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Market gains for the fifth straight session

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Capital Market
Last Updated : Jul 01 2016 | 4:13 PM IST

Stocks of public sector companies and index heavyweight ITC led the latest upmove for the two key benchmark indices. The barometer index, the S&P BSE Sensex rose 144.38 points or 0.53% at 27,144.10, as per the provisional closing data. The Nifty 50 index rose 39 points or 0.47% at 8,326.75, as per the provisional closing data. The Sensex provisionally settled above the psychologically important 27,000 level after regaining that level in opening trade. The market sentiment was positive on the back of data showing substantial purchases of Indian stocks by foreign portfolio investors (FPIs) yesterday, 30 June 2016. FPIs bought shares worth a net Rs 1107.42 crore yesterday, 30 June 2016, as per provisional data released by the stock exchanges. The Sensex and the Nifty edged higher for the fifth straight trading session.

The two key benchmark indices hovered in positive terrain throughout the trading session after opening with upward gap. The Sensex jumped 243.64 points or 0.9% at the day's high of 27,243.36 in mid-morning trade, its highest level since 27 October 2015. The barometer index rose 61.68 points or 0.22% at the day's low of 27,061.40 in early trade. The Nifty rose 69 points or 0.83% at the day's high of 8,356.75 in mid-morning trade, its highest level since 20 August 2015. The index rose 20.90 points or 0.25% at the day's low of 8,308.65 in early trade.

In overseas stock markets, main European markets witnessed a mixed trend. Stocks edged higher in the UK for the second day in a row after Bank of England Governor Mark Carney said the UK economic outlook in has deteriorated and some monetary policy easing will likely be required over the summer. The FTSE 100 index was currently up 0.41%. Carney made the comments yesterday, 30 June 2016, in a speech to businesspeople and bankers.

Asian stocks edged higher tracking overnight gains on Wall Street. In mainland China, the Shanghai Composite closed 0.1% higher. Latest data showed that the manufacturing momentum in the world's second largest economy skidded to a four-month low in June. China's official manufacturing Purchasing Managers' Index (PMI) came in at 50 last month, against 50.1 logged in May and April. US stocks rose for a third straight trading session yesterday, 30 June 2016, on mounting expectations for more accommodative policies from global central banks following the UK's vote to leave the European Union last week.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,557 shares rose and 1,156 shares declined. A total of 138 shares were unchanged. The BSE Mid-Cap index provisionally rose 1.2%. The BSE Small-Cap index provisionally rose 0.71%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 3120 crore, higher than turnover of Rs 3108.98 crore registered during the previous trading session.

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Stocks of public sector oil marketing companies (PSU OMCs) surged on decline in global crude oil prices. BPCL (up 2.07%), HPCL (up 2.21%) and Indian Oil Corporation (IOCL) (up 7.34%) edged higher. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

IOCL yesterday, 30 June 2016, announced decrease in the price of petrol and diesel with effect from the midnight of 30 June/1 July 2016. Petrol price has been cut by Rs 0.89 per litre and diesel price was decreased by Rs 0.49 a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 64.76 per litre and diesel Rs 54.70 a litre.

Stocks of oil exploration and production (E&P) companies edged higher. ONGC (up 5.87%), Oil India (up 4.64%) and Cairn India (up 3.31%) edged higher.

Index heavyweight Reliance Industries was up 0.39% at Rs 973.25. The stock hit a high of Rs 976.45 and a low of Rs 970.20 in intraday trade.

In global commodities markets, Brent for August settlement was currently off 25 cents at $49.46 a barrel. The contract had declined 93 cents or 1.83% to settle at $49.68 a barrel during previous trading session.

Mahindra & Mahindra (M&M) rose 2% at Rs 1,457.60 after the company reported a 20% increase in its total tractor sales at 30,191 units in June 2016 over June 2015. Domestic tractor sales rose 20% to 28,797 units in June 2016 over June 2015. Exports rose 17% to 1,394 units in June 2016 over June 2015. The company announced the sales volume data during market hours today, 1 July 2016.

Separately, M&M during market hours today, 1 July 2016 said its total auto sales rose 8% to 39,011 units in June 2016 over June 2015. Domestic auto sales rose 5% to 34,991 units in June 2016 over June 2015. Exports rose 41% to 4,020 units in June 2016 over June 2015.

Eicher Motors dropped in volatile trade after reporting monthly sales volume data. The stock dropped 0.38% at Rs 19,150. The stock hit a high of Rs 19,462.15 and a low of Rs 19,020.05 in intraday trade. The company reported a 18.5% growth in commercial vehicles at 4,935 units in June 2016 over June 2015. Domestic sales rose 18.6% to 4,313 units in June 2016 over June 2015. Exports rose 18.25% to 622 units in June 2016 over June 2015. The company announced the sales volume data during market hours today, 1 July 2016.

Separately, Eicher Motors during market hours today, 1 July 2016 said that the total sales of Royal Enfield motorcycles rose 36% to 50,682 units in June 2016 over June 2015. Exports surged 118% to 1,622 units in June 2016 over June 2015.

Meanwhile, the outcome of a monthly survey showed acceleration in growth in India's manufacturing sector last month. The Nikkei India manufacturing Purchasing Managers' Index (PMI) rose to 51.7 in June from 50.7 in May. The main contributing factors to the upward movement in the PMI were stronger rates of growth in new orders and output, both of which reached three-month highs in June.

Data released by the government after market hours yesterday, 30 June 2016, showed that the output of eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) rose 2.8% in May 2016 over May 2015. Its cumulative growth stood at 5.5% in April-May 2016.

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First Published: Jul 01 2016 | 3:31 PM IST

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