A range bound movement was witnessed as the two key benchmark indices hovered in positive zone in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex was up 50.07 points or 0.19% at 26,453.03. The Nifty 50 index was currently up 15.80 points or 0.2% at 8,110.50. The broad market depicted strength. There were more than two gainers against every loser on the BSE. 1,457 shares rose and 682 shares declined. A total of 130 shares were unchanged. The BSE Mid-Cap index was currently up 0.36%. The BSE Small-Cap index was currently up 0.68%. Both these indices outperformed the Sensex.
In overseas stock markets, most Asian stocks edged higher in an indication that markets were stabilizing in the wake of the UK's vote last week to leave the European Union (EU). Chinese stocks witnessed a mixed trend. In mainland China, the Shanghai Composite was currently up 0.15%. In Hong Kong, the Hang Seng index was currently off 0.79%. Trading in US index futures indicated a recovery for US stocks from a recent selloff triggered by the UK's decision to leave the European Union. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 145 points at the opening bell today, 28 June 2016.
US stocks registered heavy losses for the second trading session in a row yesterday, 27 June 2016, as investors continued to dump assets perceived as risky in the wake of the UK's vote last week to leave the European Union. Activity in the US services sector remained subdued in June, according to preliminary data released yesterday, 27 June 2016. In a report, market research group Markit said that its flash services purchasing managers' index (PMI) remained unchanged at 51.3 in June.
Cement stocks declined. Shree Cement (down 0.26%), ACC (down 0.26%) and Ambuja Cements (down 0.43%) edged lower. UltraTech Cement (up 0.16%) edged higher.
Grasim Industries was up 0.15%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Auto stocks edged higher on renewed buying. Ashok Leyland (up 1.95%), Eicher Motors (up 0.78%), TVS Motor Company (up 0.61%), Maruti Suzuki India (up 0.9%), Mahindra & Mahindra (up 0.32%) and Hero MotoCorp (up 0.1%) edged higher. Tata Motors (down 1.81%) and Bajaj Auto (down 0.44%) declined. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
The finance ministry has announced that it has initiated the process to constitute Monetary Policy Committee (MPC) under the Reserve Bank of India Act, 1934. Out of the six members of MPC, three members will be from the Reserve Bank of India (RBI), including the RBI Governor, who will be the ex-officio Chairperson of the MPC, the Deputy Governor, RBI and one officer of RBI. The other three members of MPC will be appointed by the central government on the recommendations of a Search-cum-Selection Committee, which will be headed by the Cabinet Secretary. These three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of 4 years and will not be eligible for re-appointment. The meetings of the MPC will be held at least 4 times a year and the MPC will publicise its decisions after each meeting. A committee-based approach will add a lot of value and transparency to monetary policy decisions, the finance ministry said in a statement issued after trading hours yesterday, 27 June 2016.
Index heavyweight and cigarette major ITC rose 0.79% at Rs 361.90. The stock hit a high of Rs 362.55 and a low of Rs 358 so far during the day.
Bharti Infratel rose 2.05% at Rs 334.25 after the company said that the proposed buyback of 4.70 crore shares at Rs 425 per share under tender offer route would commence on 12 July 2016 and close on 25 July 2016. The announcement was made before market hours today, 28 June 2016.
Aditya Birla Nuvo (ABNL) jumped 5.77% at Rs 1,189.50 after the company said that it has incorporated wholly owned step down subsidiary for providing incentivized wellness and related programs and services. ABNL said that its subsidiary, Aditya Birla Financial Services Company (ABFSL) incorporated a wholly owned subsidiary company, Aditya Birla Wellness (ABWPL) thus making ABWPL its step down subsidiary. MMI Holdings, the company's joint venture partner for health insurance and wellness, would subscribe to 49% equity of ABWPL and the balance 51% would continue to be held by ABFSL. ABWPL is incorporated for the purpose of conducting the business of providing and servicing of incentivized wellness and related programs and services.
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