IT stocks and index heavyweights led gains as key benchmark indices surged in afternoon trade after eurozone leaders reached an agreement over a third bailout for Greece after marathon talks. The agreement eases the risk that Greece will be forced to leave the euro in a "Grexit". Asian and European stocks edged higher after the news of the bailout deal for Greece. The 50-unit CNX Nifty hit its highest level in almost a week. The barometer index, the S&P BSE Sensex, was currently up 287.93 points or 1.04% at 27,949.33. The market breadth indicating the overall health of the market was strong. In the global commodities market, Brent crude oil prices edged lower as Iran and six world powers were close to nailing down a nuclear deal.
Shares of index heavyweights HDFC, ITC and Reliance Industries edged higher. Auto stocks edged higher on renewed buying. FMCG stocks also moved higher.
On macro front, industrial production rose 2.7% in May 2015, compared with a downwardly revised 3.36% growth in April 2015, according to the data released by the government after trading hours on Friday, 10 July 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 465.27 crore during the previous trading session on Friday, 10 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 590.49 crore on Friday, 10 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian and European stocks edged higher after eurozone leaders today, 13 July 2015, reached an agreement over a third bailout for Greece. US stocks rallied during the previous trading session on Friday, 10 July 2015, on renewed hopes that debt-laden Greece will reach a deal with its creditors and stave off an exit from the eurozone.
At 13:16 IST, the S&P BSE Sensex was up 287.93 points or 1.04% at 27,949.33. The index jumped 335.57 points at the day's high of 27,996.97 in afternoon trade, its highest level since 8 July 2015. The index fell 26.34 points at the day's low of 27,635.06 in early afternoon trade.
The CNX Nifty was up 83.05 points or 0.99% at 8,443.60. The index hit a high of 8,461.20 in intraday trade, its highest level since 7 July 2015. The index hit a low of 8,355.40 in intraday trade.
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The market breadth indicating the overall health of the market was strong. On BSE, 1,668 shares gained and 916 shares fell. A total of 96 shares were unchanged.
The BSE Mid-Cap index was up 90.46 points or 0.83% at 10,960.91. The BSE Small-Cap index was up 106.42 points or 0.94% at 11,442.36. Both these indices underperformed the Sensex.
Auto stocks edged higher on renewed buying. Maruti Suzuki India (up 2.08%), Mahindra & Mahindra (M&M) (up 1.68%), Eicher Motors (up 1.31%), Tata Motors (up 0.76%), Ashok Leyland (up 1.26%), Bajaj Auto (up 1.14%), Hero MotoCorp (up 0.52%) and TVS Motor Company (up 4.5%) gained.
FMCG stocks gained. Britannia Industries (up 0.55%), GlaxoSmithkline Consumer Healthcare (up 1.37%), Colgate-Palmolive (India) (up 1.2%), Dabur India (up 1.44%), Godrej Consumer Products (up 1.31%), Hindustan Unilever (up 1.2%), Marico (up 1.23%), Tata Global Beverages (up 1.93%), Procter & Gamble Hygiene and Health Care (down 0.11%), Jyothy Laboratories (up 2.13%), Bajaj Corp (up 0.86%) rose. Nestle India shed 0.04%.
In the global commodities market, Brent crude oil prices edged lower as Iran and six world powers were close to nailing down a nuclear deal. A nuclear deal with Iran would lead to an easing of sanctions against Tehran and to higher crude exports from Iran. Brent for August settlement was currently off $1.18 a barrel at $57.55 a barrel. The contract had gained 12 cents or 0.2% to settle at $58.73 a barrel during the previous trading session. Brent for September settlement was currently off $1.65 a barrel at $57.35 a barrel.
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. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 63.46, compared with its close of 63.38 during the previous trading session on Friday, 10 July 2015.
On macro front, industrial production rose 2.7% in May 2015, compared with a downwardly revised 3.36% growth in April 2015, according to the data released by the government after trading hours on Friday, 10 July 2015. The manufacturing sector registered a growth of 2.2% in May 2015. The mining sector clocked 2.8% growth and electricity generation rose 6% in May 2015. In terms of industries, twelve out of the twenty two industry groups in the manufacturing sector have shown positive growth during the month of May 2015 as compared to the corresponding month of the previous year.
As per use-based classification, the production of basic goods rose 6.4% in May 2015, capital goods production rose 1.8% and the production of intermediate goods rose 1.2% in May 2015. The production of consumer goods registered a decline of 1.6% in May 2015. Within the consumer goods segment, the production of consumer durables dropped 3.9% in May 2015 and production of consumer non-durables dropped 0.1% in May 2015.
The cumulative growth in industrial production for the period April-May 2015 over the corresponding period of the previous year stands at 3%.
The government is scheduled to release data on inflation based on the consumer price index (CPI) for the month of June 2015 at 17:30 IST today, 13 July 2015. The CPI inflation moved up slightly to 5.01% in May 2015 from 4.87% in April 2015.
The government is scheduled to release data inflation based on the wholesale price index (WPI) for June 2015 at around 12:00 noon tomorrow, 14 July 2015. WPI inflation stood at negative 2.4% in May 2015, compared with a reading of negative 2.65% in April 2015.
Meanwhile, the finance ministry on Saturday, 11 July 2015, announced that the Centre's indirect tax revenue jumped 37.4% to Rs 1.53 lakh crore in Q1 June 2015 over Q1 June 2014. The indirect tax collections jumped 33.3% in June 2015 over June 2014. These increases were spread across all three tax categories viz. customs, central excise and service tax. These collections reflect in part additional measures taken, including the excise increases on diesel and petrol, the increase in clean energy cess, the withdrawal of exemptions for motor vehicles and consumer durables and in June 2015, the increase in service tax from 12.36% to 14%. Stripped of all these additional measures, indirect tax collections rose 10.8% in June 2015 over June 2014 and 14.5% in Q1 June 2015 over Q1 June 2014. These collections indicate that the underlying momentum in the economy is improving, across all sectors, including manufacturing, reflected in healthy excise tax collections, the finance ministry said in a statement. The growth in underlying indirect tax collections of 14.5% suggests a healthy increase in nominal GDP growth which constitutes the tax base for indirect tax collections, the finance ministry said.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 10 July 2015, showed that the sowing of Kharif crops is gathering pace. The total sown area for Kharif crops as on 10 July 2015 stood at 445.11 lakh hectares compared with 275.10 lakh hectares at this time last year. Significant increase has been recorded in oilseeds sowing this season; it has reached 101.26 lakh hectares compared with 22.24 lakh hectares at this time last year. Similarly pulses sowing have touched 32.61 lakh hectares this season compared with 22.71 lakh hectares at this time last year. July is a crucial month for the sowing of Kharif crops.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 12 July 2015, that the Southwest Monsoon was vigorous over West Uttar Pradesh and Jammu & Kashmir and active over East Uttar Pradesh, Haryana, Chandigarh & Delhi and Punjab during past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 2% below the Long Period Average (LPA) until 12 July 2015. Region wise, the southwest monsoon was 25% above the LPA in Northwest India, 5% below the LPA in East & Northeast India, 6% below the LPA in Central India and 11% below the LPA in South Peninsula and until 12 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 markets, European stocks edged higher today, 13 July 2015, after eurozone leaders reached an agreement over a third bailout for Greece. Key indices in UK, France and Germany were up 0.95% to 1.66%. In Spain, the IBEX 35 index was up 1.33%. In Italy, the FTSE MIB index was up 0.33%.
After marathon talks, eurozone leaders today, 13 July 2015, reached an agreement over a third bailout for Greece. European Union President Donald Tusk reportedly said leaders agreed "in principle" on negotiations for the bailout, "which in other words means continued support for Greece". Greece is expected to pass reforms demanded by the eurozone by Wednesday, 15 July 2015, according to reports. Parliaments in several eurozone nations also have to approve any new bailout.
Eurozone leaders had been meeting in Brussels for about 17 hours, with talks continuing through the night. The agreement eases the risk that Greece will be forced to leave the euro in a "Grexit".
Asian stocks edged higher today, 13 July 2015, after eurozone leaders reached an agreement over a third bailout for Greece. Key benchmark indices in Japan, Taiwan, Singapore, Indonesia and South Korea were up 0.71% to 1.57%.
China shares edged higher as Beijing's efforts to reverse a massive stock selloff appear to be holding up. In mainland China, the Shanghai Composite rose 2.39%. In Hong Kong, the Hang Seng index was up 1.3%.
China's exports rose 2.8% in June from a year earlier in dollar terms, reversing a 2.5% drop in May, data from the General Administration of Customs showed today, 13 July 2015. Imports in June fell 6.1% from a year earlier compared with a 17.6% drop in May. China's trade surplus narrowed in June to $46.5 billion from $59.49 billion in May.
Trading in US index futures indicated that the Dow could rise 63 points at the opening bell today, 13 July 2015. US stocks rallied during the previous trading session on Friday, 10 July 2015, on renewed hopes that debt-laden Greece will reach a deal with its creditors and stave off an exit from the eurozone.
Federal Reserve Chairwoman Janet Yellen on Friday, 10 July 2015, said she saw signs the economy was improving and said she expects a rate hike to be needed this year. In a speech to The City Club of Cleveland, Yellen was upbeat about the outlook, laying out her view of a US economy close to the point of achieving a virtuous circle, where job gains lead to stronger consumer spending which then sparks more employment and wage gains. The Fed chairwoman did not seem in a rush to move and her remarks also suggest a preference for one rate move this year. She noted that the labor market has improved but "still has not fully recovered" and the course of the economy and inflation remained highly uncertain and something unexpected could delay or accelerate the first step.
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