Key benchmark indices drifted higher in early trade as retail inflation and industrial output data released after market hours yesterday, 12 June 2017 boosted expectations of a rate cut by the Reserve Bank of India (RBI). At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 68.88 points or 0.22% at 31,164.58. The Nifty 50 index was up 16.65 points or 0.17% at 9,633.05.
The S&P BSE Mid-Cap index was up 0.59%. The S&P BSE Small-Cap index was up 0.58%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 994 shares rose and 306 shares fell. A total of 53 shares were unchanged.
Overseas, most Asian stocks were trading higher, , defying a weak lead from Wall Street. Major US stock-market benchmarks closed lower yesterday, 12 June 2017 weighed by a second straight session of firm losses in technology shares.
Investors are focused on the Federal Reserve, which on Wednesday is widely anticipated to deliver an interest-rate hike. Meanwhile, the Trump administration yesterday, 12 June 2017 proposed a wide-ranging rethinking of the rules governing the US financial sector in a report that makes scores of recommendations that have been on the banking industry's wish list for years.
Back home, Sun Pharmaceutical Industries (up 2.69%), Lupin (up 1.26%) and GAIL (India) (up 0.85%) edged higher from the Sensex pack.
Wipro rose 0.46%. The company said that in view of market activity in the company's shares on Monday, 12 June 2017, the New York Stock Exchange (NYSE) has contacted the company in accordance with its usual practice. The company felt that it was important to clarify to the market that the payable date and ex-dividend date for its ADR (American Depository Receipts) bonus issue, or stock dividend, are yet to be determined, Wipro said.
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At NYSE, for ADR stock dividends or bonus issue, the ex-dividend date is set as the first business day after the stock dividend is paid, which is also after the record date. Therefore NYSE has not yet declared an ex-dividend date for Wipro's ADR program. Once the payable date is declared NYSE will announce the ex-dividend date for the ADR, Wipro clarified. The announcement was made after market hours yesterday, 12 June 2017.
Axis Bank rose 0.81%. The bank said it proposes to raise funds by issuing unsecured redeemable non-convertible subordinated debentures, Basel-III Compliant Tier 2 debentures aggregating to Rs 5000 crore. The board of the bank will consider the proposal to issue and allot the aforesaid securities through circular resolution. The announcement was made after market hours yesterday, 12 June 2017.
TCS fell 0.54%. The company announced a new collaboration with Intel Corporation to build a future ready reference architecture for the internet of things (IoT), cloud, network, 5G, AI and data center infrastructure management, helping to meet rapidly evolving digital transformation requirements of global markets. The announcement was made after market hours yesterday, 12 June 2017.
TCS and Intel are also investing in Centre of Excellence (CoE) in the US and India, which will be hubs for next generation datacenter technologies, IoT and cloud-ready network architectures to support customers.
On the macro front, the index of industrial production (IIP) rose by 3.1% in April led by robust growth in electricity generation, data showed yesterday, 12 June 2017. IIP grew by 6.5% in April last year. The CSO also revised upwards the IIP growth figure for March to 3.75% from its provisional estimate of 2.7%. While presenting the March 2017 data, the IIP base year was revised from 2004-05 to 2011-12.
Another data released yesterday, 12 June 2017, showed that retail price inflation, as measured by the consumer price index (CPI), slowed to 2.18% in May from 2.99% in April 2017 as food prices started falling from their year-ago level.
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