Markets sustain their upward trajectory

Indian equity markets continued to sustain their upward journey, as investors appearing to be confident before entering the crucial week are betting big on risky asset class such as equities. The coming week would be crucial as all investor’s would be keenly eyeing RBI’s mid-quarterly policy review scheduled on July 31, 2012. Fresh month’s F&O series seem to have brought bout of optimism at Dalal Street. 30 share barometer index - Sensex of BSE,  shooting higher by 300 points, are trading at a striking distance of 17000 mark, while the 50 share index of NSE - Nifty, is seen trading above the 5100 mark. The broader indices, however, have cooled off from the high point of the session.

Positive global set up also is adding fuel to the fire, Asian pacific shares rose on Friday on reassurance from European Central Bank President Mario Draghi that 'the ECB will do whatever it takes to preserve the euro'. Meanwhile, European market too got off to a positive start.

Closer home, the BSE Sensex is currently trading at 16,940.09, up by 300.27 points or 1.80% after trading as high as 16,967.03 and as low as 16813.13. There were 26 stocks advancing against 4 declines on the index.

The broader indices cooled off from high point; the BSE Mid cap index up 1.01% while Small cap index was up 0.93%.

On the BSE sectoral space, Metal up by 2.76%, Bankex up by 2.27%, Consumer Durable up by 1.93%, Power up by 1.83% and Realty up by 1.67%, while there was no loser on the index.

Sterlite Industries up by 4.71%, Tata Motors up by 4.37%, Tata Steel up by 4.26% HDFC Bank up by 3.48% and Hindalco Industries up by 3.29% were major gainers on the Sensex, while Hero MotoCorp down by 0.98%,Cipla down by 0.34%,  Dr Reddys Lab down by 0.30% and Bajaj Auto down 0.21% were major losers in the index.

Meanwhile, with given political obligation taking toll over much needed government’s reforms, Prime Minister Manmohan Singh will meet India Inc on August 1, to take on board the methods for improving the investment climate. This would be the first meeting between the industry leaders and the current Prime Minister, which has taken an additional charge of the finance ministry under its hat as on June 26 until the successor is named.

Showing the sign of slowing global economy, foreign direct investment (FDI) in India extended its decline in May with inflows slipping to $1.32 billion from $4.66 billion in the same month last year. The meeting is broadly expected to take up macro-economic and slowing investments issues.

The meeting comes in light of the expectations of a push in reforms, especially FDI in multi-brand retail and aviation and the deregulation of diesel prices, however, not much is expected to be happen before the vice presidential polls, which would be a day ahead of Parliament session is scheduled.

The S&P CNX Nifty is currently trading at 5,135.00, up by 92.00 points or 1.82% after trading as high as 5,149.95 and as low as 5,102.00. There were 43 stocks advancing against 7declines on the index.

The top gainers on the Nifty were Sterlite Industries up by 5.03%, Tata Steel up by 4.36%, Tata Motors up by 4.27%, HDFC Bank up by 3.75% and ACC up by 3.36%. While, Punjab National Bank down by 2.47%, Hero Moto down by 0.90%, Bank of Baroda down by 0.50%, BPCL down by 0.46% and  Dr Reddy down by 0.42% were major losers on the index.

Mostly Asian equity indices were trading in green; Hang Seng index surged 2.07%, Nikkei 225 added 1.46%, Taiwan Weighted shot up 2.21%, Shanghai Composite inched higher 0.07%, Straits Times gained 0.33%, Kospi Composite Index soared by 2.62% and Jakarta Composite jumped by 1.81%, while KLSE Composite down 0.13% was the only loser.

European markets got off to a positive start; CAC 40 gained 0.36%, DAX added 2.75% and FTSE100 surged 1.36%.