Tuesday turned out to be a day of consolidation for the Indian markets and the bull went for a break after three back-to-back sessions of rally. There was not much on the domestic front that could have supported the markets, while the global cues too remained somber, weighing down the sentiments of the local bourses. Traders remained concerned about the sluggish performance of the eight core sector industries growth, while the Indian rupee too gave up its initial gains adding pressure to the market sentiments. However, the trade remained rangebound and slight selling appeared in the last only, in few particular counters.
The global cues remained mixed, unable to give much direction to the local markets, while the US markets ended higher overnight despite losing some strength, the Asian markets could not follow the trend and ended majorly in red on concern of weakness in the Chinese manufacturing, though the Japanese market surged again, as the yen turned weak in late trade. Though, the European stocks retreated, as investors awaited reports on UK construction activity and US factory orders.
Back home, the domestic markets more or less remained in a range and the major indices Sensex and Nifty gyrated within 140 and 60 points respectively throughout the day, though ending near the lowest point. Traders remained concerned about the economic condition of the country, as after a weak manufacturing PMI report, growth rate of eight core infrastructure industries too slipped to 2.3% in May compared to 7.2% in the same period last year, mainly due to declining output of crude oil, coal, fertiliser and natural gas. Cumulatively, in April-May 2013-14, the eight core sectors registered a growth of 2.4% as against 6.5% in the same period last year. Traders even overlooked the buzz that government is lining up a spate of decisions as part of a campaign of reforms aimed at lifting the economy out of its worst slump in a decade. Even Finance Minister P Chidambaram said that the Union Cabinet will decide on raising FDI caps in different sectors in the third week of this month. Rupee too seemed reversing its early gains on dollar bidding by a large state-run bank, there was report of government’s defence related payment that too weakened the local currency. Broader indices that were outperformer in last session too gave up their gains and ended in red. On the sectoral front, the day was good for the defensive healthcare and consumer durables sector, while the realty, PSU and oil & gas sector stocks suffered maximum selling pressure after their run-up in last few session’s rally.
The global cues remained mixed, unable to give much direction to the local markets, while the US markets ended higher overnight despite losing some strength, the Asian markets could not follow the trend and ended majorly in red on concern of weakness in the Chinese manufacturing, though the Japanese market surged again, as the yen turned weak in late trade. Though, the European stocks retreated, as investors awaited reports on UK construction activity and US factory orders.
Back home, the domestic markets more or less remained in a range and the major indices Sensex and Nifty gyrated within 140 and 60 points respectively throughout the day, though ending near the lowest point. Traders remained concerned about the economic condition of the country, as after a weak manufacturing PMI report, growth rate of eight core infrastructure industries too slipped to 2.3% in May compared to 7.2% in the same period last year, mainly due to declining output of crude oil, coal, fertiliser and natural gas. Cumulatively, in April-May 2013-14, the eight core sectors registered a growth of 2.4% as against 6.5% in the same period last year. Traders even overlooked the buzz that government is lining up a spate of decisions as part of a campaign of reforms aimed at lifting the economy out of its worst slump in a decade. Even Finance Minister P Chidambaram said that the Union Cabinet will decide on raising FDI caps in different sectors in the third week of this month. Rupee too seemed reversing its early gains on dollar bidding by a large state-run bank, there was report of government’s defence related payment that too weakened the local currency. Broader indices that were outperformer in last session too gave up their gains and ended in red. On the sectoral front, the day was good for the defensive healthcare and consumer durables sector, while the realty, PSU and oil & gas sector stocks suffered maximum selling pressure after their run-up in last few session’s rally.
Asian Indices
|
Last Trade
|
Change in Points
|
Change in %
|
Shanghai Composite
|
2,006.56
|
11.32
|
0.57
|
Hang Seng
|
20,658.65
|
-144.64
|
-0.70
|
Jakarta Composite
|
4,728.70
|
-48.75
|
-1.02
|
KLSE Composite
|
1,771.89
|
-3.25
|
-0.18
|
Nikkei 225
|
14,098.74
|
246.24
|
1.78
|
Straits Times
|
3,173.32
|
32.39
|
1.03
|
KOSPI Composite
|
1,855.02
|
-0.71
|
-0.04
|
Taiwan Weighted
|
8,015.86
|
-20.14
|
-0.25
|
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