Post Session: Quick Review

Buoyed by firm global cues, Indian equity benchmarks ended the last day of the week’s trade in green terrain with key gauges recapturing their crucial 8,150 (Nifty) and 26,600 (Sensex) bastions. Markets after making a gap-up opening showed a volatile trade, but managed to end the session with a gain of over one third of a percent. Traders took some encouragement with report that India’s current account deficit (CAD) for the full fiscal 2015-16 narrowed to $22.1 billion or 1.1 percent of GDP, against $26.8 billio, or 1.3 percent of GDP, in 2014-15 on the back of contraction in the trade deficit. Also, CAD narrowed sharply to $0.3 billion or 0.1 percent of GDP, in the fourth quarter of 2015-16 from $7.1 billion or 1.3 percent, in the third quarter, on account of lower trade gap. The country’s trade deficit for the entire fiscal narrowed to $130.1 billion from $144.9 billion in 2014-15. Some support also came with the Economic Affairs Secretary Shaktikanta Das’ statement that the FDI inflows in the current fiscal will top 15.3 percent rise in 2015-16 on the back of reforms and liberalisation of FDI norms. Appreciation in Indian rupee too aided sentiments. The Indian rupee strengthened by 4 paise against the US dollar at the time of equity markets closing at 67.17 from its previous close of 67.20.

Firm cues from regional counters provided much needed support to domestic indices. European markets traded with a gain of over a percent in early deals after both official groups in the EU referendum campaign suspended campaigning activities until further notice out of respect for Labor MP Jo Cox, who was shot dead in the street in northern England. Asian markets rallied on Friday as investors’ sentiment received a boost after US stocks ended a five-day losing streak to close higher Thursday.

Back home, gains remained capped to some extent with report that India’s monsoon deficit has widened to 25% since the beginning of this month as rainfall in the past day was less than half of the normal level, increasing the anxiety of farmers, although forecasters say that heavy showers are just a few days away. On the sectoral front, stocks related to realty space remained on buyers’ radar on hopes that market regulator will relax rules for investment in real estate investment trust. On the flip side, shares of sugar companies remained under pressure after the government imposed 20% customs duty on sugar exports to boost domestic supply and ensure that traders don’t ship out sugar to take advantage of favourable international markets.

The NSE’s 50-share broadly followed index -- Nifty -- rose by around thirty points to end above the psychological 8,150 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- surged by hundred points to finish above the psychological 26,600 mark. However, broader markets struggled to get any traction and ended the session mixed.

The market breadth remained in the favour of advances, as there were 1,252 shares on the gaining side against 1,328 shares on the losing side while 188 shares remain unchanged. (Provisional)

The BSE Sensex ended at 26625.91, up by 100.45 points or 0.38% after trading in a range of 26538.51 and 26730.55. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.05%, while Small cap index was up by 0.29%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.51%, Telecom up by 1.13%, FMCG up by 0.73%, Consumer Durables up by 0.59% and Auto up by 0.56%, while Healthcare down by 0.78%, Capital Goods down by 0.44% and Oil & Gas down by 0.10% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.18%, TCS up by 1.96%, Tata Motors up by 1.84%, HDFC up by 1.74% and Coal India up by 1.56%. On the flip side, Sun Pharma down by 1.62%, Dr. Reddys Lab down by 1.60%, Tata Steel down by 1.53%, SBI down by 1.27% and Larsen & Toubro down by 1.26% were the top losers. (Provisional)

Meanwhile, in a bid to develop railway and other infrastructure at strategically important Chabahar port, Indian steel companies will export rails worth $150 million to Iran in July. The maiden consignment of rails will be shipped by steel companies. Both the countries have deliberated on taking further the historic pact between the nations on the strategic Chabahar Port in southern Iran which will give India access to Afghanistan and Europe bypassing Pakistan.

Moreover, railway PSU IRCON will build a rail line at Chabahar to move goods right up to Afghanistan. The rail links are being built so that the land-locked Afghanistan can get access to the Iranian port as an alternative to the Pakistani port of Karachi.

Further, a meeting is scheduled next month between Shipping Minister and his Iranian counterpart to develop a work plan for industrial needs and investments needed for Chabahar free trade zone. The pact to develop the Chabahar port and other infrastructure was inked during Prime Minister Narendra Modi’s visit to Persian Gulf nation last month. Gadkari asserted that India would invest billions of dollars in setting up industries ranging from aluminium smelter to urea plant in Iran’s Chabahar free trade zone.

The CNX Nifty ended at 8170.20, up by 29.45 points or 0.36% after trading in a range of 8135.80 and 8195.25. There were 28 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Airtel up by 3.03% and Tata Motors up by 2.21% and HDFC up by 2.19% and Tata Motors - DVR up by 2.06% and Coal India up by 1.84%. On the flip side, Tata Power down by 3.41%, Bharti Infratel down by 2.74%, Tata Steel down by 1.53%, Sun Pharma down by 1.51% and Dr. Reddys Lab down by 1.49% were the top losers. (Provisional)

European markets were trading in green; France’s CAC increased 57.92 points or 1.39% to 4,210.93, UK’s FTSE 100 surged 88.37 points or 1.49% to 6,038.85 and Germany’s DAX was up by 125.77 points or 1.32% to 9,676.24.

Asian equity markets ended higher on Friday, taking their cues from overnight gains on Wall Street, higher oil prices and a weaker yen, after both official groups in the EU referendum campaign suspended campaigning activities until further notice out of respect for Labor MP Jo Cox, who was shot dead in the street in northern England. Japanese shares recovered some of the hefty losses recorded in the previous session, as the yen steadied against the dollar after surging to a 22-month high on Thursday in the wake of the Bank of Japan's decision to leave its asset-buying plan unchanged. Chinese shares eked out modest gains even as concerns lingered about slowing growth and the weak yuan, which hit a five-year low earlier this week on concerns that capital outflows may accelerate.