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Nifty hits highest level in more than four weeks

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Last Updated : Jul 01 2015 | 12:01 PM IST

Cement and IT stocks led gains as key benchmark indices surged in morning trade. The 50-unit CNX Nifty hit its highest level in more than four weeks. The barometer index, the S&P BSE Sensex, hit its highest level in almost a week. The broad market depicted strength. There were more than three gainers against every loser on BSE. The Sensex was currently up 169.23 points or 0.61% at 27,950.06. The BSE Mid-Cap index was up 1.15%. The BSE Small-Cap index was up 1.18%. Both these indices outperformed the Sensex.

Global markets stabilized even as Greece ended up defaulting on its euro 1.55 billion loan ($1.73 billion) to the International Monetary Fund (IMF) yesterday, 30 June 2015, with creditors rejecting a last-ditch effort to buy more time.

Pharmaceutical shares were in demand. Realty shares edged higher. State-run Coal India hit a record high.

Meanwhile, data released by the government after trading hours yesterday, 30 June 2015, showed that the output of Eight Core Industries increased 4.4% in May 2015 over May 2014.

Foreign portfolio investors (FPIs) offloaded shares worth a net Rs 551.38 crore yesterday, 30 June 2015, as per the provisional data released by the stock exchanges. Domestic institutions bought shares worth a net Rs 580.59 crore yesterday, 30 June 2015, as per the provisional data released by the stock exchanges.

In overseas markets, Asian stocks edged higher as investors appear to take in stride Greece's missed loan payment to the IMF. US stocks ended a choppy trading session higher yesterday, 30 June 2015.

At 10:17 IST, the S&P BSE Sensex was up 169.23 points or 0.61% at 27,950.06. The index jumped 181.51 points at the day's high of 27,962.34 in morning trade, its highest level since 25 June 2015. The index gained 19.08 points at the day's low of 27,799.91 at the onset of the trading session.

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The 50-unit CNX Nifty was up 53.70 points or 0.64% at 8,422.20. The index hit a high of 8,426.05 in intraday trade, its highest level since 2 June 2015. The index hit a low of 8,370.15 in intraday trade.

The BSE Mid-Cap index was up 122.35 points or 1.15% at 10,802.34. The BSE Small-Cap index was up 131.07 points or 1.18% at 11,206.42. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong, with more than three gainers for every loser. On BSE, 1,489 shares rose and 434 shares fell. A total of 71 shares were unchanged.

State-run Coal India was up 1.41% at Rs 427. The stock hit a high of Rs 427.60 so far during the day, which is also a record high for the counter. The stock hit a low of 422 so far during the day.

Cement shares were in demand. Ambuja Cements (up 2.20%), Shree Cement (up 1.46%), ACC (up 0.93%) and UltraTech Cement (up 0.89%), edged higher.

Grasim Industries was up 0.64%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Pharmaceutical shares were in demand. Aurobindo Pharma (up 1.88%), Glenmark Pharmaceuticals (up 1.83%), Strides Arcolab (up 1.19%), Sun Pharmaceutical Industries (up 1.09%), Dr. Reddy's Laboratories (up 0.93%), Lupin (up 0.91%), Wockhardt (up 0.88%), Divi's Laboratories (up 0.72%), Cipla (up 0.60%), Cadila Healthcare (up 0.54%), Piramal Enterprises (up 0.54%), IPCA Laboratories (up 0.39%) and GlaxoSmithKline Pharmaceuticals (up 0.20%), edged higher.

Realty shares edged higher. Anant Raj (up 4.92%), Godrej Properties (up 2.11%), Prestige Estates Projects (up 2.09%), D B Realty (up 1.76%), Unitech (up 1.26%), Oberoi Realty (up 1.10%), Housing Development and Infrastructure (HDIL) (up 1.03%), DLF (up 0.64%), Sobha (up 0.62%), Indiabulls Real Estate (up 0.61%), Parsvnath Developers (up 0.23%) and Peninsula Land (up 0.22%), edged higher. Sunteck Realty (down 0.36%) and Phoenix Mills (down 1.04%), edged lower.

Meanwhile, data released by the government after trading hours yesterday, 30 June 2015, showed that the output of Eight Core Industries increased 4.4% in May 2015 over May 2014. The cumulative growth during April to May 2015 was 2.1% over the corresponding period in the previous year.

The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 30 June 2015, that the Southwest Monsoon was vigorous over East Uttar Pradesh and active over Punjab, Himachal Pradesh and Jammu & Kashmir during the past 24 hours until 8:30 IST.

For the country as a whole, the cumulative rainfall during this year's monsoon season was 16% above the Long Period Average (LPA) until 30 June 2015. Region wise, the southwest monsoon was 31% above the LPA in Northwest India, 23% above the LPA in Central India, 19% above the LPA in South Peninsula and 1% above the LPA in East & Northeast India until 30 June 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, Asian stocks edged higher today, 1 July 2015, as investors appear to take in stride Greece's missed loan payment to the IMF. Key equity benchmark indices Japan, Indonesia, South Korea, Singapore and Taiwan were up 0.26% to 1.13%. China's Shanghai Composite was down 0.40%. The stock market in Hong Kong was closed for holiday.

In China, HSBC China manufacturing purchasing managers' index, a gauge of nationwide manufacturing activity, rose to a final reading of 49.4 in June from 49.2 in May, HSBC Holdings PLC and research firm Markit said today, 1 July 2015.

China's official manufacturing purchasing managers index was flat at 50.2 in June compared with a month ago, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement. China's official nonmanufacturing purchasing managers' index rose to 53.8 in June from 53.2 in May.

South Korea's manufacturing activity contracted for a fourth consecutive month in June and fell to a three-year low, a private survey showed Wednesday. The Nikkei Purchasing Managers' Index came in at a seasonally adjusted 46.1 in June, lower than May's reading of 47.8. The latest reading was the weakest since September 2012. A reading above 50 indicates expansion in manufacturing activity, while a reading below that signals contraction.

US stocks ended a choppy trading session higher yesterday, 30 June 2015. News from Greece dominated the trading day.

Greece became the first developed country to default on the International Monetary Fund yesterday, 30 June 2015, as the rescue program that has sustained it for five years expired and its creditors rejected a last-ditch effort to buy more time. The Washington-based fund said in a statement issued yesterday, 30 June 2015, that the Greek government failed to transfer euro 1.55 billion ($1.73 billion) by close-of-business on Tuesday, 30 June 2015, to the IMF. This is the largest, single missed repayment in the IMF's history. The failure to pay the IMF was a dramatic, if anticipated, conclusion to a day full of unexpected twists and turns.

Mr. Gerry Rice, Director of Communications at the International Monetary Fund (IMF) said that the IMF received a request on Tuesday, 30 June 2015, from the Greek authorities for an extension of Greece's repayment obligation, which will go to the IMF's Executive Board in due course.

Greece shut down its banking system, ordering lenders to stay closed for six days from Monday, 29 June 2015, to avoid a run on the country's banks and the nation's central bank moved to impose controls to prevent money from flooding out of the country. Negotiations between Greece and its creditors collapsed after Greece's Prime Minister Alexis Tsipras on 26 June 2015 unexpectedly called for a referendum on whether to accept reform measures demanded by the country's lenders.

On 28 June 2015, the European Central Bank froze emergency loans to Greek banks at their current level of around euro 89 billion, a move that left Greek authorities with little choice but to keep the country's banks closed.

Tsipras has called a referendum on Sunday, 5 July 2015, on whether the country should accept creditors' bailout terms. Greeks will be asked to decide whether to accept reform measures demanded by the country's lenders that would ultimately unlock about euro 15.3 billion in funds. A "no" vote by Greeks could force the country out of the eurozone and push the country into what could be the darkest chapter of its six-year debt crisis.

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First Published: Jul 01 2015 | 10:11 AM IST

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