Post Session: Sensex gives 28000 salute on Independence Day eve Analysis for Aug 14, 2015

Posted By: Religare
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Rising against the tide, the benchmark Sensex rallied 517 points, its highest gain this month, on the back of heavy buying by foreign investors amid rising expectations of a rate cut by RBI sooner. The market sentiment got a lift after the latest set of macro data put pressure on the Reserve Bank for further monetary easing in coming months.

The BSE SENSEX closed at 28067.31 up by 517.78 points or by 1.88 per cent, while the NSE Nifty ended 162.7 points higher at 8518.55.

The investor shrugged-off China yuan devaluation concerns after worsening deflationary trend in WPI raised hopes that RBI may cut the rates sooner than expected. India's wholesale prices contracted at a faster-than-expected annual rate of 4.05 percent in July, marking the ninth straight month of fall and lowest in a decade. The annual rate of inflation, based on monthly WPI, stood at -2.40 per cent (provisional) for the month of June, 2015 and 5.41 per cent during the corresponding month of the previous year, data released by Ministry of Commerce & Industry showed on Friday.

Also, a smart recovery was witnessed in the rupee against the US dollar which has bear the brunt of Yuan devaluation, falling to record low of 65.34 vs US dollar before reversing the trend thereafter. The recovery in forex market triggered a strong buying in broader market, with the BSE MIDCAP rising 2.36 per cent to close at 11453.78, while the BSE SMLCAP settled 1.72 per cent higher at 11766.78.

In the bull-run trade, the BSE Sensex touched intraday high of 28100.64 and intraday low of 27643.2, while the NSE Nifty touched high and low of 8530.1 and 8381.2, respectively.

Leading the rally on BSE Sensex pack were Vedanta Ltd. (Rs. 107.20,+3.73%), ICICI Bank Ltd. (Rs. 302.30,+3.58%), State Bank of India (Rs. 268.45,+3.49%), Reliance Industries Ltd. (Rs. 967.05,+3.44%), Housing Development Finance Corporation Ltd. (Rs. 1299.80,+3.40%), among others.

Meanwhile, Dr. Reddy's Laboratories Ltd. (Rs. 4258.05,-0.75%), Infosys Ltd. (Rs. 1149.00,-0.68%), were among top losers on BSE.

On the sectoral front, al the thirteen indices ended higher, with rate sensitive realty and bank indices emerged as top gainers, adding 7.6 and 3.05 per cent, respectively, on BSE.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2857, shares advanced were 1756 while 1015 shares declined and 86 were unchanged.

On the global front, the Asian equities ended mostly lower, barring China"s Shanghai Composite, as investors weighed an increase in the Yuan fixing and drop in oil prices. Japan"s Nikkei 225 and Hang Seng ended in negative terrain as market sentiment were dented by The People"s Bank of China"s Yuan fixing which helped the local currency to rebound after sliding of at least 1.1 percent in each of the last three days.

Story first published: Friday, August 14, 2015, 17:48 [IST]
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