The Indian equity markets have made a gap-down start tracking weak cues from Asian peers as all the Asian counterparts barring Shanghai composite were trading in the negative terrain at this point of time. But, immediately the index pared all its losses and trading firmly in the green supported by rally in public sector undertaking (PSU) oil marketing companies. Back home, sustained buying in most of the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 18,300 and 5,500 mark. Oil and gas witnessed the maximum gain in trade followed by public sector undertaking and capital goods while, software and fast moving consumer goods remained the lone losers on the BSE sectoral space. The broader indices were too were trading with decent gains. Meanwhile, PSU oil marketing companies viz., BPCL, HPCL and IOC all are trading with a gain in the range of 3.50-6.50 percent after the hike in the price of diesel by Rs 3 per litre, kerosene by Rs 2 per litre and domestic liquid petroleum gas (LPG) by Rs 50 per cylinder. The market breadth on the BSE was positive; there were 1,045 shares on the gaining side against 636 shares on the losing side while 72 shares remained unchanged.
The BSE Sensex opened at 18,132.70; about 108 points lower compared to its previous closing of 18,240.68, and has touched a high of 18,397.69 while low remained its opening.
The index is currently trading at 18,369.63, up by 128.95 points or 0.71%. There were 26 stocks advancing against just 4 declines on the index.
The overall market breadth has made a strong start with 59.61% stocks advancing against 36.28% declines. The broader indices too were trading with good gains; the BSE Mid cap and Small cap indices surged 0.46% and 0.45% respectively.
The top gaining sectoral indices on the BSE were, Oil and Gas up by 2.46%, PSU up by 1.80%, CG up by 1.37%, Auto up by 1.11% and HC was up by 1.08%. While, IT down by 0.06% and FMCG down by 0.05% remained the only losers on the index.
The top gainers on the Sensex were ONGC up by 6.93%, M&M up by 2.81%, Bajaj Auto up by 2.65%, L&T up by 1.92% and Cipla was up by 1.78%. On the flip side, Infosys was down by 0.39%, Sterlite Industries was down by 0.34%, Hero Honda was down by 0.33% and ITC was down by 0.10% were the only losers on the Sensex.
Meanwhile, the increased prices of diesel, kerosene, and domestic cooking gas has raised the concerns of common man, Reserve Bank of India and government, as the increase of these petroleum products would have upward pressure on inflation, which is hovering around 9%. On June 24, government increased diesel prices by Rs 3/litre, kerosene by Rs 2/ litre and domestic cooking gas Rs 50 per cylinder due to increase in international crude oil prices. On other hand, it also reduced the custom and excise duties in order to reduce the revenue loss of the public owned oil marketing companies (OMCs).
The inflation which rose to 9.06% in month of May from 8.66% in last month has been moving above the RBI's comfort zone from past few months. And government's decision of increasing fuel prices especially diesel, which accounts for 4.67% in Wholesale Price Index (WPI) will have significant impact on the inflation scenario of the country. Diesel which is used as primary input in transportation, manufacturing and agriculture sector, the hike of Rs 3/litre would lead to increase in prices of almost all the commodities from vegetable to industrial products. The direct or indirect impact of this increase in diesel price may increase inflation by almost 100 basis points. In May, state owned OMCs increased the prices of petrol by Rs 5 and the recent Rs 50 increase in the domestic cooking gas would make current inflation scenario worsen.
The inflation which is hovering around 9%, has made RBI to increase its policy rates by 10 times in last 16 months, however, this increased policy rates has adversely affected the industry and common man by increasing cost of capital and increasing the burden of EMI to common man. The Apex bank is likely to maintain its monetary policy stance to curb inflation, and further hike in policy rates is expected by the RBI. The high inflation and tight monetary policy standing reducing the pace of growth, affecting the government revenue collection target. To moderate fuel price hike, government have reduce the import duty and excise duty and also removed the custom duty, because of this decision, government would loss around Rs 49,000 crore in the current financial year.
The S&P CNX Nifty opened at 5,441.20; about 30 points lower compared to its previous closing of 5,471.25, and has touched a high and a low of 5,520.90 and 5,434.25 respectively.
The index is currently trading at 5,515.80, higher by 44.55 points or 0.81%. There were 42 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were BPCL up by 7.21%, ONGC up by 6.87%, GAIL up by 3.23%, M&M up by 2.82% and Power Grid up by 2.27%.
On the flip side, HCL Tech down by 0.74%, Sterlite Industries down by 0.34%, Hero Honda down by 0.30%, Infosys down by 0.23% and ITC down by 0.10%, were the only top losers on the index.
All the Asian equity indices barring Shanghai composite were trading in the red; Hang Seng was down 146.60 points or 0.66% to 22,025.35, Jakarta Composite was down 28.61 points or 0.74% to 3,819.95, KLSE Composite was down 1.08 points or 0.07% to 1,563.58, Nikkei 225 was down 53.94 points or 0.56% to 9,624.77, Straits Times was down 19.93 points or 0.65% to 3,046.92, Seoul Composite was down 15.49 points or 0.74% to 2,075.32 and Taiwan Weighted was down by 23.51 points or 0.28% to 8,509.32.
On the flip side, Shanghai Composite was up by 11.10 points or 0.40% to 2,757.31.
The BSE Sensex opened at 18,132.70; about 108 points lower compared to its previous closing of 18,240.68, and has touched a high of 18,397.69 while low remained its opening.
The index is currently trading at 18,369.63, up by 128.95 points or 0.71%. There were 26 stocks advancing against just 4 declines on the index.
The overall market breadth has made a strong start with 59.61% stocks advancing against 36.28% declines. The broader indices too were trading with good gains; the BSE Mid cap and Small cap indices surged 0.46% and 0.45% respectively.
The top gaining sectoral indices on the BSE were, Oil and Gas up by 2.46%, PSU up by 1.80%, CG up by 1.37%, Auto up by 1.11% and HC was up by 1.08%. While, IT down by 0.06% and FMCG down by 0.05% remained the only losers on the index.
The top gainers on the Sensex were ONGC up by 6.93%, M&M up by 2.81%, Bajaj Auto up by 2.65%, L&T up by 1.92% and Cipla was up by 1.78%. On the flip side, Infosys was down by 0.39%, Sterlite Industries was down by 0.34%, Hero Honda was down by 0.33% and ITC was down by 0.10% were the only losers on the Sensex.
Meanwhile, the increased prices of diesel, kerosene, and domestic cooking gas has raised the concerns of common man, Reserve Bank of India and government, as the increase of these petroleum products would have upward pressure on inflation, which is hovering around 9%. On June 24, government increased diesel prices by Rs 3/litre, kerosene by Rs 2/ litre and domestic cooking gas Rs 50 per cylinder due to increase in international crude oil prices. On other hand, it also reduced the custom and excise duties in order to reduce the revenue loss of the public owned oil marketing companies (OMCs).
The inflation which rose to 9.06% in month of May from 8.66% in last month has been moving above the RBI's comfort zone from past few months. And government's decision of increasing fuel prices especially diesel, which accounts for 4.67% in Wholesale Price Index (WPI) will have significant impact on the inflation scenario of the country. Diesel which is used as primary input in transportation, manufacturing and agriculture sector, the hike of Rs 3/litre would lead to increase in prices of almost all the commodities from vegetable to industrial products. The direct or indirect impact of this increase in diesel price may increase inflation by almost 100 basis points. In May, state owned OMCs increased the prices of petrol by Rs 5 and the recent Rs 50 increase in the domestic cooking gas would make current inflation scenario worsen.
The inflation which is hovering around 9%, has made RBI to increase its policy rates by 10 times in last 16 months, however, this increased policy rates has adversely affected the industry and common man by increasing cost of capital and increasing the burden of EMI to common man. The Apex bank is likely to maintain its monetary policy stance to curb inflation, and further hike in policy rates is expected by the RBI. The high inflation and tight monetary policy standing reducing the pace of growth, affecting the government revenue collection target. To moderate fuel price hike, government have reduce the import duty and excise duty and also removed the custom duty, because of this decision, government would loss around Rs 49,000 crore in the current financial year.
The S&P CNX Nifty opened at 5,441.20; about 30 points lower compared to its previous closing of 5,471.25, and has touched a high and a low of 5,520.90 and 5,434.25 respectively.
The index is currently trading at 5,515.80, higher by 44.55 points or 0.81%. There were 42 stocks advancing against 8 declines on the index.
The top gainers of the Nifty were BPCL up by 7.21%, ONGC up by 6.87%, GAIL up by 3.23%, M&M up by 2.82% and Power Grid up by 2.27%.
On the flip side, HCL Tech down by 0.74%, Sterlite Industries down by 0.34%, Hero Honda down by 0.30%, Infosys down by 0.23% and ITC down by 0.10%, were the only top losers on the index.
All the Asian equity indices barring Shanghai composite were trading in the red; Hang Seng was down 146.60 points or 0.66% to 22,025.35, Jakarta Composite was down 28.61 points or 0.74% to 3,819.95, KLSE Composite was down 1.08 points or 0.07% to 1,563.58, Nikkei 225 was down 53.94 points or 0.56% to 9,624.77, Straits Times was down 19.93 points or 0.65% to 3,046.92, Seoul Composite was down 15.49 points or 0.74% to 2,075.32 and Taiwan Weighted was down by 23.51 points or 0.28% to 8,509.32.
On the flip side, Shanghai Composite was up by 11.10 points or 0.40% to 2,757.31.
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