Post Session: Quick Review

Boisterous benchmarks showcased an enthusiastic performance on Friday, as a string of buying in frontline blue chip counters helped fuelled the rally. Indian equity benchmarks started the trade jubilantly in early deals on back of positive global cues and higher crude oil prices.  The sentiments got a push after India Meteorological Department (IMD) stated that monsoon rains in India were 15 percent above average in the week ended August 10. The weather office has retained its forecast for an above-average monsoon this year, boosting hopes of a rise in farm output and income after two years of drought. Some buying emerged from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 608 crore on August 11, 2014. Minor selling crept in after the Comptroller and Auditor General (CAG), drilling holes into government claims of huge subsidy savings from direct benefit transfer (DBT), stated that only Rs 1,764 crore in subsidy was saved on LPG on account of the scheme and the bulk of Rs 21,552 crore was due to sharp fall in global prices. The actual subsidy payout during the period from April 2015 to December 2015 was Rs 12,084.24 crore as against Rs 35,400.46 crore during April 2014 to December 2014. Investors started eyeing key macro data of Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation slated to be released today.

On the global front, Asian shares closed mostly in green after a surge in oil prices which helped propel Wall Street to record highs, while mainland shares held on to gains on hopes that weaker-than-expected Chinese economic data would spur policy easing. European stocks are trading mostly in red, as markets were jittery ahead of the release of economic growth data from the euro zone later in the trading session.

 Back home, the street continued its gains on account of buying in front line blue chip counters. The power stocks displayed mixed response as the government stated that there is no shortage of coal in the country and coal stock is available for 23 days with thermal power stations. Coal Minister Piyush Goyal has said that multi-dimensional efforts are under way by Coal India to substantially enhance coal production to meet the coal requirement.

The BSE Sensex ended at 28128.25, up by 268.65 points or 0.96% after trading in a range of 27900.91 and 28203.27. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.76%, while Small cap index was up by 0.07%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 1.91%, Metal up by 1.21%, PSU up by 1.16%, Auto up by 1.02% and Power up by 0.82%, while Realty down by 0.55%, IT down by 0.46%, TECK down by 0.35%, Oil & Gas down by 0.10% and Consumer Durables down by 0.03% were the losing indices on BSE. (Provisional)
The top gainers on the Sensex were SBI up by 7.23%, Axis Bank up by 3.76%, Tata Motors up by 2.56%, Power Grid Corporation up by 2.36% and Reliance Industries up by 2.03%. (Provisional)

On the flip side, Cipla down by 1.58%, Sun Pharma down by 1.40%, Infosys down by 1.31%, Lupin down by 0.64% and Asian Paints down by 0.61% were the top losers. (Provisional)

Meanwhile, asserting that there is no shortage of coal in the country, Coal Minister Piyush Goyal has said that coal stock for 23 days is available with thermal power stations, he added that to significantly enhance coal production to meet the coal requirement, multi-dimensional efforts are in process by Coal India (CIL). Further, CIL has set a production target of 598.61 million tonnes (MT) for the current financial year, marking an increase of 11 percent over actual coal production of 538.75 MT last year.

The Minister said a special window of e-auction exclusively for power sector has been opened to make coal available to those power plants which are stressed or in short supply as they do not have coal blocks or linkages or long-term Power Purchase Agreements. In 2015-16, 13.79 MT and 2016-17, 12.448 MT of coal was available through auction in special e-auction for power sector.

Goyal said coal supplies to power utility sector was monitored regularly by an inter-ministerial sub-group comprising representatives of Ministries of Power, Coal and Railways constituted by the Infrastructure Constraints Review Committee of the Cabinet Secretariat. The sub-group takes various operational decisions for meeting any contingent situations relating to the power sector including critical coal stock position, besides several other measures to ensure regular coal supply to the thermal power plants.

The CNX Nifty ended currently trading at 8656.00, up by 63.85 points or 0.74% after trading in a range of 8604.45 and 8684.30. There were 32 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 7.24%, Axis Bank up by 3.48%, Yes Bank up by 3.07%, Hindalco up by 2.71% and Tata Motors up by 2.53%. (Provisional)
On the flip side, BPCL down by 2.88%, Tech Mahindra down by 2.34%, Cipla down by 2.11%, Idea Cellular down by 1.78% and Infosys down by 1.42% were the top losers. (Provisional)

The European markets were trading mostly in red; Germany’s DAX decreased 30.86 points or 0.29% to 10,711.98, France’s CAC decreased 3.51 points or 0.08% to 4,500.44, while UK’s FTSE 100 increased 6.14 points or 0.09% to 6,920.85.

Asian equity markets ended mostly higher on Friday after Wall Street shares surged to record highs overnight, oil prices climbed and the yen weakened against the dollar in the wake of a rise in US bond yields amid hawkish interest-rate comments from a senior Federal Reserve official. Investors shrugged off disappointing Chinese data that showed industrial production grew 6 percent in July from a year earlier, a tad below expectations for 6.1 percent growth and slower than the 6.2 percent increase in June. Meanwhile property investment growth continued to slow, retail sales grew less than expected, and growth in fixed-asset investment slipped to its lowest level in more than 16 years. Chinese shares ended sharply higher, led by financial and property shares as disappointing economic data raised the prospect of more government stimulus. Japanese shares rose sharply to hit their highest levels in over two months as traders returned to their desks after a national holiday on Thursday.