Post Session: Quick Review

Extending their northbound journey for fifth straight session, Indian equity benchmarks ended the Friday's session with a gain of around half a percent and key gauges recaptured their crucial 27,100 (Sensex) and 8,300 (Nifty) levels. After making a gap-up opening, markets managed to trade with traction for most part of the session as progress of monsoon rains and easing fears over Brexit boosted sentiments. Despite some profit booking in last leg of trade, markets ended the session with decent gains. The sentiments remained ebullient from World Bank's statement that India is a bright spot. The World Bank president has said that he is pleased with the progress that's been made in six priority areas. He added that Prime Minister Modi and his entire Cabinet have set extremely difficult and important targets.

Traders took encouragement with report that Manufacturing activities rose in June to a three-month high as new orders were forthcoming from near flat in the first two months of the current financial year. PMI rose to 51.7 points in June from 50.7 in the previous month. Traders shrugged off weak Core sector data. The production index for eight core industries grew 2.8% in May, against a robust 8.5% in April, pulled down by crude oil, refinery products, steel and cement.

Global cues too remained supportive with European markets making mostly a positive opening, while Asian counters ended mostly in green, as investors resumed buying in riskier assets after near term worries post the Brexit continued to ease. 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. Appreciation in Indian rupee too aided sentiments. The rupee firmed up by 12 paise to 67.39 against the US dollar at the time of equity markets closing at Interbank Foreign Exchange market on fresh selling of the American currency by exporters.

Metal and mining stocks extended previous trading session's gains triggered by the Union Cabinet approving the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation. Select stocks from Auto space edged higher after reporting better than expected June sales number. M&M reported 8% growth in its June auto sales which stood at 39,011 units during June 2016 as against 36,134 units during June 2015, while Ashok Leyland reported an increase of 7% in June 2016 sales to 11108 units, as against 10429 units sold in the same period of last year. Meanwhile, Mahanagar Gas made a spectacular debut with ending the session with a gain of around 25% from its listing price of Rs 421 per share.

The NSE's 50-share broadly followed index -- Nifty -- rose by over forty points to end above the psychological 8,300 support level, while Bombay Stock Exchange's Sensitive Index -- Sensex -- surged by over one hundred and forty points to finish above the psychological 27,100 mark. Broader markets too traded with traction and ended the session with a gain of around a percent.

The market breadth remained in favour of advances, as there were 1,517 shares on the gaining side against 1,138 shares on the losing side, while 142 shares remained unchanged. (Provisional)

The BSE Sensex ended at 27144.91, up by 145.19 points or 0.54% after trading in a range of 27061.40 and 27243.36. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.20%, while Small cap index was up by 0.71%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.76%, Capital Goods up by 2.10%, FMCG up by 1.85%, PSU up by 1.60%, Realty up by 0.63% while, IT down by 0.37%, TECK down by 0.16% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 3.72%, Larsen & Toubro up by 2.97%, ITC up by 2.83%, Dr. Reddys Lab up by 2.77% and GAIL India up by 2.61%. On the flip side, TCS down by 1.92%, Adani Ports &Special down by 1.04%, Coal India down by 0.97%, Bajaj Auto down by 0.65% and HDFC down by 0.64% were the top losers. (Provisional)

Meanwhile, once again putting them in gaining trajectory, India's manufacturing sector output surged to three-month high in June, driven by stronger demand, pointing to some improvement in the health of the sector. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) edged to 51.7 in June from 50.7 in May, a reading above 50 on the index indicates economic expansion.

According to the survey, the contributing factors to the upward movement in the PMI were stronger rates of growth in new orders and output. Incoming new work rose across the three broad areas of the manufacturing economy, as did production. The best-performing category was consumer goods. The domestic market continues to be the main growth driver, as the Indian economic upturn provides a steady stream of new business. Besides, there was also a sign of improvement in overseas markets, as new foreign orders rose in June following a decline in May.

Though the new export orders increased in June, the rate of expansion was only slight and below the long-run series average. Two of the three monitored market groups recorded higher levels of new business from abroad, the exception being intermediate goods.

Input costs in June increased for the ninth month running. The rate of inflation eased to the slowest since March, and was moderate overall. Concurrently, factory gate charges were broadly unchanged in June. Furthermore, there was broadly no change to manufacturing employment in India during June due to sufficient staff to work on both new and existing projects and others noting shortages of skilled labour in the country.

The CNX Nifty ended at 8328.35, up by 40.60 points or 0.49% after trading in a range of 8308.65 and 8356.75. There were 33 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 4.02% and BHEL up by 3.41% and Larsen & Toubro up by 3.08% and Dr. Reddys Lab up by 3.03% and ITC up by 2.75%. On the flip side, TCS down by 2.05%, Kotak Mahindra Bank down by 1.30%, Adani Ports &Special down by 1.23%, Coal India down by 0.93% and Zee Entertainment down by 0.92% were the top losers. (Provisional)

European markets were showing mixed trend, UK’s FTSE 100 increased by 15.5 points or 0.24% to 6,519.83, while Germany’s DAX declined by11.24 points or 0.12% to 9,668.85 and France’s CAC was lower by 7.82 points or 0.18% to 4,229.66.

Asian markets closed mostly higher on Friday as hints of further central bank stimulus helped offset sluggish data out of China and Japan. While Bank of England Governor Mark Carney hinted at fresh economic stimulus measures this summer, the European Central Bank is considering loosening the rules for its bond purchases in response to the Brexit vote. The Bank of Japan's closely-watched Tankan index for big manufacturers' sentiment held steady in the second quarter of 2016, household spending fell for the third straight month in May and the country's core inflation fell in May for the third straight month, making a strong case for fresh policy action. Disappointing Chinese data also added to pressure on Beijing to stimulate the economy by hastening infrastructure investment and urbanization. Chinese shares ended higher as investors digested mixed data and comments from China's central bank late on Thursday that there are no reasons for the long-term weakening of the yuan. Reports showed that growth in China's manufacturing sector stalled in June and Caixin's China June manufacturing PMI hit a four-month low, but the official reading on services sector picked up pace in June, indicating progress in Beijing's bid to rebalance the world's second-largest economy. Japanese shares extended gains for the fifth day despite a firmer yen. Activity in Japan's manufacturing sector continued to contract in June, albeit at a slower pace, the latest survey from Nikkei showed on Friday with a manufacturing PMI score of 48.1. Another report from the Cabinet Office showed that Japan's consumer confidence improved more-than-expected in June to the strongest level in five months. Hong Kong’s stock market is closed Friday for the July 1 public holiday to mark the establishment day of the Hong Kong Special Administrative Region.