Weekly: Markets post second straight gain

Markets posted second consecutive weekly gains on hopes of global growth recovery after good set of data from the US.

Domestically, the HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, edged up to 50.3 in June from 50.1 in May. The index, which gauges business activity in Indian factories but not its utilities, has been flirting with the 50 mark that separates growth from contraction for two months but has held above it for over four years.

Sentiment was also helped as the indexes closed above their 200-day moving averages for a second day and after foreign investors bought shares worth 1.6 billion rupees and equity derivatives worth Rs 15 billion on Thursday.

The benchmark BSE index rose 0.44 percent, or 84.98 points, to end at 19,495.82 and the broader NSE index rose 0.53 percent, or 30.95 points, to end at 5,867.90.


Sectors


Technology shares gained amid hopes of improvement in quarterly profits as rupee weakened.

FMCG shares witnessed buying after Hindustan Unilever parent's open offer received good response.


Stocks


Reliance Industries - after the Cabinet Committee of Economic Affairs (CCEA) has announced to raise gas price to $8.4/mmbtu effective April 1, 2014 for a period of five years.

The hike in gas price is EPS accretive for upstream state-owned companies even after raising their subsidy burden estimates. Also, it is positive for private gas producing companies such as RIL, says analyst at Angel Broking in a note.

Dr Reddy’s Laboratories gains after the pharmaceutical company said it has launched its generic Lamotrigine extended-release tablets, used for treating epilepsy, in the American market following approval by the US health regulator.

Shares in Indian sugar companies rose after the government decided to raise import duty on the sweetener to 15 percent from 10 to discourage overseas buying as ample supplies have sparked a drop in local prices.

HUL ended higher after its parent company Unilever said it has acquired 14.8% stake against target of 22.5% in Indian unit. ITC ended up 1%.