Blog for Stock tips, Equity tips, Commodity tips, Forex tips: Sharetipsinfo.com

Indian Indices:  Indian equity markets ended the session with modest gains. The last hour of trade, however, dragged equity benchmarks to erase gains due to profit booking but still managed to end at fresh record closing highs. NSE Nifty breached 9,800 points for the first time as trading turned normal a day after a major technical disruption. The equity benchmarks made a gap-up opening and traded jubilantly in early deals taking support on account of short covering after SEBI put in place restrictions on Foreign Portfolio Investors from issuing participatory notes (P-Notes) where the underlying asset is a derivative. 

In cases where the derivatives positions are not for the purpose of hedging the equity shares, FPIs have to liquidate the holdings latest by date or maturity or by December 31, 2020, whichever is earlier. Investors took note of India Meteorological Department’s (IMD) statement that the seasonal monsoon rains have covered most of India and the amount of precipitation so far is within expectations, raising hopes for higher farm output after increased sowing of rice and soybean crops.

The BSE Sensex ended at 31753.41, up by 37.77 points or 0.12% after trading in a range of 31718.48 and 31885.11. There were 16 stocks advancing against 15 stocks declining on the index. The broader indices ended in red; the BSE Mid cap index was down by 0.79%, while Small cap index was down by 0.56%.

The CNX Nifty ended at 9785.85, up by 14.80 points or 0.15% after trading in a range of 9778.85 and 9830.05. There were 28 stocks advancing against 23 stocks declining on the index

Crporate Front: Gold exchange traded funds (ETFs) continued losing steam as an investment class with investors pulling out more than Rs 200 crore from the instrument in the first quarter of the current fiscal, preferring equities over them, reported PTI. The outflow meant assets under management (AUMs) of gold funds plunged by over 22 per cent during the quarter to Rs 5,174 crore, from Rs 6,645 crore in the year-ago period.

Macroeconomic front: Russia has offered India the latest "Generation 3-plus" nuclear reactor -- the VVER-1200 -- powered by advanced fuel, to be set up at a yet-to-be designated site in parallel to the ongoing 6,000 MW Kudankulam project in Tamil Nadu.

Both countries have agreed on a second nuclear power project to follow Kudankulam, which envisages the construction of six reactors of the earlier generation VVER type of 1,000 MW capacity each. The VVER-1200 has 20 per cent more capacity than the VVER-1000.

On the global front:

On the global front, Asian markets closed mostly in green as investors’ awaited testimony from Federal Reserve Chair Janet Yellen. South Korean finance ministry said that weak private consumption and tepid employment growth are holding back the country’s economy even as exports steadily gain. May retail sales declined 0.9 percent from April while the consumer price index gained 1.9 percent year-on-year in June, cooling from 2 percent in July and pointing to a slower-than-expected recovery in domestic demand.

Commodity Updates:

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were IT up by 1.09%, Auto up by 0.87%, TECK up by 0.49%, Capital Goods up by 0.43% and Power up by 0.28%, while Telecom down by 1.84%, Realty down by 1.68%, Consumer Durables down by 0.87%, Healthcare down by 0.68% and FMCG down by 0.53% were the losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were Bajaj Auto up by 2.47%, BPCL up by 2.30%, Hindalco up by 2.27%, Infosys up by 2.25% and Tata Motors up by 2.15%. On the flip side, BhartiAirtel down by 2.77%, Bank of Baroda down by 2.67%, Cipla down by 1.77%, Wipro down by 1.58% and AurobindoPharma down by 1.47% were the top losers.

Global Signals:

Asian markets were trading mostly in green; Jakarta Composite increased 2.28 points or 0.04% to 5,773.79, KOSPI Index increased 13.9 points or 0.58% to 2,396.00, Nikkei 225 increased 114.5 points or 0.57% to 20,195.48, Taiwan Weighted increased 125.66 points or 1.22% to 10,415.57 and Hang Seng increased 377.58 points or 1.48% to 25,877.64. On the flip side, Shanghai Composite decreased 9.59 points or 0.3% to 3,203.04 and FTSE Bursa Malaysia KLCI decreased 2.03 points or 0.12% to 1,755.10.

European Markets were trading mostly in green; France’s CAC increased 0.27 points or 0.01% to 5,165.91 and Germany’s DAX increased 25.27 points or 0.2% to 12,471.19. On the flip side, UK’s FTSE 100 decreased 37.36 points or 0.51% to 7,332.67.