A range bound movement was witnessed as key benchmark indices traded near the flat line early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 9.24 points or 0.03% at 28,455.36. 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.
Telecom stocks gained. Shares of public sector banks were mixed. Shares of private sector banks declined.
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, 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 12:17 IST, the S&P BSE Sensex was up 9.24 points or 0.03% at 28,455.36. 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.
The CNX Nifty was up 0.90 points or 0.01% at 8,608.95. 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.
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The market breadth indicating the overall health of the market was positive. On BSE, 1,336 shares gained and 1,119 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 27.90 points or 0.25% at 11,226.14. The BSE Small-Cap index was up 73.22 points or 0.63% at 11,738.65. Both these indices outperformed the Sensex.
Telecom stocks gained. Bharti Airtel (up 0.84%), Tata Teleservices (Maharashtra) (up 0.28%) and Reliance Communications (up 2.4%) gained.
Idea Cellular rose 1.48%. With respect to news titled "Bharti in talks to buy Idea & Vodafone towers for $1.6 bn", Idea Cellular clarified during market hours that news is speculative in nature.
Shares of public sector banks were mixed. UCO Bank (up 0.92%), Syndicate Bank (up 0.01%), Punjab National Bank (up 0.52%), Corporation Bank (up 0.68%), Allahabad Bank (up 0.33%), Bank of Baroda (up 0.42%), and Union Bank of India (up 0.23%), edged higher. State Bank of India (SBI) (down 0.02%), Canara Bank (down 0.37%), Bank of India (down 0.39%) and United Bank of India (down 0.41%) edged lower.
The Minister of State for Finance Jayant Sinha reportedly said today, 17 July 2015, that the government is very much committed to supporting state-run banks. State-run banks have been facing capital constraints as bad loans, sluggish loan growth and depleting profits have eroded their funds.
Shares of private sector banks declined. Axis Bank (down 0.69%), HDFC Bank (down 0.38%), Kotak Mahindra Bank (down 1.39%), Federal Bank (down 0.26%) and Yes Bank (down 1.06%), edged lower. ICICI Bank rose 0.46%.
According to reports, the limit for foreign institutional investors (FIIs) would stay at 49% for banks after the Union Cabinet yesterday, 16 July 2015, approved clubbing of different categories of foreign investment in companies with a composite cap. Currently, overall 74% foreign investment is allowed in banks. FII investment cannot be allowed beyond the current limit of 49% for the fear of run on the bank in case foreign portfolio investors (FPIs) suddenly pull out, according to media reports. Shares of private sector banks had risen yesterday, 16 July 2015, after the Union Cabinet approved clubbing of different categories of foreign investment in companies with a composite cap.
Meanwhile, the Reserve Bank of India (RBI) yesterday, 16 July 2015, announced that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in monthly credit card statement issued by the bank to the customer, is not paid by the customer fully within 90 days from the payment due date mentioned in the statement. However, banks shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges, etc., if any, only when a credit card account remains 'past due' for more than three days, the RBI said in a notification. The number of 'days past due' and late payment charges shall, however, be computed from the payment due date mentioned in the credit card statement, the RBI said.
IndusInd Bank fell 0.1%. IndusInd Bank after trading hours yesterday, 16 July 2016, announced that it had lunched customer responsive service called QuickPay, allowing the bank customers to send money instantly to their personal contacts and/or business parties through SMS, E-mail and social media platforms, without having beneficiary bank account details. The bank will also soon launch its Wallet-based payment app, it added.
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, Chinese stocks led gains for Asian equities today, 17 July 2015. Key benchmark indices in Taiwan and Japan were up 0.04% to 0.22%. South Korea's Kospi was off 0.48%. Chinese shares recovered further after a series of government support measures to halt their recent crash. In mainland China, the Shanghai Composite index was up 4.1%. In Hong Kong, the Hang Seng index was up 1.2%.
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.
In Europe, 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.
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