Thursday, 30 June 2016

Nifty, Sensex to pause for breath – Thursday closing report

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30 June 2016 

I had mentioned in Wednesday’s closing report that Nifty, Sensex were likely to head higher. The major indices of the Indian stock markets rallied on Thursday and closed around 1% higher than Wednesday’s close. The trends of the major indices in the course of Thursday’s trading are given in the table below:

Key Indian equity market indices opened higher on Thursday in line with global peers and taking positive cues from implementation of the Seventh Pay Commission. Asian markets on Thursday were trading in the green. Chinese stocks opened mixed on Thursday, with the benchmark Shanghai Composite Index opening flat at 2,931.48 points Shanghai Composite closed at 2,929.61, down 0.07%. Tokyo shares opened higher after anxiety over Japanese economy on account of Brexit and the weakening yen started declining. The Nikkei however, ended flat. Other international markets were also in the green. US stocks closed higher, buoyed by gains in oil prices, as global markets continued to rebound from previous sharp losses after Britain's vote to leave the European Union (EU).

By the end of trading on Thursday, market analysts pointed out that short covering on the back of latest key economic decisions, combined with positive global cues and a firm rupee, propelled the Indian equity markets into making healthy gains. Sector-wise, all the sub-indices witnessed healthy buying which was led by banking, automobile and capital goods stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,598 advances and 1,011 declines. The equity markets gained on the back of reduced uncertainty over the modalities of Britain's exit from the European Union (Brexit). Investors were also hopeful that international central banks might go in for major stimulus measures to protect growth as a result of Brexit. Further, higher global crude oil prices and a firm rupee enhanced investors' risk-taking appetite.

The hardcopy peripherals market in India dropped 2.2 per cent sequentially in the first quarter of this year and reached 795,451 units in terms of shipments, says market research firm International Data Corporation (IDC). Hardcopy peripherals (HCP) includes printers, multifunction peripheral (MFP), and digital copiers. However, the market for laser printers witnessed a remarkable sequential growth of 15.9% in the same quarter, the report said. "In the absence of substantial demand from government and consumers in Q1 2016, the overall HCP market witnessed weak buying as the sentiments were not positive. However, the enterprise segment witnessed some growth and is expected to pick up pace in the coming quarters,” Maninder Singh, Market Analyst at IDC India, said in a statement. Among major vendors, HP managed to achieve 44.7% shipment share and remained as the market leader in India.  HP was followed by Epson and Canon with 19.1% and 16.6% share respectively, the report said. The IT market which is dependent on exports (and imports for domestic sales) is likely to face uncertainty with currency markets swinging in the wake of the Brexit. Attractive pricing and maintaining real operating margins are likely to be challenging issues for IT vendors in India.

The top gainers and top losers of the major indices are given in the table below:



The closing values of the major Asian indices are given in the table below:



  

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