Key benchmark indices extended gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty were currently trading with gains of more than 1% each. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 325.11 points or 1.15% at 28,507.25. The BSE Mid-Cap index was up 1.2%, outperforming the Sensex. Meanwhile, the Rajya Sabha Select Committee on the Goods and Services Tax (GST) bill presented its report in the Rajya Sabha today, 22 July 2015.
Bank stocks gained across the board. Most IT stocks rose.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 226.88 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 146.32 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges.
Earlier, key indices bounced back after an initial slide triggered by weakness in Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit one-week low in early trade.
In overseas stock markets, European stocks edged lower as sentiment across equity markets worldwide was soured by a round of disappointing corporate earnings. Asian stocks edged lower amid disappointing results from technology and industrial heavyweights in the US. US stocks edged lower yesterday, 21 July 2015, after disappointing quarterly reports from IMB and United Technologies Corp.
At 14:20 IST, the S&P BSE Sensex was up 325.11 points or 1.15% at 28,507.25. The index jumped 356.29 points at the day's high of 28,538.43 in mid-afternoon trade, its highest level since 20 July 2015. The index lost 111.23 points at the day's low of 28,070.91 in early trade, its lowest level since 15 July 2015.
The CNX Nifty was up 95.70 points or 1.12% at 8,625.15. The index hit a high of 8,643.65 in intraday trade. The index hit a low of 8,498.65 in intraday trade, its lowest level since 15 July 2015.
The BSE Mid-Cap index was up 133.18 points or 1.2% at 11,223.77, outperforming the Sensex. The BSE Small-Cap index was up 90.41 points or 0.78% at 11,667.23, underperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,702 shares gained and 975 shares fell. A total of 116 shares were unchanged.
Bank stocks gained across the board. Among private bank stocks, HDFC Bank (up 1.58%), Kotak Mahindra Bank (up 1.73%), ICICI Bank (up 1.75%), Axis Bank (up 1.28%), IndusInd Bank (up 2.34%) and Yes Bank (up 2.03%) rose.
Among PSU bank stocks, Punjab National Bank (up 0.86%), Bank of Baroda (up 1.42%), Canara Bank (up 0.75%), Bank of India (up 1.2%) and Union Bank of India (up 2.34%) gained.
State Bank of India (SBI) gained 1.76%. The Minister of State for Home Affairs, Kiren Rijiju said in a written reply to a question in the Rajya Sabha today, 22 July 2015, that the government has decided to transfer accounts of Central Freedom Fighter Pensioners from State Bank of India (SBI) to other authorized banks for disbursal of Central Freedom Fighter Pension due to certain irregularities on the part of SBI like paying pension to more than 3,000 dead pensioners for many years after their death, payment of wrong amount of pension to many pensioners, delayed payment of revised Dearness Relief, loss of more than 1,100 original disburser's portion of PPOs. On account of these irregularities more than Rs 16 crore has already been recovered from SBI, according to the government's written statement.
Most IT stocks rose. Wipro (up 1.73%), HCL Technologies (up 1.03%), Oracle Financial Services Software (up 0.41%) and Tech Mahindra (up 0.69%) rose. TCS (down 1.24%) and Infosys (down 0.82%) declined.
Meanwhile, the Rajya Sabha Select Committee on the Goods and Services Tax (GST) bill presented its report in the Rajya Sabha today, 22 July 2015. The GST Bill has been passed by the Lok Sabha and was referred to the Select Committee by Rajya Sabha, where the ruling NDA government does not enjoy majority, for scrutiny. The government aims to roll out GST from 1 April 2016.
GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 21 July 2015, that the Southwest Monsoon was active over Andaman & Nicobar Islands, West Madhya Pradesh and Konkan & Goa during past 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 21 July 2015. Region wise, the rainfall was 14% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 8% above the LPA in Northwest India until 21 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. 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 stocks edged lower today, 22 July 2015, taking their cue from a downbeat session in the US as disappointing earnings from technology companies undermined sentiment. Key indices in Germany, UK and France were off 0.28% to 0.71%.
In UK, the minutes of the Bank of England's (BOE) Monetary Policy Committee's July policy meeting published today, 22 July 2015, showed all nine members of the rate-setting panel voted to keep the BOE's benchmark rate at a record low of 0.5%. All nine also voted to leave the BOE's bond portfolio at 375 billion pounds ($583.51 billion).
In Greece, the country's parliament is set to vote today, 22 July 2015, on a second set of austerity measures demanded by the country's lenders. Formal negotiations on a third bailout program for Greece can only start once the measures have legislative approval. Meanwhile, trading in Greek stocks remains closed.
Standard & Poor's yesterday, 21 July 2015, upgraded Greece's sovereign credit rating by two notches and revised its outlook to stable from negative, citing euro zone countries' initial agreement to start negotiations with Athens on a third bailout.
Asian stocks edged lower today, 22 July 2015, amid disappointing results from technology and industrial heavyweights in the US. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan and South Korea fell by 0.31% to 1.19%. Key benchmark indices in China and Indonesia rose 0.2% to 0.21%.
Chinese business sentiment fell sharply in July, suggesting that recent dramatic falls in company share prices had severely dented optimism. The MNI China Business Indicator fell 8.8% to 48.8 in July, below the 50 score which marks optimism. The reading matches the April level, which was the lowest since January 2009. The index had jumped 7.6% in June to 53.5. MNI, a part of Deutsche Bse Group, surveys 200 companies listed on the Shanghai and Shenzhen stock exchanges.
Trading in US index futures indicated a weak opening of US stocks later in the global day today, 22 July 2015, after Apple Inc.'s forecast disappointed investors. Trading in US index futures indicated that the Dow could slide 73 points at the opening bell. US stocks dropped yesterday, 21 July 2015 on weak earnings from bellwethers International Business Machines Corp. (IBM) and United Technologies Corp.
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