Sensex reclaims 25,000; Metal shares zoom

Markets have recovered from days low but continue to dwindle in red weighed down by Index heavyweights ITC and Infosys.

The 30-share Sensex was down 209 points and  the 50-share Nifty was down 44 points  at 24,895 and 7,466  level, respectively.

 

The broader Markets continue to outshine their Largecap counterparts with BSE Midcap and BSE Smallcap up 0.3% and 0.2%, each

 

The market breadth remains weak with 1346 shares advancing and 1540 shares declining.

 

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 is down 0.04%, Hong Kong'Hang Seng Index lost 1.6% and Shanghai Composite Index dipped 0.11%

 

Financial spread betters saw a marginally higher open for Europe markets with geopolitical risks tempering economic optimism. Britain's FTSE was seen opening up to 0.1 percent higher, Germany's DAX up 0.15 percent and France's CAC 0.1 percent higher.

 

Gold:

 

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

 

Local Currency:

 

The rupee trimmed its early gains and was quoted at 60.19 per dollar in morning trade due to uneven demand and supply of the US currency from banks. 

 

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.

 

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 is evident in auto, healthcare and metal sectors on BSE, while IT and FMCG sectors are down.

 

Hero MotoCorp, M&M, BHEL and Sesa Sterlite are among the gainers, whereas ITC, Infosys, HUL, Gail, Cipla and RIL are losing sheen on BSE. 

 

Index heavyweight ITC has plunged 5% to Rs 317 on the BSE on concerns that the government may increase tax on cigarettes.

 

The technology stocks including Infosys, Wipro and TCS are down 0.6%-2.4% after gaining 0.1%-0.7% on Friday.

 

Cipla which gained on the BSE after acquiring 60 per cent stake in a new company in Sri Lanka has lost 1.15% whereas its peers Sun pharma and Dr Reddy’s Lab have surged 0.03%-0.10%, each

 

Oil and Gas major Reliance down and GAIL are down 0.8% and 1.2%, In contrast, its peer ONGC is up 1.14%

 

HDFC twins have dropped 0.5%, whereas, Axis Bank, ICICI Bank and SBI have gained 0.3%-0.7%

 

Other losers include Larsen and HUL down 0.2% and 1.2%, each

 

The BSE Auto is up 0.35%, with Hero Motocorp, M&M and Bajaj Auto up1.4%-2.2%. In contrast, Tata Motors and Maruti Suzuki shed between 0.03%-0.5% 

 

On the gaining side, BHEL has surged 1.7% and Bharti Airtel rose 0.9%

 

The metal pocket witnesses an up surged 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 have gained between 0.14%-1.6% each

 

 In power space, NTPC and Tata Power are up 0.3% and 0.05%, respectively

 

Hot Stocks:
 

Shares of sugar companies are trading higher by up to 10% in 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 are up 5-10% on the Bombay Stock Exchange (BSE).

 

Gammon Infrastructure Projects hit an upper circuit limit of 5% at Rs 14.23 at 11:11 IST on BSE 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.