Mumbai: Easing food inflation and firm global cues helped Indian stocks extend gains for a sixth straight session. After opening on a positive note, Indian stocks traded with positive momentum for rest of the day as easing food prices sparked optimism that inflation might have turned the tide. India’s food inflation slowed to a six-week low of 7.78% as cost of fruits and vegetables fell in the week ending 18 June. The price gauge stood at 9.13% in the previous week.
Stock markets in Europe rose for after Greece took steps to adopt an austerity plan and avoid a sovereign debt default.
Sensex: 18,845 +0.81%
Nifty: 5,647 +0.84%
FTSE 100: 5,895 +0.68%
JP Associates, Kotak Mahindra Bank, Jindal Steel, Cairn India and Hindustan Unilever led the gains in the Nifty 50 shares. Falling raw material prices helped Hindustan Unilever extend gains on the bourses. Shares of Cairn India gained ahead of the Cabinet Committee meet on the Cairn-Vedanta deal.
JP Associates: Rs 80 +3.85%
Kotak Mahindra Bank: Rs 480 +3.36%
Jindal Steel: Rs 647 +2.51%
Cairn India: Rs 312 +2.49%
Shares of Sesa Goa, on the other hand, slumped 2.67% on reports that the ministry of corporate affairs is looking to take action on the company for under-invoicing iron ore exports. Bharti Airtel, ONGC and Maruti Suzuki are the other significant losers in the Nifty.
Sesa Goa: Rs 282 –2.67%
Bharti Airtel: Rs 393 –2.01%
ONGC: Rs 274 –1.84%
Maruti Suzuki: Rs 1,156 –1.78%
At the sectoral level, FMCG, real estate and consumer durables stocks led the gains on the BSE. Except pharmaceuticals, all BSE sectoral indices closed the day with gains.
BSE FMCG: 4,045 +1.83%
BSE Realty: 2,019 +1.19%
BSE Consumer Durables: 6,653 +1.19%
BSE Healthcare: 6,397 –0.03%
Easing raw materials prices and a shift towards defensive stocks helped FMCG firms extend gains on the bourses. Palm oil, a key raw material used in soaps, fell as much as 18% in June.
Tata Global Beverages: Rs 96 +3.82%
Nestle India: Rs 4,097 +2.57%
United Spirits: Rs 979 +2.36%
ITC: Rs 202 +1.61%
Godrej Consumer Products: Rs 430 +1.79%
Speculation that government will increase prices of di-ammonium phosphate (DAP) led to buying in fertilizer stocks. Shares of Rashtriya Chemical & Fertilisers, Chambal Fertilisers & Chemicals and Nagarjuna Fertilizers & Chemicals gained over 5% each.
Rashtriya Chemical and Fertilisers: Rs 79 +6.08%
Chambal Fertilisers & Chemicals: Rs 80 +5.48%
Nagarjuna Fertilizers & Chemicals Rs 35 +5.28%
Overall, 50.44% of the shares traded on the BSE closed the day with gains.