A range bound movement was witnessed as key benchmark indices retained positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 160.35 points or 0.6% at 26,846.86. 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 Mid-Cap index was up 1.13% and the BSE Small-Cap index was up 1.26%. Both these indices outperformed the Sensex.
Meanwhile, Central Board of Direct Taxes (CBDT) chairman Anita Kapur was quoted as saying at a press conference yesterday, 16 June 2015, that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs).
Bank stocks edged higher after the Basel Committee on Banking Supervision under the aegis of the Bank for International Settlements in its assessment reports rated the standards adopted by the Reserve Bank of India with regard to risk-based capital requirements as compliant with the minimum Basel capital standards. Telecom stocks edged higher on renewed buying. ACC gained after the company announced resumption of limestone mining operations at Bargarh cement works.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week in early trade.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 16 June 2015, that the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 15 June 2015.
In overseas markets, Asian stocks edged higher after US stocks registered modest gains overnight. US stocks edged higher yesterday, 16 June 2015, as investors shrugged off worries about unsuccessful Greek debt talks and awaited the outcome of a two-day Federal Reserve policy meeting.
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Foreign portfolio investors (FPIs) sold shares worth a net Rs 521.65 crore yesterday, 16 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 644.81 crore yesterday, 16 June 2015, as per provisional data released by the stock exchanges.
At 12:16 IST, the S&P BSE Sensex was up 160.35 points or 0.6% at 26,846.86. The index jumped 170.86 points at the day's high of 26,857.37 in early trade, its highest level since 11 June 2015. The index rose 42.38 points at the day's low of 26,728.89 in morning trade.
The Nifty was up 35.25 points or 0.49% at 8,086.80. The index hit a high of 8,092.55 in intraday trade, its highest level since 11 June 2015. The index hit a low of 8,048.95 in intraday trade.
The market breadth indicating the overall health of the market was quite strong. There were almost two gainers against every loser on BSE. 1,528 shares rose and 781 shares fell. A total of 103 shares were unchanged.
The BSE Mid-Cap index was up 115.24 points or 1.13% at 10,312.92. The BSE Small-Cap index was up 134.64 points or 1.26% at 10,789.54. Both these indices outperformed the Sensex.
Bank stocks edged higher after the Basel Committee on Banking Supervision under the aegis of the Bank for International Settlements in its assessment reports rated the standards adopted by the Reserve Bank of India (RBI) with regard to risk-based capital requirements as compliant with the minimum Basel capital standards. Each of the 14 components of the Basel capital framework included in the assessment has been assessed as compliant, the RBI said in a press release issued yesterday, 16 June 2015. The Liquidity Coverage Ratio (LCR) requirements have been assessed as largely compliant with the minimum Basel liquidity standards.
Among public sector banks, UCO Bank (up 1.26%), Syndicate Bank (up 0.74%), Punjab National Bank (up 1.05%), Corporation Bank (up 0.99%), Allahabad Bank (up 0.27%), Bank of Baroda (up 0.28%), State Bank of India (SBI) (up 0.45%), Canara Bank (up 0.6%), Bank of India (up 0.37%) and United Bank of India (up 6.19%) edged higher. Union Bank of India fell 0.3%.
Among private sector banks, Axis Bank (up 0.35%), ICICI Bank (up 0.17%), Federal Bank (up 3.7%), Yes Bank (up 0.24%), and IndusInd Bank (up 0.04%) edged higher. HDFC Bank (down 0.54%) and Kotak Mahindra Bank (down 0.31%) declined.
Telecom stocks edged higher on renewed buying. Bharti Airtel (up 2.13%), Tata Teleservices (Maharashtra) (up 0.61%), Idea Cellular (up 1.01%), and Reliance Communications (up 0.26%) gained.
ACC gained after the company announced resumption of limestone mining operations at Bargarh cement works. The stock was up 0.95%. On 10 October 2014, ACC had informed about the suspension of limestone mining operations at the company's Bargarh cement works. The impact of the closure was not material since cement grinding continued with transfer of clinker from sister works/purchase of clinker.
Meanwhile, Central Board of Direct Taxes (CBDT) chairman Anita Kapur was quoted as saying at a press conference yesterday, 16 June 2015, that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs). The tax department had asked several FIIs to pay 18.5% MAT on their trading income in India, forcing some of them to take it to the court. Although the government says that the notices have been served in only 68 cases involving a total demand of just Rs 603 crore for the period prior to 1 April 2015, FIIs are worried that more such notices could be in the offing. In the Union Budget 2015-16, the government exempted FIIs' trading income from MAT with effect from 1 April 2015.
Last month, the government set up a committee to examine the matter relating to the levying of MAT on FIIs for the period prior to 1 April 2015. . Earlier, the government had said that FIIs can avail of treaty benefits to ward off the tax demands.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 16 June 2015, that the Southwest Monsoon was active over Gangetic West Bengal and Telangana during past 24 hours ending at 0830 hrs. Conditions are favourable for further advance of southwest monsoon into some more parts of Chhattisgarh, Odisha and West Bengal and remaining parts of Coastal Andhra Pradesh and Bay of Bengal during next 3 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 15 June 2015. Region wise, the southwest monsoon was 22% above the LPA in East & Northeast India, 18% above the LPA in Central India and 1% below the LPA in Northwest India until 15 June 2015. The rainfall was 100% of the Long Period Average in South Peninsula.
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.
Asian stocks edged higher today, 17 June 2015, after US stocks registered modest gains overnight. Key benchmark indices in China, Indonesia, South Korea, Hong Kong and Singapore were up 0.3% to 1.33%. Key benchmark indices in Taiwan and Japan were off 0.19% to 0.25%.
Japanese exports grew at the slowest pace in nine months in May as shipments to the US and China moderated, while export volumes for the month fell compared with a year earlier. Exports rose 2.4% from a year earlier to 5.741 trillion yen in May 2015, the finance ministry said today, 17 June 2015. The rate of expansion was the smallest since the start of a gentle uptrend in September, in a sign that a slowdown in the US and weakening growth in China may be beginning to hinder a Japanese economic recovery.
US stocks closed higher yesterday, 16 June 2015, as investors shrugged off worries about unsuccessful Greek debt talks and awaited the outcome of a two-day Federal Reserve policy meeting. In macroeconomic data in US, construction starts on new US homes fell 11.1% to an annual rate of 1.04 million in May, pulling back from a surge in April and missing expectations. But the annual pace of permits for new construction, a sign of future demand, rose 11.8% to 1.28 million in Ma, the fastest pace since August 2007.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy concludes today, 17 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
In Europe, Prime Minister Alexis Tsipras accused Greece's creditors yesterday, 16 June 2015, of trying to "humiliate" Greeks with more cuts as he defied a growing drumbeat of warnings that Europe was preparing for his country to leave the euro. The unrepentant address to lawmakers after the collapse of talks with European and International Monetary Fund (IMF) lenders at the weekend was the clearest sign yet that the leftist leader has no intention of making a last-minute U-turn and accepting austerity cuts needed to unlock frozen aid and avoid a debt default within two weeks.
Greece has a debt repayment of 1.6 billion euros ($1.8 billion) due at the end of this month to the International Monetary Fund after the European nation bundled all its four June repayments into one.
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