While Nifty may give up some gains, the trend is distinctly higher
We had mentioned on Friday that the trend in the Indian stock market is on the upside. With positive news in India and Greece, the trend in Sensex, Nifty and Bank Nifty zoomed in Monday’s trading.
India Vix closed at 15.49, up 2.67%. NSE turnover was at 83.71 crore. Public sector banks were among the big gainers in today trading.
Finance Minister Arun Jaitley has said the credibility of Indian economy has been partly restored, but cautioned the momentum must be sustained over the next two years to win over and provide comfort to world investors. Jaitley said there is "huge amount of enthusiasm" among investors as they see India picking up again after four-five years of slack.
The Greek government submitted proposals to its creditors early Monday aimed at breaking the deadlock over a debt crisis that has imperilled Athens’s continuing membership in the euro currency zone. The proposals came just hours before European Union (EU) leaders were to hold emergency meetings aimed at forcing a breakthrough in the country’s international bailout negotiations. Buying Greece critical time on Monday, the European Central Bank (ECB) for a third time in less than a week increased its emergency funding to Greek lenders to stanch heavy deposit withdrawals, according to a Greek banking official with knowledge of the decision who spoke on the condition of anonymity. Financial markets were upbeat on Monday in the hope of a deal.
According to Moody’s, higher import duty on flat and long steel products will help in reducing pressure on domestic prices, which have been going down due to cheap imports from countries like China. The ratings agency said, "The import duties will ease some of the downward pressure on domestic steel prices from cheaper Chinese steel imports. Indian steel prices have dropped 27% over the past 12 months owing to a 70% increase in cheaper imports, one third of which came from China".
Last week in a much needed relief for domestic producers, the Indian government increased basic customs duty (BCD) on certain long and flat steel products by 2.5%. Import duty on flat steel products has been increased to 10% from 7.5%, whereas that on long steel products has been raised to 7.5% from 5%.
Larsen & Toubro (L&T) said it has won orders worth Rs1,507 crore across various business verticals. "L&T's Metallurgical and Material Handling (L&T-MMH) business has secured new orders worth Rs1,507 crore across various verticals," the engineering and construction major said in a statement. The company said L&T-MMH has won an EPC order from Emirates Global Aluminium (EMA) for its greenfield alumina refinery development project in Al Taweelah, Abu Dhabi. L&T shares closed at Rs1,731.05 up 0.69%.
Pharmaceutical company Wockhardt said it received approval from the US health regulator to market its Oxycodone HCl liquid, used for treating chronic pain, in the American market. The company has received final approval from the US Food and Drug Administration (USFDA) to market 5mg/5ml of Oxycodone HCl liquid, Wockhardt said in a regulatory filing. Wockhardt is launching the product soon and will be amongst the few generic versions of this product in the market, it added. Cheering the news, the share price of the company jumped over 2.5% in the noon trade on Monday. The shares closed at Rs1,436.35 up 2.77%.
The top gainer among BSE Sensex scrips was Axis Bank, which closed at Rs572, up 3.62%. The top loser among the 30-stock benchmark was Bharati Airtel, which closed Rs424.20, down 2.25%.
GMR Infra was the top gainer among BSE-100 shares that closed Monday at Rs14.51, up 9.43%. The top loser among BSE-100 shares was Bharati Airtel again.
The top gainer among Nifty stocks was Punjab National Bank (PNB), which closed at Rs138.40, up 6.05%. The top loser was Bharati Airtel, which closed at Rs423.85, down 2.34%.
Among US indices, the NASDAQ Composite closed at 5,117.00, down 0.31%. Dow Jones closed at 18,015.95, down 0.55%.
In Asia, Nikkei closed at 20,428.19, up 1.26%. Hang Seng closed at 27,080.85, up 1.20%.
Among European indices, FTSE 100 was at 6,775, up 1% during trading hours.
Athex Composite Share Price Index was at 733, up 6.65% in the hope of the deal to help Greece. DAX was up 2.54%, one of the highest this year. US Index futures were deeply in the green.