Sensex soars 200 points to keep the winning spree intact

Markets gained for the sixth straight session with Nifty settling above the 8,200 levels comfortably supported by sustained buying across the board. RIL displayed a spectacular rally for the sixth straight day on optimism concerning the company's 4G telecom services that is likely to roll out under the Reliance Jio brand in December.

The Sensex soared 200 points to end at 27,317 and the Nifty surged 50 points to close at 8,225. In broader markets, BSE Midcap index ended in line with the larger peers up 0.5%, however BSE Smallcap index under-performed the larger peers up 0.3%. The market breadth ended firm with 1,434 shares advancing and 1,230 shares declining on the BSE.

Above-normal monsoons, positive macroeconomic numbers coupled with a dovish stance by the Fed bolstered the rally. Also, a modest hike in the Minimum Support Price (MSP) for the Kharif crops by the Government in order to contain inflation proved to be a key driver for the markets as investors anticipate a further rate cut by the RBI in the near term.

MARKET VIEW

According to Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services, “Markets took a breather from the recent mayhem and gained on all 5 days of the week. The pull back rally was supported by multiple bottoms just below 7,950 thus forming a weekly double bottom with the indicated support of 7,939 being held and the 200 Day EMA was once again in sight.”

Further she adds, “The last trading day of the week saw some history being formed in intraday session above the 200 day EMA of 8,195 and it is imperative that markets hold ground above the same in the coming expiry week. The coming week would be dominated by NSE Derivatives expiry related volatility and all eyes would be on Greece's 'bundled' payment scheduled on June 30 considering the warning received from IMF. “

STOCKS ON THE RADAR

On the sectoral front, barring BSE Power, Consumer Durables and Realty indices all other indices ended  in the positive territory with BSE Oil & Gas, IT, Healthcare, FMCG, Teck indices closing higher up to 1%.

Shares of M&M surged over 4% as the tractor sales are expected to see growth on the back of bountiful rains. Following the tandem, some of the notable auto stocks which gained across the exchange. Hero Motocorp, Maruti Suzuki and Bajaj Auto closed higher between 0.5-2%.

A smart rally in the IT stocks was evident in today’s trade after Nasdaq hit record highs, a day after the Federal Reserve indicated it would raise the interest rates slowly. TCS, Wipro, Mastek, HCL Tech, Tech Mahindra ended higher between 0.5-3%.

Tata Steel ended with marginal gains on reports stating that the company is likely to set up a new company, Tata Steel SEZ in the Special Economic Zone in Odisha.

Shares of Aditya Birla-led Hindalco closed 0.5% higher after the state-run Life Insurance Corporation (LIC) increased its stake in the company to over 13%. 

Engineering conglomerate L&T bagged orders worth Rs 2,278 crore across business verticals in May and June. The stock ended with marginal gains.

Shares of DB Realty surged 6% after the company signed a Joint Venture (JV) with ECC and Konark to develop residential project namely DB Skypark in Mumbai.

Sun TV Network shares jumped 8% on reports that the Supreme Court attorney general has approved security clearance to Sun TV Network.

Amtek Auto soared 6% erasing its most of the yesterday’s losses, after the company clarified that it has not issued foreign currency convertible bonds (FCCB) of $ 70 million.

Suprajit Engineering and Phoenix Lamps ended higher by 2% and 0.2% respectively after the former informed that it has acquired 51% stake in Phoenix Lamps.

GLOBAL MARKET

Asian shares gained for a third consecutive day while China's Shanghai Composite bucked the trend and cracked 6%, extending a weekly drop to 13% as the tight market liquidity caused by new share listings triggered a heavy sell-off across the counters.

A firm trend is observed across the European peers after the U.S. Federal Reserve tempered expectations for the pace of interest rate rises.