Healthy monsoon, foreign fund inflows buoy equity markets (Roundup)

Updated on : Jul 04,2016   7:48 pm

Mumbai, July 4 (IANS) Healthy monsoon rains, coupled with positive inflow of foreign funds and appreciation in crude oil prices, buoyed the Indian equity markets for the sixth consecutive session on Monday.

Consequently, the key indices ended with appreciable gains to reach their new 2016 closing high levels, as healthy buying was witnessed in capital goods, oil and gas, and metal stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 42.35 points or 0.51 per cent to 8,370.70 points.

Similarly, the barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,314.44 points, closed at 27,278.76 points -- up 133.85 points or 0.49 per cent from the previous close at 27,144.91 points.

It touched a high of 27,385.66 points and a low of 27,251.06 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bulls -- with 1,699 advances and 1,038 declines.

The benchmark indices on last Friday made new 2016 closing-high levels. The NSE Nifty edged up to 8,328.35 points by 40.60 points or 0.49 per cent, whereas the Sensex rose to 27,144.91 points, gaining 145.19 points, or 0.54 per cent.

Initially on Monday, the key indices opened on a positive note, in sync with their Asian peers, especially the Chinese markets.

Besides, follow-up buying from last week's strong close, higher global crude oil prices and a firm rupee supported the positive sentiment.

The Indian rupee strengthened by five paise to 67.27 against a US dollar from its previous close of 67.32 to a greenback.

In addition, healthy progress of monsoon season enhanced investors' risk-taking appetite. Latest reports on the progress of monsoon showed that rainfall deficit in the current season was down to six per cent from 11 per cent in the last week of June.

However, gains were capped as some investors chose to book profits. Negative European markets and upcoming event risks, too, hampered the upward trajectory.

Global event risks such as the release of the US FOMC's (Federal Open Market Committee's) June meeting minutes, along with US jobs' data negatively influenced investors' sentiments.

"Follow-up buying from last week's solid close, positive Asian markets and higher crude oil prices prompted the domestic indices to open on a firm note," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"However, upcoming event risks and negative European markets capped gains."

According to Dhruv Desai, Director and Chief Operating Officer, recovery in USD/INR futures from day's low limited the upside in Nifty.

"Most banking stocks traded down while most IT and pharma sector stocks traded with positive sentiments," Desai said.

"Oil sector stocks continued firm sentiments in intra-day session as well. Hindpetro and BPCL traded at an all time high levels."

In terms of investments, the provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 182.28 crore, and the domestic institutional investors (DIIs) purchased scrip worth Rs 377.45 crore.

Sector-wise, the S&P BSE capital goods index surged by 191.06 points, followed by the oil and gas index, which rose by 155.76 points; and the metal index gained by 143.31 points.

On the other hand, the S&P BSE FMCG (fast moving consumer goods) index slipped by 113.36 points.

Major Sensex gainers during Monday's trade were: Adani Ports, up 4.23 per cent at Rs 213.20; ONGC, up 3.43 per cent at Rs 232.05; ICICI Bank, up 2.97 per cent at Rs 247.55; Tata Motors, up 2.40 per cent at Rs 468.90; and Coal India, up 2.37 per cent at Rs 317.45.

Major Sensex losers were ITC, down 2.97 per cent at Rs 244.85; Dr Reddy's Lab, down 1.21 per cent at Rs 3,435.05; Hindustan Unilever (HUL), down 0.71 per cent at Rs 891.75; Bajaj Auto, down 0.68 per cet at Rs 2,650.85; and Hero MotoCorp, down 0.47 per cent at Rs 3,161.75.