The benchmark BSE Sensex recovered over 54 points to close at 26,425.30 on fag-end buying in some bluechips, led by banking, power and oil & gas sector stocks, and ahead of retail inflation and IIP data to be released today.
However, concerns over a weak monsoon and slow credit growth, kept investors cautious.
Sentiments were buoyed after Finance Minister Arun Jaitley said banks have promised greater rate cuts in coming weeks, brokers said.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Amidst weak global demand and concerns on monsoon, market continues to rationalize FY16/17 earnings growth potential. Hence, we are likely to see further volatility and there is a possibility of consolidating downwards to 7800 levels. Now as the next set of reforms would be considered in the monsoon session of parliament, the timing of initiation of government spending can provide sentimental support as well as better clarity towards FY17 earnings. Expectation over macro numbers remain low at 1.5% in April vs. 2.1% in March for IIP, due to low infrastructure activity and lower exports and May’s retail inflation expectation is at 5% vs. 4.87% in April.
Market Wrap Up by Mr. Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd – June 12, 2015
A narrow trading session was witnessed in the markets today. The oversold market conditions provided some sort of buying interest.
Nifty today opened at 7959, made an intraday high and low of 7995 and 7940 respectively and finally closed at 7982 up around 17 points. The market breadth stood negative as there were seen 1158 stocks advancing against 1480 stocks declining. The Nifty volatility index, India VIX stood at 17.4775 down around 1.83%.
The mid-cap index closed up around 0.40% whereas small cap index closed down around 0.35%.
The major sellers in the sectorial front were Metal and IT which closed down around 1.51% and 1.49% respectively. The gainers on the other end were Banking and Power which closed up around 1.07% and 0.42% respectively.
In the stocks’ front, the major losers were NMDC and VEDL which closed down around 2.33% and 2.29% respectively whereas the buying was seen in Tata power and Bajaj Auto closed up around 4.21% and 3.09% respectively.
The FIIs were sellers in the cash market segment on 11 June 2015, Thursday, sold shares worth Rs 622.89 crore. The DIIs on the other hand were buyers on 11 June, bought shares worth Rs 589.29 crore in the capital markets segment.
The European markets were looking to the Greece for more cues. The US index futures were trading lower.
Shares of petrochemicals giant Reliance Industries ended 1.36 per cent higher at Rs 889.15 after the company said it will commercially start its much-awaited 4G telecom services by December.
The company also plans to complete projects worth over Rs 2 lakh crore in the crude oil and petrochemical business over the next 12-18 months.
The Sensex resumed lower at 26,340.32 and slipped to hit the day’s low of 26,307.07 points in early trade on sustained capital outflows.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
The market opened on a flat note and was volatile during the day ahead of release of economic data today (IIP (Apr) and CPI (May)) both expected to be less optimistic according to estimates. Also, FIIs were net sellers in equity for five consecutive days. (Rs -622.89cr), while they were net buyers in derivatives for four consecutive days. (Rs 364.32cr). India’s WPI data is on Monday (-2.46 vs -2.65% in May) and trade balance is also due next week.
On the global front, FOMC meeting is scheduled on 17 June. Yesterday’s strong U.S. Retail sales and weekly jobless claims data may reinforce optimism that Fed Reserve may hike interest rates soon. PPI (May) data is due today (0.4% vs -0.4% in April). A strong data may boost confidence in the market and may signal a recovery in the economy.
However, it wiped-off initial losses on value-buying coupled with covering-up of short positions by speculators at prevailing levels and rebounded to touch session’s high of 26,489.58 before ending at 26,425.30, showing a gain of 54.32 points, or 0.21 per cent.
It had lost 469.52 points in yesterday’s trade.
On a weekly basis, the 30-share Sensex fell by 343.19 points, or 1.28 per cent, to complete third consecutive week of losses.
Market View by Gaurav Jain, Director, Hem Securities
Markets closed the day on flat note after yesterdays sell off. Today Nifty tries to regain its psychological 8000- mark but failed and ends on flat note. Market participants were also keeping a close eye on the macro data which will be unveiled later in the day. The government will unveil data on inflation based on the consumer price index (CPI) and Industrial Production for May 2015 later today. Macro economic data, Greece worries on bailout, progress of monsoon, buying-selling figures of FII’s and movement in rupee-dollar movement will shape the trend for the coming week.
Similarly, the CNX 50-share Nifty rose by 17.55 points, or 0.22 per cent, to end at 7,982.90 after shuttling between 7,995.60 and 7,940.30.
Among Sensex stocks, Bajaj Auto emerged as the major gainer by surging 3.53 per cent to Rs 2,285.55, followed by Tata Power by 3.49 per cent to Rs 72.60.
Other prominent gainers in the 30-share index included ICICI Bank, BHEL, HDFC Ltd, Cipla, Maruti Suzuki, Bharti Airtel, HDFC Bank, Axis Bank, M&M and GAIL.
The major Sensex losers were TCS, Hindalco, Tata Motors, Vedanta Ltd, Wipro, Infosys and L&T.