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Market logs modest gains ahead of FOMC meeting outcome

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Capital Market
Last Updated : Jun 14 2017 | 4:28 PM IST

Key benchmark indices garnered modest gains after gyrating in a small range during the day. The barometer index, the S&P BSE Sensex, rose 52.42 points or 0.17% at 31,155.91, as per the provisional closing data. The Nifty 50 index rose 11.25 points or 0.12% at 9,618.15, as per the provisional closing data. Index heavyweights Reliance Industries, ICICI Bank and L&T led the upmove on the domestic bourses. However, another index heavyweight ITC droped.

The Sensex gained 86.87 points or 0.28% at the day's high of 31,190.36 in late trade. The index fell 48.55 points or 0.16% at the day's low of 31,054.94 in early afternoon trade, its lowest level since 12 June 2017. The Nifty gained 20.50 points or 0.21% at the day's high of 9,627.40 in late trade. The index fell 26.45 points or 0.28% at the day's low of 9,580.45 in early afternoon trade, its lowest level since 29 May 2017.

Trading activity remained within a small range as investors chose to stay on the sidelines and awaited clarity on the Federal Reserve's future path for US policy.

The S&P BSE Mid-Cap index provisionally rose 0.01%, underperforming the Sensex. The S&P BSE Small-Cap index provisionally rose 0.46%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,418 shares fell and 1,249 shares rose. A total of 167 shares were unchanged.

The total turnover on BSE amounted to Rs 3625.36 crore, higher than the turnover of Rs 3442.13 crore registered during the previous trading session.

Reliance Industries (RIL) gained 3.23% after reports its subsidiary Reliance Jio Infocomm outran all its peers in April by adding about 4 million new users to reach a consumer base of 112.55 million. TRAI data showed that Jio was also the leader in wireless broadband services with 112.55 million customers, followed by Bharti Airtel with 52.25 million, Vodafone with 39.76 million, and Idea Cellular with 24.09 million.

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Dr Reddy's Laboratories gained 1.4% after the company said that it has received Establishment Inspection Report (EIR) from the United States Food and Drug Administration on 13 June 2017 as closure of audit for the company's API manufacturing plant at Miryalaguda. This unit was inspected by the USFDA in February 2017 and Dr Reddy's was issued form 483 with three observations. The announcement was made after market hours yesterday, 13 June 2017.

Most realty stocks gained. DLF (up 2.35%), Indiabulls Real Estate (up 2.42%), Housing Development and Infrastructure (up 4.78%), Sobha (up 0.7%), Godrej Properties (up 3.34%), Prestige Estates Projects (up 4.27%), and Parsvnath Developers (up 0.15%) rose. D B Realty (down 0.24%), Unitech (down 1.16%) and Oberoi Realty (down 1.59%) fell.

Among domestic macroeconomic data, the annual rate of inflation, based on monthly wholesale price index (WPI) stood at 2.17% (provisional) for the month of May 2017 over May 2016 as compared to 3.85% (provisional) for the previous month and -0.9% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was -0.35% compared to a build up rate of 2.51% in the corresponding period of the previous year. The data was announced during market hours today, 14 June 2017.

Overseas, European stocks were trading higher while most Asian stocks settled with gains ahead of the US Federal Reserve's decision on interest rates. In US, the Dow and the S&P 500 closed at records yesterday, 13 June 2017, as technology shares rebounded following a two-day decline.

Among macroeconomic data, China's factory output and retail sales grew at a steady pace in May but investment slowed. Value-added industrial output, a rough proxy for economic growth, in May rose 6.5% from a year earlier, the same pace as in April. Fixed-asset investment growth slowed to 8.6% in the first five months of the year. Growth of private investment slowed slightly to 6.8% in January-May period from 6.9% in the first four months, the National Bureau of Statistics said, Retail sales were more upbeat, rising 10.7% in May from a year earlier, unchanged from April.

The US Federal Reserve's two-day meet ends today, 14 June 2017 and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.

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First Published: Jun 14 2017 | 3:48 PM IST

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