Benchmarks extend their record closing streak; Nifty surpasses 9,800 mark

Continuing their record closing streak, Indian equity benchmarks ended the range-bound session with a gain of around quarter a percent, with frontline gauges settling above their crucial 9,800 (Nifty) and 31,800 (Sensex) levels for the first time ever. Sentiments remained upbeat for most part of the day’s trade with statement of Revenue Secretary Hasmukh Adhia that the Goods and Services Tax (GST) will help bring down the inflation by one to two percent by the end of this year. He also said that the government’s objective is to ensure that inflation does not increase, and added that the government has tried to keep items frequently used by the consumers under the lower tax bracket. Traders also took some encouragement with Finance minister Arun Jaitley’s statement where he called for more credit disbursement towards the unorganized sector, saying it will help push employment growth. Jaitley said diverting resources of banks and financial institutions through various schemes towards the unorganized sector will help create more jobs in the country.

However, gains remained capped, as traders opted to stay away from taking positions in risky assets ahead of the IIP and inflation data to be announced after the market hours today. Also, the street is keeping an eye on corporate earnings for further direction including Tata Consultancy Services scheduled on Thursday and Infosys on Friday. Some pressure crept in during the trade after CRISIL said that the sharp appreciation in the rupee against the dollar in recent months is likely to have dented the first-quarter (current fiscal) profitability of exporters that source locally and have limited pricing power.

Positive opening in European counters supported sentiments as investors look ahead to earnings reports and monitor the latest political developments in the US. Industrial output in the 19 countries sharing the euro currency rose by more than expected in May, aided by a spike in the production of capital goods and consumer durables. Asian markets ended mixed as investors across Asia are now looking forward to a raft of economic data coming out on Thursday and Friday.

Back home, appreciation in Indian rupee too aided sentiments. The Indian rupee strengthens marginally against the US dollar at the point of equity markets closing at 64.55 from its previous close of 64.58, on the back of increased selling of American currency by banks and exporter. On the sectoral front, stocks related to oil and gas space edged higher on the back of higher crude prices. Stocks from banking space edged higher on report that the finance ministry is gearing up to introduce a host of Bills, including the Banking Regulation (Amendment) Bill, repeal of State Bank of India (Subsidiary Banks) Act, 1959, among others, in the upcoming Monsoon Session. Liquor stocks like Tilaknagar Industries, Globus Spirits, United Breweries, United Spirits and Som Distilleries & Breweries too remained in focus on Supreme Court clarification that the ban on sale of alcohol within 500 m of any state or national highway will not cover roads within city limits if these lose the highway tag post denotification.

The NSE’s 50-share broadly followed index Nifty gained by thirty points to end above its psychological 9,800 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex rose by around sixty points to end above its crucial 31,800 mark. The 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 1,476 shares on the gaining side against 1,202 shares on the losing side, while 157 shares remain unchanged.

Finally, the BSE Sensex gained 57.73 points or 0.18% to 31,804.82, while the CNX Nifty was up by 30.05 points or 0.31% to 9,816.10. 

The BSE Sensex touched a high and a low of 31,865.69 and 31,731.43, respectively and there were 19 stocks on gainers side as against 12 stocks on the losers side on the index.

The broader indices ended in green; the BSE Mid cap index surged 1.08%, while Small cap index was up by 0.57%.

The gaining sectoral indices on the BSE were Oil & Gas up by 1.54%, Energy up by 1.24%, PSU up by 1.22%, Telecom up by 1.12% and Basic Materials was up by 0.73%, while IT down by 0.38% and TECK was down by 0.06% were the only losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.04%, ONGC up by 1.59%, SBI up by 1.34%, Tata Motors - DVR up by 1.10% and ICICI Bank up by 1.04%. On the flip side, TCS down by 1.33%, Mahindra & Mahindra down by 0.97%, ITC down by 0.51%, Hero MotoCorp down by 0.48% and Dr. Reddy's Lab down by 0.36% were the top losers.

Meanwhile, the finance ministry is preparing to introduce the amendment of the Banking Regulation Act, repeal of State Bank of India (Subsidiary Banks) Act, 1959 along with several other bills in the monsoon session of Parliament, likely to begin on July 17.

Besides, the government is working on the Banning of Unregulated Deposit Schemes and Protection of Depositors Interests Bill. The Department of Financial Services (DFS) is preparing a draft bill in this regard and will shortly approach the cabinet for its nod. The proposed legislation seeks to provide a comprehensive code to ban unregulated deposit schemes and protect interests of depositors. The DFS is also working on introducing an amendment in the Negotiable Instruments Act (NIA) in the upcoming session.

Also, the government is likely to introduce the Financial Resolution and Deposit Insurance Bill. The proposed law deals in matters concerning insolvency of banks, insurance companies and other financial services firms under the Bankruptcy Code, 2016. Last month, the cabinet headed by Prime Minister Narendra Modi had approved the proposal to introduce the bill in Parliament.

The CNX Nifty traded in a range of 9,824.95 and 9,787.70. There were 37 stocks in green as against 14 stocks in red on the index.

The top gainers on Nifty were ACC up by 3.34%, Bharti Infratel up by 2.55%, Ambuja Cement up by 2.29%, Hindustan Unilever up by 2.28% and Indiabulls Housing Finance up by 2.08%. On the flip side, TCS down by 1.47%, Mahindra & Mahindra down by 0.97%, Hero MotoCorp down by 0.79%, Aurobindo Pharma down by 0.75% and ITC down by 0.47% were the top losers.

The European markets were trading in green; France’s CAC gained 46.7 points or 0.91% to 5,187.30, UK’s FTSE 100 increased 69.32 points or 0.95% to 7,399.08 and Germany’s DAX was up by 86.44 points or 0.7% to 12,523.46.

Asian equity markets closed mixed on Wednesday, as the dollar weakened against the yen after the release of emails by US President Donald Trump's son that cited Russian support for his father's 2016 presidential campaign. Underlying sentiment remained somewhat cautious ahead of Federal Reserve Chair Janet Yellen's Congressional testimony later in the day and on Thursday. Meanwhile, a fresh rally in oil prices boosted energy stocks. Japanese shares ended lower as the yen strengthened in the wake of a fresh twist in the Trump campaign's alleged links with Russia.