Post Session: Sensex ends higher as value-based buying drives rally Analysis for Jul 03, 2015

Posted By: Religare
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Indian equities resumed a rally on Friday as value-based buying buoyed the region's stock markets, with financial stocks surging after RBI Governor commented that economic growth is recovering and investment is picking up. The market also got a boost from gains in bluechip stocks such as HDFC, IndusInd Bank, HDFC Bank, ICICI Bank, State Bank of India, Hero MotoCorp and Lupin.

The BSE SENSEX closed at 28110.4, up by 164.6 points or by 0.59 per cent, while the NSE Nifty ended 34.05 points or 0.4 per cent higher at 8478.95.

The D-Street witnessed impressive buying interest after RBI Governor Raghuram Rajan on Thursday said that the economy is recovering and there are signs of capital investments picking up while the government is trying to put stalled projects back on track, adding that the monsoon, thus far, has been above normal.

However, the investors" tone remained cautious as they kept an eye on the development in Greece, awaiting the outcome of Sunday"s Greek referendum which will decide whether the country accepts European bailout terms that demand further steep spending cuts and budget hikes as a pre-condition to unlock new aid.

The broader market ended lower with the BSE MIDCAP closing at 10877.59, up by 5.75 points or by 0.05 per cent, while the BSE SMLCAP settled at 11295.42, down by 4.57 points or by 0.04 per cent.

During the day"s trade, the BSE Sensex touched intraday high of 28135.43 and intraday low of 27897.45, while the NSE Nifty touched intraday high of 8497.75 and intraday low of 8424.15.

The top gainers of the BSE Sensex pack were Housing Development Finance Corporation Ltd. (Rs. 1321.00,+2.92%), Hero MotoCorp Ltd. (Rs. 2581.60,+1.92%), HDFC Bank Ltd. (Rs. 1076.00,+1.75%), Lupin Ltd. (Rs. 1899.00,+1.57%), NTPC Ltd. (Rs. 139.10,+1.05%), among others.

On the flips side, Vedanta Ltd. (Rs. 170.55,-1.98%), Coal India Ltd. (Rs. 417.65,-1.51%), Wipro Ltd. (Rs. 548.95,-1.14%), Tata Steel Ltd. (Rs. 301.00,-1.12%), Tata Motors Ltd. (Rs. 433.00,-0.82%), were among top losers on BSE.

On the sectoral front, financial and FMCG indices emerged as top gainers, gaining 0.83 per cent and 0.53 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 3056, shares advanced were 1521 while 1385 shares declined and 150 were unchanged.

On the global front, Asian stocks ended lower today, snapping a three -day gaining streak, as Greek concerns kept investors jittery. Stocks in China tumbled nearly 6 per cent despite improved manufacturing data for June, while markets in Hong Kong and Japan"s Nikkei closed flat as investors awaited Greece"s referendum on terms of a bailout. Even, European markets were trading cautiously as traders remained sidelined ahead of Greece verdict due this Sunday.

Story first published: Friday, July 3, 2015, 16:48 [IST]
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