Positive macro-data, firm rupee catapult equity markets

Mumbai, July 1: Positive macro-economic data, coupled with firm rupee value and healthy progress of monsoon season, catapulted the Indian equity markets to fresh 2016 closing-high levels on Friday. Further, reduction in global uncertainty over the modalities of Britain’s exit from the European Union (Brexit) also pushed up the equity markets to touch new intra-day high levels. The wider 51-scrip Nifty of the tiol Stock Exchange (NSE) edged up during the day by 40.60 points or 0.49 per cent to 8,328.35 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE closed with appreciable gains. After opening at 27,064.33 points, it closed at 27,144.91 points — up 145.19 points, or 0.54 per cent, from the previous close at 26,999.72 points. The Sensex touched a high of 27,243.36 points and a low of 27,061.40 points. The BSE market breadth was tilted in favour of the bulls — with 1,556 advances and 1,156 declines.

The benchmark indices on Thursday touched their highest intra-day levels in the last eight months. The barometer index surged by 259.33 points or 0.97 per cent, while the Nifty edged up by 83.75 points or 1.02 per cent.

Initially on Friday, the key indices opened on a firm note, in sync with their global peers.

Global investors’ sentiments were buoyed due to the reduced uncertainty over the modalities of Brexit and expectations of major intertiol stimulus measures to protect growth. Besides, healthy progress of monsoon season and revised capital expenditure of road and railway sector enhanced investors’ risk-taking appetite.

Investors turned upbeat after a string of macro-data showed growth in the manufacturing sector last month. The Nikkei India manufacturing Purchasing Magers’ Index (PMI) rose to 51.7 in June. The Indian rupee, too, appreciated. It strengthened by 21 paise to 67.32 against a US dollar from its previous close of 67.52-53 to a greenback.

However, gains were capped as investors chose to book profits at higher levels on the first day of July derivatives series.

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, positive European markets supported the firm sentiments in the second half of the session. “However, Nifty faced some profit booking from higher levels but ended on a positive note above 8,300,” Desai said.

“Most oil, FMCG and banking sector stocks traded firm on buying support.” According to Nitasha Shankar, Senior Vice President for Research with YES Securities, a sustained trade beyond the 8,300 mark can extend the present rise to levels of 8,400. “Broader markets maintained its outperformance as traders continued to flock this space,” Shankar noted. “Midcap and smallcap indices ended the trading session with handsome gains of 1 per cent and 0.4 per cent respectively.”

In terms of investments, the provisiol data with exchanges showed that the foreign institutiol investors (FIIs) sold stocks worth Rs 187.51 crore, and the domestic institutiol investors (DIIs) purchased scrip worth Rs 907.05 crore. Sector-wise, the S&P BSE capital goods index augmented by 311.74 points, followed by the oil and gas index, which rose by 268.59 points; and the healthcare index gained by 160.87 points.

On the other hand, the S&P IT (information technology) index fell by 41.68 points and the TECK (technology, media and entertainment) index slipped by 9.61 points.

Major Sensex gainers during Friday’s trade were: ONGC, up 3.72 per cent at Rs 224.35; Larsen and Toubro (L&T), up 2.97 per cent at Rs 1,540.65; ITC, up 2.83 per cent at Rs 252.35; Dr Reddy’s Lab, up 2.77 per cent at Rs 3,477.25; and GAIL, up 2.61 per cent at Rs 395.25.

Major Sensex losers were Tata Consultancy Services (TCS), down 1.92 per cent at Rs 2,501.80; Adani Ports, down 1.04 per cent at Rs 204.55; Coal India, down 0.97 per cent at Rs 310.10; Bajaj Auto, down 0.65 per cet at Rs 2,668.90; and HDFC, down 0.64 per cent at Rs 1,244.65. (IANS)