The Nifty may see a staggered upmove
The market closed marginally off the day’s high supported by a fall in headline inflation and support from global markets. Yesterday we had mentioned that the Nifty has to break out of the range of 5,300 and 5,377 for further direction. Today in the second half of trade, the index broke the upper range and settled above it. We may now see the benchmark making a staggered upmove in the range of 5,445 and 5,345. The National Stock Exchange (NSE) saw a volume of 54.42 crore shares. The Indian market will remain closed on Wednesday on account of the Independence Day holiday.
The domestic market opened almost unchanged from its previous close as investors were focussed on the headline inflation numbers, due to be announced later in the day. Markets in Asia were higher in morning trade on hopes that, after a spate of dismal economic indicators, policymakers across the world will gear up to spruce growth.
Back home, the Nifty opened five points down at 5,343 and the Sensex started off at 17,632, down one point from its previous close. The market was volatile in early trade on selling pressure from realty, capital goods and healthcare stocks.
Meanwhile, the rupee depreciated by 29 paise to 55.63 against the dollar in early trade on increased dollar demand from importers and a lower opening of the equity market. The rupee had lost 6 paise to end at 55.34 against the dollar yesterday.
India’s exports declined by 14.8% year-on-year to $22.4 billion in July this year due to the global demand slowdown. Imports too contracted during the month by 7.61% to $37.9 billion, leaving a trade deficit of $15.5 billion, government data revealed.
During the April-July period of 2012-13, exports have shrunk by 5.06% cent to $80.4 billion. Imports during the period dipped by 6.47% to $153.2 billion.
The dismal trade figures for July resulted in the indices touching their intraday lows in late morning trade. At this point, the Nifty fell to 5,329 and the Sensex dipped to 17,572.
However, a drop in inflation numbers for July brought a cheer to the market, lifting it from the lows and into positive terrain in noon trade.
Headline inflation declined to 6.87% in July as the rate of price rise of the food articles category eased a little, although pressure remained on potato, pulses and rice as well as manufactured items.
Inflation, as measured by the Wholesale Price Index (WPI), was 7.25% in June and stood at 9.36% in July 2011. Overall, food inflation declined to 10.06% in July, from 10.81% in June.
The benchmarks witnessed a further upmove on positivism in the global markets as the key European indices opened in the green and those in Asia extended their gains towards the end of the day’s trade.
The gains enabled the market hit its intraday high in the post-noon session with the Nifty touching 5,387 and the Sensex going up to 17,753. The indices held on to their gains in the late session on support from oil & gas and banking stocks.
The market closed marginally off the highs on a decline in headline inflation for July and supportive global cues. The Nifty settled 32 points (0.61%) higher at 5,380 and the Sensex finished trade at 17,728, a rise of 95 points (0.54%) over its previous close.
The advance-decline ratio on the NSE was positive at 871:802.
The broader indices underperformed the Sensex today. The BSE Mid-cap index rose 0.30% and the BSE Small-cap index gained 0.25%.
BSE Oil & Gas (up 1.27%); BSE Bankex (up 1.08%); BSE Metal (up 0.83%); BSE PSU and BSE Auto (up 0.71% each) were the top sectoral gainers today. The losers were BSE Realty (down 0.73%); BSE Healthcare (down 0.34%) and BSE Power (down 0.07%).
The top Sensex gainers were Tata Motors (up 2.85%); Tata Steel (up 2.63%); Jindal Steel (up 2.47%); ICICI Bank (up 2.05%) and ONGC (up 1.82%). The main laggards were Sun Pharma (down 2.10%); HDFC (down 1.78%); Sterlite Industries (down 1.27%); Bajaj Auto (down 0.97%) and Hindalco Industries (down 0.91%).
The top two A Group gainers on the BSE were—Adani Enterprises (up 4.68%) and Indraprastha Gas (up 3.63%).
The top two A Group losers on the BSE were—Alstom T&D (down 3.99%) and Suzlon Energy (down 3.95%).
The top two B Group gainers on the BSE were—Creative Eye (up 20%) and Goodluck Steel Tubes (up 19.81%).
The top two B Group losers on the BSE were—Pitti Laminations (down 19.93%) and JTL Infra (down 18.20%).
The top gainers on the Nifty were Tata Motors (up 3.31%); Ranbaxy Laboratories (up 3.30%); IDFC (up 2.85%); Tata Steel (up 2.67%) and Axis Bank (up 2.66%). The key losers were Sun Pharma (down 2.33%); HDFC (down 2.08%); Hindalco Ind (down 1.24%); Sterlite Ind (down 1.23%) and BPCL (down 1.15%).
Markets in Asia settled on a firm note on better-than-expected June quarter GDP numbers from Germany and France, which eased some debt related concerns. This apart, the minutes of a Bank of Japan meeting, revealed that the government was committed to economic growth and would take necessary steps, when necessary.
The Shanghai Composite gained 0.30%; the Hang Seng surged 1.05%; the Jakarta Composite rose 0.46%; the KLSE Composite advanced 0.40%; the Nikkei 225 climbed 0.50%; the Seoul Composite jumped 1.27% and the Taiwan Weighted settled 0.58% higher.
At the time of writing, the key European indices were up between 0.27% and 0.67%.
Back home, foreign institutional investors were net buyers of stocks totalling Rs339.76 crore on Monday while domestic institutional investors were net sellers of equities aggregating Rs176.34 crore.
UK-based travel major Thomas Cook Group plc (TCG) has concluded the sale of 76.69% stake in its India operations to investment firm Fairbridge Capital (Mauritius). The sale was approved with 99.99% votes by shareholders of Thomas Cook Group, Thomas Cook India (TCIL) said in a filing to BSE. TCIL rose 0.17% to close at Rs60.70 on the NSE.
State-run Life Insurance Corporation of India (LIC) has sold 2.68% stake in cement maker ACC for Rs187.75 crore through open market operations. LIC had 10.51% stake or 18.77 crore shares in ACC prior to the transactions that took place between November last year and August 10 this year, both at the BSE as well as the NSE, the cement firm said in a regulatory filing today. Following the transactions, LIC’s shareholding in ACC, in which Swiss major Holicm has the majority stake, has now come down to 7.82%. ACC was down 0.35% to Rs1,355.50 on the NSE.
Pharma major, Cipla, on Tuesday said it has launched ‘Qvir’, a four-drug kit priced at Rs158 per kit to be used for treating HIV/AIDS. The kit consists of two tablets packaged together in one strip which represents a single day’s treatment, Cipla said in a statement. The stock settled at Rs349.40 on the NSE, down 0.14%.