A rangebound movement was witnessed as 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 111.51 points or 0.4% at 28,135.84. The Nifty 50 index was currently up 31.20 points or 0.36% at 8,647. Market sentiment was positive after the US Federal Reserve has opted to keep interest rates at ultra-low level after the conclusion of a two-day monetary policy meeting. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets.
The Sensex rose 119.99 points or 0.42% at the day's high of 28,144.32 in early trade. The barometer index rose 40.57 points or 0.14% at the day's low of 28,064.90 at the onset of trading session. The Nifty rose 33.70 points or 0.39% at the day' s high of 8,649.50 in mid-morning trade. The index rose 10.55 points or 0.12% at the day's low of 8,626.35 at the onset of trading session.
In overseas stock markets, Asian stocks edged lower tracking lacklustre trading in US markets overnight. In Japan, the Nikkei 225 Average was currently down 1.01%. Investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks closed mixed yesterday, 27 July 2016, after the Federal Reserve statement and major earnings reports. The Federal Open Market Committee (FOMC) has decided not to raise interest rates, maintaining the ultra-low level they have been at since December 2015. The US central bank opted to keep rates between 0.25% and 0.5%. The Fed said near-term risks to the economic outlook have diminished but inflation remained below the bank's target.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,473 shares rose and 712 shares declined. A total of 140 shares were unchanged. The BSE Mid-Cap index was currently up 0.75%. The BSE Small-Cap index was currently up 0.97%. Both these indices outperformed the Sensex.
Bank stocks edged higher. Among public sector banks, Union Bank of India (up 0.27%) and IDBI Bank (up 0.07%) rose.
The Reserve Bank of India (RBI) yesterday, 27 July 2016 said that it has imposed monetary penalty on 13 banks for violation of regulatory directions/instructions/guidelines, among other things, on KYC norms.
Allahabad Bank was up 0.96%. The central bank imposed a penalty of Rs 2 crore on the bank.
Bank of India was up 0.71%. The central bank imposed a penalty of Rs 1 crore on the bank.
Bank of Baroda was up 0.48%. The central bank imposed a penalty of Rs 5 crore on the bank.
Canara Bank was up 0.17%. The central bank imposed a penalty of Rs 2 crore on the bank.
Punjab National Bank was up 1.36%. The central bank imposed a penalty of Rs 3 crore on the bank.
State Bank of Bikaner & Jaipur was up 0.49%. The central bank imposed a penalty of Rs 2 crore on the bank.
Syndicate Bank was up 1.65%. The central bank imposed a penalty of Rs 3 crore on the bank.
UCO Bank was up 0.23%. The central bank imposed a penalty of Rs 2 crore on the bank.
State Bank of Mysore was down 0.09%. The central bank imposed a penalty of Rs 1 crore on the bank.
Corporation Bank was down 0.12%. The central bank imposed a penalty of Rs 1 crore on the bank.
Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised by the central bank to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements and FEMA provisions on an ongoing basis.
Among private sector banks, ICICI Bank (up 1.15%), Yes Bank (up 0.75%) and Kotak Mahindra Bank (up 0.06%) edged higher. Axis Bank (down 0.76%) edged lower.
Index heavyweight HDFC Bank was up 0.34%. The central bank imposed a penalty of Rs 2 crore on the bank.
IndusInd Bank was unchanged at Rs 1,178. The central bank imposed a penalty of Rs 2 crore on the bank.
IT stocks were mixed. Tech Mahindra (down 2.25%), HCL Technologies (down 0.59%) and Wipro (down 0.47%) edged lower. TCS (up 0.71%), Oracle Financial Services Software (up 0.62%) and Persistent Systems (up 0.2%) edged higher.
Index heavyweight and software major Infosys was down 0.72%.
Passenger car major Maruti Suzuki India (MSIL) edged higher after the company said that it plans to expand the number of NEXA outlets to 250 by March 2017. The stock was up 2.46% at Rs 4,671.10. NEXA is expected to contribute 15% of Maruti's sales by 2020, the company said. MSIL during market hours today, 28 July 2016 said that NEXA, the new automotive sales channel of the company has completed one year of operations. Launched in July 2015, NEXA has enabled MSIL to attract new categories of customers to its fold. NEXA has rapidly grown to 150 showrooms across 94 cities. Over 1 lakh cars have been sold through NEXA. This is about 10% of MSIL's total domestic sales, the company said. At present, the cars sold through NEXA are premium cross-over, S-Cross and premium hatchback, Baleno.
Meanwhile, according to reports, the government yesterday, 27 July 2016, cleared changes in the constitutional amendment bill on Goods and Services Tax (GST) including doing away with the additional 1% tax by producing states and compensating all states for any revenue loss in the first five years post the GST rollout. The Cabinet, headed by Prime Minister Narendra Modi, decided not to accede to the Congress party's demand of specifying the GST rate in the Constitution itself, reports suggested. It is likely to be part of the GST bill that will be legislated separately by both the Centre and states, as per reports.
The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. The month-long monsoon session of the parliament will conclude on 12 August 2016.
Powered by Capital Market - Live News
