Post Session: Quick Review

Boisterous benchmarks showcased an enthusiastic performance on Monday, by rallying over a percentage point amid strong global cues. Despite weak start, markets got some momentum to enter into green territory and there appeared not even an iota of profit booking in the session, as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong stocks. Frontline indices not only ended the session near intraday high levels but also recaptured their crucial 8,600 (Nifty) and 28,000 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments remained optimistic with reports that Finance Minister Arun Jaitley will meet his counterparts in states to discuss proposed amendments to the GST Bill on Tuesday, with the likely listing of GST Bill in Rajya Sabha this week. Meanwhile, the government has asked the states to remove all local taxes on essential food items, like pulses and edible oils, among other steps to ensure supplies at affordable prices. Also, traders took some encouragement with report that India has received $ 5.34 billion Foreign Direct Investment (FDI) in the first two months of the current financial year, indicating that the government has been able to create a suitable climate in which the foreign investors feel confident that interest is protected.

Global cues too remained supportive with European counters making a firm start after Policymakers from the Group of 20 countries agreed at the weekend to work to support global growth and better share the benefits of trade, in a meeting dominated by the impact of Britain's exit from Europe and fears of rising protectionism. Asian markets ended mostly in green as traders eye key central bank meetings in the US and Japan due later in the week.

Back home, broad based buying was witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Software pack too remained on buyers’ radar on weak rupee. The Indian rupee on Monday weakened against the US dollar at 67.19, down 0.15% from its previous close of 67.08, ahead of the key central bank monetary policy meetings globally. Shares of oil marketing companies (OMCs) gained on media reports that the government is set to start consultations for an ambitious plan to merge 13 state-run oil firms to create an oil sector giant. Shares of paper and paper product companies too edged higher by up to 20% after Seshasayee Paper and Boards reported robust earnings for the quarter ended June 30, 2016.

The NSE’s 50-share broadly followed index -- Nifty -- rose by around hundred points to end above the psychological 8,600 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- surged by over two hundred and ninety points to finish above the psychological 28,000 mark. Broader markets too traded with traction and ended the session with a gain of around a percent.

The market breadth remained in favor of advances, as there were 1,725 shares on the gaining side against 925 shares on the losing side while 197 shares remain unchanged. (Provisional)

The BSE Sensex ended at 28095.34, up by 292.10 points or 1.05% after trading in a range of 27736.51 and 28110.37. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.00%, while Small cap index up by 1.05%. (Provisional)

The ttop gaining sectoral indices on the BSE were PSU up by 1.92%, Bankex up by 1.65%, Finance up by 1.61%, Oil & Gas up by 1.52% and Consumer Durables up by 1.38%, while there were no losers on the BSE sectoral front. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 2.92%, SBI up by 2.71%, Asian Paints up by 2.55%, Sun Pharma up by 1.89% and HDFC up by 1.83%. On the flip side, Dr. Reddys Lab down by 3.39%, Bajaj Auto down by 0.95%, Tata Steel down by 0.71% and GAIL India down by 0.67% were the top losers. (Provisional)

Meanwhile, highlighting the huge potential for investment and employment generation in the sector, Minister of State for Petroleum and Natural Gas Dharmendra Pradhan has said that the petrochemicals are a sunrise area and top priority for the government, adding that developing the domestic petrochemical industry will be the next area of focus with oil companies consolidating their position in the market for fuel.

Pradhan assured that Petrochemicals are the area of the future and we are all on the job and working in tandem. He said both Petroleum Ministry and Petrochemical Ministry are coordinating closely and are in a cooperative mood. They are working together to resolve issues relating to PCPIRs planned in the different parts of the country. This will add to the growth of the industry. He added that the government is also exploring the possibility of “monetising petrochemical resources in Iran with the petrochemical industry.

He said that major expansions are planned in Chennai Petroleum Corporation refinery at Chennai, and a mega refinery is planned in the Konkan region with the participation of three public sector oil refineries and foreign companies. Petrochemicals are raw materials for a wide range of industry, particularly affordable products such as textiles, furniture and roofing material.

The CNX Nifty ended at 8635.65, up by 94.45 points or 1.11% after trading in a range of 8517.20 and 8641.15. There were 43 stocks advancing against 8 stocks declining on the index. (Provisional)

The top gainers on Nifty were BHEL up by 4.54%, Bank of Baroda up by 3.42%, Maruti Suzuki up by 3.08%, SBI up by 2.86% and Asian Paints up by 2.25%. On the flip side, Dr. Reddys Lab down by 3.26%, GAIL India down by 0.79%, Bajaj Auto down by 0.73%, Grasim Industries down by 0.61% and Hindalco down by 0.59% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 12.3 points or 0.18% to 6,742.78, France’s CAC gained 34.43 points or 0.79% to 4,415.53 and Germany’s DAX was up by 100.32 points or 0.99% to 10,247.78.

Asian equity markets ended mostly higher on Monday after G20 finance chiefs and central bankers pledged to use all policy tools to boost global economic growth, although lower commodity prices on a firmer dollar and caution ahead of two key central bank meetings this week served to limit the upside across the region. The Federal Reserve meets Tuesday and Wednesday, with no change expected to its benchmark interest rate and market participants will scrutinize the accompanying policy statement for fresh guidance on the pace of interest rate hikes over the next few months. Chinese shares eked out modest gains in range-bound trade as investors awaited consumer inflation data on Wednesday for clues on interest rate policy from the People's Bank of China. Japanese shares closed marginally lower as investors turned risk averse ahead of the Bank of Japan's two-day monetary policy meeting due to start on July 28.