Markets continue winning streak; metals rally

The Nifty hit a fresh all-time high for the second straight session at 7,835.65

Markets maintained winning streak for the eight straight session to end at record closing highs with metal shares rallying the most on the back of upbeat economic data from China. Further, the Cabinet approval for 49% foreign investment in insurance companies through the FIPB route also aided sentiment.

 

The 30-share Sensex ended at 26,272 up 125 points and the 50-share Nifty ended at 7,831 up by 35  points. 

BSE Midcap index lost 0.2%, whereas BSE Smallcap index inched up 0.2%

Benchmark share indices slipped in red during morning trades while it remianed range bound later. However, recovery was seen in late trades led by banking, metals, FMCG and technology stocks.

 

Across the Globe

 

European stocks edged up too after digesting Markit's Composite Purchasing Managers' Index (PMI) of companies across the euro zone and a good early indicator of overall growth. The overall index rose to 54.0 in July from 52.8, its highest since April. Any number above 50 indicates expansion. FTSE 100, CAC 40 and DAX indices rose between 0.14-1%

 

The HSBC flash PMI for China, the world's second-largest economy, came in at 52.0 for July, well above forecasts and the highest reading in 18 months. There was also good news on the outlook, with a sub-index of new orders reaching 53.7.  

 

Japan’s Nikkie dipped 0.2%. However, Straits Times Index is up 0.3%, Hong Kong'Hang Seng Index jumped 0.7% and Shanghai Composite Index surged 1.3%.

 

Back Home

 

Rupee was trading at 60.10/11 versus its previous close of 60.0925/1025, as dollar demand from importers hurts the Indian unit.

 

Meanwhile, Foreign investors bought Indian shares worth 6.52 billion rupees on Thursday, provisional exchange data showed.

 

Sectors & Stocks

 

On the sectoral front, BSE IT and Metal indices lead the rally up over 1%, followed by Teck and FMCG indices. Bankex closed up nearly half a percent. In contrast, BSE Oil and Gas, Consumer Durables, Healthcare indices lost between 0.3-1% each. BSE Auto ended flat but with a negative bias.

 

Shares of metal companies traded firm after a preliminary gauge of Chinese manufacturing activity reached an 18-month high in July.

 

Tata Steel, Hindalco Industries, Sesa Sterlite and Coal India ended up between 0.2-2% on the BSE.

 

FMCG major and cigarette maker ITC closed up over 1% while HUL added 1.5%.

 

The technology pack witnessed fresh buying during the late noon trades with Infosys and TCS up 0.6% and 0.2%, respectively. Wipro gained nearly 1% ahead of the quarterly results. 

 

Oil & Gas major RIL surged 0.3%.

 

Shares of Capital Goods picked up momentum during the late noon trades. BHEL and L&T gained 1% and 0.5% each

Barring Axis Bank, all financial shares ended in the positive territory. ICICI Bank, HDFC twins and SBI gained between 0.05-1%.

 

Auto shares ended in the green with M&M, Tata Motors, Maruti Suzuki and Bajaj Auto up between 0.1-1% each.

 

Prominent names on the gaining side include Sun Pharma, Bharti Airtel and Tata Power. 

 

On the flip side, the Pharma stocks which witnessed some fresh buying during the early trades ended in red on account of profit taking. Cipla and Dr Reddy’s Lab  ended down by 1%.

 

Notable names in red include GAIL, Hero Motocorp, NTPC and ONGC. Gail was the biggest loser of the day, down 2%.

 

Smart Movers

 

Liberty Shoes lost 7%  after the company’s net profit surged 1% to Rs 3 crore on 10% decline in total income from operations to Rs 102 crore in Q1 June 2014 over the same period last year.

 

Shares of Tata Group Companies – Tata Metaliks and Tata Sponge Iron – manufacturer of pig iron and sponge iron continued their upward march and rallied by over 50% in less than two weeks on the bourses after reporting a strong set of numbers for the quarter ended June 30, 2014. Tata Metaliks surged 10% on the BSE.

 

Panacea Biotech surged 10% to Rs 178 after the company announced fund raising plans of upto Rs 250 crore.

 

Cairn India dipped 7% after reporting a sharp 65% year on year fall in its consolidated net profit for the April-June 2014 quarter at Rs 1,093 crore, primarily due to change in method of depreciation from Straight line method (SLM) to Unit of production (UOP). The company had profit of Rs 3,127 crore in the same quarter year-ago.

 

The market breadth ended positive on the BSE as 1,510 shares advanced  while 1,451 shares declined.