Key benchmark indices extended intraday gains and hit fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest levels in more than four weeks. The Sensex was currently trading above the psychological 28,000 mark, having alternately moved above and below that mark so far during the trading session. Earlier, the Sensex had moved past the psychological 28,000 mark in mid-morning trade. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 205.68 points or 0.74% at 28,015.03. In overseas markets, Chinese stocks led gains in Asian stocks.
Metal shares were mixed. Banks were in demand after the Reserve Bank of India (RBI) yesterday, 21 May 2015, in a notification yesterday, 21 May 2015, extended the timeframe to spread over the shortfall arising out of sale of non-performing assets (NPAs) if the sale value is lower than the net book value (NBV), over a period of two years, to up to 31 March 2016 from its earlier timeframe of 31 March 2015.
Meanwhile, the Southwest Monsoon has reportedly further advanced and arrived over Sri Lanka.
Meanwhile, Finance Minister Arun Jaitley reportedly said at a news conference today, 22 May 2015, to mark the first year of Prime Minister Narendra Modi's government in power that India should bring down its effective tax rate to global levels.
Foreign portfolio investors sold shares worth a net Rs 186.26 crore yesterday, 21 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.01 crore yesterday, 21 May 2015, as per provisional data released by the stock exchanges.
Meanwhile, the government yesterday, 21 May 2015, announced an overhaul of the country's foreign direct investment (FDI) policy rules for overseas Indians.
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In the overseas market, Chinese stocks led gains in Asian stocks. US stocks ended slightly higher yesterday, 21 May 2015, sending the S&P 500 to a fresh record.
At 12:20 IST, the S&P BSE Sensex was up 205.68 points or 0.74% at 28,015.03. The index jumped 224.37 points at the day's high of 28,033.72 in early afternoon trade, its highest level since 23 April 2015. The index gained 19.26 points at the day's low of 27,828.61 in early trade.
The Nifty was up 55.15 points or 0.65% at 8,476.15. The index hit a high of 8,480.15 in intraday trade, its highest level since 23 April 2015. The index hit a low of 8,420.60 in intraday trade.
The BSE Mid-Cap index was up 60.47 points or 0.57% at 10,667.39. The BSE Small-Cap index was up 68.96 points or 0.62% at 11269.82. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,294 shares rose and 1,056 shares fell. A total of 112 shares were unchanged.
Banks were in demand after the Reserve Bank of India (RBI) yesterday, 21 May 2015, in a notification yesterday, 21 May 2015, extended the timeframe to spread over the shortfall arising out of sale of non-performing assets (NPAs) if the sale value is lower than the net book value (NBV), over a period of two years, to up to 31 March 2016 from its earlier timeframe of 31 March 2015. Among PSU banks, Punjab National Bank (up 1.88%), Bank of Baroda (up 1.85%), Bank of Maharashtra (up 1.67%), Syndicate Bank (up 1.65%), Union Bank of India (up 1.65%), Canara Bank (up 1.40%), IDBI Bank (up 1.31%), Allahabad Bank (up 1.28%), UCO Bank (up 1.09%), Andhra Bank (up 1.03%), Bank of India (up 0.77%), Corporation Bank (up 0.70%), United Bank of India (up 0.59%), Punjab and Sind Bank (up 0.53%), Dena Bank (up 0.51%) and Central Bank of India (up 0.18%), edged hihger. Indian Bank (down 0.16%) and Vijaya Bank (down 0.96%), edged lower.
State Bank of India (SBI) was up 2.75% at Rs 297.30. The stock hit a high of Rs 299.20 and a low of Rs 292.35 so far during the day. SBI is scheduled to announce its Q4 March 2015 results today, 22 May 2015.
Among private sector banks, ICICI Bank (up 1.31%), City Union Bank (up 1.30%), IndusInd Bank (up 1.20%), Axis Bank (up 0.73%), Federal Bank (up 0.67%), Yes Bank (up 0.63%), Kotak Mahindra Bank (up 0.18%) and HDFC Bank (up 0.10%) edged higher.
Metal shares were mixed. Jindal Steel & Power (up 2.46%), Hindustan Zinc (up 1.30%), Bhushan Steel (up 0.33%), National Aluminum Company (up 0.31%), Steel Authority of India (up 0.23%), NMDC (up 0.19%) and Tata Steel (up 0.13%) edged higher. JSW Steel (down 0.24%), Hindalco Industries (down 0.68%), Hindustan Copper (down 0.95%) and Vedanta (down 1.13%), edged lower.
Meanwhile, the government yesterday, 21 May 2015, announced an overhaul of the country's foreign direct investment (FDI) policy rules for overseas Indians. Investment by NRIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will now be deemed to be domestic investment at par with the investment made by residents. This decision is meant to provide clarity in the FDI policy as such investment is not included in the category of foreign investment, a government statement said. The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country, the statement said.
Meanwhile, Finance Minister Arun Jaitley reportedly said at a news conference today, 22 May 2015, to mark the first year of Prime Minister Narendra Modi's government in power that India should bring down its effective tax rate to global levels. Jaitley said that India must remove discretion, phase out exemptions and bring the effective corporate tax rate down to global levels.
It may be recalled that Jaitley had announced in his speech on the Union Budget 2015-16 presented in parliament on 28 February 2015 that the rate of corporate tax will be cut to 25% from 30% over a period of next four years.
Meanwhile, the Southwest Monsoon has reportedly further advanced and arrived over Sri Lanka. According to private weather forecaster Skymet, the monsoon has covered entire Andaman Sea, some more parts of southeast, southwest and eastcentral Bay of Bengal. Weather conditions are looking favourable for the advancement of the Southwest Monsoon indicating its timely onset over Kerala, Skymet said yesterday, 21 May 2015 on its website.
In overseas markets, Chinese stocks led gains in Asian stocks today, 22 May 2015. In mainland China, the Shanghai Composite index was up 2.44%. In Hong Kong, the Hang Seng index was up 1.70%. In other Asian markets, key benchmark indices in Singapore, South Korea and Taiwan were up 0.40% to 1.1%. Indonesia's Jakarta Composite was off 0.10%.
In Japan, the Nikkei 225 was up 0.30%. The Bank of Japan today, 22 May 2015, kept its policy on hold, saying the country's economy is improving moderately. The BOJ's nine-member policy board voted 8-1 to leave its policy framework unchanged, keeping the bank's annual asset purchases at 80 trillion Yen ($660 billion). The BOJ last expanded its easing measures in October.
US stocks ended slightly higher yesterday, 21 May 2015, sending the S&P 500 to a fresh record. The main indexes continued to trade in narrow ranges in the absence of a major catalyst to move prices either direction. Investors mostly brushed off a flurry of weaker-than-expected economic data a day after minutes from Federal Reserve's last meeting signaled a June interest-rate hike was unlikely.
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