A bout of volatility was witnessed as key benchmark indices trimmed gains in mid-afternoon trade. Earlier, benchmark indices had drifted higher in mid-afternoon trade moving in a narrow range in positive zone in afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 60.87 points or 0.21% at 28,506.99. The market breadth indicating the overall health of the market was positive. In overseas markets, Chinese shares recovered further after a series of government support measures to halt their recent crash.
Cement stocks were mixed. Auto stocks gained. Maruti Suzuki India hit record high.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit 13-week high amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 745.81 crore yesterday, 16 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 98.51 crore yesterday, 16 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower ahead of a debate and voting by lawmakers in Germany today, 17 July 2015, on the plan for a third bailout for Greece. Chinese stocks led in gains for Asian equities. US stocks edged higher yesterday, 16 July 2015, with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress.
At 14:18 IST, the S&P BSE Sensex was up 60.87 points or 0.21% at 28,506.99. The index gained 130.20 points at the day's high of 28,576.32 in early trade, its highest level since 17 April 2015. The index fell 28.66 points at the day's low of 28,417.46 in morning trade.
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The Nifty was up 13.95 points or 0.16% at 8,622. The index hit a high of 8,642.95 in intraday trade, its highest level since 17 April 2015. The index hit a low of 8,593.15 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,444 shares gained and 1,261 shares fell. A total of 127 shares were unchanged.
The BSE Mid-Cap index was up 34.67 points or 0.31% at 11,232.91. The BSE Small-Cap index was up 57.03 points or 0.4% at 11,722.46. Both these indices outperformed the Sensex.
Cement stocks were mixed. Cement major ACC declined 1.52% ahead of its Q2 June 2015 results today, 17 July 2015.
Shree Cement (up 1.18%) and UltraTech Cement (up 1.74%), gained. Ambuja Cements fell 0.79%.
Grasim Industries rose 0.72%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Auto stocks gained. Ashok Leyland (up 1.66%), Eicher Motors (up 0.14%), and Hero MotoCorp (up 0.2%) gained. Bajaj Auto fell 0.9%. TVS Motor Company declined 0.25%.
Maruti Suzuki India gained 0.64% to Rs 4,207. The stock hit a high of Rs 4,225.25 in intraday trade, which was also a record high for the stock. Media reports suggested that Maruti Suzuki India may get a boost from the Seventh Pay Commission's recommendations later this year that will lead to salaries of government employees rising. According to reports, the Pay Commission is expected to submit its report by October 2015 and this is likely to be implemented from July 2016, likely adding to an expected double-digit growth in passenger car sales in the fiscal year ending March 2017.
Tata Motors rose 1.65%. The company after market hours yesterday, 16 July 2015, announced that its global wholesales, including Jaguar Land Rover (JLR), remained flat on year-on-year basis at 76,602 units in June 2015. Global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range remained flat on year-on-year basis at 31,083 units in June 2015. Global wholesales of all passenger vehicles rose 3% to 45,519 units in June 2015 over June 2014. Global wholesales of Tata Motors passenger vehicles rose 29% to 10,611 units in June 2015 over June 2014.
Global wholesales for Jaguar Land Rover (JLR) stood at 34,908 vehicles (including CJLR wholesales) in June 2015. Jaguar wholesales were 7,087 vehicles while Land Rover wholesales were 27,821 vehicles in June 2015. CJLR is a joint venture between JLR and Chery Automobiles and is an unconsolidated subsidiary for JLR.
Mahindra & Mahindra (M&M) rose 1.28%. The agri business vertical of M&M today, 17 July 2015, announced the launch of its branded edible oil NuPro for the health conscious Indian consumer. The company plans to launch a range of pure and healthy edible oils across the country over the next three years. M&M made the announcement during trading hours today, 17 July 2015.
Meanwhile, the India's weather office, the India Meteorological Department (IMD), said in a weekly monsoon report issued yesterday, 16 July 2015, that rainfall was below normal by 14% over the country as a whole during the period from 9 to 15 July 2015. Region wise, the rainfall was 39% below the Long Period Average (LPA) in South Peninsula, 32% below the LPA in Central India and 15% below the LPA in East & Northeast India during the period from 9 to 15 July 2015. Northwest India received above normal rainfall activity during the week with heavy to very heavy rainfall. The rainfall was 28% above the LPA in Northwest India during the period from 9 to 15 July 2015.
For the country as a whole, cumulative rainfall during the period from 1 to 15 July 2015 was 32% below Long Period Average (LPA). Region wise, the rainfall was 60% below the LPA in South Peninsula, 54% below the LPA in Central India, 15% below the LPA in East & Northeast India and 4% above the LPA in Northwest India during the period from 1 to 15 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.
In a separate daily monsoon update issued yesterday, 16 July 2015, the IMD said that the Southwest Monsoon was vigorous over Jharkhand and was active over Nagaland, Manipur, Mizoram & Tripura, Gangetic West Bengal, Odisha, Bihar, East Uttar Pradesh and Himachal Pradesh during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 16 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 13% below the LPA in South Peninsula, 4% below the LPA in East & Northeast India and 12% above the LPA in Northwest India until 16 July 2015.
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 fell today, 17 July 2015, European stocks edged lower ahead of a debate and voting by lawmakers in Germany today, 17 July 2015, on the plan for a third bailout for Greece. Key indices in France, UK and Germany were off 0.16% to 0.2%. In Spain, the IBEX 35 index was up 0.07%. In Italy, the FTSE MIB index was off 0.18%.
German lawmakers will today, 17 July 2015, debate and vote on whether to approve the plan for a third bailout for Greece. The parliamentary approval is the next hurdle the financial-aid deal must pass before formal talks can begin. The agreement, sealed early this week between Greece and its eurozone partners, must also get legislative approval from a handful of other eurozone member nations to proceed.
The European Central Bank (ECB) yesterday, 16 July 2015, increased emergency funding for Greek lenders, although capital controls will have to remain in place to avoid a run on the banks when they reopen on Monday, 20 July 2015. European Union finance ministers also approved 7 billion euros ($7.6 billion) in bridge loans to Greece, allowing it to make a bond payment to the ECB on Monday, 20 July 2015, and clear its arrears with the International Monetary Fund. Greece's parliament yesterday, 16 July 2015, approved tough austerity measures needed for the country to receive financial aid.
Meanwhile, the European Central Bank left interest rates unchanged at record low after monetary policy review yesterday, 16 July 2015.
In UK, Bank of England Governor Mark Carney yesterday, 16 July 2015, said that the Bank of England's decision on when to start raising interest rates in the UK is likely to become clearer around the turn of the year. Carney also said that when the rates start rising, increases are likely to be gradual and limited to a level below past averages. Carney's comments suggest central bank officials may be prepared to tighten monetary policy earlier than expected. The central bank has kept its benchmark rate at a record low 0.5% since early 2009.
Chinese stocks led gains for Asian equities today, 17 July 2015. Key benchmark indices in Taiwan and Japan were up 0.04% to 0.25%. South Korea's Kospi was off 0.53%. Chinese shares recovered further after a series of government support measures to halt their recent crash. In mainland China, the Shanghai Composite index jumped 3.51%. In Hong Kong, the Hang Seng index was up 1%.
US stocks edged higher yesterday, 16 July 2015, with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress. Stocks rose steadily as Yellen told the Senate Banking Committee yesterday, 16 July 2015, that she doesn't want to see inflation linger below 2% and that risks lie on tightening too early or too late. On Wednesday, 15 July 2015, Yellen repeated her intent to raise rates sometime this year because the US economy is looking better.
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