Sensex zooms 395 points; Hindalco, ONGC among top Nifty gainers
Premium- Indian share markets ended on a positive note with the Sensex up by 395 points and the Nifty ending up by 112 points
Indian share markets witnessed positive trading activity throughout the day on Monday and ended higher. Benchmark indices extended early gains and ended on positive note led by strong gains in realty and metal stocks after tracking firm global cues.
At close, the BSE Sensex stood higher by 395 points or up 0.8%, while the NSE Nifty closed higher by 112 points, or up 0.7%.
Hindalco and ONGC were among the top gainers today. Tech Mahindra and HDFC Life Insurance, on the other hand, were among the top losers today.
The SGX Nifty traded at 15,863, up 115 points, at the time of writing.
The BSE MidCap index and the BSE SmallCap index ended up 0.4% and 0.9%, respectively.
Sectoral indices ended on a positive note with stocks in the metal sector, banking sector and realty sector witnessing most of the buying interest. Power stocks, on the other hand, witnessed selling pressure.
Shares of Pidilite Industries and Muthoot Finance hit their respective 52-week highs today.
Asian stock markets ended on a mixed note today.
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The Hang Seng ended down by 0.6%, while the Shanghai Composite ended the day up by 0.4%. The Nikkei ended down by 0.6% in today’s session.
US stock futures are trading on a flat note today with the Dow Futures trading up by 7 points.
The rupee is trading at 74.30 against the US$.
Gold prices for the latest contract on MCX are trading up by 0.1% at ₹47,317 per 10 grams.
Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report shares why he believes the Nifty is set to take off in July, in his latest video for Fast Profits Daily.
Tune in to the video here to find out more.
In news from the steel sector, Tata Steel was among the top buzzing stocks today. The steel major has posted an over 43% jump in its consolidated crude steel output at 7.9 m tonne (MT) during the quarter ended 30 June 2021. The company's consolidated output of steel in the year ago quarter was at 5.5 MT, Tata Steel said in a statement released on Sunday.
During the April-June period of 2021-22 fiscal, the company's consolidated sales also rose to 7.1 MT, from 5.3 MT in the same quarter a year ago, a rise of 35%.
In India, the company produced 4.6 MT steel, 55% higher compared to 3 MT in April-June quarter of financial year 2020-21, which was impacted due to the Covid-19 pandemic and the stringent nationwide lockdown.
Tata Steel India deliveries increased by 42% to 4.2 MT from 2.9 MT a year ago.
In the June quarter, Tata Steel Europe's steel production grew by 27% to 2.7 MT, compared to 2.2 MT in the year ago quarter.
While the deliveries increased by 19% to 2.4 MT from 2 MT a year ago.
Its southeast Asia's production grew to 0.6 MT, up 49% from 0.4 MT in April-June a year ago.
The deliveries in southeast Asia also increased by 50% to 0.6 MT from 0.4 a year ago.
Tata Steel is among the top steel producing companies in the world with an annual crude steel capacity of 34 m tonnes per annum (MTPA). It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.
Tata Steel share price ended the day up by 1.8% on the BSE.
Moving on to news from the FMCG sector.
Marico domestic business grows over 30% in June quarter.
FMCG firm Marico said its domestic business has witnessed over 30% growth in the April-June quarter helped by double-digit volume growth.
The company is seeing improving demand trends, as the second wave appears to be receding and the vaccination drive is progressing steadily.
Over the International business, Marico said, it has posted constant currency growth in the low 20's on the back of sustained momentum in Bangladesh and broad-based recovery across other markets.
During the quarter, input costs have started easing after peaking at the start of this quarter.
However, gross margins will remain under pressure in this quarter due to consumption of higher-cost inventory and will improve from the second quarter of 2022.
In the domestic market, Marico's Parachute coconut oil delivered ahead of ‘medium-term expectations’ and Saffola edible oils posted ‘low double-digit volume growth’, despite a high base.
Its premium personal care, which constitutes less than 5% of domestic revenues also recovered sharply over last year, but ended below pre-covid levels.
Over the apprehensions of a third wave, Marico said it is adequately prepared to tackle any disruptions in the business environment resulting from the same.
‘The company maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and new engines of growth reaching critical mass,’ the company said in a statement.
Marico share price ended the day up by 2.2% on the BSE.
Speaking of the FMCG sector, have a look at the chart below which shows the performance of BSE Sensex and BSE FMCG index since 2009.
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While the Sensex has offered 393% returns since 2009, the BSE FMCG index has gone up a staggering 532% returns over the same period.
Richa Agarwal, Senior Research Analyst at Equitymaster, and Editor of the smallcap service, Hidden Treasure, believes this outperformance could continue for many years.
She said that with a rising population and standards of living, Indian's consumption demand for FMCG products will skyrocket over the coming years.
(This article is syndicated from Equitymaster.com)
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