After a range bound movement in positive zone in morning trade, key benchmark indices trimmed gains in mid-morning trade. Benchmark indices were currently trading with very small gains. The broad market depicted strength. There were more than two gainers against every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 24.17 points or 0.09% at 28,232.93. In global commodities markets, Brent crude oil futures edged higher after a sharp slide overnight. In overseas markets, Chinese stocks edged lower, returning to the loss column after the Chinese government's drastic market-stimulus efforts led to gains the previous day.
IT stocks rose. Metal and mining stocks were mixed.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than eleven weeks amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 149.37 crore yesterday, 6 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 409.66 crore yesterday, 6 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower as investors remained on edge amid uncertainty over Greece's position in the euro currency union. US stocks ended a choppy trading session slightly lower yesterday, 6 July 2015, as global equities came under pressure after Greece on Sunday, 5 July 2015, rejected its international lenders' bailout terms and moved closer to a potential exit from the eurozone.
At 11:15 IST, the S&P BSE Sensex was up 24.17 points or 0.09% at 28,232.93. The index jumped 126.47 points at the day's high of 28,335.23 in early trade, its highest level since 20 April 2015. The index fell 7.79 points at the day's low of 28,200.97 at onset of the day's trading session.
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The CNX Nifty was up 3.60 points or 0.04% at 8,525.75. The index hit a high of 8,561.35 in intraday trade, its highest level since 20 April 2015. The index hit a low of 8,523.45 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. 1,663 shares gained and 686 shares fell. A total of 93 shares were unchanged.
The BSE Mid-Cap index was up 61.43 points or 0.56% at 11,024.20. The BSE Small-Cap index was up 105.50 points or 0.92% at 11,532.49. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1346 crore by 11:15 IST compared with turnover of Rs 851 crore by 10:15 IST.
IT stocks rose. Wipro (up 1.75%), TCS (up 0.36%), Infosys (up 0.65%) and Tech Mahindra (up 2.27%) rose. HCL Technologies fell 1.55%.
Metal and mining stocks were mixed. Tata Steel (up 0.87%), National Aluminium Company (up 0.63%), Hindustan Zinc (up 0.68%), NMDC (up 0.22%), Hindustan Copper (up 0.48%) edged higher.
Jindal Steel & Power (down 0.3%), Vedanta (down 0.43%), JSW Steel (down 0.51%), Hindalco Industries (down 0.87%), Steel Authority of India (Sail) (down 0.16%) declined.
In global commodities markets, Brent crude futures edged higher today, 7 July 2015, after a sharp slide overnight. Brent for August settlement was currently up 62 cents at $57.16 a barrel. The contract had slumped $3.78 a barrel or 6.26% to settle at $56.54 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 6 July 2015, that the Southwest Monsoon was vigorous over West Uttar Pradesh and active over Jharkhand, Bihar, East Uttar Pradesh, Uttarakhand, Punjab and Himachal Pradesh and normal over Nagaland, Manipur, Mizoram & Tripura, Gangetic West Bengal and Haryana, Chandigarh and Delhi during past 24 hours upto 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was near normal until 6 July 2015. This is a far cry when compared to a reading 24% above the Long Period Average (LPA) for the South West monsoon until 24 June 2015. Region wise, the southwest monsoon was 12% above the LPA in Northwest India, 4% below the LPA in East & Northeast India, 2% below the LPA in Central India and 1% below the LPA in South Peninsula until 6 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.
Asian stocks fell today, 7 July 2015, as investors remained on edge amid uncertainty over Greece's position in the euro currency union. Key benchmark indices in Taiwan, South Korea and Indonesia fell by 0.01% to 1.12%. Key benchmark indices in Japan and Singapore rose by 0.25% to 1.4%.
Chinese stocks declined, resuming their losing streak after the Chinese government's drastic market-stimulus efforts led to gains the previous day. The Shanghai Composite Index was off 2.38%. In Hong Kong, the Hang Seng index was off 0.93%. China has rolled out a steady stream of measures to arrest the selling frenzy that knocked $2.4 trillion in value from China's equities over the past three weeks.
US stocks ended a choppy trading session slightly lower yesterday, 6 July 2015, as global equities came under pressure after Greece on Sunday, 5 July 2015, rejected its international lenders' bailout terms and moved closer to a potential exit from the eurozone.
In Europe, France and Germany told Greece yesterday, 6 July 2015, to come up with serious proposals in order to restart financial aid talks, a day after Greeks voted overwhelmingly to reject more austerity. German Chancellor Angela Merkel and French President Francois Hollande, the euro zone's most powerful leaders, said Athens must move quickly if it wants to secure a cash-for-reform deal with creditors and avoid crashing out of the single currency. In a referendum held on 5 July 2015, Greek voters overwhelmingly rejected reform measures put forward by the country's international creditors, a result seen as increasing the chances of Greece exiting the shared currency viz. the euro.
Greek Prime Minister Alexis Tsipras is expected to present new proposals at a Eurozone emergency summit on his country's growing debt crisis. Eurozone leaders are holding an emergency meeting in Brussels today, 7 July 2015, on Greece's debt crisis.
Christine Lagarde, the International Monetary Fund chief, yesterday, 6 July 2015, reportedly said that the agency stands ready to assist Greece. The IMF is one of Greece's three creditors, and the country missed a payment to it at the end of last month.
Greece's banks will reportedly remain closed until tomorrow, 8 July 2015. Meanwhile, the European Central Bank (ECB) yesterday, 6 July 2015, said it would maintain existing levels of emergency cash support for Greek banks, which are running out of funds and on the verge of collapse. However, it told the banks to lodge more collateral with the Bank of Greece, reducing the amount of spare cash the banks have.
Last week, Greece ordered banks to close after the ECB froze its financial lifeline following the breakdown of bailout talks in Brussels. Capital controls have been imposed, with Greeks unable to withdraw more than euro 60 a day from cash points.
Greece's last bailout expired last Tuesday and Greece missed a euro 1.6bn payment to the IMF.
Greece is due to pay 3.5 billion euros ($3.9 billion) to the ECB on 20 July 2015. If it misses that payment, the ECB is widely expected to cut off emergency funding to Greek banks, a move that would likely lead to their collapse.
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