A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was slightly higher while the 50-unit CNX Nifty was trading with small losses. The Sensex was currently up 9.88 points or 0.03% at 28,430. The CNX Nifty was down 1.20 points or 0.01% at 8,602.25. The market breadth indicating the overall health of the market was negative.
Hindustan Unilever (HUL) dropped after the company reported muted growth in net profit in Q1 June 2015. Cement stocks declined.
Earlier, the 50-unit CNX Nifty hit 13-1/2-week high in morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 714.40 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 848.76 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, European stocks edged lower. Asian stocks edged higher on the tail of strong corporate earnings in the US and China's stabilizing markets. US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
At 14:15 IST, the S&P BSE Sensex was up 9.88 points or 0.03% at 28,430. The index fell 65.31 points at the day's low of 28,354.81 in early trade. The index gained 97.94 points at the day's high of 28,518.06 in morning trade.
The CNX Nifty was down 1.20 points or 0.01% at 8,602.25. The index hit a high of 8,646.75 in intraday trade, its highest level since 17 April 2015. The index hit a low of 8,588.25 in intraday trade.
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The BSE Mid-Cap index was down 64.18 points or 0.57% at 11,185.92. The BSE Small-Cap index was down 39.65 points or 0.34% at 11,723.69. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,544 shares fell and 1,144 shares rose. A total of 115 shares were unchanged.
FMCG stocks edged lower. Tata Global Beverages (down 1.38%), Marico (down 0.93%), Britannia Industries (down 0.78%), Godrej Consumer Products (down 0.59%), GlaxoSmithkline Consumer Healthcare (down 0.34%), Nestle India (down 0.02%) and Procter & Gamble Hygiene and Health Care (down 0.34%) edged lower. Bajaj Corp (up 0.02%), Jyothy Laboratories (up 0.55%), Colgate-Palmolive (India) (up 1.57%) and Dabur India (up 1.52%) edged higher.
Hindustan Unilever (HUL) dropped after the company reported muted growth in net profit in Q1 June 2015. The stock was off 2.69% at Rs 888.25. The stock hit a high of Rs 917 and a low of Rs 884 so far during the day. HUL's net profit rose 0.21% to Rs 1059.14 crore on 3.72% growth in total income to Rs 8213.74 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 21 July 2015. In a statement, HUL said that the company's profit after tax before exceptional items rose 3% to Rs 1053 crore Q1 June 2015 over Q1 June 2014.
HUL's domestic consumer business registered a growth of 5% in Q1 June 2015, with 6% underlying volume growth. The growth in the quarter was impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers, HUL said.
Commenting on the company's first quarter results, Harish Manwani, Chairman, HUL, said that in a subdued market environment, the business delivered another quarter of healthy volume led growth and strong improvement in operating margin. With the near term outlook largely dependent on pickup in rural markets and commodity costs expected to remain benign with little or no price growth across select categories, the company's focus will be to drive market development and simultaneously deliver cost efficiencies to sustain profitable volume led growth.
Cement stocks edged lower. UltraTech Cement (down 2.92%), Ambuja Cements (down 3.1%), Shree Cement (down 1.19%) and ACC (down 0.72%) edged lower.
Grasim Industries was off 2.53% at Rs 3,674.65. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Meanwhile, the government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament which began today, 21 July 2015. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition. Meanwhile, a Rajya Sabha Select Committee has reportedly adopted a report endorsing majority provisions of the Goods and Services Tax (GST) Bill after the Centre agreed to compensate states for revenue loss for 5 years even as Congress filed a dissent note. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 20 July 2015, that the Southwest Monsoon was vigorous over West Madhya Pradesh and active over Gangetic West Bengal, East Rajasthan, Coastal Karnataka and South Interior Karnataka during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 20 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 9% above the LPA in Northwest India until 20 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. 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.
In overseas stock markets, European stocks edged lower today, 21 July 2015. Key indices in France and UK were off 0.05% to 0.12%. In Germany, DAX was up 0.02%.
Greece reportedly repaid the roughly 2 billion euros ($2.2 billion) it owed to the International Monetary Fund (IMF) yesterday, 20 July 2015. The country is paying its bills using a 7.16 billion euro bridging loan secured last week after it agreed to a series of harsh reforms. The measures, which have to be put into law, should result in the country receiving its third bailout.
Asian stocks edged higher today, 21 July 2015, on the tail of strong corporate earnings in the US and China's stabilizing markets. In mainland China, the Shanghai Composite index rose 0.66%. In Hong Kong, the Hang Seng index was up 0.52%. In other Asian markets, key benchmark indices in Japan, Taiwan and South Korea were up 0.34% to 0.93%. In Singapore, the Straits Times was off 0.05%. Indonesian stock market was shut for a holiday.
Several Bank of Japan (BoJ) board members said the impact of the bank's massive stimulus might be fading, according to minutes of its June meeting released yesterday, 20 July 2015. The nine-member board agreed underlying inflation, which excludes volatile food and energy prices, would continue to improve in the long term, the minutes showed.
US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
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