Firm trade prevails; Sensex surpasses 19,000 level

Indian equity markets added gains to continue firm trade hovering near the highest point of the day in the late afternoon session. The sentiments continued on positive mood on account of sustained buying by funds and retailers ahead of industrial output data. The caution prevailed in trades as Ministry of Commerce and Industry citing provisional trade data stated that exports rose 11.64% in July to $25.83 billion from the previous month, but the trade deficit was almost unchanged at $12.27 billion, keeping pressure on the current account deficit and the beleaguered rupee. Traders were seen piling position in Metal, FMCG and PSU stocks. In scrip specific development, Shriram EPC was trading firm after the company announced that it has finalized the sale of stake in Sree Jayajothi Cements to My Home Industries. State Bank of India was trading in red on back of dismal April-June quarter. The country’s largest lender disappointed the street with the first quarter net profit falling higher-than-expected nearly 14% year-on-year to Rs 3,241 crore.

On the global front, most of the Asian markets were trading in green barring Jakarta Composite and Nikkei 225 while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,600 and 19,000 levels respectively. The market breadth on BSE was positive in the ratio of 1308:761, while 109 scrips remain unchanged. 

The BSE Sensex is currently trading at 19049.03, up by 259.69 points or 1.38% after trading in a range of 19066.97 and 18796.01. There were 23 stocks advancing against 7 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap indices were trading higher by 1.69% and 1.60% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 5.14%, FMCG up by 2.29%, PSU up by 2.21%, Capital Goods up by 2.19% and Health Care up by 2.14% while, there were no losing indices on the BSE.

The top gainers on the Sensex were Tata Steel up by 8.42%, Jindal Steel up by 7.09%, Sun Pharma up by 6.88%, Sterlite Industries up by 4.65% and HDFC up by 4.39%. On the flip side, SBI down by 2.16%, TCS down by 1.60%, Dr. Reddy’s Lab down by 1.45%, Tata Power down by 1.22% and RIL down by 0.94% were the top losers on the Sensex.

Meanwhile, struggle for Indian auto industry continued for ninth straight month due to rising ownership costs and sluggish economic growth. As per the Society of Indian Automobile Manufactures (SIAM), the domestic passenger car sales declined by 7.4% to 131,163 units as compared to 1,41,646 units in the same month of 2012.

Meanwhile, motorcycle sales also shed by 1.52% to 8,09,312 units in the last month as against 8,21,821 units in the corresponding month previous year, while total two-wheeler sales in July 2013 decreased marginally by 0.06% to 11,31,992 units from 11,32,696 units in the same period of previous year as rising fuel costs and high interest rates continued to spill water on consumer demand.

Total sales of commercial vehicles, including trucks and buses, too tumbled 14.93% to 55,301 units from 65,008 units in the year-ago period. While, total sales of vehicles across categories registered a fall of 2.08% to 14,15,102 units in July 2013 as against 14,45,112 units in the same month of 2012.

Currently, vehicle demand in the country is passing through a very bearish phase with demand declining continuously month-on-month, growth in commercial vehicle and passenger car segments have slipped faster than expected in last few months. Indian auto component manufacturer too are facing the heat of a global auto slowdown.

The CNX Nifty is currently trading at 5,639.70, up by 74.05 points or 1.33% after trading in a range of 5,643.05 and 5,557.10. There were 37 stocks advancing against 13 declines on the index.

The top gainers of the Nifty were Tata Steel up by 8.32%, Sun Pharma up by 7.29%, Jindal Steel up by 7.04%, NMDC up by 7.02% and Sesa Goa up by 4.37%. On the flip side, SBI down by 2.05%, Dr. Reddy’s Lab down by 1.92%, TCS down by 1.70%, Tata Power down by 1.61% and Reliance Industries down by 1.02% were the major losers on the index.

Most of the Asian equity indices were trading in green; Hang Seng up by 2.13%, Seoul Composite up by 0.22%, Straits Times up by 0.08%, Shanghai Composite up by 2.39%, Taiwan Weighted up by 0.60% and KLSE Composite up by 0.22%. While, Jakarta Composite down by 0.69% and Nikkei 225 was down by 0.70%.

The European markets were trading in red; France’s CAC 40 was down 0.23%, Germany’s DAX lost 0.65% and the United Kingdom’s FTSE 100 inched lower 0.27%.