Post Session: Quick Review

Indian markets bouncing back from a disappointing day of trade gained around half a percent by close on Tuesday. The trade which following a muted global trend looked sluggish for most part of the day, suddenly witnessed buying spree in the final hours with traders lapping up beaten down fundamentally strong stocks. Recovery in markets was majorly led by buying in banking, power, auto and consumer durable stocks. The mood in early part of trade remained cautious with mixed trade data, while the Indian trade deficit narrowed to $10.4 billion in May against $11.2 billion in the same month a year ago, but declining for the sixth straight month the country’s merchandise exports shrank 20.2 percent to $22.35 billion in May, dragged down by a slump in global demand.

On the global front, following the weak trend in the US markets the Asian markets ended mostly in red, with Chinese market suffering cuts of around three and half a percent. The European markets too extended their weakness for the third straight session, with major indices poised for a four-month low, after weekend talks between Greece and its creditors ended in acrimony. Investors are also watching for cues on the timing of a US rate increase, with FOMC starting a two-day meeting today.

Back home, there was sustained selling in private sector lenders, heavily owned by foreign investors, which declined on continued foreign portfolio sales and worries that central bank may not cut rates further this year, keeping the markets under pressure for most part of the day amid murky global cues after talks with Greek and EU officials in Brussels on Sunday failed to reach an agreement that would release bailout funds to Greece. French President Francois Hollande said there is “little time” to prevent Greece from leaving the eurozone. But it was the last hour buying that helped the local markets buck the global trends and move back to the positive zone with benchmarks reclaiming their crucial psychological levels of 26700 (Sensex) and 8000 (Nifty). There were lots of scrip specific action, and the RCom shares after good start ended in red down by a quarter percent. Russia’s Sistema has reportedly entered into exclusive talks for a potential merger between its Indian telecom business SSTL and RCom through a stock swap. RCom’s spectrum licence will expire sometime in 2017, whereas the Sistema’s licence in India, acquired one-one and a half years back, is there for 20 years

The BSE Sensex ended at 26725.26, up by 138.71 points or 0.52% after trading in a range of 26379.93 and 26731.35. There were 22 stocks on advancing side against 7 stocks on declining side on the index.(Provisional)

The broader indices too managed a positive close; the BSE Mid cap index was up by 0.92%, while Small cap index gained 0.38%.(Provisional)

The top gaining sectoral indices on the BSE were Auto up by 1.33%, Consumer Durables up by 1.15%, Bankex up by 1.10%, INFRA up by 0.93%, Power up by 0.79%, while, Oil & Gas down by 0.17% and FMCG down by 0.06% were the losing indices on BSE.(Provisional)

The top gainers on the Sensex were Bajaj Auto up by 2.74%, Tata Power up by 2.29%, SBI up by 1.98%, Hindustan Unilever up by 1.82% and Hero MotoCorp up by 1.56%. On the flip side, Vedanta down by 1.63%, Tata Steel down by 1.13%, HDFC down by 0.85%, Dr. Reddys Lab down by 0.85% and Wipro down by 0.35% were the top losers.(Provisional)

Meanwhile, government in its constant initiative of simplifying business environment and attracting foreign fund flow has initiated an extensive survey on ‘ease of doing business’ in states with an objective of improving the business climate of the country. The Department of Industrial Policy and Promotion (DIPP) has circulated a set of 285 questions to all the states in this regard.

India is currently ranked 142nd among 189 nations in the World Bank's Ease of Doing Business 2015 study, while the DIPP's assessment framework for state level reforms enabling ease of doing business 2015 has said that India's overall ranking and the individual rankings in various parameters clearly show that India is in urgent need of reforms to unlock the huge economic potential of the nation and the reforms need to be initiated at various levels across centre, state and local governments.

The key objectives of the DIPP survey are to assess the implementation of various factors enabling ease of doing business in a state and to do a comparative study of states with regards to the implementation status. DIPP has also circulated a document with recommendations for states on aspects critical to enabling ease of doing business and highlights good practices in various areas that need to be institutionalised by states to improve their investment eco-system.

The state governments have to submit by June 20 final responses to the questionnaire. Responses have been sought on any centralised help-line number to facilitate queries regarding the application and approval process and any 'change of land use' provided as a service through the single window system. The questionnaire also include queries on land banks available for industrial use, digitised land records at local municipality office and provision for e-filing for commercial disputes at district courts, among others.

The CNX Nifty ended at 8058.00, up by 44.10 points or 0.55% after trading in a range of 7952.35 and 8061.85. There were 37 stocks on gainers side against 13 stocks on decliners side on the index.(Provisional)

The top gainers on Nifty were Indusind Bank up by 3.68%, Tata Power up by 2.71%, Bajaj Auto up by 2.60%, Power Grid Corpn up by 2.34% and NMDC up by 2.16%. On the flip side, Idea Cellular down by 3.87%, Cairn India down by 3.22%, Vedanta down by 1.76%, BPCL down by 1.40% and Lupin down by 1.26% were the top losers.(Provisional)

European Markets made a weak start; Germany’s DAX was down by 128.46 points or 1.17% to 10,856.51, France’s CAC decreased by 43.61 points or 0.91% to 4,771.75 and UK’s FTSE 100 was lower by 33.07 points or 0.49% to 6,677.45.

Asian markets closed mostly in red on Tuesday, as markets braced for the possibility of Greece defaulting on its debt. The Shanghai Composite was pulled down by regulation that now caps the size of margin trading and short-selling in the world's second-largest economy. The area of new homes sold in Shanghai fell to a nine-week low, but strong sales in the high-end segment pushed average price to a new high. A total of 249,400 square meters of new residential properties, excluding government-funded affordable housing, were sold in the city last week, a decrease of 6.3 percent from the previous seven-day period. Bank of Japan policymakers may debate the potential demerits of further yen declines at their rate review on Friday, suggesting that growing political concern over excessive yen weakness could delay the timing of any further monetary easing. In recent parliament debates, lawmakers have urged Governor Haruhiko Kuroda not to be hasty in trying to meet the inflation target and to hold off on more easing that could spur unwelcome yen falls. Indonesia’s central bank will keep its key interest rate on hold on a policy meeting on Thursday, after inflation rose in May and the rupiah is trading near its lowest level since August 1998. In May, the annual inflation rate was its highest this year, at 7.15 percent. Last week, the rupiah reached a 17-year low of 13,384 per dollar, and it remains close to that level.