Capital goods stocks and index heavyweights led gains for the key benchmark indices. Gains for the benchmark indices were triggered by expectations of a resolution in the long-running talks over Greece's debt crisis. The gains for the barometer index, the S&P BSE Sensex, in percentage terms were higher than those for the 50-unit CNX Nifty. The Sensex rose 166.30 points or 0.6% to settle at 27,895.97. The Nifty rose 37.15 points or 0.44% to settle at 8,398. The Sensex attained its highest closing level in almost five weeks. The Nifty attained its highest level in more than three weeks. The market breadth indicating the overall health of the market was positive. In overseas markets, European stocks reversed initial losses on expectations of a resolution in the long-running talks over Greece's debt crisis.
Shares of index heavyweight and engineering & construction major L&T surged. Shares of two other index heavyweights HDFC and Reliance Industries (RIL) also edged higher. Metal shares were mixed. Shares of Vedanta and Cairn India edged higher after these two companies yesterday, 24 June 2015, filed the Scheme of Arrangement along with other requisite documents with BSE and the NSE for approval of the stock exchanges.
Meanwhile, Labour Minister Bandaru Dattatreya was quoted as saying in an interview to a news agency yesterday, 24 June 2015, that the Employees Provident Fund Organisation (EPFO) will invest about $800 million in equities in the current fiscal year starting from July 2015.
Meanwhile, Prime Minister Narendra Modi today, 25 June 2015, launched three mega urban development initiatives viz., Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All in urban area.
Meanwhile, Reserve Bank of India Governor Raghuram Rajan was quoted as saying at a conference in Stockholm yesterday, 24 June 2015, that Indian financial markets have the strength to withstand any fallout of a Greek default on its repayment obligations.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 144.83 crore from the secondary equity market yesterday, 24 June 2015, as per data from National Securities Depository. Domestic institutional investors (DIIs) bought shares worth a net Rs 13.52 crore yesterday, 24 June 2015, as per provisional data released by the stock exchanges.
The S&P BSE Sensex rose 166.30 points or 0.60% to settle at 27,895.97, its highest closing level since 22 May 2015. The index jumped 239.08 points at the day's high of 27,968.75 in late trade. The index fell 93.91 points at the day's low of 27,635.76 in early trade, its lowest level since 22 June 2015.
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The CNX Nifty rose 37.15 points or 0.44% to settle at 8,398, its highest closing level since 1 June 2015. The index hit a high of 8,423.15 in intraday trade. The index hit a low of 8,329.50 in intraday trade, its lowest level since 22 June 2015.
The BSE Mid-Cap index rose 72.37 points or 0.68% to settle at 10,689.75, outperforming the Sensex. The BSE Small-Cap index rose 25.65 points or 0.23% to settle at 11,109.30, underperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,342 shares rose and 1,314 shares dropped. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 2484 crore, lower than turnover of Rs 2629.33 crore registered during the previous trading session.
Index heavyweight Reliance Industries (RIL) gained 1.61% to Rs 1,006.70. The stock hit high of Rs 1,009.05 and low of Rs 985.15.
Index heavyweight and housing finance major HDFC advanced 2.23% to Rs 1,309.20. The stock hit high of Rs 1,313 and low of Rs 1,268.
Capital goods stocks edged higher. L&T (up 3.75%), ABB India (up 2.76%), Crompton Greaves (up 2.06%), Alstom T&D India (up 0.01%), AIA Engineering (up 1.54%), Bharat Heavy Electricals (up 0.47%), Siemens (up 1.28%), Sadbhav Engineering (up 0.05%), Bharat Electronics (up 0.3%) and Thermax (up 0.66%) edged higher. BEML (down 1.81%) and Havells India (down 0.89%) edged lower.
Auto stocks edged higher. Bajaj Auto (up 4.63%), Hero MotoCorp (up 1.26%), Eicher Motors (up 2.18%), Maruti Suzuki India (up 0.55%), Tata Motors (up 0.6%) and Mahindra & Mahindra (up 0.6%) edged higher. TVS Motor Company (down 0.56%) edged lower.
Metal shares were mixed. Hindustan Copper (up 10.17%), JSW Steel (up 1.81%), Steel Authority of India (up 1.54%), Jindal Steel & Power (up 0.39%) and Hindalco Industries (up 1.11%) edged higher. Tata Steel (down 0.25%), Hindustan Zinc (down 0.12%) and National Aluminum Company (down 1.91%) edged lower.
MMTC jumped by maximum permissible level of 20% to Rs 55.20. NMDC rose 0.76%. The Union Cabinet yesterday, 24 June 2015, gave its approval to renew long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore during the three year period from April 2015 to March 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year and will be supplied primarily from the mines of NMDC. The contract will be executed by MMTC.
Iron ore of higher grade have been supplied by India to Japan and South Korea under long term agreements during the last four to five decades. The renewal of long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore will help utilize surplus production of iron ore currently available in India. It will also strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, according to a government statement issued after trading hours yesterday, 24 June 2015.
Shares of Vedanta and Cairn India edged higher after these two companies yesterday, 24 June 2015, filed the Scheme of Arrangement along with other requisite documents with BSE and the NSE for approval of the stock exchanges. Shares of Vedanta rose 1.99% at Rs 179.50. The stock hit a high of Rs 182.05 and a low of Rs 175 in intraday trade.
Shares of Cairn India rose 3.22% at Rs 187.75. The stock hit a high of Rs 189 and a low of Rs 181.85 in intraday trade.
It may be recalled that Vedanta and Cairn India had on 14 June 2015 announced that Cairn India will be merged with Vedanta.
Shares of public sector banks were mixed. Bank of Baroda (down 0.65%) and Vijaya Bank (down 0.12%) edged lower. Bank of India (up 2.95%), Indian Overseas Bank (up 0.39%) Oriental Bank of Commerce (up 0.39%), Union Bank of India (up 2.4%) and Andhra Bank (up 0.76%) edged higher. Punjab National Bank ended unchanged for the day at Rs 138.50.
State Bank of India (SBI) rose 0.76% at Rs 264.50. The stock hit a high of Rs 266 and a low of Rs 259.10. SBI said during market hours today, 25 June 2015, that Anshula Kant has been designated as the Deputy Managing Director and Chief Financial Officer (CFO) of the bank.
Canara Bank dropped as the stock turned ex-dividend today, 25 June 2015, for dividend of Rs 10.50 per share for the year ended 31 March 2015 (FY 2015). The stock fell 4.01% at Rs 294.10.
Shares of private banks were mixed. Axis Bank (down 0.12%) and Yes Bank (down 0.01%) edged lower. Kotak Mahindra Bank (up 0.95%), HDFC Bank (up 2.25%) and IndusInd Bank (up 2.39%) edged higher.
ICICI Bank fell 0.58%. ICICI Bank after market hours today, 25 June 2015, announced a reduction of 5 basis points (bps) in its base rate to 9.70% per annum (pa) from 9.75% with effect from 26 June 2015. With effect from 1 July 2010, interest rates on new loans and advances, including consumer loans, are determined with reference to the bank's base rate, ICICI Bank said.
FMCG shares edged lower. Bajaj Corp (down 2.33%), Marico (down 1.78%), Nestle India (down 2.76%), Hindustan Unilever (down 1.47%), Colgate-Palmolive (India) (down 0.73%), Godrej Consumer Products (down 1.59%), Britannia Industries (down 0.04%) and Jyothy Laboratories (down 2.45%) edged lower. Procter & Gamble Hygiene and Health Care (up 0.65%), Tata Global Beverages (up 1.43%) and GlaxoSmithkline Consumer Healthcare (up 0.73%) edged higher.
Dabur India rose 0.97% to Rs 276. A bulk deal of 6.90 lakh shares was executed on the scrip at Rs 277.60 per share at 12:54 IST on BSE today, 25 June 2015.
IT stocks edged lower. Infosys (down 0.31%), HCL Technologies (down 0.46%), Wipro (down 2.04%), TCS (down 0.64%) edged lower. Oracle Financial Services Software (up 0.76%) rose
Tech Mahindra was off 3.1%. Tech Mahindra said before market hours today, 25 June 2015, that the company has been selected by Circle Health after a competitive procurement process to become a chosen technology partner for the next 10 years. The project will be delivered by nth Dimension, a newly formed wholly owned subsidiary of Tech Mahindra in the United Kingdom, the company said in a statement. The deal was signed yesterday, 24 June 2015, and is worth a projected 50 million pounds over the 10 years, Tech Mahindra said.
DLF rose 2.71% at Rs 117.50. The stock hit a high of Rs 119.85 and a low of Rs 112.80. With regard to news item titled "DLF to transfer all its Bengaluru assets to Blackstone. DLF to also give partial stake in Chennai property to Blackstone. DLF still negotiating valuation for Chennai property", DLF during market hours today, 25 June 2015, clarified that the news item is a speculative news and being a responsible corporate, the company would keep exchanges informed in case of any specific developments and the company shall continue to do so as part of its obligation under Clause 36 of Listing Agreement.
Prime Minister Narendra Modi has expressed dismay at the delay in vital infrastructure projects due to repeated litigation and has asked concerned departments to proactively pursue these matters judicially and highlight the difficulties faced by the people due to the non-completion of these projects, according to a statement from the Prime Minister's Office (PMO) yesterday, 24 June 2015. The Prime Minister simultaneously complimented several state governments for the efforts that they were putting in to speed up infrastructure projects. The PMO said that the Prime Minister reviewed the progress of key infrastructure projects worth over Rs 60000 crore in the railway, road, power, coal, petroleum, and renewable energy sectors spread over several states including Jammu and Kashmir, Punjab, Haryana, Bihar, Jharkhand, Odisha, Chhattisgarh, Arunachal Pradesh, Tripura, Maharashtra and Karnataka.
Meanwhile, speaking at the launch of three major urban development initiatives viz. AMRUT (Atal Mission for Rejuvenation and Urban Transformation), Smart Cities Mission and Housing for All (Urban) at Vigyan Bhawan in New Delhi, Modi today, 25 June 2015, said that urbanization should be viewed as an opportunity and urban centres should be viewed as growth engines. Through AMRUT, the aim of the government is to give cities themselves the chance to plan their future growth, Modi said. The Prime Minister said urban and rural development in India should be complimentary. One way of doing this was to ensure waste water management in urban areas, so that the treated water could be returned to rural areas for irrigation. Similarly, solid waste management could generate compost which could act as organic fertiliser for the surrounding rural areas.
The Ministry of Urban Development said in a statement that the guidelines released by Prime Minister at the launch of these three new urban missions allow the state government and Union Territories full liberty and flexibility in formulation, approval and execution of projects under the three missions. The two urban ministries have sought to ensure timely sanction and execution and certainty of resources for various projects and participation of citizens in identifying development needs under the new urban schemes. The central government has virtually withdrawn from the earlier practice of appraising and sanctioning individual projects, there by ending the scope for subjectivity and discretion, the Ministry of Urban Development said in a statement.
Speaking on the occasion, Minister of Urban Development and Housing and Urban Poverty Alleviation M.Venkaiah Naidu said that the new urban schemes have been so designed and formulated so as to completely do away with any subjectivity or discretion in selection of cities and in allocation of funds and state governments are being given full liberty and flexibility in formulation, appraisal and approval of projects. He said that urban reforms, smart leadership and smart people are key to the success of new missions.
Meanwhile, Reserve Bank of India Governor Raghuram Rajan was quoted as saying in Stockholm at the Riksbank Macroprudential Conference yesterday, 24 June 2015, that the progress of the monsoon thus far has been quite strong. Rajan also reportedly said at the conference that India needs to "create more growth" and needs to grow still faster. Rajan said developments in Greece could affect the financial markets. But he also said the Indian financial markets have the strength to withstand any fallout of a Greek default on its repayment obligations. India's foreign exchange reserves are at a record high and investors have a positive outlook on the country, he said.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 24 June 2015, that the southwest monsoon has further advanced into most parts of north Arabian Sea, Gujarat state, some more parts of Madhya Pradesh and East Uttar Pradesh, remaining parts of Bihar, most parts of Himachal Pradesh and Uttarakhand, entire Jammu & Kashmir and some parts of Punjab and East Rajasthan. Conditions are favourable for further advance of southwest monsoon into remaining parts of Arabian sea and entire country during next 48 hours, the IMD said. The southwest monsoon was vigorous over Saurashtra & Kutch and Madhya Maharashtra and active over Gangetic West Bengal, Jharkhand, Gujarat Region, Konkan & Goa and South interior Karnataka during past 24 hours until 8:30 IST, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 23% above the Long Period Average (LPA) until 23 June 2015. Region wise, the southwest monsoon was 51% above the LPA in Central India, 33% above the LPA in South Peninsula, 4% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 23 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 stock markets, European shares today, 25 June 2015, reversed initial losses as investors monitored developments on Greece debt talks. Key benchmark indices in Germany and France were up 0.42% to 0.62%. In UK, the FTSE 100 index was off 0.13%.
Investors continue to watch developments on Greece debt talks. A Eurogroup meeting of eurozone finance ministers yesterday, 24 June 2015, ended after little over an hour as it became clear key differences over pension and other budget cuts remained between the international lenders and Greece's anti-austerity government. The finance ministers reportedly insisted that Greek Prime Minister Alexis Tsipras first has to agree on policy overhauls with the three international lenders overseeing Greece's bailout. Tsipras is scheduled to hold a meeting with the heads the International Monetary Fund, the European Commission and the European Central Bank today, 25 June 2015, with the hope of reaching an agreement. The Eurogroup will also continue their discussion on Greece in preparation for the EU summit of European leaders later in the day.
Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund (IMF) on 30 June 2015. On the same day, Greece's international bailout expires. A default on its international creditors-the IMF and other eurozone governments-could force Greece into a messy exit from the euro.
Asian stocks edged lower today, 25 June 2015, tracking a negative lead from Wall Street after negotiations between Greece and its creditors hit a stalemate overnight. Key indices in China, Japan, Singapore, Hong Kong, South Korea and Indonesia were off 0.02% to 3.46%. In Taiwan, the Taiwan Weighted rose 0.84%.
China yesterday, 24 June 2015, announced new measures to stimulate lending. China will remove the loan-to-deposit ratio requirement of 75%, in a bid to lend out more to a slowing economy, the State Council announced yesterday, 24 June 2015, according to media reports.
US stocks closed lower yesterday, 24 June 2015 as investors weighed the renewed impasse in the Greece debt talks and digested domestic data. The Commerce Department said yesterday, 24 June 2015 that US' gross domestic product fell at a 0.2% annual rate in the January-March quarter instead of the 0.7% pace of contraction it reported last month.
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