A range bound movement was witnessed as key benchmark indices languished in negative zone in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 56.02 points or 0.21% at 26,810.90. The Nifty 50 index was down 20.55 points or 0.25% at 8,217.95.
The Sensex rose 58.72 points, or 0.22% at the day's high of 26,925.64 in early trade, its highest level since 10 June 2016. The index fell 90.76 points, or 0.34% at the day's low of 26,776.16 in morning trade. The Nifty rose 18.75 points, or 0.23% at the day's high of 8,257.25 in early trade, its highest level since 10 June 2016. The index fell 28.50 points, or 0.35% at the day's low of 8,210 in morning trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,134 shares rose and 698 shares fell. A total of 124 shares were unchanged. The BSE Mid-Cap index was currently up 0.36%. The BSE Small-Cap index was currently up 0.42%. Both these indices outperformed the Sensex.
In overseas stock markets, most Asian shares rose on growing expectations that British voters will opt to remain in the European Union in this week's referendum. US stocks edged higher yesterday, 20 June 2016, following the lead of European markets as polls showed support swinging back toward the UK remaining a member of the European Union ahead of a referendum.
The UK government holds a referendum on Thursday, 23 June 2016, on whether the country should remain a member of the European Union (EU). The Organization for Economic Cooperation and Development (OECD) has warned that Britain's leaving the EU -- the so-called Brexit -- could send shocks through global financial markets. The OECD said on 1 June 2016 that a United Kingdom vote to leave the EU would trigger negative economic effects on the UK, other European countries and the rest of the world. Brexit would lead to economic uncertainty and hinder trade growth, with global effects being even stronger if the British withdrawal from the EU triggers volatility in financial markets, the OECD said. By 2030, post-Brexit UK GDP could be over 5% lower than if the country remained in the European Union, the OECD said.
Stocks of public sector banks witnessed a mixed trend. Punjab National Bank (up 2.02%), Central Bank of India (up 1.87%), United Bank of India (up 1.33%), Canara Bank (up 0.96%), Dena Bank (up 0.68%), Bank of Maharashtra (up 0.45%), Vijaya Bank (up 0.41%), Allahabad Bank (up 0.33%), Andhra Bank (up 0.27%), Corporation Bank (up 0.25%), Bank of Baroda (up 0.20%), State Bank of India (up 0.19%) and UCO Bank (up 0.13%), edged higher. Union Bank of India (down 0.04%), Syndicate Bank (down 0.14%), IDBI Bank (down 0.35%), Punjab & Sind Bank (down 1.1%) and Indian Bank (down 1.28%), edged lower.
Stocks of private sector banks declined. Axis Bank (down 0.94%), HDFC Bank (down 0.81%), IndusInd Bank (down 0.69%), Kotak Mahindra Bank (down 0.67%), City Union Bank (down 0.55%), ICICI Bank (down 0.29%) and Yes Bank (down 0.17%), edged lower. Federal Bank was up 0.18%
The finance ministry in its quarterly revision on interest rates on small savings schemes kept the rates unchanged for Q2 September 2016. The government now announces revision in interest rates on small saving schemes on quarterly basis as against the earlier practice of annual revision. The decision to shift to quarterly revision from annual revision was taken to ensure that interest rates under small savings schemes are more dynamically related to the prevailing market rates. It may be recalled that the finance ministry had in March 2016 announced reduction in interest rates on small savings schemes for Q1 June 2016 in a move to bring the rates in line with the prevailing money market rates.
Cement stocks witnessed selling pressure. Ambuja Cements (down 1.26%), UltraTech Cement (down 0.99%) and ACC (down 0.74%), edged lower.
Grasim Industries was up 0.10%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Apollo Hospitals Enterprise rose 0.6% after the company said that it signed a Memorandum of Understanding (MoU) with China's Hainan Ecological Smart City Group (HESCG) to jointly build a hospital in Hainan Province, China, where a Smart City is being developed in China's largest Special Economic Zone. HESCG is a Chinese industrial park development and operations company from the Hainan province of China. The collaboration with Apollo Hospitals would begin with the development of a state of the art hospital and the colleges and will lead to the development of advanced healthcare IT systems and telemedicine solutions. The MoU is also aimed at expanding to other parts of China and also extend into India with suitable model of collaboration which will be discussed post the signing of the MoU.
HESCG will provide land, all the investments for the construction, commissioning and equipping the hospital besides all operative expenses, while Apollo Hospitals Group would provide its services for technical consulting, planning and commissioning of the hospital and post completion of the hospital, provide services for the operations and management of the hospital. Apollo Hospitals would also support in building the technical and management personnel, install it's acclaimed patient care clinical protocols and practices, the company said in a statement. The announcement was made after market hours yesterday, 20 June 2016.
Kesar Terminals & Infrastructure surged 15% after the company announced that its board of directors will meet on 24 June 2016, to consider issue of bonus shares. The announcement was made after market hours yesterday, 20 June 2016.
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