business-standard-Markets maintained their bullish trend for the eighth consecutive session as the onset of normal monsoon raised hopes of an easing in the monetary policy by the Reserve Bank of India. Capital goods and metals stocks led the rally while upside gains were capped on profit taking in Information Technology shares.
A new proposal presented by Greece, which could provide a possible solution to the Greece debt crisis has also boosted the sentiment in the global markets.
The 30-share Sensex ended the session at 27,804 levels, up by 74.16 points or 0.27%. The 50-share Nifty inched closer to 8,400 levels after hitting an intra-day high of 8,398.45, finishing at 8,381 levels, up by 28 points or 0.34%.
Among the broader markets, BSE Midcap and Smallcap indices ended in sync with their larger peers, up by 0.08% and 0.45% respectively. The health of the market was positive with 1,465 advances against 1,244 declines on the BSE.
On the currency front, the Indian rupee continued to trade weak by 9 paise at 63.59 levels as the American currency firmed up against other overseas currencies.
Meanwhile, markets could turn volatile ahead of the expiry of June derivative contracts on Thursday.
Further, foreign portfolio investors (FPI) were net buyers as they bought shares worth of Rs 641 on Monday, as per provisional stock exchange data
According to Mudit Goyal, Technical Analyst at SMC Global Securities Ltd, “After finding support around 7940 levels, Nifty has showed some decent recovery from lower levels with trading at higher highs and higher lows on daily charts. Moreover, the recovery has also breached all its important moving averages (200EMA, 100EMA) and currently, trading above the same”.
He further added, “However, Nifty found difficulty to breach the level of 8440 on Tuesday, hovered around the levels but couldn’t breach the same, which is the crucial resistance for near term. Any breakout of 8440 levels can stretch the rally in near term. On the contrary, if nifty couldn’t breach the resistance of 8440 then correction can be expected.”
According to the latest information by the weather department, a depression has been formulated over Arabian Sea, which could turn into a “deep depression” thus bringing in heavy rainfall to Maharashtra and Gujarat.
Yesterday, the IMD in its daily monsoon update confirmed the advancement of southwest monsoon into Madhya Pradesh, Chattisgarh, Jharkhand and some parts of Bihar.
SECTORS & STOCKS
Sectorally, BSE Metal index finished higher by 1.7%, followed by BSE Capital Goods index, which ended at 1.4% up. BSE Oil&Gas, Bankex, and Healthcare indices rallied between 0.1-0.8% each. BSE Information Technology, however, dipped 1.08%.
Coal India finished the session as the top gainer on the Sensex on the back of heavy volume trades. The stock ended 3.8% up.
Shares of Capital Goods sector surged post better-than-estimated April industrial output data. Among the individual stocks, Thermax has gained nearly 6%, Crompton Greaves and Havells, up between 1.5-2.7% on the BSE.
L&T will list its IT services arm L&T Infotech by December this year. The stock ended up nearly 2% on the Sensex.
Bharti Enterprises, along with Foxconn and Japan’s SoftBank will invest $20 billion in a project to set up solar power packs in India. Bharti Airtel finished higher by 1.2% on the Sensex.
Banking shares rallied post the announcement by Finance Minister Arun Jaitley that the government would infuse capital in public sector banks in the next three to six months. However, the Finance Minister made it clear that the exact recapitalisation figures are not yet decided by the governement SBI, Axis Bank, and HDFC bank finished between 0.2- 0.6% each on the Sensex.
Mahindra and Mahindra launched a small commercial vehicle named Jeeto. The tractor manufacturer ended higher by nearly 2% on the Sensex.
Tata Steel extended its gains from yesterday after the trade unions in UK decided to call off the strike against Tata Steel UK over pension issue. The stock ended up by 1%
Pharma sector has received financial and regulatory support from the government post which the stocks surged on the Sensex. Cipla ended 2.8% up while Dr. Reddy’s, and Sun Pharma ended marginally up on the Sensex.
Lupin made its entry as one of the top 30 stocks on the Sensex yesterday, replacing Tata Power. The stock finished lower by 2%.
From the IT pack, Infosys finished over 2% down and was the biggest loser while TCS and Wipro ended nearly 1% down each.
Hero Group marked its foray into the consumer electronics segment by acquiring a majority stake in DTH devices manufacturer Mybox Technologies through its arm-Hero Electronix. Hero Motocorp finished over 2% down.
Other notable losers are Tata Motors, BHEL, Bajaj Auto, all shedding nearly1% on the Sensex.
Signs that a deal could be at hand to stave off a Greek default, lifted global shares on Tuesday and cut borrowing costs for euro zone countries seen as most vulnerable to the protracted crisis.
However, with some euro zone leaders warning much work was still needed to seal an agreement between Greece and its creditors, the euro fell against a dollar lifted by further evidence of US economic strength.
European shares opened strongly on Tuesday, following gains in Asia and on Wall Street that were, at least in part, attributed to optimism the long-standing crisis that had sapped confidence in many European assets could be close to resolution.
The pan-European FTSEurofirst 300 index rose 0.8%, hitting a three-week high and adding to gains of more than 2% on Monday. Germany’s CAC 40 index rose 0.7% and Germany’s DAX 0.8%. Greek stocks rose 2.7%.
With Reuters input