Markets continued their upward march for the fourth straight session today with the benchmark BSE Sensex rising 146 points to 26,832.66 driven by rally in Cipla, HUL and RIL amid above-normal progress in monsoon.
The 30-share index resumed on a positive note at 26,815.41 and climbed to intra-day high of 26,983.48 as investors indulged in cornering recently beaten-down stocks.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
The market has found some breather with stability in global market and uptrend in commodity prices during the last phase of FOMC meet. And in spite of concern over valuation bubble in China, India continues to underperformer to EMs. Support from government spending, stability in global economy and loose monetary policy by RBI can provide a remedy to underperformance.
However, it shed some gains on emergence of profit-booking towards the fag-end as participants turned cautious ahead of outcome of the US Federal meet later in the day and settled at 26,832.66, up 146.15 points or 0.55 per cent.
In four sessions, the index has gained 461.68 points.
The broader 50-issue NSE Nifty breached the 8,100-mark to hit session’s high of 8,136.85. It finally settled at 8,091.55, up by 44.25 points or 0.55 per cent.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The Indian markets opened with a positive note tracking the global cues. During the day Nifty made a high at 8136 but by the end of the trading session Nifty pared some of its early gains but managed to close in the green mainly due to easing of concerns over drought.
The market breadth changed to positive from negative as there were seen 1714 stocks advancing against 944 stocks declining. The Nifty volatility index, India VIX stood at 16.7275 down around 2.56%.
The mid-cap and small cap index closed up around 1.44% and 1.33% respectively.
Barring the power and banking sectors, which closed down around 0.45% and 0.15% respectively all other sector ended in green. The major gainers for the day were Consumer Durables and Healthcare which ended up around 2.26% and 1.62% respectively.
In the stocks’ front, the major gainers were Cipla and HUL which closed up around 4.11% and 3.36% respectively whereas the selling was seen in VEDL and Power grid, which closed down around 3.47% and 2.15% respectively.
The FIIs were sellers in the cash market segment on 16 June 2015, Tuesday, sold shares worth Rs 521.65 crore. The DIIs on the other hand were buyers on 16 June, bought shares worth Rs 644.81 crore in the capital markets segment.
The European markets were little changed as the investors were focusing on the Federal Reserve’s meeting and on the Greece concerns. The US index futures were trading in positive territory.
Brokers said sentiments remained upbeat as monsoon rains have been above-normal till now and the country’s trade deficit narrowed to a three-month low in May.
In addition, CBDT yesterday said the taxmen will not resort to coercive methods to recover dues towards Minimum Alternate Tax (MAT) on capital gains made by FIIs supported the rally, they said.
Despite ongoing winning-run, foreign investors have been net sellers on the bourses in the past few sessions. They sold shares worth Rs 521.65 crore yesterday.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
With U.S. FOMC meeting’s outcome keenly awaited, markets looks to have moved ahead, suggesting the much of the anticipated risks have been priced in, and only a contingency approach like a surprise rate hike, or a very hawkish approach could alter the markets’ positive mood. Interseasonal activity having helped the monsoons, the concerns over below normal monsoons have been suppressed now, in which place, a an above normal rainfall, albeit only for the period till 15th June is now helping market sentiments.
Sectorally, consumer durables rose the most by surging 2.26 per cent, followed by healthcare 1.62 per cent, FMCG 1.46 per cent, capital goods 1.11 per cent, auto 0.81 per cent, metal 0.78 per cent and oil&gas 0.46 per cent.
Of the 30 Sensex stocks, 19 ended with gains.
Stocks of Reliance Industries maintained winning run for the fourth straight session and gathered another 3 per cent on continued optimism over the company’s plans to start 4G phone services later this year.
Market View by Gaurav Jain, Director, Hem Securities
It was a third consecutive day of the week of buying in the Indian equity supported by strong global cues; strengthening of rupee and monsoon showers till date are above average so far. However, investors booked profit in last half of trade on the concern of outcome of two-day FOMC meet on interest rate hike.
Midcap index rose 1.44 per cent and smallcap index gained 1.33 per cent.
Globally, other Asian markets closed lower, while European stocks were down in their early trade.
Asia shares, dollar dither as focus turns to Fed
Reuters- Asia share markets turned mixed while the dollar flatlined on Wednesday as tension mounted before the Federal Reserve delivers views on the U.S. economy that could shed light on when U.S. interest rates are likely to rise.
Endless wrangling over the Greek debt crisis also kept trading cautious with Japan’s Nikkei losing early gains to dip 0.4 percent.
MSCI’s index of Asia-Pacific shares outside Japan edged up 0.4 percent but that was from a three-month low.
Shares in Shanghai lost another 0.8 percent ahead of a torrent of IPO’s that temporarily could tie up an astonishing 6 trillion yuan ($966.7 billion) of capital.
On Wall Street, the Dow ended Tuesday up 0.64 percent, while the S&P 500 added 0.57 percent and the Nasdaq 0.51 percent.
In Athens, Prime Minister Alexis Tsipras accused Greece’s creditors on Tuesday of trying to “humiliate” Greeks with more cuts as he defied a growing drumbeat of warnings that Europe was preparing for his country to leave the euro.
The public rancour left little hope that a meeting of EU finance ministers on Thursday would make any progress.
Yet financial markets kept their nerve with yields on Spanish and Italian debt actually ending lower on Tuesday.
The single currency was hovering around $1.1252 and well within the $1.1150/1.1384 range of the past week or so. The U.S. dollar index, which measures it against a basket of currencies, was a fraction lower.
The dollar also barely budged on the yen at 123.40, with most major currencies in a holding pattern, as traders waited for the conclusion of the Federal Open Market Committee meeting.
The Fed’s statement is due at 1400 GMT, followed half an hour later by Chair Janet Yellen’s news conference where every syllable will be dissected for clues on the timing of lift off for interest rates.
Also out after the policy meeting will be the committee members’ latest forecasts for economic growth and interest rates, both of which might be nudged lower.
There will be particular attention on the median forecast for the funds rate over 2015 which could be trimmed from the previous 0.625 percent, in line with Yellen’s assurance that any tightening cycle will be very gradual.
“Those looking for some type of concrete message that September is effectively a done deal will likely be disappointed,” Tom Porcelli, chief US economist at RBC Capital Markets, said.
Yellen was likely to maintain a flexible approach, leaving open the option to act on rates at any meeting, Porcelli said.
In commodity markets, oil prices were a shade firmer as plentiful output was met by strong demand, with the market waiting for U.S. storage figures later in the day.
U.S. crude futures edged up 11 cents to $60.11 a barrel, while Brent added 5 cents to $63.78.
Gold was sidelined at $1,180.50 an ounce.
