Extending their northbound journey to fifth straight session, Indian equity markets accumulated gains of around quarter of a percent, which lifted Sensex and Nifty higher above the psychologically crucial 25,700 and 7,650 levels respectively.
Unlike, the trend seen in previous four trading sessions, not much of buying was witnessed in the last hour of trade,rather selling pressure which was witnessed in the last hour of trade mainly halved markets’ gains and dragged benchmarks to day’s low point as much of market-participants triggered profits at higher levels. Nevertheless, it was a broadly positive session of trade, wherein broader indices outperformed frontline indices by quite a good of a margin, with both Midcap and Small-cap indices settling higher with gains in the range of 0.55%-0.85%.
On the global front, Most Asian stock markets settled higher as investors set aside geopolitical concerns for the moment to focus on the generally upbeat flow of U.S. corporate earnings ahead of a host of results due this week.
Slew of better than expected corporate earnings and good monsoon reports mainly kept the markets sentiment upbeat for yet another session. On the earnings front, shares in Reliance Industries rose over 2% to Rs 1003 after it reported better-than-expected quarterly profit in its first quarter. Its consolidated net profit increased 13.7% year-onyear to Rs 5,957 crore, bolstered by over 27% y-o-y increase in its oil and gas revenue and higher refining margin.
HDFC Ltd. too rallied over 2% after the company’s standalone profit for the quarter ended 30 June rose 14.62% to Rs.1,344.66 crore from Rs 1,173.10 crore in the corresponding period a year ago.
Finance Minister Arun Jaitley has stated that the recapitalization to the tune of Rs 2.4 lakh crore in public sector banks to meet Basel III norms is a high priority item for the government. Finance Minister added that the government will make a plan for recapitalizing of public sector banks over the next four years and capital would be raised by the banks without diluting the government stake below 51 percent.
Latest weather reports which suggested of monsoon deficit coming down by 31% with rains picking up in July across the country, also buttressed the sentiment. Sectorally, while stocks from FMCG, Consumer Durables and Oil & Gas counters were the major pillars of markets’ strength, those from Realty, Capital Goods and Metal counters were the weak links of trade. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1693: 1265, while 107 scrips remained unchanged.
Sensex gained 43.09 points at 25684.65. The index touched a high and a low of 25861.15 and 25677.77 respectively. 14 stocks gained against 16 declines on the index. BSE Mid cap and Small cap indices ended in red. Nifty ended higher by 20.30 points at 7,684.20. The index touched high and low of 7,722.10 and 7,674.00 respectively. 25 stocks ended in the green against 25 stocks ending in red.
On the BSE sectoral front, FMCG was up by 1.04%, Oil and Gas up by 0.32% and Consumer Durables gained 0.49% were the few gainers, while Realty down by 1.09%, Capital Goods down by 0.89%, PSU down by 0.66%, Infrastructure was down by 0.52% and Metal down by 0.35% were the major losers in the space.
Top gainers on the Sensex were HDFC up by 2.44%, RIL up by 1.99%, ITC up by 1.35%, Axis Bank up by 1.00% and HUL was up by 0.96%. On the flip side, Tata Power down by 1.99%, SBI down by 1.74%, Gail India down by 1.53%, Infosys down by 1.42% and BHEL down by 1.28% were the major losers.
TECHNICAL PARAMETERS OF NIFTY
Today, RSI was at 59, MACD Positive below Signal line; India VIX was at 15~, Nifty closed above all its moving averages like 5 DMA (7486), 20 DMA (7610), 50 DMA (7486) & 200 DMA (6602) which all indicates that market is in strong bull run, though we may see some profit booking at higher levels but overall trend remains positive only.
