Return of risk appetite after Greece and Euro nations reached a bailout deal
post more than 17 hours of talks on the thorny subject of reforms and more financial aid for the near-bankrupt country sent the bulls on the rampage. Local equity markets, extending previous sessions’ strength to the new week, concluded upbeat for second consecutive session on Monday with gains of around one percent. Sensex and Nifty ended above 27,950 and 8450 levels respectively.
Nothing deterred the spirit at Dalal Street, not even May IIP data, which in an ugly surprise grew by dismal 2.7% to 180.0 in the month of May, way below than the previous month’s figure of 4.1% and street expectation of figure of around 4%. Although, bit of somberness in early deals could be well attributed to the dismal macro-economic data, things took a turn for good post the European market opening.
On the global front, Asian shares mostly ended upbeat as investors took heart from strength in recently volatile Chinese markets and after Greece's offer of a new reform plan raised hopes of a deal at a weekend summit of European leaders, though many investors remained uncertain of a best-case outcome for the Greek crisis
. Meanwhile, Shares in key European markets turned euphoric after European Council President Donald Tusk said a bailout for Greece
was "all ready to go". European Commission President Jean-Claude Juncker said there would be no Greek exit from the euro currency union, adding that he was convinced that Greek government and the Greek parliament would be able to pass all the decisions agreed at the summit.
Closer home, almost all the sectoral indices on BSE concluded in green, however stocks from Capital Goods counter proved to be an exception. Shares of capital goods firms eased in early trade Monday following a disappointing performance from the segment in the recently released May IIP numbers. As per the data released by the government on Friday post market close, capital goods segment grew at a dismal 1.8 percent in May compared with 6.8 percent in April, an indication that revival in investments has been inconsistent. On the other side, stocks from Information Technology, Technology and Auto counters were the top gainers of the session.
Banking stocks too ended upbeat post IndusInd Bank’s result. Bank’s net profit for the quarter ended June 30, 2015 has grown by 26.69% at Rs 525.04 crore as compared to Rs. 421.06 crore for the quarter ended June 30, 2014.
Commenting on the results, Amar Ambani, Head of Research, IIFL said, “The banking results season kicked-off on a strong note with IndusInd Bank delivering a better-than-estimated earnings growth of 25% yoy. While the headline loan growth at 23% yoy was sturdy, the continued revival in consumer finance business was a key positive. Unlike the previous quarter, asset quality performance was impressive with delinquencies reverting to sub-normal level of below 1%. Our view on the bank stays positive.”
The market rallied smartly in the second-half of the trading session following news that the Eurozone leaders reached an agreement over Greece bailout programme
. Following the news, the BSE index, which was trading on a flat note, soon firmed up and surged to higher levels on the back of all-round buying support. The BSE index touched a high of 28,005 - up 370 points from the day's low.
Earlier in the day, the BSE index had opened 79-odd points higher at 27,739, but had pared gains and slipped wee bit into red to a low of 27,635 amid uncertainty surrounding the global financial market and poor IIP data.
The Ministry of Statistics and Programme Implementation on Friday, after market hours, announced that India's industrial output grew at a disappointing 2.7 percent in May as against 4.1 percent in April 2015. IIP in May 2014 grew at a strong 5.6 percent.
The Sensex finally ended the day with a significant gain of 300 points at 27,961.
The NSE Nifty touched a low of 8,355 in late morning deals, before surging to a high of 8,472. The Nifty eventually settled with a strong gain of 99 points at 8,460.
The India VIX (Volatility) index declined 4.7 percent to 16.2725.
Elsewhere in Asia, the Shanghai Composite extended its winning rung into the third straight trading session and was up 2.4 percent at 3,970. The Nikkei and the Hang Seng rallied around 1.5 percent each to 20,090 and 25,224, respectively.
The European markets too started the day on a gung-ho note following the Greek deal. As of 1530 hrs, the FTSE 100 had advanced 0.7 percent to 6,723, while the DAC and CAC 40 soared 1.4 percent and 2 percent, respectively.
Back home, the broader market also rallied in-line with the benchmark indices. The CNX Nifty Junior, Midcap and the Smallcap indices surged over 1.2 percent each to 20,463, 13,433 and 5,564, respectively.
All sectoral indices finished in green. The CNX Media index zoomed over 3 percent to 2,282. The IT index surged nearly 2 percent to 10,999. The Auto index rallied 1.7 percent to 8,371. The FMCG and Pharma indices jumped over a percent each to 20,133 and 12,698, respectively. The Bank Nifty was up almost a percent at 18,894.
The breadth too was significantly bullish with more than two advancing shares for every single declining stock. Out of 1,723 stocks traded on the NSE, 1,009 advanced and 472 declined today.
HCL Technologies was the top gainer in the Nifty-50. The stock zoomed nearly 4 percent to Rs. 962.
Bharat Petroleum Corporation (BPCL) surged over 3.5 percent to Rs. 913 amid media reports that the company is planning to expand its Bina oil refinery in Madhya Pradesh by 30 percent to 156,000 barrels per day at a cost of about $ 472 million.
IndusInd Bank also rallied over 3.5 percent to Rs. 927 after the bank reported 24.7 percent growth in Q1FY16 net at Rs. 525 crore when compared with Rs. 421 crore in the corresponding quarter a year ago. Total income grew by 20 percent to Rs. 3,448 crore from Rs. 2,874 crore.
Zee Entertainment too ended 3.5 higher at Rs. 374.
Gail India advanced 3 percent to Rs. 372 amid media reports that the company has launched a tender to buy to Liquefied Natural Gas (LNG) cargoes for prompt delivery, linked to demand for gas by various local fertiliser companies.
Asian Paints also gained 3 percent at Rs. 819 following reports that the strike at the company’s Sriperumbudur plant in Tamil Nadu was called-off and normal work operations were resumed. Operations at the plant were affected after the workers union went on strike from 28 April, 2015.
HDFC too added nearly 3 percent to close at Rs. 1,320.
Maruti Suzuki, Ambuja Cements and NTPC surged over 2.5 percent each to Rs. 4,038, Rs. 248 and Rs. 133, respectively.
Cipla and Wipro were up 2.4 percent each at Rs. 664 and Rs. 562, respectively.
Tata Power, Hindalco and Cairn India jumped around 2 percent each at Rs. 73, Rs. 107 and Rs. 172, respectively.
Mahindra & Mahindra (M&M) was up 1.7 percent at Rs. 1,270 on plans to seek shareholders' nod to raise up to Rs 5,000 crore on private placement basis in domestic and/or international markets.
ITC also added 1.7 percent to Rs. 315. Bosch, Hindustan Unilever and Infosys rallied around 1.5 percent each to Rs. 23,420, Rs. 913 and Rs. 951, respectively.
Sun Pharma, Bajaj Auto, Hero MotoCorp, TCS, Grasim, Tata Steel, SBI, Vedanta, ICICI Bank, Lupin, NMDC, Power Grid, UltraTech Cement and Bharti Airtel were the other major gainers - up around a percent each.
There were only three losers in the Nifty-50 today. ONGC declined a percent to Rs. 291 after the company said that its overseas arm ONGC Videsh has decided not to exit a Vietnam oil block in the contested waters of the South China Sea despite poor hydrocarbon prospectivity.
Larsen & Toubro was down 0.8 percent at Rs. 1,861, and Bank of Baroda ended wee bit in red at Rs. 156.
Among other stocks - Suven Life Sciences soared 7.5 percent to Rs. 253 after the company informed BSE that it has secured 4 (four) product patents for their NCE's in China, Mexico and South Africa.
IL&FS Transportation Networks surged to a high of Rs. 146 on winning long-term contract from the Jharkhand government for 6 laning of Ranchi Ring Road, Section VII from Kathitanr to Karma on Built Operate Transfer (BOT) basis. The estimated cost of the project is Rs. 587.60 crore and the company shall receive a semi-annual annuity of Rs. 55.82 crore over the next 17.5 years. The stock finally ended a tad higher at Rs. 142.
Dhanlaxmi Bank zoomed 5.5 percent to Rs. 33.25 on push for merger. According to media reports, the All India Bank Officers' Association (AIBOA) on Friday said the Reserve Bank of India (RBI) should initiate immediate steps to merge the loss-making Dhanlaxmi Bank with a nationalised bank citing conflict of interest in managing the affairs of the bank between the board and the top-level management.
Ballarpur Industries surged 7 percent to Rs. 15.53 after the company's board approved a proposal to divest its entire 98.08 percent stake in a step down subsidiary, Sabah Forest in Malaysia.
Sintex plunged 6 percent to Rs. 101 on the back of muted Q1 performance. According to release issued by the company to the BSE, the company reported consolidated net profit of Rs. 69 crore for Q1FY15, as against Rs. 61.59 crore in a year ago period. Total income increased by 10.5 percent to Rs. 1,490 crore from Rs. 1,348 crore.
Unichem Laboratories was up nearly a percent at Rs. 223 on the back of three-fold jump in Q1 net at Rs. 28.78 crore as against Rs. 9.82 crore in Q4FY15. Total income also rose by 20.7 percent to Rs. 309 crore from Rs. 256 crore for the above mentioned period. The stock touched an intra-day high of Rs. 232.
PVR soared 4 percent to Rs. 712 after the company's shareholders approved a proposal to issue 433,143 equity shares to Plenty CI Fund on preferential basis at Rs. 700 each.
MM Forgings jumped 2 percent to Rs. 688 after HDFC Mutual Fund on Friday bought 300,000 shares at Rs. 675 each.
MRPL added nearly 0.5 percent to Rs. 74.20 on buzz of the company had made its first purchase of Brazil's Ostra crude.
Noida Toll Bridge Company rallied 2 percent to Rs. 28 amid news report that the company has resumed toll collection on the Delhi Noida Direct (DND) route.
Supreme Industries slipped 1.6 percent to Rs. 646 on reports that the foreign institutional investors (FIIs) will now need RBI approval for fresh purchases at the counter as their holding had hit the maximum investment limit of 22 percent in the company.
A total of 67 stocks registered a fresh 52-week high in trades today, while 18 stocks declined to a new 52-week low.
Aurobindo Pharma, Avanti Feeds, Bhartiya International, Oswal Chemicals & Fertilizers, Britannia Industries, DCB Bank, Essar Oil, Eveready Industries, Everest Industries, Gayatri Projects, Gokul Refoils and Solvent, Good Luck Steel Tubes, Hester Biosciences, Himatsingka Seide, Igarashi Motors, J.Kumar Infraprojects, JMC Projects (India), JMT Auto, Jubilant Life Sciences, Jubilant Industries, Kalpataru Power Transmission, Kansai Nerolac Paints, KEC International, Lambodhara Textiles, Lloyd Electric & Engineering, Mirza International, Nilkamal, Nucleus Software Exports, OnMobile Global, Shree Rama Newsprint, Revathi Equipment, RPG Life Sciences, Saregama India, Standard Industries, Sterlite Technologies, Supreme Petrochem, Tanla Solutions, Thirumalai Chemicals, TVS Electronics, Vindhya Telelinks, Vardhman Textiles, Welspun India and Wendt (India) and Xpro India were some of the prominent stocks to hit a fresh 52-week high.
Aban Offshore, Andhra Cements, Hubtown, Nalwa Sons Investments, ONGC, SAIL and Vaibhav Global were some of the notable stocks to log a new 52-week low.