Post Session: Quick Review

Indian markets extended their last session jubilation with traders overlooking Greece missing a deadline for repaying $1.7 billion after last-ditch overtures to creditors were rebuffed Tuesday. The benchmark Sensex recaptured the 28,000 level, while the Nifty was at touching distance to 8500 amid heavy across the board buying by market participants. There were some upbeat economic numbers that boosted the morale of the markets, data showed core infra sector growth rose to a 6-month high of 4.4% in May, compared to a contraction of 0.4% in April. The growth comes after a decline in the output posted in the previous two months of March and April, led by turnaround in Electric generation, coal and refinery products. The sentiment on Dalal Street was also boosted after revenue secretary said that the preparatory arrangements are in place to implement Goods and Services Tax (GST) from April 2016.

On the global front, the Asian markets following the gains in the US markets ended mostly in green, except the Chinese market which showed extreme volatility once again and ended lower by over 5 percent for the day. The European markets too moved higher, as investors watched for signs of compromise amid mounting pressure on Greece after it missed a repayment to the International Monetary Fund.

Back home, the local markets extended their northbound journey and surged defying global odds, on hopes of recovery in the domestic economy and value buying at lower levels. Traders even ignored the apprehension raised by the global rating agency Moody’s that there are growing concerns about risk of policy stagnation and “some disappointment” has emerged over the pace of reforms under the Modi government. Also, the manufacturing sector of India eased in June due to weak growth in new business inflows as companies took a cautious line on hiring and a weaker rise in new business inflows. Some encouragement came to the market with government announcing that for the first two months (April-May ) of 2015-16, the Centre’s fiscal deficit stood at Rs 2.08 lakh crore, or 37.5 per cent of the 2015-16 Budget estimate of Rs 5.56 lakh crore, compared with 45.3 per cent in the corresponding period last year. Banking stocks were one of the major gainers, contributing considerably to the market rally after Minister of State for Finance, Jayant Sinha said that the government is working on a comprehensive plan to recapitalise public sector banks. Some buzz was seen in the PSU oil marketing companies after price of petrol was cut by Rs. 0.31 a litre, while that of diesel was cut by Rs. 0.71 a litre on the back of declining international oil prices. Auto stocks too reacted to their monthly sales numbers and the country's largest car maker Maruti Suzuki India ended up by about a percent after it reported 1.8 per cent rise in total sales in June. Eicher Motors surged by around 4% after its Moteorcycle division posted rise of 48% in total sales.

The BSE Sensex ended at 28023.76, up by 242.93 points or 0.87% after trading in a range of 27799.91 and 28099.25. There were 22 stocks on gainers side against 8 stocks on the decliners side on the index. (Provisional)

The broader indices outperformed the benchmarks; the BSE Mid cap index gained by 1.41%, while Small cap index ended higher by 1.40%.(Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.71%, Bankex up by 1.68%, Power up by 1.66%, IT up by 1.54%, PSU up by 1.51%, while FMCG down by 0.34% was the lone losing index on the BSE.(Provisional)

The top gainers on the Sensex were Axis Bank up by 3.82%, BHEL up by 3.57%, Cipla up by 2.73%, Tata Motors up by 2.63% and SBI up by 1.67%. On the flip side, GAIL India down by 0.56%, ITC down by 0.49%, Lupin down by 0.47%, Bajaj Auto down by 0.42% and Hero MotoCorp down by 0.37% were the top losers.(Provisional)

Meanwhile, bringing some cheers for the policy makers, the core sectors in the country once again locked themselves into a faster growth trajectory, rising at an annual 4.4% compared to a contraction of 0.4% in April. The growth comes after a decline in the output posted in the previous two months of March and April, also the growth rate in May this year is the highest since November 2014, led by turnaround in Electric generation, coal and refinery products.

The eight core sector accounting for around 38% of the index of industrial production, showed cumulative growth during April to May, 2015-16 of 2.1 %. Barring natural gas production all other segments showed improvement in the passing month.

Coal production having weight of 4.38 % increased by 7.8 % in May, 2015 over May, 2014. Its cumulative index during April to May, 2015-16 increased by 7.9 % over corresponding period of previous year. Electricity generation having weight of 10.32% increased by 5.5 % in May, 2015, while its cumulative index during April to May, 2015-16 increased by 2.2% over the corresponding period of previous year. Petroleum Refinery production having weight of 5.94% increased by 7.9% in May, 2015, while its cumulative index during April to May, 2015-16 increased by 2.6% over the corresponding period of previous year.

The other segments which showed improvement in the month of May were, Steel production having weight of 6.68% increasing by 2.6 % in May, 2015. Its cumulative index during April to May, 2015-16 increased by 1.7 % over the corresponding period of previous year. Fertilizer production  having weight of 1.25% increased by 1.3 % in May, 2015 and its cumulative index during April to May, 2015-16 increased by 0.7% over the corresponding period of previous year. Cement production having weight of 2.41% increased by 2.6% in May, 2015, though its cumulative index during April to May, 2015-16 declined by 0.1 % over the corresponding period of previous year. Crude Oil production having weight of 5.22 % increased by 0.8% in May, 2015 over May, 2014, while its cumulative index during April to May, 2015-16 declined by 1.0% over the corresponding period of previous year.

The lone laggard for the month of May was  Natural Gas production having weight of 1.71 % declining by 3.1 % in May, 2015, while its cumulative index during April to May, 2015-16 declined by 3.3 % over the corresponding period of previous year.

The CNX Nifty ended at 8463.50, up by 95.00 points or 1.14% after trading in a range of 8370.15 and 8481.60. There were 41 stocks advancing against 9 stocks declining on the index.(Provisional)

The top gainers on Nifty were Bank Of Baroda up by 4.23%, BHEL up by 4.07%, Axis Bank up by 3.70%, Ambuja Cement up by 3.31% and Cipla up by 3.25%. On the flip side, Zee Entertainment down by 0.92%, Lupin down by 0.48%, NMDC down by 0.46%, Bajaj Auto down by 0.39% and GAIL India down by 0.34% were the top losers.(Provisional)

European Markets were trading in green, UK’s FTSE 100 was up by 90.28 points or 1.38% to 6,611.26, France’s CAC gained 116.01 points or 2.42% to 4,906.21 and Germany’s DAX surged by 224.81 points or 2.05% to 11,169.78.

Asian markets closed mostly in green on Wednesday, while Chinese stocks tumbled in late trade, as margin traders unwound positions for a seventh straight day and data showed economic growth remaining sluggish. Hong Kong stock exchange was closed on account of ‘Special Administrative Region Establishment Day’. Growth in China’s services sector picked up in June while big Japanese companies planned to ramp up spending at the fastest pace in a decade, offering hope that prospects are improving for Asia’s largest economies despite sluggish factory growth. The data fueled expectations that the wobbly global economy may start leveling out in the second half of the year, but the outlook remains murky, with fears that Greece’s debt crisis could splinter the euro zone and worries about whether China can avoid a stock market crash keeping investors on edge.

China’s official Purchasing Managers' Index (PMI) stood at 50.2 in June, unchanged from the previous month’s reading. A separate manufacturing index compiled by HSBC Holdings Plc and Markit Economics was at 49.4. Japan’s Tankan manufacturing index rose to a seasonally adjusted 15, from 12 in the preceding quarter. Indonesian Inflation rose to a seasonally adjusted 7.26%, from 7.15% in the preceding month. South Korean Trade Balance rose to a seasonally adjusted 10.20 billion, from 6.30 billion in the preceding quarter.