Nifty headed higher as long it closes above 8,460
We had mentioned in Friday’s closing report that the gains in the major Indian indices in the face of tough external climate and muted investments by foreign institutional investors (FIIs) were an important indicator of an underlying bullishness. The stock market displayed this bullishness Monday in a spectacular fashion. After being down 98.75 points at the opening following the news of Greek referendum Sunday, the NSE’s CNX Nifty recovered the entire loss and closed higher, even as all global markets were awash in red. The market is set to record further gains.
After opening in the negative domain on Monday, Indian equities rallied through the trading session, appearing to ignore the "no" vote in Greece to the bailout proposal with conditions and focusing instead on a likely delay in the US interest rate cuts.
The S&P BSE Sensex gained more than 115 points or 0.40% in the day's trade.
The wider 50-scrip Nifty of the NSE made marginal gains on Monday, closing 37 points or 0.44 percent up at 8,522.15 points.
The 30-scrip S&P BSE Sensex, which opened at 27,857.20 points, closed at 28,208.76 points, up 115.97 points or 0.41% from its previous day's close at 28,092.79 points.
The Sensex touched a high of 28,235.31 points and a low of 27,774.80 points in the intra-day trade.
The mood was somewhat lifted by a dip in global crude oil prices, ample signs of recovery in the monsoon rains and some disappointing jobs data which suggested that a rate cut by the US Federal Reserve may be pushed further.
According to analysts, the markets are waiting for the June quarter results. First major result to come out will be of Tata Consultancy Services (TCS) on 9th July.
During Monday's intra-day trade, healthy buying took place in healthcare, oil and gas, bank, capital goods and automobile sectors. However, consumer durables, metal and technology, entertainment and media (TECK) stocks came under intense selling pressure.
The S&P BSE healthcare index augmented by 275.96 points, oil and gas index rose by 109.76 points, bank index gained by 106.87 point, capital goods index was edged-higher by 89.67 points and automobile index increased by 52.55 points.
The S&P BSE consumer durables index plunged by 100.17 points, followed by metal index, which receded by 56.83 points and TECK index which by declined by 1.22 points.
The major Sensex gainers in Monday's trade were: Dr Reddy's Lab, up 3.64% at Rs3,711.75; Cipla, up 3.35 points at Rs652.55; Hero MotoCorp, up 1.34% at Rs2,612.40; Tata Consultancy Services (TCS), up 1.07% at Rs2,632.80; and Lupin, up 1.05% at Rs1,920.40.
The major Sensex losers were: Vedanta, down 4.45% at Rs163.05; Hindalco Inds, down 1.36% at Rs109.05; Tata Steel, down 0.73% at Rs298.75; Infosys, down 0.65% at Rs983.50; and NTPC, down 0.65% at Rs137.95.
Among the Asian markets, Japan's Nikkei fell by 2.08%, however, China's Shanghai Composite Index went up by 3.74%, and Hong Kong's Hang Seng receded by 3.18%.
In Europe, the London FTSE 100 index was down by 0.64%, the French CAC 40 was lower by 1.68% and Germany's DAX Index receded by 1.37% at the closing bell here.
The top gainers and losers among shares of indices were as follows:
The table below gives the closing values of Asian indices at close:
Among European indices, DAX was at 10,903.94, down 1.40% and FTSE 100 was at 6,554.97, down 1.14%. Athex Composite Share Price Index was at 797.52, up 2.03%. US Index futures were in the red.