Indian Stocks
0
All posts from Indian Stocks
Indian Stocks in Indian Stocks,

India: GST drives upside


The Indian stock market trended higher on Monday, June 3. The market headed north after the GST was introduced on July 1. Notably, this tax is expected to boost the country’s competitive edge and help raise investments, leading to stronger job creation.

On the macroeconomic front, the June PMI came in at 50.0 vs. 51.6 in May. The Nifty 50 added 0.99% and closed at 9,615, while the BSE Sensex 30 advanced 0.97% to 31,221.62.

Outperformers on the Nifty 50 included Bharti Infratel and ITC, which soared 5.19% and 5.82%, respectively. The notable decliners included HCL Technologies and NTPC, which shed 1.50% and 1.38%, respectively.

The top advancers on the BSE Sensex 30 were ITC and Hero MotoCorp, which added 5.70% and 2.17%. NTPC and Cipla underperformed the broader market, down 1.17% and 0.60%, respectively.

Meanwhile, on the currency market the USD/INR pair rose 0.35% to 64.84, while EUR/INR dropped 0.14% to 73,720. The 10-year Treasury bond yield reached 6.592%.

The consumer sector was well bid after the GST was introduced. In the upshot, tobacco marker ITC spiked 5.82%.

Maruti Suzuki India added 1.89% after reporting a 7.6% increase in June auto sales.

Fertilizer producers Chambal Fertilisers & Chemicals and Nagarjuna Fertilisers & Chemicals also had a good day, advancing 2.77% and 3.12%, respectively.

In technical terms, the BSE Sensex 30 has exited a rising wedge downward, but momentum to the downside has yet to gain traction. In addition, stochastic lines are buy-friendly and look oversold, so we at least expect to see a corrective rebound.