Key benchmark indices pared initial gains triggered by a sharp overnight slide in global crude oil prices. The barometer index, the S&P BSE Sensex was currently up 67.28 points or 0.24% at 28,276.04. The market breadth indicating the overall health of the market was strong.
In global commodities markets, Brent crude oil futures edged higher after yesterday's sharp slide. The decline in crude oil prices augur well for India.
In overseas markets, Asian stocks edged lower today, 7 July 2015 investors remained on edge amid uncertainty over Greece's position in the euro. US stocks ended yesterday's (6 July 2015) choppy session slightly lower 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.
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.
At 9:31 IST, the S&P BSE Sensex was up 67.28 points or 0.24% at 28,276.04. The index gained 126.47 points at the day's high of 28,335.23 in early trade. The index fell 7.79 points at the day's low of 28,200.97 at onset of the day's trading session.
The CNX Nifty was up 26.85 points or 0.32% at 8,549. The index hit a high of 8,561.35 in intraday trade. The index hit a low of 8,523.50 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,157 shares gained and 296 shares fell. A total of 44 shares were unchanged.
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The BSE Mid-Cap index was up 65.76 points or 0.6% at 11,028.53. The BSE Small-Cap index was up 90.16 points or 0.79% at 11,517.15. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 252 crore by 09:25 IST.
HDFC (up 1.26%), Wipro (up 1.32%) and Tata Steel (up 0.59%) edged higher from the Sensex pack.
Reliance Industries (RIL) shed 0.04%. RIL announced after market hours yesterday, 6 July 2015, that it is proposing to sell 3.25 crore shares of Network18 Media & Investments (NW18), (representing 3.10% of the equity capital of NW18) to bring down the aggregate shareholding of the promoter and promoter group to 75% and increase the public shareholding to 25% as mandated by Clause 40A of the listing agreement pursuant to Securities Contract (Regulation) Rules, 1957.
In this regard, Shinano Retail (effectively 100% owned by Reliance Industrial Investments and Holdings, a wholly owned subsidiary of RIL), a promoter group company of NW18, has issued a notice of Offer for Sale (OFS) of 3.25 crore shares of NW18 through the stock exchange mechanism.
The OFS will take place on Wednesday, 8 July 2015, exclusively through Shinano Retail's broker through a sale on the separate window provided by the BSE and NSE for this purpose. The OFS will open on 9:15 IST on Wednesday, 8 July 2015, and close on 15:30 on the same day. Shinano Retail will declare floor price at 17:00 IST today, 7 July 2015.
Power Grid Corporation of India rose 0.39%. The company said that its board has accorded the investment approval for 'Green Energy Corridors: Inter-State Transmission Scheme (ISTS) - Part - C' at an estimated cost of Rs 2247.37 crore, with commissioning schedule of 36 months from the date of investment approval. The announcement was made after market hours yesterday, 6 July 2015.
In global commodities markets, Brent crude oil futures edged higher after yesterday's sharp slide. Brent for August settlement was currently up 64 cents at $57.18 a barrel. Brent crude oil futures for August delivery had slumped $3.78 a barrel or 6.3% to settle at $56.54 a barrel yesterday, 6 July 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.
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 edged lower today, 7 July 2015 investors remained on edge amid uncertainty over Greece's position in the euro. Key benchmark indices in China, South Korea, Hong Kong, Indonesia, Singapore and Taiwan fell by 0.02% to 3.19%. In Japan, the Nikkei 225 index rose 1.38%.
US stocks ended yesterday's (6 July 2015) choppy session slightly lower 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.
Greece continues to remain in focus. 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.
Greek Prime Minister Alexis Tsipras yesterday, 6 July 2015 reportedly told German Chancellor Angela Merkel that Greece would bring a proposal for a deal to today's emergency euro zone summit. Eurozone leaders will hold an emergency meeting in Brussels today, 7 July 2015, to work out their response to the Greek vote and the next steps in any negotiations, which have been stalled since the referendum was announced. The Greece government will now try to renegotiate a new bailout package with the lenders.
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 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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