Market Commentary
The key benchmark indices ended the day’s trade on a positive note on the back of the buying interest that emerged across sectoral indices on BSE, after the global markets traded positive today. After a quite opening, the leading Indian indices moved northwards in line with its other Asian peers. In the global markets, Asian stocks recovered from the initial losses to end today’s session on strong note. Further the European markets also opened on strong note after six week of closing low. Beside the U.S. stocks futures rose today, pointing to a higher open for Wall Street as the market resumes trading after a holiday on Monday. Back home the expectations of good quarterly numbers from the corporates in the last quarter as well as the revival in the monsoon rains also uplifted the sentiments. Moreover the support of positive global cues boosted investors’ sentiment which pulled the market further to march northwards. The overall market breadth was positive, as all the 13 indices ended in green. Meanwhile Metal, Bankex, CD and IT stocks led the gainers pack. The BSE Sensex closed above 17,610 mark and NSE Nifty ended above 5,285 level.
Today the domestic markets opened on a quite note tracking mixed cues from the Asian markets. The market in the morning session was continuously trading with flat to positive sentiments on the back of profit booking pressure at higher levels and lingering concerns about the faltering global recovery kept investors out of riskier assets like stocks. However the market turned bullish in the mid morning session as the market sentiments turned bullish with a bounce back in Asian peers. The domestic benchmark indices gained further momentum in the afternoon session to touch fresh intraday high on strong Asian peers. Therefore this boosted the investors’ sentiments to book the positions across the board. Moreover, the expectations of good quarterly numbers from the corporates in the last quarter as well as the revival in the monsoon rains also uplifted the sentiments. Further in the late afternoon session the market moved higher on back of strong opening of European markets which pushed the market to touch new fresh intraday in the afternoon session. However in the final hour of the session the investors pared some of its gains to close today’s trade with positive note.
Among the Sensex pack 25 stocks ended in green and 5 stock ended in red. The overall market breadth was positive as out of total 3,004 stocks traded on BSE, 1628 stocks advanced whereas 1,249 stocks declined and 127 stocks are unchanged.
The BSE Sensex closed higher by 173.04 points or (0.99%) at 17,614.48 while NSE Nifty ended high by 53.15 points or (1.02%) at 5,289.05. BSE Midcap closed with gains of 53.86 points or (0.75%) at 7,193.15 while BSE Smallcap closed with a profit of 54.65 points or (0.60%) at 9,187.47. The BSE Sensex touched intraday high of 17,643.14 and intraday low of 17,395.58.
Gainers from the BSE Sensex pack were – M&M (2.67%), TCS (2.45%), HDFC Bank (2.41%), Jindal Steel (2.16%), ICICI Bank (2.12%), SBI (1.78%), Tata Steel (1.77%), Wipro (1.60%), Infosys (1.59%), Sterlite Inds (1.56%) and Bharti Airtel (1.55%).
Losers from the BSE Sensex pack were – Reliance Communications (1.80%), Jaiprakash Asso (1.19%), ACC (0.96%), Hero Honda (0.47%) and Maruti Suzuki (0.22%).
On the economic front, Credit ratings agency Moody’s has said that the latest move to hike the short-term borrowing and lending rates by Reserve Bank of India (RBI) will put pressure on overall deposit and interest rates.
Also, Mr. Ashok Chawla, Secretary of Finance has said that the country’s Food Inflation will take some more time to come down to an average level of 5-6 %. During the 3rd week of June, the food inflation fell sharply by around 4 percentage points.
Besides, in order to enable a smooth implementation of the Goods and Services Tax (GST), soon the government is going to introduce new rules to define the ''''place of supply'''' clearly referring to what should be considered the place of supply for levying service tax and also the ''''time of supply'''' referring to the point at which liability to pay tax would arise.
On the other hand, making out a strong case for opening up the multi-brand retail sector for foreign investment, the Industry Ministry obtained the views of different stakeholders asking whether FDI in the sector should be permitted or not.
On the global markets front, the Asian stocks ended on a positive note. Japan Nikkei rose 0.77% at 9,338.04, Seoul Composite inched up by 0.57% at 1,684.94, Shanghai Composite rose 1.92% at 2,409.42 and Hang Seng rose 1.22% at 20,084.12.
European markets, which opened after the Indian market, are trading green. Key benchmark indices like – DAX is trading higher by 1.93% at 5928.53 while FTSE is trading higher by 2.06% at 4,922.89 and CAC 40 is trading higher by 3.06% at 3,434.59
The BSE Metal index was at 14,594.92 up by 270.00 points or by (1.88%). The main gainers were JSW Steel (4.65%), Sesa Goa (2.90%), Jindal Steel (2.16%), WELCORP (2.00%), Tata Steel (1.77%), SAIL (1.68%), Sterlite Inds (1.56%), Hindalco Inds (1.52%) and Jindal Saw (1.26%).
The BSE CD index was at 4,806.94 up by 83.52 points or by (1.77%). The main gainers were Gitanjali Gems (5.65%), Titan Inds (2.93%), Blue Star (2.34%) and Whirlpool (0.89%).
The BSE Bankex index was at 10,882.81 up by 184.73 points or by (1.73%). The main gainers were Federal Bank (4.28%), Yes Bank (2.92%), HDFC Bank (2.41%), Bank of India (2.40%), ICICI Bank (2.12%), SBI (1.78%), IDBI Bank (1.61%), Indusind Bank (1.47%), Axis Bank (1.15%) and Union Bank (0.34%).
The BSE IT index was at 5,347.07 up by 88.13 points or by (1.68%). The main gainers were Rolta India (4.13%), TCS (2.45%), Wipro (1.60%), Infosys (1.59%), HCL Tech (1.31%), Oracle Fin (1.22%) and Tech Mahindra (0.57%).
The BSE Teck index was at 3,284.87 up by 45.17 points or by (1.39%). Rolta India (4.13%), HT Media (3.43%), GTL Infra (3.31%), Tata Comm (2.63%), TCS (2.45%), Jagran Prakashan (2.31%), MTNL (2.25%), Wipro (1.60%), Infosys (1.59%), Bharti Airtel (1.55%), HCL Tech (1.31%), HCL Tech (1.22%), Tata Teleservices (1.16%) and Reliance Media (0.94%) were the major gainers.
On the corporate front, Bombay Dyeing and Manufacturing Company rose 3.89%, on reports the company may sell its DMT/polyester business in Pune.
Phoenix Mills gained 0.39%, on reports Entertainment World Developers will file its draft red herring prospectus with market regulator, Securities and Exchange Board of India by this month-end.
Trent rose 3.19%, extending gains for the third consecutive day, ahead of 10 July 2010 record date for rights issue of cumulative compulsorily convertible preference shares.
M&M rose 2.67%, on reports the company plans to set up a 250-acre special economic zone catering to the aerospace sector near the Bangalore International Airport.
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