Jubilation continues on Dalal Street in noon deals

Indian markets continuing their jubilation were trading higher by over half a percent in afternoon deals. The benchmarks after making a start on a positive note have been strengthening gradually with no sign of any profit taking till yet and Nifty once again hitting the crucial psychological mark of 8400. Sentiments remained up-beat after the output of eight infrastructure sectors expanded 4.4 per cent in May, the highest growth rate in the past six months and a hardening trend in the global market despite Greece’s default. Investors shrugged off weak purchasing managers’ index (PMI) data. Growth in the country's manufacturing activities slowed down at 51.3 points in June from 52.6 points in May as new business orders were not as forthcoming.

Global cues too remained supportive with European counters making a firm start with CAC, DAX and FTSE all trading in green in early deals. Asian markets were trading mostly in green at this point of time led by Japanese Nikkei which edged higher by around half a percent after Bank of Japan’s latest survey of manufacturers showed an improvement in the three months to June. Japan's Nikkei firmed 0.2%.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. None of the sectoral indices were trading in the red. While power and capital goods witnessed the maximum gain in trade, realty, infrastructure, public sector undertaking, metal, technology, healthcare and software too were trading significantly. The market breadth on the BSE was positive; there were 1716 shares on the gaining side against 699 shares on the losing side while 101 shares remain unchanged.

The BSE Sensex is currently trading at 27956.35, up by 175.52 points or 0.63% after trading in a range of 27799.91 and 28007.42. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.30%, while Small cap index up by 1.37%.

The gaining sectoral indices on the BSE were Power up by 1.53%, Capital Goods up by 1.48%, Realty up by 1.39%, Infrastructure up by 1.35%, PSU up by 1.29%, while there were no losers on the index.

The top gainers on the Sensex were Cipla up by 2.91%, BHEL up by 2.10%, Bharti Airtel up by 1.69%, Larsen & Toubro up by 1.36% and Coal India up by 1.21%. On the flip side, Hero MotoCorp down by 0.72%, HDFC down by 0.47%, ITC down by 0.22% and Bajaj Auto down by 0.16% were the top losers.

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 is currently trading at 8428.60, up by 60.10 points or 0.72% after trading in a range of 8370.15 and 8440.35. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 3.76%, Cipla up by 3.25%, Bank of Baroda up by 2.98%, HCL Tech up by 2.58% and PNB up by 2.16%. On the flip side, Zee Entertainment down by 0.76%, Hero MotoCorp down by 0.75%, NMDC down by 0.59%, Bajaj Auto down by 0.54% and HDFC down by 0.39% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite increased 6.25 points or 0.13% to 4,916.91, Straits Times rose 6.77 points or 0.2% to 3,324.10, KOSPI Index surged 23.69 points or 1.14% to 2,097.89, FTSE Bursa Malaysia KLCI soared 29 points or 1.7% to 1,735.64, Taiwan Weighted gained 52.21 points or 0.56% to 9,375.23 and Nikkei 225 was up by 93.59 points or 0.46% to 20,329.32. On the flip side, Shanghai Composite was down by 128.89 points or 3.01% to 4,148.33.

The European markets were trading in green; Germany’s DAX rose 0.77%, France’s CAC gained 0.96% and UK’s FTSE 100 was up by 0.82%.