Bank stocks led rally as key benchmark indices extended intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, and, the 50-unit CNX Nifty, both, hit their highest level in nearly three weeks. The Sensex was currently up 261.66 points or 0.96% at 27,577.83. The gains in Nifty were higher than those for the Sensex in percentage terms. The Nifty was currently up 94.80 points or 1.15% at 8,319.75. The market breadth indicating the overall health of the market was quite strong. There were almost two gainers against every loser on BSE. The BSE Small-Cap index was up 1.06%, outperforming the Sensex.
Key benchmark indices edged higher today, 22 June 2015, on speculation that pick-up in sowing of Kharif crops, above-average monsoon rains during the initial part of the June-September southwest monsoon season, data showing higher water storage in reservoirs and a restrained increase in minimum support prices for Kharif crops announced by the government last week will improve the odds for further monetary policy easing from Reserve Bank of India (RBI). The RBI cut its main benchmark lending rate viz. the repo rate by 25 basis points after a monetary policy review on 2 June 2015. The central bank at that time said that the monsoon and its impact on food costs will be key to further easing. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
The sentiment on the domestic bourses was also boosted by gains in Asian stocks and US index futures triggered by media reports that Greece has presented a new plan to stave off default before an emergency summit on the country's debt crisis.
L&T edged higher after the company said that its metallurgical and material handling business has secured new orders worth Rs 1507 crore across various verticals.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire on Thursday, 25 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 106.12 crore during previous trading session on Friday, 19 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 447.55 crore on Friday, 19 June 2015, as per provisional data released by the stock exchanges
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In overseas stock markets, Asian markets edged higher on reports that Greece has presented a new plan to stave off default before an emergency summit on the country's debt crisis. US stocks edged lower during the previous trading session on Friday, 19 June 2015, as the persistent deadlock in Greek debt talks made investors cautious heading into the weekend.
At 11:18 IST, the S&P BSE Sensex was up 261.66 points or 0.96% at 27,577.83. The index jumped 307.34 points at the day's high of 27,623.51 in mid-morning trade, its highest level since 2 June 2015. The index rose 100.86 points at the day's low of 27,417.03 in early trade.
The CNX Nifty was up 94.80 points or 1.15% at 8,319.75. The index hit a high of 8,324.15 in intraday trade, its highest level since 2 June 2015. The index hit a low of 8,257.40 in intraday trade.
The BSE Mid-Cap index was up 92.54 points or 0.88% at 10,579.66, underperforming the Sensex. The BSE Small-Cap index was up 116.04 points or 1.06% at 11,058.83, outperforming the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were almost two gainers against every loser on BSE. 1,426 shares rose and 727 shares fell. A total of 96 shares were unchanged.
Bank stocks edged higher on renewed buying. Among public sector banks, Bank of Baroda (up 3.23%), Oriental Bank of Commerce (up 3.38%), Union Bank of India (up 2.79%), United Bank of India (up 1.9%), IDBI Bank (up 2.01%), State Bank of India (up 1.63%), Bank of India (up 1.55%) and Indian Overseas Bank (up 1.33%) edged higher.
Punjab National Bank (PNB) was up 2.32% at Rs 136.75. The stock hit a high of Rs 137 and a low of Rs 131.20 so far during the day. PNB turned ex-dividend today, 22 June 2015, for dividend of Rs 3.30 per share for the year ended 31 March 2015.
Among private sector banks, Kotak Mahindra Bank (up 3.13%), Yes Bank (up 3.31%), Axis Bank (up 3.07%), IndusInd Bank (up 2.81%), HDFC Bank (up 1.99%) and ICICI Bank (up 1.61%) edged higher.
Reliance Industries (RIL) was off 0.49% at Rs 991.60. The stock hit a high of Rs 1,008.70 and a low of Rs 988.60 so far during the day. With regard to news item titled Provisional License for JIO to operate as cable TV MSO, RIL during market hours today, 22 June 2015, clarified that Reliance Jio Media, a subsidiary of RIL, has been granted provisional registration by the Ministry of Information and Broadcasting for operating as Multi Service Operator (MSO) in Digital Addressable System (DAS) on Pan India basis.
L&T edged higher after the company said that its metallurgical and material handling business has secured new orders worth Rs 1507 crore across various verticals. The stock was up 0.42% at Rs 1,726.40. The stock hit a high of Rs 1,735.30 and a low of Rs 1,717.10 so far during the day. The announcement was made during market hours today, 22 June 2015.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 21 June 2015, that the southwest monsoon has further advanced into some more parts of Chhattisgarh, remaining parts of Odisha and West Bengal and some parts of Jharkhand. Conditions are favourable for further advance of southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Chhattisgarh, Jharkhand, entire Bihar, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, most parts of Madhya Pradesh and some parts of Uttar Pradesh, Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 3-4 days, the IMD said. The Southwest monsoon was vigorous over Odisha, Vidarbha, Coastal Andhra Pradesh, Telangana and South Interior of Karnataka and active over Konkan & Goa and Coastal Karnataka during the past 24 hours ending at 830 hrs, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 11% above the Long Period Average (LPA) until 20 June 2015. Region wise, the southwest monsoon was 22% above the LPA in Central India, 20% above the LPA in South Peninsula, 5% above the LPA in East & Northeast India and 13% below the LPA in Northwest India until 20 June 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Meanwhile, weekly data released by the Ministry of Agriculture after trading hours on Friday, 19 June 2015, showed that the sowing of Kharif crops is gathering pace. However, total acreage for Kharif crops remains lower than the corresponding period in the previous year. The total sown area for Kharif crops as on 19 June 2015 stood at 91.61 lakh hectares compared with 98.88 lakh hectares at this time last year.
In the global commodities market, Brent crude oil prices edged higher in volatile trade. Brent for August settlement was currently up 1 cent at $63.03 a barrel. The contract had fallen $1.24 a barrel or 1.92% to settle at $63.02 a barrel during the previous trading session on Friday, 19 June 2015.
The decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
In overseas stock markets, Asian markets edged higher today, 22 June 2015, on reports that Greece has presented a new plan to stave off default before an emergency summit on the country's debt crisis. Key indices in Japan, Hong Kong, Taiwan, Singapore and South Korea were up 0.36% to 1.34%. In Indonesia, the Jakarta Composite was off 0.4%. The Chinese stock market was shut for a holiday.
US stocks edged lower during the previous trading session on Friday, 19 June 2015, as the persistent deadlock in Greek debt talks made investors cautious heading into the weekend.
In Europe, Greece has reportedly presented a new plan to stave off default before an emergency summit on the country's debt crisis. Greece is up against a June 30 deadline to make a 1.6 bililon ($1.8 billion) repayment to the International Monetary Fund, with larger payments to the European Central Bank falling due next month.
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