The market ended with decent gains on fresh buying by investors after a sharp drop on global crude oil prices. The barometer index, the S&P BSE Sensex, rose 196.19 points or 0.54% to 36,519.96, as per the provisional closing data. The Nifty 50 index rose 71.20 points or 0.65% to 11,008.05, as per the provisional closing data. The Nifty provisionally settled above the psychologically important 11,000 mark after crossing that level in intraday trade.
Investors sentiment got a boost following a steep fall in crude oil prices overnight. The slide in global crude oil prices could help India contain inflation, current account and fiscal deficits. India imports about 80% of its crude oil requirement.
In the global commodities markets, Brent for September 2018 settlement was down 8 cents at $71.76 a barrel. The contract had fallen $3.49 a barrel, or 4.63% to settle at $71.84 a barrel during the previous trading session.
After opening lower, the indices firmed up as the session proceeded. Indices pared gains in mid-morning trade and hovered in a narrow range with small gains in early afternoon trade. Indices firmed up once again and hit fresh intraday in late trade. The Sensex rose 225.78 points, or 0.62% at the day's high of 36,549.55 in late trade. The index fell 61.99 points, or 0.17% at the day's low of 36,261.78 in early trade. The Nifty rose 80.80 points, or 0.74% at the day's high of 11,017.65 in late trade. The index fell 11.25 points, or 0.10% at the day's low of 10,925.60 in early trade.
Among secondary barometers, the BSE Mid-Cap index rose 2.14%. The BSE Small-Cap index rose 1.12%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,454 shares rose and 1,111 shares fell. A total of 155 shares were unchanged.
Sun Pharmaceutical Industries (up 2.97%), State Bank of India (up 2.94%), Axis Bank (up 2.80%), ICICI Bank (up 2.72%), Tata Steel (up 2.65%) and Tata Motors (up 2.56%), were the major Sensex gainers.
Bharti Airtel (down 1.2%), IndusInd Bank (down 0.94%), ITC (down 0.77%), NTPC (down 0.58%) and Infosys (down 0.44%), were the major Sensex losers.
FMCG major Hindustan Unilever (HUL) lost 3.87% on profit booking after the company declared good Q1 June 2018 result after market hours yesterday, 16 July 2018. Ahead of the result, shares of Hindustan Unilever (HUL) had gained 3.94% to settle at Rs 1,753.85 on 16 July 2018 from its close of Rs 1,687.25 on 10 July 2018.
HUL reported 19.17% rise in net profit to Rs 1529 crore on 11.37% rise in net sales to Rs 9356 crore in Q1 June 2018 over Q1 June 2017. The financial results for the quarter have been prepared in compliance with the Indian Accounting Standards (Ind AS). The company has integrated Foods and Refreshment divisions in this quarter. Accordingly, the company will report its results in the following three operating segments viz. Home Care, Beauty & Personal Care and Foods & Refreshment, along with a residual segment for 'Others'.
HUL said that cost of goods sold were lower on account of mix, judicious pricing and a strong savings program. Advertising and promotions were stepped up to support innovations, activations and respond to competitive actions in the market place. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 2251 crores was up by 21%. Profit after tax before exceptional items, PAT (bei), at Rs 1567 crore was up by 21%.
On the economic front, the International Monetary Fund (IMF) cut India's growth forecast by 10 basis points to 7.3% for the current year and by 30 basis points to 7.5% for 2019, citing faster-than-anticipated monetary tightening and higher crude prices. The international body had projected 7.4% and 7.8% growth for 2018 and 2019, respectively in its April forecast.
Overseas, European shares rose ahead of Federal Reserve Chairman Jerome Powell's first congressional testimony. Market players will be following what happens Tuesday at Capitol Hill, where Fed Chairman Jerome Powell will be speaking to lawmakers about the Fed's monetary policy.
Most Asian stocks declined as energy stock came under selling pressure amid overnight fall in crude oil prices.
IMF on Monday warned that there was an increased risk of "worse outcomes" amid recent international trade tensions, although it kept its forecasts for global growth this year the same at 3.9%.
In US, the Dow industrials bucked the trend of an otherwise downbeat session on Monday as upbeat economic data and a fresh round of quarterly results failed to stoke buying appetite. Investors also watched President Donald Trump and Russian President Vladimir Putin convene for a summit in Helsinki, Finland but reaction to a joint conference with the two leaders was muted.
On the US data front, US retail sales rose 0.5% in June. Separately, the Empire State Index fell 2.4 points to 22.6 in July. Business inventories in the US rose 0.4% in May, the Commerce Department said. Sales jumped 1.4% in the month.
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