The Indian markets remained in jubilant mood and extended their gains to new week with both the indices surging by over a percent and hitting their respective fresh record highs. Today, the start is likely to be euphoric on good global cues and the markets will extend their gains of previous session, though some profit booking too cannot be denied in latter part after logging fresh highs. Marketmen will be encouraged with the report that India has touched the top spot in consumer confidence among the 60 countries measured in Nielsen`s Global Survey of Consumer Confidence and Spending Intentions in the second quarter (April-June) of 2014. Traders will also be eyeing the FII movement as the Indian equity markets have been the biggest recipient of FII flows among emerging markets this year despite recent geopolitical tensions. There will be some buzz in the export oriented stocks, as the Federation of Indian Export Organisations (FIEO) has said that the country's exports can surpass the $ 350-billion target this fiscal as growth in the manufacturing sector is expected to pick up pace.
The US markets surged in last session on easing geopolitical tensions, with the gains the tech-heavy Nasdaq ended the session at its best closing level in over fourteen years. The Asian markets have made mostly a jubilant start tailing the gains in the US markets and as concern eased over global conflicts from Ukraine to Gaza and Iraq.
Back home, boisterous benchmarks once again showcased an enthusiastic performance, by rallying over a percentage point. Markets, after a flat opening, gained ground and started moving northward afterward there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength, as investors continued their hunt for fundamentally strong stocks. Frontline indices not only extended their rally for fifth straight session but also recorded their all time closing high, settling comfortably above their crucial 7,850 (Nifty) and 26,350 (Sensex) bastions as investors took to hefty across the board buying. Sentiments remained up-beat on report that foreign institutional investors were net buyers in equities to the tune of Rs 1,714 crore in the previous three sessions, as per provisional data on the stock exchange. Some support also came with Prime Minister Narendra Modi’s Independence speech in which he presented government’s business-friendly side and invited global businesses to make India their manufacturing base. On the economic front, whole-sale price inflation dipped to a five month low of 5.19% in July mainly on account of decline in prices of some food articles, vegetables and protein rich items. It was at 5.43% last month and 5.84% in July 2013. Rally in European markets too supported the sentiments, while Asian markets ended mixed. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Meanwhile, Banking stocks remained on buyers’ radar as investors anticipated a rate cut after WPI eased to a five month low. Stocks related to Infrastructure too edged higher 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. Textile shares too traded jubilantly 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. Finally, the BSE Sensex surged by 287.73 points or 1.10%, to 26390.96, while the CNX Nifty soared by 82.55 points or 1.06% to 7,874.25.
