A1FS Views

 Market in a nutshell

• Backed by positive global sentiments, markets opened with a positive gap. Moderating inflation numbers at 12.4% buoyed market sentiments, while a slowdown in economic growth did not hinder the bullish rally. The broader indices scaled upwards consistently with buying witnessed across the board. Sensex closed with smart gains at 14,564 (up 516 points), while Nifty closed at 4,360 (up 146 points).
• Nifty September Futures were trading at a premium of around 10 points to spot for major part of the session.
• Interest rate sensitive sectors rallied the most due to the moderating inflation numbers. BSE Bankex charged to 7,010 (up 6%), with Kotak Bank gaining 9% to INR 606. BSE Realty Index surged 5% to 4,995, with Indiabulls Real Estate soaring 11.5% to INR 289.
• Market breadth was strong with an Advance: Decline Ratio of 3.5:1. Great offshore was up 11% to INR 531, while Dena Bank climbed 8% to INR 44.
• Cash volumes were at INR 160,577 mn (NSE+BSE) as against a 5 DMA of INR 132,523 mn. F&O volumes were at INR 431,703 mn as against a 5 DMA of INR 507,581 mn.

 Eye Catchers

• Ashok Leyland gained 7% to INR 34 with volumes of 7,091,984 (up 200%).

Market News

• Rupee depreciated further to trade at INR 43.85 against the dollar.
• Nymex crude declined to trade at $116.82/bbl. Base metals were trading on a weak note with zinc down 3%.
• The economic growth moderated to 7.9% in the first quarter of current fiscal, against 9.2% a year ago as rising borrowing costs impacted manufacturing and some other sectors.
• Finance Minister P Chidambaram launched trading in currency futures at the National Stock Exchange. Over 65,000 contracts (contract size = USD 1000) were traded in the first session with around 42,000 positions in the near month series. Notably the 11-month and 12-month forward series also showed good amount of trading interest.

Indices performance