Post Session: Quick Review

The Indian markets extended their gains to the new week with a positive start, though there was rounds of volatility after the RBI left its key policy rates unchanged and warned about inflation, saying that inflation outlook going forward will be determined by suppressed inflation being released through revisions in administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee, but marketmen took the announcement the factored in thing, as there was very little chances of rate cut and they concentrated more on Fed’s action in US during the week.

The global cues remained mostly supportive and majority of the Asian peers moved higher for the day, while the European markets too opened in green and further supported the markets. Though, investors awaited signals from the Federal Reserve on stimulus measures.

Back home the mood of the market remained jubilant in the morning and the major indices got a gap up opening on some buzz that RBI may go for CRR rate, but soon there was profit booking and traders opted to take some profit after the last session’s massive gains and both Sensex and Nifty slipped to near the flat territory. Later, there was a knee-jerk reaction to the RBI’s decision and markets slipped to the lows of the day after the RBI kept its monetary policy unchanged; the most hurt were the banking stocks. There was another disappointment from the economy front, the May trade deficit widened to $20.1 billion from $17.8 billion a month ago, mainly on account of high imports of cheaper gold. However, things started improving and traders took the cues from RBI's forward guidance that it may go for rate cuts once the external pressure subsides, markets not only recovered their lost ground but surged to new highs with the consistent buying in the bluechips. Rate sensitives’ not only recovered but Auto index snapped the session as the top performer of the day. Realty too made a good comeback but remained the lone laggard on the BSE. There was buzz in the telecom sector too, Bharti Airtel gaines over 2%, Idea Cellular was up by 3% and RCom surged by over 4% after the Commerce and Industry Minister Anand Sharma strongly favoured raising the FDI cap in telecom as well as defence sector and has said that he will meet global investors to address their concerns.

The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1218:1075, while 139 scrips remained unchanged. (Provisional)

The BSE Sensex gained 141.45 points or 0.74% to settle at 19319.38.The index touched a high and a low of 19344.28 and 19084.68 respectively. Among the 30-share Sensex pack, 23 stocks gained, while rest of 7 declined. (Provisional) 

The BSE Mid cap and Small cap indices ended higher by 0.40% and 0.45% respectively. (Provisional)  On the BSE Sectoral front, Auto up by 1.70%, Teck up by 1.22%, Capital Goods up by 1.19%, Consumer Durables up by 1.10% and IT up by 0.89% were the top gainers, while Realty down by 0.02% was the sole loser in the space. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 4.30%,  BHEL up by 3.74%, Bajaj Auto up by 2.31%, Bharti Airtel up by 2.23% and Sun Pharma up by 1.80%, while, Hindalco Industries down by 1.45%, NTPC down by 1.35%, Jindal Steel down by 1.20% and Dr Reddys Lab down by 1.08% were the top losers in the index. (Provisional)

Meanwhile, in a big relief to the highway developers, the Ministry of Road Transport and Highways is preparing a proposal which will help them to exit projects without punitive measures, as Under a clause of Substitution (Agreement) in the Model Concessionaire Agreement, the lenders of the project will be the one to decide the exit of the developer and can choose the new firm as developer.

Substitution agreement is between the National Highway Authority of India (NHAI), which is responsible for the development, maintenance and management of National Highways entrusted to it, lenders and the Concessionaire (developer). As per the provisions of the agreement, NHAI and the Concessionaire will have the right for the substitution of the Concessionaire in accordance with the provisions of the agreement.

However, this proposal will go to the Cabinet Committee on Economic Affairs for final approval, once all the ministries send their comments. Earlier there was proposal to allow developers to fully exit the projects or partially divest equity in the road project with the approval from the stakeholders.

India VIX, a gauge for markets short term expectation of marginally lost 0.92% at 18.18 from its previous close of 19.35 on Friday. (Provisional)

The CNX Nifty gained 42.95 points or 0.74% to settle at 5,851.35851. The index touched high and low of 5,854.90 and 5,770.25 respectively. 36 stocks advanced against 14 declining on the index. (Provisional)

The top gainers on the Nifty were BHEL up by 4.03%, Mahindra & Mahindra up by 3.97%, Bharti Airtel up by 2.26%, Bajaj Auto up by 2.12% and Reliance Infrastructure was up by 1.75%. On the other hand, Ranbaxy down by 3.57%, Hindalco Industries down by 1.50%, Gail down by 1.35%, NTPC down by 1.32% and Sesa Goa down by 1.27% were the top losers. (Provisional)

Most of the European markets were trading in green with, France’s CAC 40 up by 1.88%, Germany’s DAX up by 1.38% and the United Kingdom’s FTSE 100 up by 0.90%.

Asian markets ended mostly higher on Monday as investors indulged in buying ahead of the crucial US Federal Reserve meet. The Japanese market opened lower on Monday, with a stronger yen and Friday's weak close on Wall Street triggering some selling in early trades. However, following the dollar's rebound against the yen, the market bounced back smartly and ended in positive territory with strong gains. Shanghai Composite went home with marginal losses, after China's finance ministry was unsuccessful in selling all the debt offered at an auction for the first time in almost two years. Hong Kong closed higher, starting the new week on a positive note as buyers seeking short-term gains rolled into counters.