Markets end near crucial support levels

The broader Markets outshined their largecap counterparts with BSE Midcap and BSE Smallcap up 0.6% and 0.5%, each

Markets trimmed losses in late trades to end near their crucial support levels even as sugar stocks rallied on the back of sharp hike in import duty.

 

The 30-share Sensex ended down 74 points and the 50-share Nifty ended down 18 points at 25,031 and 7,493  level, respectively.

 

The broader Markets outshined their largecap counterparts with BSE Midcap and BSE Smallcap rising 0.6% and 0.5%, respectively.

 

The market breadth ended positive with 1562 advances and 1387 declines.

 

Global Markets

 

Asian stocks rose on the back of positive news from China's factory sector and fresh highs on Wall Street fuelled appetites for riskier assets. Japan’s Nikkie rose 0.13%. 

 

On the other hand, Straits Times Index ended down 0.04%, Hong Kong's Hang Seng Index lost 1.6% and Shanghai Composite Index dipped 0.11%

 

European markets were trading firm with geopolitical risks tempering economic optimism. Britain's FTSE was seen opening up 0.1% higher, Germany's DAX up 0.15 percent and France's CAC 0.1 percent higher.

 

Foreign portfolio investors (FPIs) sold shares worth a net Rs 220.65 crore on Friday, 20 June 2014, as per provisional data from the stock exchanges.

 

Crude Oil

 

Continuing its rising streak, crude oil futures prices rose by another 0.43% to Rs 6,488 per barrel today after participants indulged in creating speculative positions, tracking a firming trend in Asia.

 

Local Currency

 

At 4.00PM, The rupee was trading at 60.17/18 close to Friday's close of 60.1850/1950, and off the session high of 60.05 with demand for the greenback from importers and custodian banks aiding.

 

Gold

 

The escalating violence in Iraq and geopolitical tensions also kept safe-haven gold well bid. Spot gold changed marginally at $1,313.10 an ounce, not too far from a two-month high of $1,321.90 hit on Friday.

 

Geo Political front

 

Iran's supreme leader accused the United States on Sunday of trying to retake control of Iraq by exploiting sectarian rivalries, as Sunni insurgents drove toward Baghdad from new strongholds along the Syrian border.

 

 Ayatollah Ali Khamenei's condemnation of U.S. action in Iraq came three days after President Barack Obama offered to send 300 military advisers in response to pleas from Iraq's government. It ran counter to speculation that old enemies Washington and Tehran might cooperate to defend their mutual ally in Baghdad after two weeks of swift territorial gains by Sunni Islamists.

 

Economy

 

New Finance minister Arun Jaitley will present the budget for the 2014/15 financial year on July 10, government sources said, three days after the parliament begins its budget session.

 

The new government, led by Prime Minister Narendra Modi, will present the railway budget on July 8 and the country's economic survey on July 9. The budget session of parliament is scheduled to conclude on Aug. 14.

 

Sectors & Stocks

 

Some buying activity was seen in auto, healthcare and metal sectors on BSE, while IT and FMCG sectors incurred losses.

ONGC, Hero MotoCorp, M&M, BHEL and Sesa Sterlite  gained, whereas ITC, Infosys, HUL, Gail and Wipro lost sheen on the BSE. 

 

Index heavyweight ITC plunged 5.8% to end at Rs 317 on the BSE on concerns that the government may increase tax on cigarettes and was termed as the biggest loser of the day.

 

The technology stocks including Infosys, Wipro and TCS lost between 0.5%-2.4% after gaining 0.1%-0.7% on Friday.

 

Cipla ended up 0.1% on the BSE after acquiring 60 per cent stake in a new company in Sri Lanka. In addition, its peers Sun pharma and Dr Reddy’s Lab surged 0.19%-0.4%, each.

 

Oil and Gas major Reliance and ONGC, biggest gainer of the day, recovered from the day's low to end up 0.2% and 5%. 

 

BSE Bankex advanced 0.4%. Axis Bank, ICICI Bank, HDFC Bank and SBI surged between 0.03%-1%.  In contrast, mortgage lender HDFC lost 0.03%

 

Other losers included Tata Motors, GAIL and HUL, which lost between 0.05%-1.3%

 

The BSE Auto index rose 0.35%. Hero Motocorp, M&M, Maruti Suzuki and Bajaj Auto appreciated between 0.5%-2.3%

 

Among other gainers, BHEL surged 2.4% and Bharti Airtel ended up 0.6%

 

The metal pocket witnessed an up surged in the otherwise subdued market on hopes of better demand after a preliminary HSBC survey showed activity in China's factory sector expanded in June for the first time in six months as new orders surged.  Sesa Sterlite, Tata Steel, Coal India and Hindalco gained between 0.2%-1.6% each

 

 In power space, NTPC and Tata Power ended 0.4% and 0.06% higher, respectively

 

Hot Stocks

 

Shares of sugar companies ended higher by up to 10% in an otherwise subdued market on report that the government will hike import duty on sugar to 40% from the current 15%. The government has also decided to raise the mandatory blending of ethanol in gasoline to 10% from 5%.

 

Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engineering and Industries, Dhampur Sugar Mills and Oudh Sugar Mills ended up 5-10% on the Bombay Stock Exchange (BSE).

 

Gammon Infrastructure Projects hit an upper circuit limit of 5% to end at Rs 14.23 after the company said its board has approved a qualified institutional placement issue of equity shares or equity linked instrument of upto Rs 500 crore.

 

Shares of companies engaged in railways-related businesses today rallied on the back of a hike in passenger fares and freight rates to improve finances of Indian Railways.

 

Shares of mid and small-cap pharmaceutical companies are in demand and ended higher by up to 20% on back of heavy volumes in otherwise weak market.

 

Jenburkt Pharmaceuticals, Anuh Pharma, Indoco Remedies, Granules India and Kopran rallied between 5-20% on the Bombay Stock Exchange (BSE).

 

Essar Oil ended in 5% upper circuit at Rs 114 on the BSE, after the company said its board has approved the promoter’s proposal to delist company’s shares from the stock exchanges.