infosys down by 1.41%, HDFC down by 1.12%, TCS down by 0.58% and Hero MotoCorp was down by 0.24% were the top losers. (Provisional)

Meanwhile, indicating a positive shift in investor sentiment towards Indian textile industry, foreign direct investment (FDI) in industry has increased by 91.41 percent to $198.86 million during April-March 2013-14 as compared to $103.89 million during previous fiscal.  During the period April-May 2014, the country's textile sector attracted FDI worth $11.70 million.

With an aim to enhance foreign investments in textile sector, the government has taken various policy measures such as technology upgradation fund scheme (TUFS), scheme for integrated textile parks (SITP), integrated skill development scheme (ISDS). Other government supported schemes for the industry include schemes for development of technical textiles and schemes for the development of the powerloom sector.

Textile industry contributes around 4 percent to the gross domestic product (GDP), around 10 percent to the country’s export earnings and nearly 14 percent to industrial production besides providing direct employment to over 45 million people. The present market size of the industry stands at around $90 billion, which is expected to touch $220 billion mark by 2020. Exports have remained a core feature of India’s textile industry and textiles Ministry has set textile export target at $45 billion for the current financial year. The government is also preparing new textile policy which aims to achieve $300 billion exports by 2024-25 and creation of additional 35 million jobs by attracting investments.

India VIX, a gauge for markets short term expectation of volatility rose 2.13% at 13.50 from its previous close of 13.32 on Thursday. (Provisional)

The CNX Nifty ended higher by 82.55 points or 1.06% to settle at 7874.25. The index touched high and low of 7880.50 and 7779.20 respectively. 44 stocks ended in the green against 6 stocks ending in red. (Provisional)

The top gainers on Nifty were BPCL up by 5.73% and ONGC up by 5.17% and Cipla up by 5.00% and Axis Bank up by 4.47% and BHEL was up by 4.30%. On the flip side, ITC down by 1.74%, Infosys down by 1.46%, HDFC down by 1.05%, HCL Tech down by 0.97% and TCS was down by 0.49% were the top losers. (Provisional)

European markets were trading in the green; France’s CAC 40 was up by 0.97%, UK’s FTSE 100 was down by 0.59%, while Germany’s DAX was up by 1.21.56%.

Asian equity indices ended mixed on Monday, after a five-day winning streak. Holders of China’s first corporate bond to default onshore plan to meet in Shanghai, as investors look for clues on how the government will balance market liberalization with steps to maintain stability. China’s new-home prices fell in July in almost all cities that the government tracks as tight mortgage lending deterred buyers even as local governments eased property curbs. Prices fell in 64 of the 70 cities last month from June, the National Bureau of Statistics stated, the most since January 2011 when the government changed the way it compiles the data.

Hong Kong GDP fell to a seasonally adjusted annual rate of -0.1%, from 0.2% in the preceding quarter while Hong Kong Unemployment Rate rose to a seasonally adjusted 3.3%, from 3.2% in the preceding month. Malaysian GDP rose to a seasonally adjusted 6.4%, from 6.2% in the preceding month. Thailand’s GDP rose to a seasonally adjusted 0.4%, from -0.6% in the preceding month.