Today’s Action:
The benchmark indices opened on a positive note, and built on gains during the day; finally ending with close to 1% gains.
Daily Market Review
The benchmark indices made impressive gains in today’s trading session, which was expected to remain volatile largely due to concerns over the implementation of the Goods and Services Tax (GST). However, the rollout of the much-awaited tax reform has been largely hassle-free, which was reflected in the buoyant mood seen on the Street today.
The Nifty opened higher today at 9,587.95. After dipping to an intraday low of 9,543.55 in morning trade, the index gained strength, reaching an intraday high of 9,624, before finally settling at 9,615, gaining 0.99% from Friday’s closing price. The BSE Sensex, after opening higher at 31,156.04, touched an intraday low of 31,017.11, and later, advanced higher to touch an intraday high of 31,258.33. The index finally closed at 31,221.62, gaining 300.01 points or 0.97% from Friday’s close.
The breadth, indicating the overall health of the market, was strong, with 1,788 stocks gaining on the BSE, compared with 871 stocks declining, and 175 stocks remaining unchanged.
The broader markets also made impressive gains in today’s session. The Nifty Midcap and Smallcap indices advanced 0.98% and 1.10%, respectively, in today’s trading session.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 1.44% in today’s trading session.
All the sectoral indices made gains in today’s trade. The Nifty FMCG raced away with gains of 3.87%, while the Nifty Metal and Realty indices came behind, posting gains of 1.84% and 1.39%, respectively.
The markets regulator, SEBI, today expressed its displeasure with the current state of affairs of credit rating agencies and said that it will soon float a discussion paper for a new set of norms for them. This follows within days of the regulator tightening the disclosure norms for credit rating agencies amid concerns about delayed rating action on debt-ridden firms.
Activity in India’s manufacturing sector slowed to a four-month low in June amid a slowdown in new orders, as weak domestic consumption partly offset strong foreign demand. The Nikkei India Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, fell to 50.9 in June from 51.6 in May. The survey also showed that optimism among manufacturers about future growth slipped for the first time in four months due to concerns about the initial impact of the GST that came into force on Saturday.
Automobile companies have come out with the sales numbers for June. The country’s leading car maker, Maruti Suzuki, saw its sales volumes increasing 7% y/y, to 106,188 units, as export volumes almost doubled last month, coming in at 13,131 units. Eicher Motors witnessed a 25% increase in sales volumes, while Ashok Leyland, registered growth in sales volumes of 11%.
Trading volume in the Nifty was higher today, while the Sensex witnessed lower trading volume compared with Friday. The distribution day count for both the indices currently stands at 2.0, and the Indian market remains in a Confirmed Uptrend.
Current Outlook:
– Market environment conducive for new purchases, but remain selective.
– Focus on fundamentally strong stocks breaking out of strong technical patterns.
– Stay disciplined and exercise sound buy and sell rules.
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