Key benchmark indices extended gains in early afternoon trade, with the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hitting their highest level in nearly three weeks. The sentiment on the domestic bourses was 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. The Sensex was currently up 308.68 points or 1.13% at 27,624.85. The gains in Nifty were higher than those for the Sensex in percentage terms. The Nifty was currently up 104.75 points or 1.27% at 8,329.70.
The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 1.15%, outperforming the Sensex. The BSE Small-Cap index was up 1.13%, matching Sensex's gains in percentage terms.
Index heavyweights ITC and HDFC edged higher. Metal and mining stocks rose. Shares of Lupin edged higher after the company replaced Tata Power Company as a constituent of the Sensex. Aurobindo Pharma edged higher after the company said it has secured final approvals from the United States Food & Drug Administration (USFDA) to manufacture and market Azithromycin for injection USP, 500 mg/vial.
Indian stocks 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.
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, 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 12:18 IST, the S&P BSE Sensex was up 308.68 points or 1.13% at 27,624.85. The index jumped 326 points at the day's high of 27,642.17 in early 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 104.75 points or 1.27% at 8,329.70. The index hit a high of 8,332.95 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 120.65 points or 1.15% at 10,607.77, outperforming the Sensex. The BSE Small-Cap index was up 123.60 points or 1.13% at 11,066.39. The gains in this index were exactly the same as that of the Sensex in percentage terms.
The market breadth indicating the overall health of the market was strong. On BSE, 1,507 shares rose and 820 shares fell. A total of 123 shares were unchanged.
Index heavyweight and cigarette major ITC was up 1.13% at Rs 308.60. The stock hit a high of Rs 308.60 and a low of Rs 305 so far during the day.
Another index heavyweight and housing finance major HDFC was up 1.97% at Rs 1,261.80. The stock hit a high of Rs 1,263 and a low of Rs 1,235 so far during the day.
Metal and mining stocks edged higher. Steel Authority of India (up 3.47%), Tata Steel (up 1.43%), Vedanta (up 1.31%), Jindal Steel & Power (up 0.82%), Hindustan Zinc (up 0.27%), National Aluminium Company (up 0.7%), Hindalco Industries (up 0.66%), NMDC (up 0.21%) and JSW Steel (up 0.08%) edged higher.
Shares of Lupin edged higher after the company replaced Tata Power Company as a constituent of the 30-share S&P BSE Sensex index with effect from today, 22 June 2015. The stock was up 0.55% at Rs 1,826.50. The stock hit a high of Rs 1,851.15 and a low of Rs 1,818.15 so far during the day.
Shares of Tata Power Company were up 0.21% at Rs 72.30. The stock hit a high of Rs 72.50 and a low of Rs 71.60 so far during the day.
Aurobindo Pharma edged higher after the company said it has secured final approvals from the United States Food & Drug Administration (USFDA) to manufacture and market Azithromycin for injection USP, 500 mg/vial. The stock was up 0.67% at Rs 1,368. The stock hit a high of Rs 1,380 and a low of Rs 1,360.15 so far during the day. The announcement was made during market hours today, 22 June 2015.
Azithromycin for Injection USP, 500mg /vial is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Zithromax (Azithromycin for Injection) 500mg/vial of Pfizer, Inc. Azithromycin for injection, USP is a macrolide antibacterial drug indicated for the treatment of patients with infections caused by susceptible strains of the designated microorganisms in the conditions such as Community-Acquired Pneumonia and Pelvic Inflammatory Disease, Aurobindo Pharma said in a statement.
Separately, Aurobindo Pharma said during market hours today, 22 June 2015, that it has received final approvals from USFDA to manufacture and market Entacapone tablets USP, 200mg. The product will be launched soon, Aurobindo Pharma said. The approved abbreviated new drug application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Comtan Tablets 200mg of Orion Corporation. Entacapone Tablets are used in the treatment of Parkinson's disease and had estimated market size of $59 million in the United States for the twelve months ended April 2015, according to IMS data, Aurobindo Pharma 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 the global commodities market, Brent crude oil prices edged higher. Brent for August settlement was currently up 19 cents at $63.21 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 0.4% to 1.34%. In Indonesia, the Jakarta Composite was off 0.41%. The Chinese stock market was shut for a holiday.
Trading in US index futures indicated that the Dow could gain 111 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.
In Europe, Greece has reportedly presented a new plan to stave off default before an emergency summit on the country's debt crisis. 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.
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