A rally in European stocks and sharp gains in US index futures which indicated a likely firm opening of US stocks later in the global day sent key equity benchmark indices in India surging. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in nearly three weeks. Stocks rose across the globe on reports that Greece has presented a new plan to stave off default before an emergency summit on the country's debt crisis. The Sensex was currently up 403.24 points or 1.48% at 27,719.41.
The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up 1.28%. The BSE Mid-Cap index was up 1.21%.
Banking and realty stocks surged. FMCG stocks gained after a good start for the monsoon season. Cement stocks also edged higher.
The rally for key benchmark indices today, 22 June 2015, was also triggered by 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.
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.
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.
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In overseas stock markets, European stocks rallied as investors grew optimistic over Greek debt negotiations. 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 14:15 IST, the S&P BSE Sensex was up 403.24 points or 1.48% at 27,719.41. The index jumped 422.32 points at the day's high of 27,738.49 in mid-afternoon 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 126.50 points or 1.53% at 8,351.45. The index hit a high of 8,358.25 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 126.48 points or 1.21% at 10,613.60. The BSE Small-Cap index was up 140.57 points or 1.28% at 11,083.36. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,619 shares rose and 936 shares fell. A total of 89 shares were unchanged.
FMCG stocks gained after a good start for the monsoon season. Godrej Consumer Products (up 2.06%), Britannia Industries (up 1.79%), Bajaj Corp (up 2.04%), Marico (up 1.52%), Hindustan Unilever (up 1.41%), Tata Global Beverages (up 1.31%), Dabur India (up 0.65%), Procter & Gamble Hygience and Health Care (up 0.56%), Colgate-Palmolive (India) (up 0.17%) edged higher. GlaxoSmithkline Consumer Healthcare (down 0.61%) and Jyothy Laboratories (down 0.64%) edged lower. Shares of Nestle India were unchanged at Rs 6,295.55. FMCG firms derive substantial revenue from rural India.
Cement stocks edged higher on renewed buying. Ambuja Cements (up 1.79%), UltraTech Cement (up 0.72%), ACC (up 0.19%) and Shree Cement (up 0.57%) edged higher.
Grasim Industries was up 0.69% at Rs 3,404.50. Grasim has exposure to cement sector through its holding in UltraTech Cement.
ITC was up 1.57% at Rs 309.95. ITC during market hours today, 22 June 2015, said that its wholly owned subsidiary Russell Credit acquired the entire subscribed and paid-up equity share capital of Rs 20 crore of BFIL Finance (BFIL), another wholly owned subsidiary of the company. Consequently, BFIL has ceased to be a direct subsidiary of the company with effect from 18 June 2015, ITC said.
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 overseas stock markets, European stocks surged today, 22 June 2015, fueled by the prospect that a deal for debt-burdened Greece may soon be reached. Key indices in France, Germany and UK were up 1.26% to 3.26%.
Greece has reportedly presented a new plan to stave off default before an emergency summit on the country's debt crisis. The Greek government's new proposals include tax increases and spending cuts to hit budget targets. The head of the cabinet to European Commission President Jean-Claude Juncker reportedly said in a tweet yesterday, 21 June 2015, that Greece's package is a good basis for progress at the euro summit.
An emergency euro zone summit has been scheduled today, 22 June 2015, to discuss Greece's fate. 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.
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 0.4% to 1.35%. In Indonesia, the Jakarta Composite was off 0.47%. The Chinese stock market was shut for a holiday.
Trading in US index futures indicated that the Dow could jump 160.50 points at the opening bell today, 22 June 2015. 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.
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