The BSE benchmark Sensex remained choppy today throughout the session, ending the day nearly 88 points up at 27,661.40 on some fag-end buying by participants ahead of the announcement of key IIP data.
The complete turnaround in Chinese stock market gave the sentiment a big lift.
The government is slated to release data on industrial production (IIP) for May later in the day.
The 30-share barometer resumed in the positive terrain, hitting the day’s high of 27,729.46. But with profit-booking kicking in, the index slipped into the negative territory and plunged to a low of 27,530.90.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Though the start to Q1FY16 result is tepid, the markets would like to see the subsequent set of numbers next week before taking a final view of the results. The expectation for Q1FY16 is low largely due to the sharp fall in commodity prices. But it is expected to stabilize the earnings outlook, compared to the complete washout in Q3FY15 and Q4FY15, which had led to a sharp earnings downgrade. The Market is optimistic of an end to the earnings downgrade and the prospects of a new agreement between Greece and the Eurozone.
However, some late-afternoon buying towards the fag end of the session helped it stage a comeback to close 87.74 points, or 0.32 per cent, higher at 27,661.40.
The gauge had dropped over 635.10 points in the previous three straight sessions after a rout in Shanghai shares and continued Greek debt concerns rattled investors.
On a weekly basis, the Sensex and the Nifty ended lower by 431.39 points (1.53 per cent) and 124.35 points (1.46 per cent), respectively, snapping three weeks of gains.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Tracking the global cues the markets opened with a positive note and after that took indication from the quarterly number of IT major TCS. In the economic front, TCS came out with its earnings where the company profit after tax rose 48% sequentially to Rs 5709 crore for the June quarter of 2015-16. The revenue was up 6% to Rs 25668.11 crore. But the company has given a one time bonus of Rs 2628 crore in January – March quarter which taken into account will make the net profit to be actually fallen sequentially by about 3.33%.
The investors were seen not taking long positions as the focus were shifted towards the IIP data which later in the day and the meeting of the euro zone leaders to decide the fate of Greece.
Nifty today closed at 8360 up around 32 points. The market breadth stood positive as there were seen 1441 stocks advancing against 1366 stocks declining. The Nifty volatility index, India VIX stood at 17.0700 down around 2.10 %. The mid-cap and small cap sector closed up around 0.12% and 0.09% respectively.
The major gainers in the sectorial front were Banking and Healthcare which ended up around 1.15% and 0.98% respectively. Selling on other end was seen in Realty and FMCG, closed down around 0.81% and 0.69% respectively.
The losers in the stocks’ front were Bharti Airtel and Idea, closed down around 3.48% and 2.86% respectively. Buying was seen in VEDL and Sun Pharma which ended up around 5.62% and 3.85% respectively.
The FIIs were net sellers in the cash market segment on 09 July 2015, Thursday, sold shares worth Rs 254.10 crore. The DIIs on the other hand were buyers on 09 July, bought shares worth Rs 79.08 crore in the capital markets segment.
The European markets were trading with a positive note as Greece submitted economic proposals. The US index futures were also up.
Monday companies like Jaybharat Maruti, IndusInd Bank and RIIL may announce their earnings.
Sentiment turned for the better after Shanghai Composite jumped 4.54 per cent on the back of new government measures to tame market decline. There were hopes that Greece is inching towards a loan deal with its international creditors this Sunday to avert bankruptcy and a Grexit.
Technology stocks came under pressure after TCS posted muted first quarter numbers yesterday. It lost 1.96 per cent whereas Infosys shed 0.07 per cent.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
Expectations of Greece issue resolution, and a bounce back in Chinese indices, gave a positive bias to Asian markets, but Indian markets remained in a tight range, as traders were less inclined to push prices further on either side, especially as Q1 numbers as well as several economic data releases were scheduled shortly. Oil bounced back, but remained near the lower the band of the 50-60 region. Meanwhile, trade surplus data from Germany, might be taken as a signal that exports from the region has not been affected by the Greece debt crisis.
The broader 50-share Nifty also edged up 32 points, or 0.38 per cent, to 8,360.55 after shuttling between 8,377.10 and 8,315.40.
Among index heavyweights, Vedanta was the top gainer while others such as Sun Pharma, BHEL, HDFC Bank, RIL and L&T too ended in the green.
Out of 30 Sensex components, 16 advanced and 14 lost.
Market View by Gaurav Jain, Director, Hem Securities
Markets managed to shut the day in green after swinging between positive and negative zones on hopes of some positive outcome in Greece after submitting a bailout plan recently, Chinese equities rebound expectation of good industrial production (IIP) numbers.
Sector-wise, banking stole the show, up 1.15 per cent, followed by healthcare, capital goods, metal and oil & gas.
Buying activity also helped BSE small-cap and mid-cap indices close with modest gains.
Globally, a higher closing at most other Asian markets provided additional momentum to the Indian stocks.