The 30-share BSE Sensex ended flat for the second consecutive session on Tuesday as the market is eagerly waiting for fresh trigger to move up further. Yesterday also the market remained resilient to weak global manufacturing data, which indicates that investors (or traders) are still hopeful for some policy changes from new Finance Minister (cum Prime Minister) Manmohan Singh.
The BSE benchmark rallied as much as 128 points intraday, before closing at 17,425.71, up 26.72 points. Meanwhile, the NSE benchmark spiked above the 5300 level in early trade, but could not hold the same level; it gained 9.35 points at 5,287.95.
UR Bhat MD of Dalton Capital Advisors believes policy reforms will be the key driver for the market going forward.
Meanwhile, the Indian rupee stayed stronger for the fourth straight session today buoyed by positive investor sentiments on hopes long-stalled reforms will pick up pace after recent clarifications on retrospective tax. Foreign institutional investors have bought more than Rs 3,500 crore worth of equity shares in two days since Friday. The rupee appreciated by 63 paise to 54.80 against the US dollar. It was a sharp recovery from record closing low of 57.15 to the dollar (more than 4% rise).
Global markets remained positive today on hopes that central banks will take some policy action to give a boost to slowing demand. Market experts feel the European Central Bank may cut rates by 25 basis points in a meeting scheduled for July 5.
Richard Harris, chief executive, Port Shelter Investment Management feels the market probably have factored in around 25 bps. But, he still believes that would probably be taken as quite good news. "My feeling for say the next couple of months is quite positive in Europe." France's CAC, Germany's DAX and Britain's FTSE were marginally higher.
Back home, telecom shares rallied smartly ahead of cabinet meeting on spectrum pricing today. Top telecom operator Bharti Airtel shot up over 3% and Idea Cellular spiked 5.4%.
Housing finance company HDFC rose 2%. Country's largest private sector lender ICICI Bank gained 0.8% while its rivals State Bank of India and HDFC Bank were up 0.2% each.
Shares of state-owned oil & gas companies remained on buyers' radar; ONGC went up 1.44% and GAIL moved up 1.9%. Oil marketing companies like IOC and HPCL advanced 4% each while BPCL was up 1.6%.
Largest coal mining company Coal India and top aluminium company Hindalco Industries climbed 2%.
However, India's largest software services exporter TCS declined 1.4% due to sharp appreciation in rupee. Index heavyweights Infosys and Reliance Industries were down 0.2% each.
FMCG majors ITC (UP government hiked value added tax on cigarettes to 50% yesterday) and HUL slipped over 1%.
Jindal Steel was up 1.5% as Odisha Government has ordered stoppage of operations at Keonjhar Mines.
In the second line shares, sugar stocks like Bajaj Hindusthan and Balrampur Chini Mills jumped over 5%. Shree Renuka Sugars was up over 2%.
Mangalore Refinery and Petrochemicals spiked more than 8% amid heavy volumes. Essar Oil and Indraprastha Gas were up 6% and 2.6%, respectively.
3i Infotech rallied 8.6%. JM Financial, OnMobile Global, Titan Industries, United Spirits, Sintex Industries and Reliance Capital gained 4-5%. However, TVS Motor dropped for second consecutive session today, falling 1.5% after disappointing sales numbers for June.
NCC tanked 3.5%. GMR Infrastructure, Apollo Tyres and Mahindra Satyam were down 1.8%.
Among commodities, Brent and WTI crude oil gained over 2% as investors bet on further policy action to support global economic growth and tension over Iran and a strike in Norway kept oil supply concerns in focus.
A European Union embargo on Iranian oil started on Sunday and an oil workers' strike in Norway, the world's eighth-largest oil exporter whose crude helps set North Sea Brent prices, has started to slow crude exports.
Brent crude was trading at USD 99.3 a barrel at 15:45 hours IST and WTI crude at USD 85.43 a barrel.
Copper went up 1.9%. Precious metals like gold and silver were up 0.7% and 1.5%, respectively.
At 15 hours IST: Sensex, Nifty choppy; ONGC, GAIL, HPCL surge
Indian equity benchmarks remained in a tight range since morning trade as banks, telecom and PSU oil & gas stocks were supporting the market whereas FMCG, technology stocks and Reliance Industries were under pressure.
The BSE benchmark rose 27.22 points to 17,426.20 and the NSE benchmark went up 9 points to 5,287.50.
Shares of oil marketing companies rallied quite sharply due to buying interest. HPCL shot up 5% and IOC gained 3.7% while BPCL rose 1.7%. Even state-owned oil & gas producer ONGC and gas transportation services provider GAIL were up 1.5% and 1.8%, respectively.
Housing finance company HDFC surged 2% and country's largest private sector lender ICICI Bank was up over 1% while its rivals State Bank of India and HDFC Bank were up 0.4%.
Top telecom operator Bharti Airtel topped the buying list, rising 3% ahead of cabinet meeting for spectrum pricing on Tuesday. Engineering and construction major by sales Larsen & Toubro rose 0.46% whereas state-owned power equipment manufacturer BHEL tanked 1.7%.
However, FMCG majors ITC and HUL went down over 1%.
Software services exporter TCS fell 1.6% as the Indian rupee appreciated by 63 paise to 54.80 against the US dollar.
Infosys and Reliance Industries were marginally lower.
At 13:55 hours IST: Sensex erases gains; Reliance, ITC, TCS, BHEL down
The 30-share BSE Sensex erased gains amid a volatile trade due to fall in Reliance Industries. Technology, FMCG and power stocks too added pressure while banks, PSU oil & gas and telecom stocks remained supportive.
The BSE benchmark fell 22 points to 17,377 and the NSE benchmark went down 6 points to 5,273.
The Indian rupee appreciated by 70 paise or 1.26% to 54.73 against the US dollar on hopes of some policy changes from the new Finance Minister (cum Prime Minister) Manmohan Singh. Foreign institutional investors have bought more than Rs 3,500 crore worth of equity shares since Friday.
Shares of state-owned oil & gas companies were trading strong. ONGC rose 1.5% and gas transportation services provider GAIL jumped 1.8%. BPCL gained 1.5% while HPCL and IOC surged 3-3.8%.
Country's largest private sector lender ICICI Bank climbed 0.9% while its rival State Bank of India was up 0.3%.
Top telecom operator Bharti Airtel rallied 3% ahead of cabinet meeting on the telecom ministry's proposal to charge existing 2G radio airwave holding by carriers at a price to be determined by an upcoming auction on Tuesday.
Housing finance company HDFC gained 1.5% and engineering and construction major by sales Larsen & Toubro rose 0.4%.
Shares of Hindalco, Dr Reddy's Labs, Coal India, Sterlite Industries and Maruti were up 1-1.5%.
However, top software services exporter TCS tanked 2% due to sharp appreciation in rupee. Infosys was down 0.4%.
FMCG majors ITC and HUL declined more than 1%. Reliance Industries, India's most valued stock slipped 0.6%.
State-owned power equipment manufacturer BHEL tanked 1.8% and top commercial vehicle maker Tata Motors was down 0.9%.
The market breadth was positive as advancing shares outnumbered declining by 902 to 502 on the National Stock Exchange.
European shares joined a global rally in stocks today as expectations rose that major central banks will take more policy action to support the world economy, after factory data showed the negative impact of the euro zone debt crisis. France's CAC, Germany's DAX and Britain's FTSE were up 0.3-0.6%.
However, the euro held steady just under $1.26, pressured by reports that Finland and the Netherlands opposed a plan for Europe's new permanent bailout fund to buy government bonds in the secondary market.
At 12:43 hours IST: Sensex trades slightly higher; rupee recovers to 54.85/$
The NSE Nifty and BSE Sensex were trading marginally higher due to consistent buying interest in banks and telecom stocks. However, the fall in technology and FMCG stocks has limited the upside.
The BSE benchmark was up 57.53 points at 17,456.51 and the NSE benchmark rose 16.50 points to 5,295.10.
The Indian rupee recovered quite sharply after European Union summit and also on hopes of some policy changes from Manmohan Singh. It gained 58 paise to trade at 54.85 against the US dollar.
Ananth Narayan, MD, global markets co-head of wholesale banking, South Asia, Standard Chartered Bank says, the rupee may recover to 53 or so by March.
"There are a couple of things. One, there is growing bullishness about India again, given the expectations of policy changes coming in from the government with Manmohan Singh himself taking over the Finance Ministry. The other is the increase in the foreign institutional investor (FII) debt quota, which will be auctioned tomorrow, USD 5 billion for the government and USD 7 billion for corporate bonds," he reasoned.
Country's largest private sector lender ICICI Bank rallied 1.6% while its rivals State Bank of India and HDFC Bank were up 0.66% and 0.85%, respectively. Housing finance company HDFC rose over 1%.
Top telecom operator Bharti Airtel jumped over 3% ahead of a cabinet meeting on the telecom ministry's proposal to charge existing 2G radio airwave holding by carriers at a price to be determined by an upcoming auction on Tuesday. Idea Cellular surged 4% while Reliance Communications and Tata Teleservices were up over 1.5%.
State-owned oil & gas producer ONGC gained 1.6% and engineering and construction major by sales Larsen & Toubro went up 1%.
However, country's largest software services exporter TCS dropped 1.6% and its rival Infosys declined 0.6%.
FMCG majors ITC and HUL fell 0.6-1%. State-owned power equipment maker BHEL was down 1%. Reliance Industries, India's most valued stock was flat with a negative bias.
At 11 hours IST: Nifty off day's high; TCS, Infy fall as rupee rises to 55/$
The BSE Sensex and NSE Nifty erased some gains due to fall in technology and FMCG stocks. Top software services exporters TCS and Infosys were down 0.6-1% as the Indian rupee recovered sharply by 41 paise to 55.02 against the US dollar.
The 30-share BSE benchmark was up 50.41 points at 17,449.39 and the NSE benchmark rose 14.15 points to 5,292.75. The broader markets too came off day's high, rising 0.5%. About two shares gained for every share declining on the National Stock Exchange.
Country's largest private sector lender ICICI Bank gained 1.44% and housing finance company HDFC went up over 1%.
Top lender State Bank of India was up just 0.3% and engineering and construction major by sales L&T rose 0.66%.
State-owned oil & gas producer ONGC and gas transportation services provider GAIL were up 1% and 2%, respectively.
Shares of telecom operators were on buyers' radar today as sources said Cabinet would consider four options on prospective spectrum pricing. Bharti Airtel shot up 3.6%.
Top car maker Maruti Suzuki rallied 1.4% and utility vehicle manufacturer M&M was up 0.5%.
However, FMCG majors ITC and HUL were down 0.44% and 1%, respectively. State-owned power equipment manufacturer BHEL fell 1.2%.
Commodities were trading higher - Brent and WTI crude oil prices gained 1% each. Precious metals like silver and gold moved up 1% and 0.4%, respectively. Copper rose 1.7%.
At 10:14 hours IST: Sensex rises 100 pts; Bharti up 4% ahead of cabinet meet
Indian equity benchmarks and broader markets continued to trade higher with more than 0.5% gains led by banks, telecom and oil & gas stocks. Pharma, metals and auto stocks too were on buyers' radar. The Indian rupee rose by 28 paise to 55.15 against the US dollar.
The BSE benchmark moved up 99.15 points to 17,498.13 and the NSE benchmark was up 28.35 points at 5,306.95, though there was somewhat profit booking.
Top telecom operator Bharti Airtel shot up nearly 4% as sources said Cabinet will consider four options on prospective spectrum pricing on Tuesday. Tata Teleservices, Reliance Communications and Idea Cellular gained 2-3%.
Country's largest private sector lender ICICI Bank rose 1.7% while its rivals State Bank of India and HDFC Bank were up 0.5%. Housing finance company HDFC went up 1%.
Oil & gas producers Reliance Industries and ONGC were up 0.5% and 1.4%, respectively. Engineering and construction major by sales Larsen & Toubro rose 0.9%.
The market breadth was strong as about three shares advanced for every share falling on the National Stock Exchange. The BSE Midcap and Smallcap indices were up 0.7% each.
In the second line shares, Heidelberg Cement surged 7%. Bajaj Hindusthan, Crompton Greaves and Jain Irrigation gained 3%.
Asian shares rose on Tuesday as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations that major central banks will take further policy steps to support the fragile economy.
Hang Seng jumped over 1.5%. Shanghai, Nikkei, Kospi, Taiwan Weighted and Straits Times were up 0.6-1%.
At 9:20 hours IST: Nifty opens above 5300; Asian markets gain 0.5-1.5%
The BSE Sensex opened more than 70 points higher and the NSE Nifty above the 5300 level following positive Asian cues. Hang Seng surged 1.5% while other Asian markets gained 0.5-0.8%, indicating that they have priced in weak global manufacturing data.
The BSE benchmark rose 86.26 points or 0.50% to 17,485.24 and the NSE benchmark went up 24.30 points to 5,302.90.
The Indian rupee too appreciated by 17 paise to 55.25 as against the US dollar in today's morning trade.
Shares of Tata Motors, Maruti Suzuki, Sesa Goa, JP Associates, SAIL, Hindalco, Bank of Baroda, Axis Bank, GAIL, DLF, ICICI Bank, ONGC, L&T, Bharti Airtel, TCS and HDFC led market higher in early trade.
Cement stocks like ACC and Ambuja Cements moved up over 0.5% after cement sales numbers for June.
However, Coal India, BPCL, Cairn India and ITC were under pressure.
The CNX Midcap Index climbed 36 points to 7,459. About three shares advanced for every share declining on the National Stock Exchange.
In the second line shares, HOEC, Mercator, OnMobile Global, Crompton Greaves and JK Tyre gained 1.5-2%. Heidelberg Cement shot up 7%.
Gabriel India rose 1% as the company has approved bonus issue in the ratio of 1:1.
GVK Power and Infrastructure rallied 3% on various news reports. Company's USD 10 billion coal project may get Australian environment clearance. Business Standard reported that GVK plans to raise Rs 3500 crore from airport stake sale.
GMR Infrastructure was up 2% after VC Circle reported that company will swap its minority stake in the Indonesian firm with 29.2% stake in United Fiber (GMR holds 30% stake in Indonesia firm).
Sugar stocks: Shree Renuka went up 0.5%. Bajaj Hindusthan gained 2.5% and Balrampur Chini was up 1%.
MTNL rallied 3.5% after company received Rs 152.5 crore as refund from the IT Department.
Reliance Capital climbed over 1% on reports that Chinese company may be buying stake in wind power arm.
Indiabulls Securities and JM Financial surged 5%.
Godrej Properties shot up 4% on reports that company has signed Rs 770 crore equity commitment with global investors.
However, Kingfisher Airlines declined 0.4% amid ongoing strike.