Nifty has to stay above 8,020 for the rally to continue
Indian markets opened flat and were down for most part of the day. At around 2 pm the Sensex and Nifty hit the lows of the day and started shooting up, ending up for the second successive day. India Vix closing figure for Tuesday was 17.17, down 2.04%. NSE trading volumes were at 62.35 crore on Tuesday.
India's trade deficit narrowed to a three-month low in May 2015, helped by lower gold imports, bolstering the outlook for its current account balance. But in a worrying sign, weak global demand as well as persistent domestic bottlenecks led to a sixth straight annual fall in merchandise exports. Exports account for about a fifth of India's $2-trillion economy. The trade deficit shrank to $10.41 billion last month from $10.99 billion in April 2015, data released by the Commerce Ministry showed on Tuesday. The data comes days after India's current account deficit, the broadest measure of its trade with the rest of the world, narrowed to a one-year-low of 0.2% of gross domestic product in the January-March 2015 quarter.
India is home to the fourth largest number of ultra-high-net-worth households that have more than 100 million dollars in private wealth, according to a new report from the US. The Boston Consulting Group's 'Global Wealth 2015: Winning the Growth Game' report said continued economic expansion of China and India was driving growth in wealth in the Asia- Pacific region. The US remains the country with the largest number of ultra-high-net-worth (UHNW) households at 5,201, followed by China (1,037), the UK (1,019), India (928) and Germany (679) in 2014, it said. This is important in a period in which economists are giving as much emphasis to investors and employers as to demand/ consumption-led growth of economies with large populations.
Cairn India and Vedanta continue to make news in the market. Cairn India shares fell on Tuesday amid concerns that the company's potential merger with Vedanta Ltd may not benefit minority shareholders of the oil producer. Criticising the proposed merger, proxy advisory firm InGovern said, "The minority shareholders of Vedanta Limited gain at the detriment of the minority shareholders of Cairn India."
Suven Life Sciences said it has secured 3 product patents from Israel, Macau and USA for the treatment of disorders associated with neurodegenerative diseases. The announcement was made during market hours on Tuesday. The company’s share closed at Rs245.35, up 0.90%.
In news that does not directly affect the stock markets in India, growing passenger traffic in India and other emerging markets would help generate aircraft demand worth about USD 5 trillion in 20 years and the fleet across aviation industry would more than double by 2034, Airbus said on Tuesday. The domestic traffic flow in India alone is estimated to grow nearly 6 times in this period, making it one of the fastest growing markets globally, even as a survey by Airbus has identified Mumbai and Delhi airports to be among the largely congested ones across the world.
A threat that still looms over the global markets is the problem in the Greece economy. FT reports that “Over the past several sessions, traders have become more worried about a Greek default and exit from the euro. This is shown by the lurch higher not just in Athens’ borrowing costs but also the Eurozone peripherals’.”
The top gainer of the BSE 100 stocks on Tuesday was Glenmark, which was up 4.08% to close at Rs924.05. The top loser was Idea Cellular, which was down 3.82% to close at Rs168.80.
Among the Sensex stocks, the top gainer was Tata Power, which was up 2.57% to close at Rs73.95. The top loser was Vedanta, which was down 1.46% to close at Rs178.60.
Among Nifty stocks, the top gainers were Bajaj Auto up 2.52% to close at 2,391.10 and IndusInd Bank up 3.40% to close at Rs821.55. The top loser was Idea Cellular which was down 4.04% down to close at Rs168.45.
Among US indices, NASDAQ Composite fell 0.42% to close at 5,029.97. Dow Jones fell 0.6% to close at 17,791.17. Among Asian indices, Shanghai Composite fell 3.47% to close at 4,887.43. Hang Seng fell 1.1% to close at 26,566.70.
Among European indices, FTSE 100 fell 0.72% and was around 6,664.43. With Greece in the news, the Athex Composite Share Price Index was down 3.34% and was around 713.59. US Index Futures were in the red on account of negative news from Greece.