Watch for a break below 5,820 and a break above 5,900 on the Nifty for future direction
The Indian market closed in the green for the second week in a row on positive global cues. Corporate developments also supported the sentiment. Investors will focus on quarterly corporate results, as the earnings season kicks off next week.
The market closed in the positive on three of the five trading days with the Sensex gaining 100 points (0.52%) to 19,496 and the Nifty ended the week at 5,868, up 26 points (0.44%). Watch for a break below 5,820 and a break above 5,900 on the Nifty for future direction.
The market closed higher on Monday on support from rate-sensitive sectors. Selling in heavyweights by foreign investors led the indices lower on Tuesday. The market settled nearly 1.5% down on Wednesday as higher crude oil price, weak global cues and the decline in the rupee resulted in across-the-board selling.
The market snapped its two-day decline as buying in index stocks in the late session lifted the benchmarks higher on Thursday. The market settled higher on Friday but tapered its gains in the second half of the session on profit booking and a weakening rupee.
BSE Fast Moving Consumer Goods (up 6%) and BSE Healthcare (up 3%) were the top sectoral gainers while BSE PSU and BSE Bankex (down 2% each) were the top losers in the week.
The top gainers on the Sensex were ITC, Tata Motors (up 5% each), GAIL India, Hindustan Unilever (4% each) and Jindal Steel & Power (up 3%). The key losers were ONGC (down 4%), Tata Steel, State Bank of India, HDC (down 3% each) and Bajaj Auto (down 2%).
Ranbaxy Laboratories (up 11%), Lupin (up 7%), ITC (up 6%), Tata Motors (up 5%) and GAIL India (up 4%) were the major gainers on the Nifty. The losers were led by ONGC (down 5%), Punjab National Bank (down 4%), Power Grid Corporation, Tata Steel and HDFC (down 3% each).
India’s manufacturing sector activity remained broadly flat in June as new orders declined for the first time in over four years. The HSBC/Markit purchasing managers index for the manufacturing industry stood at 50.3 in June, slightly higher than 50.1 in May. However, output witnessed a decline for the second consecutive month.
Growth in eight infrastructure industries slowed to 2.3% in May mainly due to contraction in crude oil, natural gas, coal and fertiliser output. The combined index of these industries—coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity—was at 159.2 in May 2013, according to official data.
The HSBC/Markit purchasing managers’ index for the services industry fell from May’s three-month high of 53.6 to 51.7 in June. The fall has been attributed to a decline in new business orders and subdued economic conditions.
President Pranab Mukherjee on Friday signed the ordinance on Food Security to give the nation’s two-third population the right to get 5 kg of foodgrain every month at highly subsidised rates of Re1-Rs3 per kg. The Food Security programme will be the biggest in the world with the government spending an estimated Rs125,000 crore annually on supply of about 62 million tonnes of rice, wheat and coarse cereals to 67% of the population.
In corporate news, Anglo-Dutch consumer goods major Unilever Plc has increased its stake in the Indian arm Hindustan Unilever (HUL) to 67.28%, following an open offer which commenced on 21st June and closed on 4th July. However, Unilever fell short of its target as it had planned to hike the stake in HUL to 75% through the open offer from the earlier stake of 52.48%.
In international news, US employers added 195,000 new jobs last month. The unemployment rate held steady at 7.6%, as more people entered the workforce, the US Labor Department said.