Key benchmark indices hovered in positive zone in mid-afternoon trade, with the Nifty 50 index hitting its highest level in more than eleven months. At 14:18 IST, the barometer index, the S&P BSE Sensex was up 48.39 points or 0.17% at 27,863.57. The Nifty 50 index was currently up 20.82 points or 0.24% at 8,540.35.
The Sensex gained 92.43 points or 0.33% at the day's high of 27,907.61 in afternoon trade. The barometer index fell 52.03 points or 0.19% at the day's low of 27,763.15 in morning trade. The Nifty gained 32.10 points or 0.38% at the day's high of 8,551.60 in mid-afternoon trade, its highest level since 11 August 2015. The index fell 18.80 points or 0.22% at the day's low of 8,500.70 in morning trade.
In overseas stock markets, European stocks gained and most Asian markets rose ahead of Bank of England's interest rate decision later in the global day. The Bank of England meets later in the global day today, 14 July 2016, and expectations are that it will lower its benchmark lending rate by a quarter of a percentage point to 0.25% to counter the fallout from the Brexit vote. In the UK, Theresa May became the country's prime minister after former leader David Cameron tendered his resignation to the Queen.
In US stocks, the S&P 500 and Dow Jones Industrial Average scored meager gains yesterday, 13 July 2016 but enough to extend their run into record territory and advance for a fourth session in a row. However, the tech-heavy Nasdaq Composite index took a breather following a five-session climb to end lower. Stocks got a slight bump from the US Fed's beige book report released yesterday, 13 July 2016 which indicated that the US economy is holding steady although consumption may be softening. The beige book is an anecdotal survey of economic conditions in the US compiled by the Fed's regional banks.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,551 shares rose and 1,023 shares declined. A total of 168 shares were unchanged. The BSE Mid-Cap index was currently up 0.38%. The BSE Small-Cap index was currently up 0.68%. Both these indices outperformed the Sensex.
Auto stocks saw mixed trend. Tata Motors (up 1.51%), Hero MotoCorp (up 0.3%) and Ashok Leyland (up 0.77%) gained. TVS Motor Company (down 1.01%) and Eicher Motors (down 0.08%) fell.
More From This Section
Maruti Suzuki India rose 2.14% as the Japanese yen weakened against the dollar. A weak yen lifts Maruti's operating profit margin. Maruti pays royalty to its Japanese parent Suzuki Motor Corporation in yen terms for some of its earlier models. Maruti has reportedly started paying royalty to its Japanese parent in rupee terms on all new models from 1 April 2016. Maruti also has an exposure to the yen to the extent it imports raw materials from Japan.
Mahindra & Mahindra (M&M) fell 1.5% on reports that a foreign brokerage has downgraded the stock to neutral from buy citing expensive valuations. The foreign brokerage reportedly said that M&M's stock valuations are pricing in strong growth in tractors segment. The brokerage expects the company's tractor volumes to recover after two-year gap. The brokerage said that M&M's utility vehicle segment is facing strong competition. Meanwhile, M&M after market hours yesterday, 13 July 2016, announced the incorporation of subsidiary company in the name of Merakisan to carry on the business of procuring and marketing agricultural produce including fruits and vegetables. Merakisan was incorporated as a wholly owned subsidiary of Mahindra Univeg (MUPL) which is a step-down subsidiary of M&M.
Bajaj Auto rose 0.35%. The stock tured ex-dividend today, 14 July 2016, for final dividend of Rs 5 per share for the year ended 31 March 2016 (FY 2016).
Realty stocks gained. Sunteck Realty (up 2.67%), Phoenix Mills (up 1.41%), D B Realty (up 1.36%), Unitech (up 6.07%), Parsvnath Developers (up 0.85%), DLF (up 0.29%), Indiabulls Real Estate (up 0.27%) and Housing Development and Infrastructure (up 0.72%) rose. Sobha (down 1.49%), Godrej Properties (down 0.93%), Oberoi Realty (down 3.65%) and Prestige Estates Projects (down 0.84%) fell.
National Aluminium Company (Nalco) gained 3.21% after the company announced that it has been granted Pottangi Bauxite mines in Koraput district of Odisha, where the company's 22.75 lakh tonne alumina refinery is located. As per a recent order issued by the state government of Odisha, Nalco has been granted the mining lease of Pottangi with an area covering 1,738 hectares for a period of 50 years. Nalco's expansion plans, including the proposed addition of fifth stream in its existing alumina refinery at an investment of Rs 5600 crore, greatly depended on this additional source of bauxite, the company said in a statement. The announcement was made after market hours yesterday, 13 July 2016.
Max India was locked at 5% lower circuit at Rs 185.25 on BSE after stock debuted on the bourses today, 14 July 2016, after the demerger scheme of the Max Group. The stock debuted at Rs 195. The stock hit a high of Rs 199.95 so far during the trading session. On BSE, so far 76,000 shares changed hands in the counter. The new Max India is third and the last company to start trading on the bourses after the demerger of the erstwhile Max India. The two other companies viz. Max Financial Services and Max Ventures and Industries have already started trading. As per the demerger scheme of erstwhile Max India, one equity share of Rs 2 each of Max India (formerly known as Taurus Ventures Limited) was allotted for every one equity share held in Max Financial Services (formerly Max India). Max India is the holding company of Max Healthcare, Max Bupa Health Insurance and Antara Senior Living. Max India owns and actively manages a 45.95% in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
On the macro front, data released by the government today, 14 July 2016 showed that the inflation based on wholesale price index (WPI), rose to 1.62% (provisional) in June 2016 as compared to 0.79% (provisional) in May 2016 and -2.13% in June 2015. WPI for April 2016 was revised higher to 0.79% from 0.34% reported earlier. Build up inflation rate in the financial year so far was 3.82% compared to a build up rate of 1.70% in the corresponding period of the previous year.
Powered by Capital Market - Live News