 "Monetary easing hopes lift markets second straight week")
Benchmark indices gained for a consecutive week, shrugging off weak global cues, after above normal monsoon eased concerns over inflation, rekindling hopes of further monetary easing by the central bank.
In the week ended June 26, the 30-share BSE Sensex gained 496 points, or 1.8 per cent, to end at 27,812, while the 50-share National Stock Exchange's Nifty closed up 156 points, or 1.9 per cent, at 8,381.
The broader markets also ended higher, with the BSE mid-cap index gained 1.9 per cent and small-cap index closing 1.7 per cent higher.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has asked central banks from across the world to define “new rules of the game”, as he warned that the global economy might be slipping into problems similar to the Great Depression of the 1930s.
Sectors & stocks
Rate-sensitive sectors were among the top gainers, on hopes of a rate cut by the RBI following the weather department's forecast that the monsoon is progressing well and is likely to cover most regions of the country.
All sectoral indices on the BSE ended in the green, led by realty index which surged 6.5 per cent, followed by consumer durables (up 2.9 per cent), capital goods and bankex (up 2.8 per cent). The automobile index gained 1.6 per cent.
In the banking pack, ICICI Bank, HDFC Bank, Axis Bank and State Bank of India gained 1.9-3.2 per cent each.
Bharat Heavy Electricals Ltd (BHEL) ended up 3.8 per cent after the state-run equipment maker said it had commissioned a 250-Mw unit of NTPC's Bongaigaon thermal power plant in Kokrajhar district, Assam.
HDFC ended up 4.1 per cent on hopes that the new housing for all mission launched by the government would drive demand for home loans.
Larsen & Toubro ended up 3.5 per cent on the reports that the company would list its information technology (IT) services company, L&T Infotech, by the end of the current calendar year.
Coal India rallied 4.2 per cent after several brokerage houses remained bullish on the stock.
Among other shares, Persistent Systems slumped 14 per cent after the company said revenue growth in dollar terms is expected to be marginally lower in April-June, due to weakness in the product engineering business coupled with the quarterly variability associated with the company's IP business.
Welspun Corp jumped about 35 per cent after a promoter group company increased its stake in the company via open market purchase.
Indiabulls Real Estate surged about 37 per cent after the company said its promoters would buy 10 per cent stake in the real estate development company for Rs 538 crore.
Global markets
Global markets, European stocks in particular, witnessed selling pressure after a new proposal presented by Greece to avoid default on its debt was rejected by creditors. Meanwhile, reports over the weekend suggest Greece's biggest lenders, France and Germany, have offered to release billions in instalments to tide over the crisis.
Further, Chinese shares witnessed a sharp sell-off on Friday, with the benchmark Shanghai Composite plunging nearly eight per cent after regulatory vigilance on high-risk margin trading. The uncertainty over Beijing's monetary policy stance also weighed on sentiment.
Week ahead
Situation in Greece would dictate the market trend on Monday. Greek Prime Minister Alexis Tsipras on Saturday called a July 5 referendum on whether his country should accept creditors’ demands, increasing the risks that the country might fall out of the euro.
Greece needs a deal to make a debt payment of ^1.6 billion ($1.8 billion) to the International Monetary Fund on Tuesday. Failing to do so would put the country on a path toward default. The current bailout ends on Tuesday.
Automobile stocks will be in focus from July 1 after companies start releasing their June sales figures.
HSBC PMI Index will be released by Market Economics revealing the state of the country’s manufacturing activity on July 1, while the index for India's services sector would be released on July 3.
In the week ended June 26, the 30-share BSE Sensex gained 496 points, or 1.8 per cent, to end at 27,812, while the 50-share National Stock Exchange's Nifty closed up 156 points, or 1.9 per cent, at 8,381.
The broader markets also ended higher, with the BSE mid-cap index gained 1.9 per cent and small-cap index closing 1.7 per cent higher.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has asked central banks from across the world to define “new rules of the game”, as he warned that the global economy might be slipping into problems similar to the Great Depression of the 1930s.
Sectors & stocks
Rate-sensitive sectors were among the top gainers, on hopes of a rate cut by the RBI following the weather department's forecast that the monsoon is progressing well and is likely to cover most regions of the country.
All sectoral indices on the BSE ended in the green, led by realty index which surged 6.5 per cent, followed by consumer durables (up 2.9 per cent), capital goods and bankex (up 2.8 per cent). The automobile index gained 1.6 per cent.
In the banking pack, ICICI Bank, HDFC Bank, Axis Bank and State Bank of India gained 1.9-3.2 per cent each.
Bharat Heavy Electricals Ltd (BHEL) ended up 3.8 per cent after the state-run equipment maker said it had commissioned a 250-Mw unit of NTPC's Bongaigaon thermal power plant in Kokrajhar district, Assam.
HDFC ended up 4.1 per cent on hopes that the new housing for all mission launched by the government would drive demand for home loans.
Larsen & Toubro ended up 3.5 per cent on the reports that the company would list its information technology (IT) services company, L&T Infotech, by the end of the current calendar year.
Coal India rallied 4.2 per cent after several brokerage houses remained bullish on the stock.
Among other shares, Persistent Systems slumped 14 per cent after the company said revenue growth in dollar terms is expected to be marginally lower in April-June, due to weakness in the product engineering business coupled with the quarterly variability associated with the company's IP business.
Welspun Corp jumped about 35 per cent after a promoter group company increased its stake in the company via open market purchase.
Indiabulls Real Estate surged about 37 per cent after the company said its promoters would buy 10 per cent stake in the real estate development company for Rs 538 crore.
Global markets
Global markets, European stocks in particular, witnessed selling pressure after a new proposal presented by Greece to avoid default on its debt was rejected by creditors. Meanwhile, reports over the weekend suggest Greece's biggest lenders, France and Germany, have offered to release billions in instalments to tide over the crisis.
Further, Chinese shares witnessed a sharp sell-off on Friday, with the benchmark Shanghai Composite plunging nearly eight per cent after regulatory vigilance on high-risk margin trading. The uncertainty over Beijing's monetary policy stance also weighed on sentiment.
Week ahead
Situation in Greece would dictate the market trend on Monday. Greek Prime Minister Alexis Tsipras on Saturday called a July 5 referendum on whether his country should accept creditors’ demands, increasing the risks that the country might fall out of the euro.
Greece needs a deal to make a debt payment of ^1.6 billion ($1.8 billion) to the International Monetary Fund on Tuesday. Failing to do so would put the country on a path toward default. The current bailout ends on Tuesday.
Automobile stocks will be in focus from July 1 after companies start releasing their June sales figures.
HSBC PMI Index will be released by Market Economics revealing the state of the country’s manufacturing activity on July 1, while the index for India's services sector would be released on July 3.