As long as Nifty is above 8,600, the trend favours the bulls
We had mentioned in Wednesday’s closing report that Nifty has to stay above 8,580 for the rally to continue. The major indices in the Indian stock market were range-bound and closed with small percentage gains of less than 1% each. The medium term trend of the major indices remains upward.
The top gainers and losers of major indices are given in the table below:
The logjam in parliament and anxiety surrounding a rate hike in the US subdued the Indian equity markets on Thursday, with a barometer index closing the day's trade in the red.
A day after it gained 323 points, the 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed the day's trade in the red, down 134.09 points or 0.47%.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) fell by 43.70 points or 0.51 percent at 8,589.80 points. The Sensex touched a high of 28,578.33 points and a low of 28,315.37 points in the intra-day trade.
Key economic data revealed a recovery in the US economy just before the FOMC (Federal Open Market Committee) meet on July 29, which will give further clues as to when the rate hike might take place there. With higher interest rates in the US, the FPIs (Foreign Portfolio Investors) are expected to be led away from emerging markets such as India.
The FOMC meet is followed by the future and options (F&O) expiry in the Indian equity markets on July 30. The Indian monetary policy review by the Reserve Bank of India (RBI) is scheduled for August 4. All these upcoming events are making the markets volatile.
The markets also expects a rate cut by the RBI during its monetary policy review as it may be the last time in this calendar year to cut lending rates before inflation spirals up again and the US Fed decides on its own rates in September.
Sector-wise, healthy buying was observed in consumer durables, automobile and oil and gas stocks. However, banks, capital goods and healthcare scrip came under intense selling pressure.
The S&P BSE consumer durables augmented by 177.19 points, the automobile index gained by 94.18 points and the oil and gas index rose by 48.69 points.
The BSE S&P bank index declined by 155.51 points, the capital goods index receded by 125.10 points and healthcare index was lower by 108.55 points.
Major Sensex gainers during Thursday's trade were: Tata Motors, up 3.11% at Rs.401.35; Dr Reddy's Lab, up 1.62% at Rs.3,910.35; Mahindra and Mahindra (M&M), up 1.25% at Rs.1,358.35; Maruti Suzuki, up 1.11% at Rs.4,235.65; and NTPC, up 0.77% at Rs.138.25.
The major Sensex losers were: Lupin, down 5.23% at Rs.1,728.60; Bajaj Auto, down 5.02% at Rs.2,487.75, Tata Steel, down 3.58% at Rs.270.30, Tata Consultancy Services (TCS), down 1.59% at Rs.2,487.95; and Bharti Airtel, down 1.54% at Rs.432.60.
Among the Asian markets, Japan's Nikkei was up by 0.44%, China's Shanghai Composite Index rose by 2.44%, and Hong Kong's Hang Seng gained by 0.46%.
The closing values of the major Asian indices are given in the table below:
All European markets were flat as well as US pre-market futures.