Optimism from the German Constitutional Court ruling on the Eurozone bailout fund helped the domestic market close higher. Yesterday we had mentioned that the market awaits fresh signals and the positive global happening helped the Nifty close at 5,431, which is the highest closing since 15 March 2012. From here we see the market in an uptrend, however, if the index goes below 5,412 we may see the uptrend slowing down. The National Stock Exchange (NSE) saw a volume of 58.08 crore shares and the advance decline ratio of 1044:757.
The Indian market witnessed a gap up opening tracking the buoyant global markets ahead of key events that have been lined up for the next two days. Investors gave little importance to the Indian industrial output data for July, which was slated to be announced later in the morning. The Nifty opened 14 points higher at 5,404 and the Sensex resumed trade at 17,916, a gain of 63 points over its previous close. The optimism saw all sectoral indices in the positive in early trade.
Buying support in banking, IT, FMCG, metals and auto helped the benchmarks sustain the gains as trade progressed. Even the lacklustre growth in industrial production at 0.1% in July did not have any impact on the market as investors focussed on the global events.
India’s industrial production growth rate slowed to just 0.1% in July due to poor show by manufacturing, mining and capital goods sectors Industrial output in the April-July period of this fiscal has thus contracted by 0.1%.
A minor bout of profit booking resulted in the indices touching their intraday lows in noon trade. At this point the Nifty fell to 5,394 and the Sensex retracted to 17,885. A mixed opening of the key European indices also weighed on the sentiments.
Reports of the German Constitutional Court permitted the government to ratify the Eurozone new bailout fund, the European Stability Mechanism (ESM), pushed the market higher in the post-noon session.
The market hit its intraday high towards the close of trade with the Nifty rising to 5,436 and the Sensex scaling the 18,000 mark to touch 18,013. The benchmarks closed around the highs of the day, settling in the positive for the sixth day in a row. The Nifty gained 41 points (0.76%) at 5,431 and the Sensex climbed 147 points (0.82%) to finish the session at 18,000.
Among the broader indices, the BSE Mid-cap index rose 0.41% and the BSE Small-cap index gained 0.46%.
The top sectoral gainers were BSE Metal (up 2.14%); BSE Auto (up 1.26%); BSE Capital Goods (up 1.20%); BSE IT (up 0.95%) and BSE Consumer Durables (up 0.81%). BSE Power (down 0.98%) and BSE Healthcare (down 0.43%) were the only losers.
Twenty-one of the 30 stocks on the Sensex closed higher. The top performers were Tata Motors (up 5.29%); Jindal Steel (up 3.79%); Coal India (up 2.91%); Larsen & Toubro (up 2.84%) and Tata Steel (up 2.68%). The ones that ended at the bottom of the index were Cipla (down 2.73%); NTPC (down 2.18%); GAIL India (down 1.66%); BHEL (down 1.64%) and Hero MotoCorp (down 0.92%).
The top two A Group gainers on the BSE were—Apollo Tyres (up 6.36%) and Tata Motors (up 5.29%).
The top two A Group losers on the BSE were—Siemens (up 3.24%) and GlaxoSmithKline Pharmaceuticals (up 2.83%).
The top two B Group gainers on the BSE were—Nikki Global Finance (up 19.99%) and Excel Corpcare (up 19.99%).
The top two B Group losers on the BSE were—Vinayak Polycon International (down 18.36%) and Vybra Automet (down 17.41%).
Out of the 50 stocks listed on the Nifty, 36 stocks settled in the positive. The top gainers were Tata Motors (up 5.08%); L&T (up 3.60%); Jindal Steel (up 3.43%); Tata Steel (up 2.90%) and SAIL (up 2.80%). The main losers were Siemens (down 2.90%); Cipla (down 2.76%); NTPC (down 2.04%); BHEL (down 1.82%) and Reliance Infrastructure (down 1.39%).
Reacting to reports of the German Constitutional Court’s move to allow the government to ratify the ESM bailout fund pushed the Asian markets higher today. The gains were also supported by Chinese premier Wen Jiabao’s reiteration to use a 100 billion yuan fiscal stability to nurture growth, if required.
The Shanghai Composite gained 0.28%; the Hang Seng surged 1.10%; the Jakarta Composite rose 0.45%; the Nikkei 225 jumped 1.73%; the Straits Times advanced 0.44%; the Seoul Composite climbed 1.56% and the Taiwan Weighted closed 1.14% higher. Bucking the trend, the KSLS Composite lost 0.03%.
At the time of writing, the key European indices, which opened mixed, were trading with gains of 0.22% to 0.92% and the US stock futures were in the positive, signalling a green opening for US stocks.
Back home, foreign institutional investors were net buyers of equities totalling Rs423.59 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of stock amounting to Rs365.80 crore.
Aurobindo Pharma today said it has received final approval from the US FDA to manufacture and market generic version of anti-depressant Lexapro in the American market. The escitalopram oxalate tablets are generic equivalent of Forest Laboratories Inc's patented Lexapro, it said, adding “the product is ready for launch”. The stock declined 1.37% to close at Rs129.50 on the NSE.
Air cooler maker Symphony today said its global turnover is likely to grow by 59% in FY13 to Rs500 crore, including Rs100 crore in sales from its new industrial and commercial segment in India. Out of the targeted Rs500 crore revenue for the current fiscal, Rs400 crore would come from the domestic market and the rest from its wholly-owned subsidiary in the US, IMPCO. The stock closed 0.35% up at Rs377 on the NSE.
