Post Session: Quick Review

After two sessions of consolidation, benchmarks resumed their northbound journey with vigor on Tuesday. The session was fairly optimistic right from the start of trade, where benchmark equity indices tailing positive global cues, made a gap-up start and kept gyrating in narrow range till final hours of trade, when slight profit-booking emerged. Nevertheless, Sensex and Nifty, by the close of trade, were up over half a percent and ended past the crucial 20,150 and 6050 levels respectively. Meanwhile, the session turned out to be muted for broader indices that made flattish to negative close.

On the global front, Asian stocks extended gains on Tuesday on expectations that Beijing will fine-tune its policies to support China’s economic growth and as the Japanese government upgraded its view of the economy for a third straight month. Additionally, European shares climbed in early trade, hitting seven-week highs with a flurry of deal activity sparking a sharp rally in the telecoms sector.

Closer home, overnight gains of US markets on account of weaker-than-expected US economic data that buoyed expectations of continued monetary stimulus from the Federal Reserve, mainly led to positive start at Indian equity markets, in line with Asian counterparts. Further, significant gains of stocks from Consumer Durables, Fast Moving Consumer Goods and Realty counters sustained the uptrend of bourses. Additionally, Gems and jewellery stocks which came under pressure in trade on Tuesday rebounded in afternoon trade with PC Jeweller, Titan Industries, TBZ and Shree Ganesh Jewellery leading the gains. Shares of jewellery makers like Titan Industries, PC Jeweller moved higher as the move by the RBI to withdraw restriction on import of gold on consignment basis and against letters of credit is a positive for these companies.  The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1148: 1150, while 174 scrips remained unchanged. (Provisional)

The BSE Sensex gained 134.59 points or 0.67% to settle at 20293.71.The index touched a high and a low of 20351.06 and 20249.98 respectively.  The BSE Mid cap index ended higher by 0.10% and Small cap index ended lower by 0.12%. (Provisional)

On the BSE Sectoral front, Consumer Durables up by 4.07%, FMCG up by 1.52%, Realty up by 1.31%, Bankex up by 1.19% and PSU up by 1.00% were the top gainers, while there were no losers in the space. (Provisional)

Out of the 30 stocks on the Sensex, 19 settled higher, while 11 stocks settled lower. The top gainers on the Sensex were Hindustan Unilever up by 3.51%, BHEL up by 2.72%, ONGC up by 3.02%, SBI up by 1.98% and Sterlite Industries up by 1.93%. On the flip side,  Wipro down by 2.02%, Bharti Airtel down by 1.79%, Cipla was down by 0.52%, Coal India was down by 0.51% and Hero MotoCorp was down by 0.44% were the top losers on the Sensex. (Provisional)

Meanwhile, according to the quarterly survey conducted by global information and insights company Nielsen, global consumer confidence rose in the second quarter on account of more optimistic perceptions about jobs, personal finances and spending intentions in the United States, China and Japan.  The Nielsen Global Consumer Confidence Index rose 1 point in the second quarter to 94, after rising 2 points in the previous quarter from 91 in Q4 2012. A reading below 100, however, signals consumers are pessimistic overall about the outlook.

According to the survey, which was conducted between May 13 and May 31 and covered more than 29,000 online consumers across 58 markets, Indonesia remained the most bullish consumer market, followed by the Philippines, which pushed India into third place. India’s rating stood at 118, down by 2 points from the first quarter survey. Pakistan, Greece and Colombia saw the biggest increases in consumer confidence between the first and second quarters.  Nevertheless, consumers in Asia Pacific region remained most confident about the outlook for jobs and their personal finances over the next 12 months.

Portugal retained its position as the most pessimistic consumer market in the survey, which was taken before a political crisis deepened in Portugal, while Hungary and Italy competed for the second most downbeat markets.

Further, the survey found distinct set of tiers with German consumers being the most confident, followed by consumers in the UK, France, and then Italy and Greece where confidence was both low and also sinking. As government budget cuts, tax rises and high unemployment continued to weigh on households in Europe, consumer confidence declined in 14 of 29 European markets. However, reflecting increasing employment opportunities, higher home prices and a rising stock market consumer morale improved in the United States, the world’s biggest economy.

Additionally, Japanese consumer confidence jumped in the wake of Prime Minister Shinzo Abe's aggressive efforts to revive the economy, while it decreased in Latin America, for a second consecutive quarter.India VIX, a gauge for markets short term expectation of volatility lost 5.16% at 16.72 from its previous close of 17.63 on Monday. (Provisional)

The CNX Nifty gained 43.65 points or 0.72% to settle at 6,075.45. The index touched high and low of 6,093.35 and 6,061.30 respectively. Out of the 50 stocks on the Nifty, 34 ended in the green, while 16 ended in the red.

The major gainers were Bank of Baroda up 5.23%, Kotak Mahindra Bank up by 4.33%, IDFC up by 3.57%, Hindustan Unilever up by 3.28% and DLF up by 2.85%. The key losers were Asian Paints down by 1.99%, Bharti Airtel down by 1.90%, UltraTech Cement down by 1.28%, Power Grid down by 1.26% and Ambuja Cements down by 1.21%.(Provisional)

Most of the European markets were trading in green with, France’s CAC 40 up by 0.15%, Germany’s DAX up by 0.16% and the United Kingdom’s FTSE 100 up by 0.32%.

All the major Asian markets concluded Tuesday’s trade in green. China’s Shanghai Composite gained around two percent led by heavyweights in the financial sector, non-ferrous metal producers and railway firms. The Shanghai Statistics Bureau stated that Shanghai’s gross domestic product expanded 7.7% from a year earlier to 1.02 trillion yuan ($164.5 billion) in the first half of this year. The rate slowed a bit from the increase of 7.8% in the first three months but was higher than the national average of 7.6% between January and June. The bureau added that the overall economy remained stable with the service industry leading the growth. Japan’s Nikkei too ended the trade in green supported by hopes of an economic recovery in the country and a halt in the yen’s climb against the US dollar. South Korean shares gained for the second straight session as foreigners snapped up local stocks on expectations of good second-quarter earnings season. Offshore investors led the market advance by purchasing shares both on spots and futures.

Indonesia’s Jakarta Composite concluded the trade in green. The country attracted 18.9% more foreign direct investment in April-June than a year earlier, the slowest rate of increase in rupiah terms since the third quarter of 2011, and expects the pace to ease further in the second half. The latest increase was led by spending plans in mining, transportation, base metals and chemicals. Besides, Indonesia’s rupiah plunged the most in 13 months in onshore trading as Bank Indonesia allowed a more rapid slide toward levels quoted in the offshore market. The yield on 10-year government bonds fell the most since 2008. The slump in Indonesia’s rupiah this month following a 50 basis-point increase in interest rates highlights the risk for Turkey’s central bank should it fail to raise borrowing costs sufficiently to curb outflows. Turkey’s central bank will boost the top rate of its three-pronged policy by between 50 and 100 basis points, keeping the others unchanged.

Singapore's headline inflation inched slightly higher to 1.8% in June from a year-on-year rise of 1.6% in May, mainly due to petrol pump prices which increased with the recent pick-up in global oil prices.