After seeing a bout of initial volatility, key benchmark indices surged in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit three-week high. The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. The Sensex was currently up 108.72 points or 0.39% at 27,838.93. In overseas stock markets, Asian stocks edged higher on a tide of optimism that Greece and its creditors can broker a deal to avert bankruptcy.
Telecom stocks edged higher on renewed buying. Pharma stocks edged higher after the Ministry of Chemicals and Fertilizers after trading hours yesterday, 22 June 2015, said that a Task Force on the pharmaceutical sector has recommended measures to enhance regulatory support, strengthening of infrastructural support and has recommended fiscal and financial support to the sector.
Meanwhile, Japan headquartered telecommunications and Internet major SoftBank Corp. (SoftBank), leading Indian business conglomerate Bharti Enterprises (Bharti) and Taiwan-based top design and manufacturing services provider Foxconn Technology Group (Foxconn) have announced the setting up of a joint venture under the name SBG Cleantech to promote the adoption of clean and safe energy in India, according to a joint press statement issued by SoftBank, Bharti and Foxconn yesterday, 22 June 2015.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire on Thursday, 25 June 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 651.31 crore during previous trading session, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 94.03 crore during previous trading session, as per provisional data.
In overseas stock markets, Asian stocks edged higher on a tide of optimism that Greece and its creditors can broker a deal to avert bankruptcy. US stocks edged higher yesterday, 22 June 2015, following a global rally in equities, as investors cheered signs of progress in the Greece debt negotiations.
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At 10:15 IST, the S&P BSE Sensex was up 108.72 points or 0.39% at 27,838.93. The index gained 124.45 points at the day's high of 27,854.66 in morning trade, its highest level since 2 June 2015. The index fell 63.62 points at the day's low of 27,666.59 in early trade.
The CNX Nifty was up 35.80 points or 0.43% at 8,388.90. The index hit a high of 8,392 in intraday trade, its highest level since 2 June 2015. The index hit a low of 8,334.95 in intraday trade.
The BSE Mid-Cap index was up 76.27 points or 0.72% at 10,719.96. The BSE Small-Cap index was up 79.16 points or 0.71% at 11,174.66. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,205 shares rose and 519 shares fell. A total of 74 shares were unchanged.
Telecom stocks edged higher on renewed buying. Mahanagar Telephone Nigam (up 6.79%), Bharti Airtel (up 1.91%) and Reliance Communications (up 0.34%) and Tata Teleservices (Maharashtra) (up 0.15%) edged higher. Idea Cellular (down 0.46%) edged lower.
Pharma stocks edged higher after the Ministry of Chemicals and Fertilizers after trading hours yesterday, 22 June 2015, said that a Task Force on the pharmaceutical sector has recommended measures to enhance regulatory support, strengthening of infrastructural support and has recommended fiscal and financial support to the sector. Glenmark Pharmaceuticals (up 3.07%), Sun Pharmaceutical Industries (up 0.63%), Cipla (up 1.52%), Dr Reddy's Laboratories (up 0.44%), Strides Arcolab (up 0.41%) and GlaxoSmithkline Pharmaceuticals (up 0.11%) edged higher. Wockhardt (down 0.58%), Lupin (down 1.09%) and Ipca Laboratories (down 0.72%) edged lower.
The Task Force has also recommended measures for promoting skill development aligned to the need of the industry, strengthening the R&D capability of the sector and pricing strategy for the sector. Speaking at the release ceremony of the Task Force report on the pharmaceutical sector yesterday, 22 June 2015, the Minister of Chemicals & Fertilizers Ananth Kumar said that the government wants to encourage a robust pharmaceutical industry in the country that is upgraded, standardized, innovative and globally competitive and can produce formulations at affordable costs. Kumar further said that the government is very keen on early implementation of the recommendations of the Task Force and it would come out with an action taken report on these recommendations in 100 days.
The Secretary, Department of Pharmaceuticals, Dr. V.K. Subburaj said that the exports of pharmaceuticals by Indian companies is a success story. However, regulations in the sector are weak in the country and that is affecting the further growth, he said.
Infosys was off 1.34% at Rs 1,010.70. The stock hit a high of Rs 1,028 and a low of Rs 1,001 so far during the day. Infosys before market hours today, 23 June 2015, announced that the board of directors of the company at its meeting held yesterday, 22 June 2015, granted 1.24 lakh Restricted Stock Units (RSUs) to CEO and Managing Director Dr. Vishal Sikka. The grant price of the RSU is Rs 5 per RSU. The RSU grant will be subject to the terms, definitions, and provisions of the 2011 RSU Plan, Infosys said.
Meanwhile, Japan headquartered telecommunications and Internet major SoftBank Corp. (SoftBank), leading Indian business conglomerate Bharti Enterprises (Bharti) and Taiwan-based top design and manufacturing services provider Foxconn Technology Group (Foxconn) have announced the setting up of a joint venture under the name SBG Cleantech to promote the adoption of clean and safe energy in India, according to a joint press statement issued by SoftBank, Bharti and Foxconn yesterday, 22 June 2015. Subject to certain conditions, all three companies will jointly invest in the venture, according to the joint press release. SBG Cleantech will be a harbinger of solar and wind energy. Given its vast population, high irradiation, growing energy demand and power deficit, limited access to fossil fuels and a large number of unlit villages, India has great potential to be a major solar market, according to the joint statement.
SoftBank Chairman & CEO Masayoshi Son said that India offers vast potential and with this partnership, the goal is to create a market-leading ?clean energy company to fuel India's growth with clean and renewable sources of energy. Bharti Enterprises Chairman Sunil Bharti Mittal said that the Bharti group is participating in the renewable energy venture which has the potential to transform the Indian economy.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 22 June 2015, that the southwest monsoon has further advanced into some more parts of Gujarat region, Madhya Pradesh, most parts of Chhattisgarh and Jharkhand and some parts of Bihar. Conditions are favourable for further advance of Southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Chhattisgarh, Jharkhand and Bihar, entire Uttarakhand, Himachal Pradesh, Jammu & Kashmir, most parts of Madhya Pradesh and some parts of Uttar Pradesh, Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 3 days, the IMD said. The Southwest Monsoon was vigorous over Madhya Maharashtra, Vidarbha, Chhattisgarh and South Interior Karnataka and active over Gangetic West Bengal, Odisha, Jharkhand, West Madhya Pradesh and North Interior Karnataka during past 24 hours ending at 0830 hrs, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 16% above the Long Period Average (LPA) until 21 June 2015. Region wise, the southwest monsoon was 32% above the LPA in Central India, 30% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 21 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, Asian markets edged higher today, 23 June 2015, on a tide of optimism that Greece and its creditors can broker a deal to avert bankruptcy. Key indices in Japan, Hong Kong, Taiwan, Singapore and South Korea were up 0.34% to 1.6%. Key indices in China and Indonesia were off 0.03% to 2.44%.
The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose to 49.6 in June from a final reading of 49.2 in May, HSBC Holdings PLC said today, 23 June 2015. The reading is still below 50, which separates expansion from contraction.
US stocks closed higher yesterday, 22 June 2015, following a global rally in equities, as investors cheered signs of progress in the Greece debt negotiations.
US existing home sales rose in May to the fastest pace since late 2009, as first-time buyers stepped up their purchases and more homes on the market encouraged buyers, according to data released yesterday, 22 June 2015. Sales of existing homes rose 5.1% in May to a seasonally adjusted annual rate of 5.35 million, hitting the fastest pace since November 2009 and rebounding from a drop in April, the National Association of Realtors reported.
In Europe, Greece's economy minister has reportedly spelled out the terms of new proposals to end deadlock on its debt crisis, amid hopes a deal can now be struck this week. Eurozone finance ministers have welcomed the plan, saying there could be a deal "within days", as per reports. Greece is up against a June 30 deadline to make a 1.6 bililon ($1.8 billion) repayment to the International Monetary Fund, with larger payments to the European Central Bank falling due next month.
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