Post session - Quick review

Local barometer gauges snapping four day’s gaining streak, started the first trading session of a new month on a unenthusiastic note, as absence of positive triggers provided investor’s little incentive to carry forward their short positions. In the range bound session of trade, barometer gauges showcasing sideways trend, mostly consolidated around its previous closing levels. Bombay Stock Exchange’s 30 scrip sensitive index, Sensex, surrendered over 50 points, to shut shop sub 17400 psychological level, while, the widely followed 50 share index of National Stock Exchange (NSE)- Nifty-too concluded around its previous close. However, the trend was exceptional for broader indices, which outperforming larger counterparts, ended with gains of over half a percentage point. Losses at Indian equity markets were capped with the outcome of June factory’s data, which showcasing resilience, expanded at four month’s high, as factories in June stepped up production and hired workers at the fastest rate in more than two years. The HSBC manufacturing Purchasing Managers Index (PMI) rose to 55.0 in June, from 54.8 in May. Meanwhile, optimism across globe also limited the gain.

Asian pacific shares after dilly-dallying for the entire session, managed to eke out some gains. The official Chinese purchasing managers' index released over the weekend came at 50.2, worst figure since November. Meanwhile, rival HSBC PMI, which focuses more on small and medium-sized companies than the official data, weakening in June, came at to 48.2. The index suggested a contraction in activity, compared with 48.4 in May.  Drawing support from policy measures to battle the euro zone crisis and expectations of more to come, European equities scaled a two months high on Monday.

Closer home, stocks from high beta-Consumer Durable, rate sensitive-Realty and defensive -Healthcare, featured in the list of best performers on BSE sectoral chart. On the flip side, stocks from rate sensitive-Auto, Oil & Gas and Metal counter, could be held responsible for the drag of the markets. Shares of auto companies fell on Monday as June 2012 sales numbers trickled in. Bajaj Auto dipped over half a percentage on registering drop of 6% in its June sales number. Tata Motors shares plummeted over a per cent as the company reported a decline in passenger as well as commercial vehicle segment. However, Mahindra & Mahindra shares garnered gains of close to a percentage points. The company reported a strong growth in vehicles sales for June due to a strong demand for its multi-utility XUV500. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1782:1049 while 117 scrips remained unchanged. (Provisional)

The BSE Sensex lost 46.59 points or 0.27% and settled at 17,383.39. The index touched a high and a low of 17,486.57 and 17,363.04 respectively. 16 stocks were seen advancing against 14 declining ones on the index (Provisional)

The BSE Mid-cap index gained 0.89% while Small-cap index was up 1.11%. (Provisional)

On the BSE Sectoral front, Realty up 2.32%, Consumer Durables up 1.31%, PSU up 0.94%, Capital Goods up 0.70% and Power up 0.67% were the top gainers while, FMCG down 2.48%, Auto down 0.62% and IT down 0.24% were the only losers.

The top gainers on the Sensex were Bharti Airtel up 1.97%, HDFC Bank up 1.94%, Sterlite Industries up 1.61%, BHEL up 1.57% and ONGC up 1.48% while, ITC down 4.34%, Jindal Steel down 3.21%, Tata Motors down 1.67%, TCS down 1.52% and Hero MotoCorp down 1.50% were the top losers in the index. (Provisional)

Meanwhile, as an attempt to garner more foreign capital into India’s ailing aviation sector, the Ministry of Civil Aviation is planning to overarch a new law as to ease foreign airlines equity participation in domestic aviation, while protecting interests of passengers and ensuring safety.

As India being the world's ninth biggest civil aviation market, it expects to cater about 180 million passengers by 2015. The New Civil Aviation Act of 2012 will replace the Aircraft Act of 1934, which does not cover critical issues like viability and security, and has been severely criticized in safety audits conducted by global aviation bodies. The current governing law focuses primarily on aircraft manufacturing and operations, while the new law is expected to comply with international best practices in sync with the times and attract investors to a market, which expects an annual growth of 20%.

The Aviation ministry has proposed Department of Industrial Policy and Promotion (DIPP) to allow foreign airlines participation up to 24% in local carriers within the existing cap of 49% for foreign investors, despite of strong opposition from private carriers like Jet Airways and Spice Jet. The government emphasized the importance of compliance of new law with international best practices, in hopes that it can attract the best global aviation leaders to Indian market. India VIX, a gauge for market’s short term expectation of volatility lost 0.36% at 19.01 from its previous close of 19.08 on Friday. (Provisional)

The S&P CNX Nifty lost 5.65 points or 0.11% to settle at 5,273.25. The index touched high and low of 5,302.15 and 5,263.35 respectively. 32 stocks advanced against 18 declining ones on the index. (Provisional)

The top gainers on the Nifty were ACC up 3.98%, DLF up 3.02%, Grasim Industries up 2.16%, HDFC Bank up 2.03% and Bharti Airtel up 1.93%.On the other hand, ITC down 4.21%, Jindal Steel down 3.41%, Hero MotoCorp down 1.93%, Tata Motors down 1.92% and HUL down 1.74% were the top losers. (Provisional)

The European markets were trading in green, with France's CAC 40 up 0.89%, Germany's DAX up 0.85% and Britain’s FTSE 100 up 0.56%.

Asian market gave up some gains on Monday, though starting the new quarter on a mildly positive note, as reports showed that Chinese manufacturing data slowed down tempering optimism over last week’s agreement in Europe to solve the regions’ debt crisis. The China’s official purchasing managers' index was recorded at 50.2 - the worst number since November 2011.

Nikkei fell from its two month intraday high to end almost flat on Monday after an early gain, as an agreement to shore up European trouble banks faltered. Shanghai Composite remained flat as investors were not eager to invest after two economic indicators showed countries manufacturing activity slowed down last month. Kospi Composite gave up its early gains to close on a weaker note as heavy weight stocks such as Samsung Electronics incurred losses.

Jakarta Composite saw an unusual move in trading as country’s energy related companies such as PT Adaro Energy rose 7.6 percent to 1,560 rupiah its steepest increase since October 6 and PT Energi Mega Persada climbed 2.1 percent to 146 rupiah. Strait Times rose to its highest level in seven weeks as oil rig builders Keppel Corp and Sembcorp Marine saw the strongest gains on the benchmark Straits Times Index, after oil prices staged a strong rally on Friday.

Hang Seng index remained closed today due to public holiday.