 "Sensex ends 424 points higher on China, rupee rebound")
After witnessing a sharp decline in the previous six sessions, markets bounced back significantly in today’s trade tracking a rebound in Chinese stocks ilize the market while the meeting of industry chiefs with the prime minister on the state of the economy also helped sentiment.
Investors bought beaten down bluechips at attractive valuations led by a smart rally in the financials amid a strong rupee.
The 30-share Sensex surged 424.06 points to end above 25,300 at 25317.87 and the 50-share Nifty gained 129.45 points to end at 7,688.25.
MARKET VIEW
According to Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, “It was nightmare on D-Street yet again, as the previous panic bottom of 7667 was sold into and benchmark Indices slipped closer to the 7500 mark. A retracement from lows of August 2013 to highs of March 2015 offered first support in the zone of 7594 levels. Although the same was breached and a close below it was seen in yesterday's session, today's pullback of a whopping 150 and more points on Nifty, re-opens the scenario whereby the said support would still be valid, barring this one aberration.”
She further adds, “The day before and today's session has formed a Daily Double Bottom near 7540, levels from where a quick turn around has been witnessed, as the said levels were most evidently oversold. While it is too early to call it a sustainable pullback rally, maintain an eye on 7753 on Nifty spot on closing basis to confirm sustenance of the current bounce till 7950-8050 zone. As events such as the Fed meet and our own RBI policy meet ensue, a cautious approach is hereby re-iterated.”
RUPEE
The rupee firmed up and was trading higher by 18 paise to quote at 66.64 following sustained selling of the greenback by banks and exporters amid weakness of dollar overseas on the back of higher equities.
NARENDRA MODI MEETS INDIA INC
Prime Minister Narendra Modi called bankers and billionaires to his residence today to brainstorm on how India can manage global economic turbulence, including opportunities for Asia's third-largest economy in China's market and growth woes.
The morning meeting in New Delhi was attended by tycoons including Mukesh Ambani, Finance Minister Arun Jaitley, central bank governor Raghuram Rajan, economists and state and private bank chiefs.
At the gathering, industry chamber Assocham told Modi policy makers needed to act fast to "bullet proof" India from global jitters - calling for a deep cut in interest rates and new duties to stop dumping of Chinese products such as steel. CLICK HERE FOR MORE
GLOBAL MARKETS
Shares rose in Europe and Asia on Tuesday while the dollar lost ground against the euro after trade data from China and Germany highlighted the divergent outlooks of the two heavyweight economies.
China said its imports fell far more than expected last month, adding to concerns about the world's second-biggest economy's contribution to global growth.
The data, which showed exports on the other hand fell less than expected, weighed on oil prices. However, Chinese stocks, which have fallen some 40% since mid-June, rose as some analysts calculated it could lead to further policy easing in the coming months.
By contrast, euro zone powerhouse Germany saw imports and exports hit record highs in July, pushing the trade surplus to a forecast-beating 22.8 billion euros.
SECTORS & STOCKS
BSE Bankex surged by almost 4% followed by counters like Capital Goods, Power, Metal and Realty, all gaining by 3% each. However, BSE FMCG and Consumer Durables indices slipped by almost 1% each.
One out of five stocks from the BSE-500 has bounced back more than 4% from intra-day’s low after a recovery in the market. Nearly 153 stocks from the BSE-500 index rallied up to 12% after the Bombay Stock Exchange (BSE) Sensex gain more than 400 points.
Banking shares edged higher with the Bank Nifty, the bank index, up nearly 4% after falling 17% in past one-month on the National Stock Exchange (NSE).
YES Bank, Bank of Baroda and ICICI Bank were up more than 3%, while Bank of India, Axis Bank, Punjab National Bank, State Bank of India, Canara Bank and Kotak Mahindra Bank gained 1-5%.
Italian car designer Pininfarina is close to agreeing a sale to Indian vehicle maker Mahindra and Mahindra. M&M gained around 3%.
Other notable gainers included Tata Steel, GAIL, BHEL, Vedanta and L&T. HUL and Infosys were the only losers from the Sensex 30 pack.
Shares of JSW Energy zoomed over 10% on the news that the company is set to announce it will buy a power plant in Madhya Pradesh from debt-burdened Jaiprakash Power Ventures Ltd , a source with direct knowledge of the deal said, as it boosts power capacity.
With Reuters input
Investors bought beaten down bluechips at attractive valuations led by a smart rally in the financials amid a strong rupee.
The 30-share Sensex surged 424.06 points to end above 25,300 at 25317.87 and the 50-share Nifty gained 129.45 points to end at 7,688.25.
More From This Section
In the broader markets, the BSE Mid-cap and Small-cap indices closed 0.6-1% higher. Market breadth ended positive with 1,448 gainers and 1,195 losers on the BSE.
MARKET VIEW
According to Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, “It was nightmare on D-Street yet again, as the previous panic bottom of 7667 was sold into and benchmark Indices slipped closer to the 7500 mark. A retracement from lows of August 2013 to highs of March 2015 offered first support in the zone of 7594 levels. Although the same was breached and a close below it was seen in yesterday's session, today's pullback of a whopping 150 and more points on Nifty, re-opens the scenario whereby the said support would still be valid, barring this one aberration.”
She further adds, “The day before and today's session has formed a Daily Double Bottom near 7540, levels from where a quick turn around has been witnessed, as the said levels were most evidently oversold. While it is too early to call it a sustainable pullback rally, maintain an eye on 7753 on Nifty spot on closing basis to confirm sustenance of the current bounce till 7950-8050 zone. As events such as the Fed meet and our own RBI policy meet ensue, a cautious approach is hereby re-iterated.”
RUPEE
The rupee firmed up and was trading higher by 18 paise to quote at 66.64 following sustained selling of the greenback by banks and exporters amid weakness of dollar overseas on the back of higher equities.
NARENDRA MODI MEETS INDIA INC
Prime Minister Narendra Modi called bankers and billionaires to his residence today to brainstorm on how India can manage global economic turbulence, including opportunities for Asia's third-largest economy in China's market and growth woes.
The morning meeting in New Delhi was attended by tycoons including Mukesh Ambani, Finance Minister Arun Jaitley, central bank governor Raghuram Rajan, economists and state and private bank chiefs.
At the gathering, industry chamber Assocham told Modi policy makers needed to act fast to "bullet proof" India from global jitters - calling for a deep cut in interest rates and new duties to stop dumping of Chinese products such as steel. CLICK HERE FOR MORE
GLOBAL MARKETS
Shares rose in Europe and Asia on Tuesday while the dollar lost ground against the euro after trade data from China and Germany highlighted the divergent outlooks of the two heavyweight economies.
China said its imports fell far more than expected last month, adding to concerns about the world's second-biggest economy's contribution to global growth.
The data, which showed exports on the other hand fell less than expected, weighed on oil prices. However, Chinese stocks, which have fallen some 40% since mid-June, rose as some analysts calculated it could lead to further policy easing in the coming months.
By contrast, euro zone powerhouse Germany saw imports and exports hit record highs in July, pushing the trade surplus to a forecast-beating 22.8 billion euros.
SECTORS & STOCKS
BSE Bankex surged by almost 4% followed by counters like Capital Goods, Power, Metal and Realty, all gaining by 3% each. However, BSE FMCG and Consumer Durables indices slipped by almost 1% each.
One out of five stocks from the BSE-500 has bounced back more than 4% from intra-day’s low after a recovery in the market. Nearly 153 stocks from the BSE-500 index rallied up to 12% after the Bombay Stock Exchange (BSE) Sensex gain more than 400 points.
Banking shares edged higher with the Bank Nifty, the bank index, up nearly 4% after falling 17% in past one-month on the National Stock Exchange (NSE).
YES Bank, Bank of Baroda and ICICI Bank were up more than 3%, while Bank of India, Axis Bank, Punjab National Bank, State Bank of India, Canara Bank and Kotak Mahindra Bank gained 1-5%.
Italian car designer Pininfarina is close to agreeing a sale to Indian vehicle maker Mahindra and Mahindra. M&M gained around 3%.
Other notable gainers included Tata Steel, GAIL, BHEL, Vedanta and L&T. HUL and Infosys were the only losers from the Sensex 30 pack.
Shares of JSW Energy zoomed over 10% on the news that the company is set to announce it will buy a power plant in Madhya Pradesh from debt-burdened Jaiprakash Power Ventures Ltd , a source with direct knowledge of the deal said, as it boosts power capacity.
With Reuters input