Markets despite a volatile day of trade manages to extend gains for the third day in a row

Indian markets witnessed a very volatile trade to start the F&O expiry week. Though, the benchmarks managed a positive close despite slipping into red for a couple of time but bouts of selling were clearly visible at the higher levels, as the traders sensing the opportunity opted to book profit. Nevertheless markets managed to extend the gaining streak for the third straight day with Sensex crossing 18600 level, while the Nifty touching 5500 mark intraday. The markets got a jubilant start in the morning tailing positive global cues.

On the global front, the US market gave a positive lead to the markets across the globe, as the weak home sales numbers eased concern of the traders that the Fed may not taper its stimulus soon. The Asian markets mostly ended in green, with Chinese index surging by around two percent for the day, though the Japanese market pared its early gains to end modestly in red after yen gained some strength against dollar. There was some cautiousness after the European markets made a sluggish start amid the conflicting talks of whether scope remains for further interest-rate cuts.  

Back home, the Indian markets in face of depreciating rupee and extreme volatility, managed to eke out modest gains on Monday. The rupee remained weak since the start, once touching the lows of 64.63 against the dollar, tracking the regional peers, which lost strength against the dollar and also there was heavy dollar demand from the oil importers. Meanwhile, the government looked concerned about attracting foreign inflows to mend its current account deficit. The Economic Affairs Secretary Arvind Mayaram was reported saying that the government is confident of meeting its fiscal deficit and current account deficit targets on the back of robust foreign direct investment flows and rising exports. Markets after a positive start could not sustain their momentum and fell on profit booking in the early noon session, though there was an attempt in noon but the bears seemed capitalizing, taking the markets into red. However,  there was spurt in the metal stocks and later by the power stocks that led markets surge again but they were dragged by selling at higher levels. The power sector stocks got a fillip with the buzz that the Cabinet Committee on Investments (CCI) is likely to consider fast tracking Rs 49000 crore worth power plants of companies like Reliance Power, JSPL and Essar Power, stuck for want of environment and forest clearances at various levels. Finally, the markets ended in green where the broader indices outperformed the benchmarks with quite a margin. Power Capital Goods, Healthcare and Metal sector gained over a percent, while banking lost over a percent.

Finally, the BSE Sensex gained 38.69 points or 0.21% to settle at 18,558.13, while the CNX Nifty rose by 4.75 points or 0.09% to end at 5,476.50.

The BSE Sensex touched a high and a low of 18,728.19 and 18,488.93, respectively. The BSE Mid cap index was up by 0.60% and Small cap index was up by 0.80%.

The top gainers on the Sensex were, BHEL up by 6.63%, Sterlite Industries up by 2.79%, Wipro up 2.52%, NTPC up 2.52% and Hero MotoCorp up 2.35%. On the flip side, ONGC down by 3.16%, GAIL up 3.02%, ICICI Bank up 2.58%, Tata Steel up 1.70% and Tata Motors was down by 0.93% were the top losers on the index. 

The top gainers on the BSE sectoral space were, Power up 1.56%, Capital Goods up 1.25%, Health Care up 1.12%, Metal up 1.05% and Realty up 0.99%, while Bankex down 1.04%, Oil & Gas down 0.43%, PSU down 0.18% and Consumer Durables down 0.05% were the top losers on the sectoral space.

Meanwhile, the per capital income, measured by net national income (NNI) has increased by 6.7 percent per annum, while the percentage of poor declined by 2.2 percent during the period 2004-05 to 2011-12 on the back of rising Indian economy, which grew at an average of  8 percent per annum over the period of past few years.

In 2011-12, the government has decided the poverty line in terms of monthly per capita consumption expenditure at Rs 816 in rural areas and Rs 1,000 in urban areas. On state wise, Uttar Pradesh had highest number of people living below poverty line during 2011-12 at 598.19 people out of every lakh. followed by Bihar at 358.15 people (per lakh), Madhya Pradesh 234.04 people, Maharashtra 197.92 people and West Bengal at 184.98 people living below the poverty line.

The 12th Five Year Plan (2012-17) has stated the need for faster, sustainable and more inclusive growth in the country to reduce economic disparities. Further, the government expects that the growing Indian economy will result in decreasing the percentage of poor in India in coming future.

The CNX Nifty touched a high and low of 5,528.70 and 5,454.45 respectively. 

The top gainers on the Nifty were Sesa Goa up 9.93%, BHEL up by 6.03%, JP Associates up 4.87%, Ranbaxy up 4.38% and Ambuja Cement up by 3.38%. On the flip side, the top losers of the index were, IDFC down by 8.77%, Axis Bank down by 5.15%, ONGC down by 3.63%, GAIL down by 3.22% and ICICI Bank down by 2.47%.

The European markets were trading mixed, France’s CAC 40 down by 0.63%, Germany’s DAX down by 0.30% and the United Kingdom’s FTSE 100 up by 0.70%.

The Asian markets concluded Monday’s trade mostly in green with mainland Chinese shares jumping amid better-than-expected results from some Chinese firms and reassuring comments on the country’s economic growth. Seoul shares rose to their highest closing in a week as Auto and Tech issues rallied on bargain hunting led by foreigners after Friday’s euro zone data brightened the global economic growth outlook. Hang Seng too concluded the trade in green. The median monthly household income in Hong Kong for April to June was $21,900, down from $22,000 reported in the first quarter, the Census & Statistics Department stated. In the second quarter, 6.7% of domestic households had a monthly household income of $80,000 and over, while 16.2% of domestic households had monthly household income of less than $8,000. Japan’s Nikkei average edged down on uncertainties over a planned sales tax hike.

In Indonesia, Finance Minister M. Chatib Basri stated that even as the country is facing a widening current account deficit and the rupiah slips in line with other currencies in the region, it isn’t in a crisis. Separately, the director general for international industrial cooperation at the Industry Ministry stated that despite government efforts to improve value-added manufacturing to make use of Indonesia’s rich natural resources, slow demand from abroad and a weak currency have put a temporary break on the nation’s industrial production. A weakened currency is making it expensive for some manufacturers to import raw materials to make goods such as electronics and garments and shoes. The rupiah has fallen 12% against the US dollar this year.