Indian Markets wrapped the volatile week with modest gains - Microsec

Indian markets wrapped the volatile week with modest gains. The market sentiments were boosted after the government decision to double the gas price. However, rising crude prices and weak rupee dampened the sentiments. FMCG, Healthcare, Consumer durables and Capital goods led the advance in the market.

On domestic front, India's HSBC Manufacturing Purchasing Managers' Index (PMI) edged up to 50.3 in June 2013 from 50.1 in May 2013.

The Government of India has chosen the ordinance route to launch its ambitious food security programme. According to the ordinance, states will have to identify eligible households within 6 months. The ordinance will cover up to 75% of rural & up to 50% of urban population to provide them uniform entitlement of 5 kgs of foodgrain per month — at highly subsidized prices of Rs.3, Rs.2 & Rs.1 a kg for rice, wheat & coarse grains, respectively. The Bill will also provide maternity benefit to identified beneficiaries at Rs.1,000 per month (for 6 months). The subsidized price fixed by the Government will be valid for 3 years. It will come into effect after the President signs the ordinance.

On global front, The U.S. Initial Jobless Claims declined by 5,000 to a seasonally adjusted 343,000 in the week ended June 29, 2013 from its previous week.

The U.S. Home Prices rose 2.6% in May 2013 from April, and they were up 12.2% compared to the year-ago period, registering the biggest YoY increase since February 2006 and the 15th consecutive monthly increase.

The U.S. Manufacturing sector resumed growing in June 2013 after one month of contraction. PMI for the Manufacturing sector increased to 50.9 in June against 49.0 in May.

Source : Equity Bulls

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