Post Session: Quick Review

Resuming bull-run after two straight sessions of consolidation, Indian equity markets puffed up gains over a percent on Monday and scaled life time high level, which was above psychologically crucial 27,300 and 8,150 mark for Sensex and Nifty respectively. Sustained buying activities by funds and retail investors against the backdrop of not-so positive global cues, mainly led to cheer at Dalal Street. Meanwhile, broader indices too ferociously participating into the rally went home with gains in the range of 1.20%-2.10% respectively. In the extremely sanguine session of trade, barometer gauges went on adding ground and concluded near day’s high point, which was also its life time high level. Though, bit of profit-booking emerged in the early afternoon session of trade, but buying yet again picked up momentum in the last hour of trade.

On the global front, Asian markets ended mostly in the green terrain on Monday as sentiments remained up-beat after government data out of China showed that the Chinese trade surplus rose to a record $49.83 billion in August from $47.30 billion in July. Exports rose at a bigger than expected 9.4 percent annual pace, while imports unexpectedly fell. On the flip side, European shares fell in early trading on Monday, retreating after an opinion poll showed supporters of Scottish independence from Britain taking the lead for the first time since the referendum campaign began.

Closer home, most of the sectoral indices on BSE were trading in the favour of positive terrain, however stocks from Consumer Durables counter proved to be the only exception. On the flip side, stocks from Oil & Gas, Information Technology and Fast Moving Consumer Goods counters witnessing most of the traction, were the top gainer on BSE sectoral front. Meanwhile, in stock-specific activity, shares of tyre companies like Ceat, Apollo Tyres, JK Tyres and MRF Tyres surged on account of decline in rubber prices. According to Rubber Board of India, domestic rubber prices have seen sharpest fall in five years, hitting Rs 126 per kg. Rubber prices are down 25 percent since average of Rs 169/kg seen in January. While, Metal stocks gained on renewed buying, It stocks turned out to be flavor for yet another session. Besides, gains of Oil & Gas counters were led by stocks from Oil and Natural Gas Corporation, which rallied 2 percent after Bank of America Merrill Lynch upgrades the stock to 'buy' from 'neutral. The market breadth on the BSE remained in the favour of advances; advancing and declining stocks were in a ratio of 2072:956, while 98 scrips remained unchanged. (Provisional)

The BSE Sensex ended higher by 293.15 points or 1.05% at 27319.85 after trading in a range of 27144.56 and 27354.99. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.29%, while Small cap index up by 2.11%.

The gaining sectoral indices on the BSE were Oil & Gas up by 1.79%, FMCG up by 1.40%, Bankex up by 1.38%, Capital Goods up by 1.29% and Metal up by 1.25% while, Consumer Durables down by 0.22% was the lone losing index on BSE. (Provisional)

The top gainers on the Sensex were Hindalco up by 3.49%, ONGC up by 2.82%, SBI up by 2.09%, Wipro up by 2.07% and Hindustan Unilever up by 2.04%. On the flip side, NTPC down by 1.47%, Mahindra & Mahindra down by 0.92%, Tata Power down by 0.28% and BHEL down by 0.02% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India (RBI) Governor Raghuram Rajan has asserted that the government and the RBI will formulate monetary framework this year for the central bank. The Governor added that sound monetary framework is likely to help take strong decisions towards an objective which has much more emphasis on inflation.

Rajan reiterated that central bank is aimed to bring down the headline number to 8% by end of this year and to 6% by the end of next year. The Reserve Bank of India (RBI), with an objective to generate long term economic growth by bringing down inflation over a reasonable period of time, has raised lending rate three times since September’13 in order to tame price rise through cooling demand.

On economic growth, Raghuram Rajan stated that Indian economy is witnessing recovery with the country's GDP growing to 5.7 percent in Q1FY15 up from about 4.6 percent a year ago. RBI expects 5.5% economic growth for the current fiscal. RBI’s Governor further said that India’s new government may take some time to unveil grand, big picture reforms as it is currently focusing on implementation of stalled projects worth $50-70 billion that will pay dividends in the short run by helping on the inflation and income fronts.

Governor further stressed that the RBI is also focusing on macro stabilization and country’s macro-economic indicators like current account deficit, fiscal deficit, and inflation are expected to improve further in future. If the global economic growth surge in future, it will help countries like India tremendously.

India VIX, a gauge for markets short term expectation of volatility dropped 1.10% at 12.79 from its previous close of 12.93 on Friday. (Provisional)

The CNX Nifty edged higher by 87.05 points or 1.08% at 8173.90 after trading in a range of 8126.15 and 8180.20. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were Asian Paints up by 4.47%, Hindalco up by 3.43%, Ambuja Cement up by 3.08%, ONGC up by 2.62% and Grasim Industries up by 2.61%. On the flip side, NTPC down by 1.68%, Power Grid Corporation down by 1.00%, NMDC down by 1.00%, Mahindra & Mahindra down by 0.94% and Tata Power down by 0.74% were the top losers. (Provisional)

European Markets were trading in the red; Germany’s DAX was down by 0.12%, France’s CAC was down by 0.23% and UK’s FTSE 100 was down by 0.35%.

Asian markets ended mostly in the green terrain on Monday as sentiments remained up-beat after government data out of China showed that the Chinese trade surplus rose to a record $49.83 billion in August from $47.30 billion in July. Exports rose at a bigger than expected 9.4 percent annual pace, while imports unexpectedly fell. Meanwhile, Japanese Nikkei edged higher by around quarter a percent, benefited from the yen’s weakness, which was subdued against a firmer dollar. The greenback has been stronger in recent weeks in reaction to rate normalization expectations. On the economic front, Japan recorded a trade surplus of 416.7 billion yen in July compared to a deficit of 399.1 billion yen in June. Exports rose 8 percent year-over-year, outpacing the import growth rate at 7.6 percent. Though, revised second quarter GDP released by Japan’s Cabinet Office showed a downwardly revised 7.1 percent year-over-year drop compared to the 7 percent decline estimated earlier. On an annualized quarterly basis, GDP was down 1.8 percent, downwardly revised from preliminary estimate of the 1.7 percent drop.

Nikkei 225 was by 36.23 points or 0.23% to 15,705.11, FTSE Bursa Malaysia KLCI increased by 2.63 points or 0.14% to 1,871.09 and Jakarta Composite was up by 29.15 points or 0.56% to 5,246.48. On the flip side Straits Times was declined 6.54 points or 0.20% to 3,335.19, and Hang Seng was down by 49.70 points or 0.20% to 25,190.45.

Stock markets of China, South Korea and Taiwan remained shut for the trade today.