Markets hopeful of healthy Q1, IIP data; Sensex up 87 points (Roundup)

Mumbai, July 10 (IANS) After two previous sessions of heavy sell-offs, a barometer index of Indian equities closed in the green, as investors were hopeful of better-than-anticipated factory output data to be released later in the evening on Friday.

The Indian equity markets on Friday reacted positively to the upcoming key macro-economic data, ongoing first-quarter (Q1) results season, efforts to stabilise the Chinese markets and were also hopeful that a solution will be found to the Greek debt crisis.

The benchmark index of the Indian equity markets, the 30-scrip BSE Sensitive Index (Sensex), closed 87.74 points or 0.32 percent up.

The wider 50-scrip Nifty of the National Stock Exchange (NSE), too, closed in the green — higher by 32 points or 0.38 percent at 8,360.55 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 27,705.36 points, closed at 27,661.40 points — up 87.74 points or 0.32 percent from the previous day’s close at 27,573.66 points.

The Sensex touched a high of 27,729.46 points and a low of 27,530.90 points in the intra-day trade.

Analysts pointed out that despite investor confidence being shaken after two sessions of heavy sell-offs, investors were hopeful for healthy factor output and Q1 numbers.

The barometer index had lost 484 points on Wednesday and 114 points on Thursday due to the fears of a Chinese stock markets meltdown and the stalemate in the Greek debt crisis.

“Investors were a bit wary due to two sessions of continuous fall. However, hopes of a healthy Q1 results, good monsoon progress and the positive US Fed’s FOMC (Federal Open Market Committee) minutes helped the markets close in the positive territory,” Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.

“The investors are also hopeful of healthy numbers coming out of the Index of Industrial Production (IIP) data today (Friday) and Consumer Price Index (CPI) data on Monday,” James said.

According to James, these data points coupled-with good monsoon progress will be the undercurrent of market sentiments for sometime, as they will determine any chances of a future rate-cut by the Reserve Bank of India (RBI).

“Expectations of Greece issue resolution, and a bounce back in Chinese indices, gave a positive bias to Asian markets,” James added.

However, the main trigger for some coming time will be the first quarterly earnings results, Gaurav Jain, director with Hem Securities, told IANS.

“The first quarter results and the upcoming parliament session are the main concerns right now. The Chinese market lows and the efforts to stabilise it and the stalemate in the Greece issue will be short-lived triggers,” Jain said.

During Friday’s intra-day trade, healthy buying was observed in banks, capital goods and healthcare stocks.

However, the fast moving consumer goods (FMCG), consumer durables and information technology (IT) scrip came under intense selling pressure.

The S&P BSE bank index augmented by 243.78 points, capital goods index extended gains by 173.66 points and healthcare index rose by 165.07 points.

The S&P BSE FMCG index fell by 53.14 points, consumer durables index dropped by 45.31 points and IT index was down by 42.23 points.

The major Sensex gainer during Friday’s trade were: Vedanta, up 5.04 percent at Rs.146; Sun Pharma, up 3.34 percent at Rs.901.40; BHEL, up 1.70 percent at Rs.268.85; HDFC Bank, up 1.53 percent at Rs.1,090.10; and Reliance Industries, up 1.44 percent at Rs.1,001.55.

The major Sensex losers were: Bharti Airtel, down 3.11 percent at Rs.419.45; Hindustan Unilever, down 2.08 percent at Rs.900.95; Gail, down 1.97 percent at Rs.360.55; Tata Consultancy Services (TCS), down 1.96 percent at Rs.2,471.90; and ONGC, down 1.77 percent at Rs.293.85.

Among the Asian markets, Japan’s Nikkei was down by 0.38 percent, but China’s Shanghai Composite Index gained 4.57 percent, and Hong Kong’s Hang Seng rose by 2.08 percent.

In Europe, the London FTSE 100 index was up by 1.30 percent, the French CAC 40 was higher by 3.09 percent and Germany’s DAX Index gained by 2.26 percent at the closing bell here.

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