Bourses end near day’s highs; Sensex above 39,400 mark

Indian equity benchmarks gained the lost ground to end Tuesday’s session near their day’s high points. Markets made a negative start of the day, with a report that unaccounted wealth outside the country held by Indians was estimated in the range of $216.48 billion to $490 billion over various periods between 1980 and 2010. As per the report, the sectors where unaccounted income is found to be the highest included real estate, mining, pharmaceuticals, pan masala, gutkha, tobacco, bullion, commodity, film, and education. But, key indices staged strong recovery in noon deals, amid reports that the Ministry of Micro, Small and Medium Enterprises is striving to increase the number of micro and small industries in the country on a sustainable basis through implementation of various schemes and programmes. The Ministry provides better credit facility, technology up-gradation and skilling to boost the entire MSME eco-system.

In the last leg of the trade, bourses traded at intraday high peaks, with the India Meteorological Department’s (IMD) statement that India's annual monsoon rains have covered nearly half of the country and conditions are favourable for further advancement into the central and western parts this week. It added that the monsoon's progress will help farmers to accelerate sowing of summer-sown crops, which has been lagging due to a delay in the arrival of monsoon rains. The street took a note of Former Vice Chairman of NITI Aayog, Arvind Panagariya’s statement that India's economy needs to grow at 8-10 per cent annually if good jobs have to be provided to those joining the workforce, emphasising that an export-led growth is very critical for creation of good jobs in the country.

On the global front, European markets were trading in red, as France's manufacturing confidence deteriorated in June largely reflecting weak production outlook and foreign demand. The survey results from the statistical office Insee showed that the manufacturing sentiment index dropped to 102 in June from 104 in May. The score was forecast to remain unchanged at 104. Asian markets ended mostly in red, after South Korea's consumer confidence fell to a five-month low in June. The survey data from Bank of Korea showed that the consumer sentiment index fell to 97.5 in June from 97.9 in May. A similar lower reading was last seen in January. Consumers' sentiment regarding the current living standards and their future outlook remained same as in May at 91 and 92, respectively.

Back home, metal industry stocks ended higher, despite CLSA Research indicating that Indian domestic steel demand has softened in recent months, led by funding constraints in government-led infrastructure projects around general election. Further, stocks related to housing finance companies remained in focus, after Ratings agency CRISIL in its latest report said that the National Housing Bank's (NHB) new norms for housing finance companies (HFCs) will structurally strengthen the sector and increase investor confidence at a time of liquidity stress among non-banks. It added that stronger balance sheets and increased capital levels will make HFCs better placed to absorb asset-side risks in future.

Finally, the BSE Sensex gained 311.98 points or 0.80% to 39,434.94, while the CNX Nifty was up by 96.80 points or 0.83% to 11,796.45.

The BSE Sensex touched a high and a low of 39,490.64 and 38,946.04, respectively and there were 23 stocks advancing against 08 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.66%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were Energy up by 2.15%, Metal up by 1.82%, Oil & Gas up by 1.62%, Utilities up by 1.50% and Power up by 1.35%, while Capital Goods down by 0.16% was the lone losing index on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.63%, NTPC up by 2.51%, Axis Bank up by 2.49%, Tata Steel up by 2.36% and Power Grid up by 1.31%. On the flip side, Yes Bank down by 1.70%, Asian Paints down by 0.96%, Indusind Bank down by 0.73%, Tech Mahindra down by 0.60% and Hindustan Unilever down by 0.42% were the top losers.

Meanwhile, the Union cabinet has given its nod to the Airports Economic Regulatory Authority (AERA) (Amendment) Bill. Under the Act, AERA regulates tariffs and development fee at all major airports. The amendment is expected to allow the AERA to bid out any new airport at a pre-determined tariff structure.

Presently, major airports with an annual capacity to handle one-and-a-half million passengers come under the purview of AERA. If the amendment is passed by the Parliament, the definition of major airports would be changed to any aerodrome which has or is designated to have annual passenger capacity of three-and-a-half million.

The AERA (Amendment) Bill was last cleared by the Cabinet during the Modi government's first tenure in December 2017. However, it could not be passed in last year's monsoon session. As new Lok Sabha has come in place now, the older bill has lapsed. Therefore, the Cabinet approved the bill again so that it can be re-introduced in Parliament for passage.

The CNX Nifty traded in a range of 11,814.40 and 11,651.00. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 3.18%, BPCL up by 3.03%, Reliance Industries up by 2.61%, Axis Bank up by 2.26% and Tata Steel up by 2.03%. On the flip side, Yes Bank down by 2.05 %, Bharti Infratel down by 1.28%, Asian Paints down by 1.03%, IndusInd Bank down by 0.67% and Larsen & Toubro down by 0.59% were the top losers.

European markets were trading in red; UK’s FTSE 100 lost 13.41 points or 0.18% to 7,403.28, France’s CAC decreased 2.00 points or 0.04% to 5,519.71 and Germany’s DAX was down by 0.32 points or 0% to 12,274.25.

Asian markets ended mostly lower on Tuesday as investors treaded cautiously ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping on the sidelines of the G-20 summit starting later this week in Osaka, Japan. Worries about US-Iran tensions also weighed on markets as Trump imposed hard-hitting new sanctions on Iran. Further, Japanese shares ended lower as the yen rose to a near six-month high versus the dollar and reports suggested Trump is considering pulling out from the six-decade-old peace treaty with Japan.