Markets maintain gains supported by Capital Goods and Realty

Indian markets were maintaining their upmove in the late morning trade and both the benchmarks were up by over a quarter percent, holding their psychological levels of 26550 (Sensex) and 8000 (Nifty). The sentiments got a boost on positive macro-economic data I.e. April IIP and May CPI released after market hours on Friday. The index of industrial production (IIP) rose at an accelerated pace of 4.1% in April 2015 over a year ago compared with the revised growth of 2.5% in March 2015. However, Inflation based on consumer price index (CPI) moved up slightly to 5.01% in May 2015 from 4.87% in April 2015. Though gains remained capped on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 670.96 crore on June 12, 2015. Furthermore, some investors will remain cautious ahead of the FOMC meet which is a key economic event and is likely to decide the timeframe for the Fed rate hike.

On global front, Asian stocks slipped on Monday as Greece inched closer to a possible default after weekend talks with international creditors over freeing up the rest of its bailout funds went nowhere. Further, Major U.S. stock indexes closed lower on Friday on the European uncertainty. Back home, Indian rupee lost 10 paise against the US dollar at 64.16 in early trade on Monday, extending its weakness for the third straight day, due to sustained demand for the US currency from importers amid capital outflows.

Back on street, stocks from Capital Goods, Oil & Gas and Realty counters were supporting the markets’ uptrend, while those from Power, Banking and PSU counters were adding to the underlying cautious undertone. In scrip specific development, Shares of PVR gained after the company entered into definitive agreements to raise Rs 350 crore from funds managed and advised by private equity player Multiples Alternate Asset Management. Furthermore, Unity Infraprojects rose after the company executed a Shareholders agreement with Deepak Fertilisers & Petrochemicals Corporation for the purpose of setting up ‘Terminal Market Complex’ at Kalyan in state of Maharashtra.

The market breadth on BSE was positive, out of 1989 stocks traded, 1154 stocks advanced, while 752 stocks declined on the BSE. 

The BSE Sensex is currently trading at 26565.33, up by 140.03 points or 0.53% after trading in a range of 26307.84 and 26614.30. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index up by 0.66%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.34%, Oil & Gas up by 0.61%, Realty up by 0.58%, TECK up by 0.56% and Auto up by 0.53%, while Power down by 0.29%, Bankex down by 0.16% and PSU down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.87%, Larsen & Toubro up by 1.80%, Mahindra & Mahindra up by 1.74%, HDFC up by 1.63% and Wipro up by 1.54%. On the flip side, SBI down by 1.02%, NTPC down by 0.99%, Vedanta down by 0.87%, GAIL India down by 0.71% and Bajaj Auto down by 0.46% were the top losers.

Meanwhile, in a positive surprise the industrial production growth accelerated to a two-month high of 4.1 percent in April 2015 against 2.1 percent in the month before, affirming that broad economic activity was on the mend. The major boost to the numbers came from capital goods sector whose growth surged to 11.1 percent in April and a 3.1 percent expansion for consumer durables, indicating pick-up with the broad investment cycle.

The quick estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of April 2015, released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation, for the month of April 2015 stands at 179.7, 4.1% higher as compared to the level in the month of April 2014, The factory output, measured by the Index of Industrial Production (IIP), was 3.7 per cent in April 2014. However the cumulative growth for the period April-March 2014-15 over the corresponding period of the previous year stands at 2.8%.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2015 stand at 123.3, 190.6 and 177.2 respectively, with the corresponding growth rates of 0.6%, 5.1% and (-) 0.5% as compared to April 2014. The cumulative growth in the three sectors during April-March 2014-15 over the corresponding period of 2013-14 were 1.4%, 2.3% and 8.4% respectively. In terms of industries, 16 out of the 22 industry groups (as per 2-digit NIC-2004) in the manufacturing sector showed positive growth during the month of April 2015 as compared to the corresponding month of the previous year.

As per Use-based classification, the growth rates in April 2015 over April 2014 stood at 2.8% in Basic goods, 11.1% in Capital goods and 3.3% in Intermediate goods.  The Consumer durables and Consumer non-durables have recorded growth of 1.3% and 4.4% respectively, with the overall growth in Consumer goods being 3.1%.

The IIP growth for March 2015 was scaled up to 2.5% in the first revision compared with 2.1% reported provisionally. The growth in January 2015 too was revised slightly upwards to 2.83% in the second and final revision compared with 2.77% at the first revision and 2.55% released provisionally.

The CNX Nifty is currently trading at 8015.00, up by 32.10 points or 0.40% after trading in a range of 7944.85 and 8034.60. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 2.42%, Mahindra & Mahindra up by 2.10%, Sun Pharma up by 2.02%, Larsen & Toubro up by 1.95% and Cairn India up by 1.77%. On the flip side, Power Grid down by 2.89%, Kotak Mahindra Bank down by 1.83%, Bank of Baroda down by 1.67%, Indusind Bank down by 1.09% and SBI down by 1.02% were the top losers.

Asian markets were trading in red; Hang Seng decreased 1.3%, Nikkei 225 decreased 0.33%, Shanghai Composite decreased 1.29%, Jakarta Composite decreased 1.18%, Straits Times decreased 0.98%, Taiwan Weighted decreased 0.29%, KOSPI Index decreased 0.38% and FTSE Bursa Malaysia KLCI decreased 0.17%.