Thursday, 4 July 2013

Closing Summary, Market Synopsis: 4th July, 2013

The Indian benchmarks ended the day on firm note on July 4, 2013. They opened the day with a small gap up and started inching upward. During the mid- session, some strong buying emerged in US $ by PSU oil companies and triggered the stop losses of the traders. This weakened the rupee sharply which in turn weakened the stock market and forced the benchmarks to touch the low of the day. However a strong buying emerged towards the last hour of trade and pushed the benchmarks up, to close towards the high of the day. The market did not react negatively to the Cabinet decision to pass the Food Bill Ordinance. The cheap food program covering 67 percent of the country’s population is expected to further strain the already weak finances. The market is expected to be volatile in near term, given the global geopolitical developments and India’s weak macro-economic fundamentals. This led the Sensex to close at the level of 19410.84 i.e. up by 233.08 points and the Nifty to close at the level of 5836.95 i.e. up by 66.05 points. The midcap index and the small cap index closed in green with the gain of more than half of a percentage point and two-tens of a percentage point respectively. On the sectoral front, all the indicies except one closed in green. The IT Index closed as the biggest gainer with the gain of two and three- fourth of a percentage point. This was followed by the FMCG Index which closed with the gain of more than two and two-third of a percentage point. On the other hand the Metal Index closed as the biggest loser with the loss of nearly three-tens of a percentage point.

Further, the market breadth closed neutral as one stock was seen advancing against each declining stock.

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