Post Session: Quick Review

The Indian markets extending the consolidation mood ended marginally in red on Monday. Though, the start of the markets was on a positive not but profit taking at higher levels dragged the markets into red and trade remained in tight range for most part of the day before showing a smart recovery in final hours, which once again was sold-out, dragging the markets back in red. Traders were a bit concerned about the Monsoon Session of the parliament and some important result announcements during the week. There was some concern about the passage of important bills after Prime Minister Narendra Modi held an all party meet to discuss ways to ensure a smooth session of Parliament, as the government intends to pass legislation like the Goods and Services Tax and the contentious Land Acquisition Bill.

On the global front, after US markets posted their best week since March with Friday’s gains, the Asian markets made a mixed closing, as investors put Greece's debt crisis behind them to focus on the outlook for interest rates, corporate earnings and China's economy. Though, the Chinese shares ended higher, extending their gains on recent government measures to boost the market. European stocks extended their highest level since May on growing optimism over a resolution to Greece’s crisis and deals activity. Meanwhile, Greek banks reopened after three weeks, while the Athens Stock Exchange remained shut.

Back home, the markets could not hold the momentum it regained in the final hours on buying in some heavyweights, as selling in markets again picked up pace in late trades on concerns of probable earnings disappointments later in the week.  Traders also remained concerned about the deficient monsoon and rise in inflation due to it after the India Meteorological Department (IMD) said that there was 8% nation-wide deficiency in monsoon till Sunday. Monsoon rainfall in the first two weeks of July was 32% below average after abundant showers in June. Though, IMD has said that the widespread monsoon showers over Karnataka, Kerala, Madhya Pradesh and the North-Eastern states on Sunday are expected to somewhat make up for the pan-India rain deficiency. IMD also expects rainfall to strengthen by 30 July and beginning of August. Back on street, the broader indices managed to retain their early gains throughout the session and ended higher by over a quarter percent. On the sectoral front, while realty and metal remained the major laggard, the banking pack also extended its decline, with government deciding to keep banks out of the composite foreign investment cap. Even though there was report that Finance Ministry will seek Parliament's nod for the infusion of Rs 12000 crore funds into the PSU banks. For the current fiscal, the government has allocated Rs 7,940 crore in the Budget for capital infusion in state-owned banks and the said infusion will be in addition to budget allocation. Gold and jewellary stocks witnessed good upmove after precious metals were routed in international markets, as gold sank to the lowest in more than five years amid prospects for higher US rates and after China said it held less metal in reserves than expected. In Indian markets Gold future prices fell below Rs 25,000 per 10 grams. Gitanjali Gems was up by around 14%, PC Jeweller and Rajesh Exports gained over 3%.

The BSE Sensex ended at 28401.41, down by 61.90 points or 0.22% after trading in a range of 28319.83 and 28549.13. There were 13 stocks on gainers side against 16 stocks on the decliners side on the index. (Provisional)

The broader indices managed a positive close; the BSE Mid cap index was up by 0.22%, while Small cap index gained 0.36%.(Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.55%, TECK up by 0.15%, Capital Goods up by 0.09%, Consumer Durables up by 0.06%, IT up by 0.04%, while Realty down by 2.10%, Metal down by 0.65%, Power down by 0.42%, PSU down by 0.42%, Bankex down by 0.38% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindalco up by 1.30%, Dr. Reddys Lab up by 1.06%, Mahindra & Mahindra up by 0.94%, TCS up by 0.87% and Bharti Airtel up by 0.72%. On the flip side, Tata Motors down by 2.07%, Vedanta down by 1.65%, SBI down by 1.40%, Hindustan Unilever down by 1.33% and BHEL down by 1.23% were the top losers.(Provisional)

Meanwhile, Union Railway Minister Suresh Prabhu, pitching for more investments in Railways has said that “The Indian economy will grow by 2 to 3 percent more with increased investments in the railways as reforms in transportation sector are vital to exploit full growth potential of the country.”

Prabhu said that the railways should be seen as a new medium of development for the country in future. He pointed that congestion was one of the main problems faced by the Indian railways, the minister added that doubling and tripling of the lines can happen only with a hike in investment in the sector.

He said that if the country's railway network is pumped with a massive investment to boost the connectivity, the Indian economy will register an increased growth by 2-3 per cent. He pointed that congestion was one of the main problems faced by the Indian railways.

The Railway Minister further disclosed that the tendering process of the railways and other commercial decisions were not being handled by the railway minister in the NDA government, as far as the delegation and decentralisation of power to the departments is concerned. He added that Railway minister now works only on policy execution. Decentralisation of power of decision making, if necessary, is in the interest of a transparent administration.

The CNX Nifty ended at 8602.30, down by 7.55 points or 0.09% after trading in a range of 8559.00 and 8624.10. There were 20 stocks in green against 29 stocks in red, while one stock remained unchanged on the index. (Provisional)

The top gainers on Nifty were Ultratech Cement up by 4.16%, Asian Paints up by 3.28%, BPCL up by 2.70%, Grasim Industries up by 1.98% and Idea Cellular up by 1.82%. On the flip side, PNB down by 2.76%, Bank Of Baroda down by 2.24%, Tata Power down by 1.98%, Cairn India down by 1.96% and Tata Motors down by 1.91% were the top losers.(Provisional)

European Markets were trading in green, UK’s FTSE 100 was up by 32.96 points or 0.49% to 6,808.04, France’s CAC gained 50.84 points or 0.99% to 5,175.23 and Germany’s DAX was higher by 99.19 points or 0.85% to 11,772.61.

Asian markets closed mostly in red on Monday, while the markets in Japan and Indonesia were closed for public holidays. China’s President Xi Jinping has reassured local governments that the country’s economy still enjoys a promising outlook despite downward growth pressure pegging it around seven percent. He pointed out the Chinese economy is in good condition with unchanged factors, including sound economic fundamentals, remarkable flexibility, huge potential and room for growth. Jinping added that the economy is undergoing steady restructuring with emerging sectors cropping up to lend fresh steam to drive growth. The country’s Commerce Ministry stated that growth in China’s foreign direct investment (FDI) is expected to quicken to around 4 percent in 2015 from the previous year on government efforts to improve its investment environment. China’s real estate market continued to warm in June, with fewer cities seeing new home prices drop for the fourth consecutive month. On a monthly basis, new home prices fell in 34 of the 70 cities monitored by the government in June, down from 43 in May. The Philippines ran a 86.4 billion pesos ($1.91 billion) budget suplus in the first five months of 2015, more than ten times higher than a year ago. Having targeted a deficit of 284 billion pesos for 2015, the government is under pressure to accelerate spending after growth weakened to a six-year low in the first quarter from the previous three months.