Post Session: Quick Review

Markets extending their gaining streak for sixth straight session, logged fresh record highs on Tuesday, which took Sensex past the crucial 26,400 and Nifty concluded just short of the crucial 7,900 level. Trade right from start remained upbeat as risk appetite returned following upbeat U.S. housing data and easing tensions in the Middle East and Ukraine. Though, markets threatened to slip below neutral line for couple of times, but each the attempt was reciprocated with recovery. Meanwhile, traders also took a heart from the report which suggested of India touching top spot in Nielsen’s Global Survey of Consumer Confidence. According to Nielsen global survey, India has touched the top spot in consumer confidence among 60 countries. During April-June quarter of 2014, India’s ranking increased seven index points to 128, surpassing the 123 logged by Indonesia, which previously held the top spot for five consecutive quarters. Besides, good institutional flows, both domestic and foreign along with positive global set-up, also aided the sentiment. Overseas investors bought cash shares worth Rs 4.73 billion ($77.84 million) on Monday, provisional exchange data shows. They also bought equity derivatives worth Rs 15.12 billion, as per the data. Meanwhile, domestic institutional investors bought cash shares worth Rs 4.90 billion in the previous session.

On the global front, Asian stocks rose on Tuesday after Wall Street climbed to its highest level since late July amidst hopes of some easing of tensions in the Ukraine crisis. Foreign ministers from Russia, Ukraine, Germany, and France gathered in Berlin over the weekend to discuss talks for a ceasefire or a political solution, and Russia's Foreign Ministry said on Monday that a 'certain progress' was achieved during the talks. Meanwhile, European equities were trading into positive territory with investors looking with hope to this week’s central bank jamboree at Jackson Hole amidst growing consensus that the Fed will use its sojourn to Wyoming, which kicks off on Thursday, to play down expectations that monetary policy will be tightened anytime soon.

Closer home, most of the sectoral indices on BSE concluded in green, nevertheless, top gainers were stocks from Auto, Realty and Power counters. On the flip side, stocks from Information Technology and Technology counters were the only losers of the session, which were beaten blue on account of rupee appreciation. Meanwhile, in stock-specific activity, Oil marketing companies’ were the flavor for yet another session after global investment bank, Goldman Sachs, in its report underscored that any policy move towards actual de-regulation of diesel prices would be a key catalyst for OMCs. The global investment bank also sees significant share price upside of 102%-263% for OMCs as divestment plays under their blue sky scenario. Meanwhile, textile stocks, namely Weslpun Corp, Grasim Industries and Arvind, etc were in demand for yet another session on the back of expectations of better profitability, following good export demand after the country attracted $198.86 million foreign capital in textile sector during April-March 2013-14, which is 91.41% from $103.89 million of FDI attracted during the same period during previous year. Besides, Cement stocks, like ACC, Ambuja Cement, Ultratech Cement and Ambuja Cements were once again on the radar of traders as they were a play on economic recovery. The market breadth on the BSE remained in the favour of advances; advances and declining stocks were in a ratio of 1685:1266, while 102 scrips remained unchanged. (Provisional)

The BSE Sensex surged 12.61 points or 0.05% to settle at 26403.57. The index touched a high and a low of 26530.67 and 26387.84 respectively. 18 stocks gained against 12 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 1.02%, while the BSE Small cap index was higher by 1.12%. (Provisional) 

On the BSE sectoral front, Auto up by 2.39%, Realty up by 1.41%, Power up by 1.22%, Capital Goods up by 1.15% and PSU up by 0.76% while, IT down by 0.57% and TECK down by 0.38% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 3.81%, Bajaj Auto up by 3.10%, Tata Motors up by 3.07%, BHEL up by 2.94% and Maruti Suzuki up by 1.88%. On the flip side, HDFC down by 2.47%, TCS down by 1.89%, Hindalco down by 1.07%, HDFC Bank down by 0.93% and ITC down by 0.81% were the top losers. (Provisional)

Meanwhile, buoyant over the gradually growing India’s overseas shipments, the Federation of Indian Export Organisations (FIEO) has stated that India’s exports can surpass the $350-billion target for 2014-15 fiscal as growth in the manufacturing sector is expected to pick up pace. The FIEO President Rafeeque Ahmed has stated that global trade scenario is improving with positive development in the US, EU and emerging economies and in coming months exports should reflect these developments.

However, the FIEO President has stated that single digit growth in exports in July was lower than expected and sectors like gems and jewellery, electronics, cotton textiles continue to be cause for concern as their negative growth is pulling down overall exports growth. After registering double-digit growth for two consecutive months, India's merchandise exports grew by 7.33% to $27.73 billion in July from $25.84 billion in the same month of previous year. However, exports rose for the fourth straight month in July, benefiting from a stronger global economy and further depreciation in rupee value.

Petroleum products exports and engineering exports, each representing around 20% share in country's total imports, rose by 28.1% and 23.9% in July over same period last year. Furthermore, textile and pharma exports grew by 13.3% and 10.78% in July from a year earlier. However, gems and jewellery exports contracted by 17.42% y-o-y to $2.9 billion in July due to harsh government’s norms like high customs duty at 10% on precious metals imports and existing 80/20 rule under which 20% of all gold imports by importers has to be re-exported. During April-July’FY15, the value of India’s overseas shipments increased by 8.62% to $107.84 billion from $99.28 billion in the same period of previous financial year.

India VIX, a gauge for markets short term expectation of volatility rose 2.98% at 13.90 from its previous close of 13.50 on Monday. (Provisional)

The CNX Nifty ended higher by 23.25 points or 0.30% to settle at 7,897.50. The index touched high and low of 7,918.55 and 7,881.15 respectively. 37 stocks ended in the green against 13 stocks ending in red. (Provisional)

The top gainers on Nifty were BPCL up by 3.94%, Mahindra & Mahindra up by 3.62%, Indusind Bank up by 3.34%, Tata Motors up by 2.99% and United Spirits up by 2.99%. On the flip side, HDFC down by 2.47%, TCS down by 1.97%, HDFC Bank down by 1.02%, Sun Pharma Industries down by 0.79% and Hindalco down by 0.77% were the top losers.

European markets were trading in the green; France’s CAC 40 was up by 0.40%, UK’s FTSE 100 was up by 0.43%, while Germany’s DAX was up by 0.92%.

Asian equity indices ended in green on Tuesday, after confidence in the US housing industry climbed to the highest level in seven months and tensions eased over global political conflicts. Hong Kong shares climbed to a six-year high. South Korea sold the least inflation-linked bonds since November after the government and central bank lowered their consumer-price gain forecasts. Malaysia’s $312 billion economy expanded 6.4% in the three months through June, the fastest pace in six quarters. That was more than the 5.8% median forecast and sent the ringgit to a nine-month high against the US dollar. Singapore’s growth is trailing at 2.4%. The currency, which is used as the city-state’s key monetary policy tool, climbed 0.5% versus the greenback in the past three months, ranking it fifth among the 31 exchange rates and behind the ringgit’s 1.8% gain. The Philippines priced 140 billion pesos ($3.2 billion) of 10-year bonds in its first debt exchange in three years, allowing the nation to cut interest payments and set the stage for sustained economic growth.