A bout of volatility was witnessed as key benchmark indices extended losses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 135.01 points or 0.47% at 28,369.92. The BSE Mid-Cap index slipped into the red from green in mid-afternoon trade. The market breadth indicating the overall health of the market was positive.
Shares of public sector banks were mixed. Shares of private sector banks edged lower. Cairn India surged on media reports that Cairn Energy Plc is set to vote against Vedanta's $2.3 billion buyout offer for Cairn India's minority shareholders. Sun TV Network surged on media reports that the Madras High Court today, 23 July 2015, issued an interim order allowing the company to participate in the Phase-III auction process of FM radio.
Earlier, the Sensex and 50-unit CNX Nifty, both, hit their highest level in nearly 14 weeks amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 450.32 crore yesterday, 22 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 351.77 crore yesterday, 22 July 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, European stocks edged higher after Greece's parliament passed a second set of economic overhauls demanded by the nation's international creditors as a precondition for starting talks over a third bailout package. Asian stocks edged higher after Greece's parliament passed a second set of economic overhauls demanded by the nation's international creditors as a precondition for starting talks over a third bailout package. US stocks edged lower yesterday, 22 July 2015, after disappointing earnings from Apple Inc. and Microsoft Corp.
At 14:15 IST, the S&P BSE Sensex was down 135.01 points or 0.47% at 28,369.92. The index fell 148.82 points at the day's low of 28,356.11 in mid-afternoon trade. The index gained 73.40 points at the day's high of 28,578.33 in early trade, its highest level since 17 April 2015.
The CNX Nifty was down 42.70 points or 0.49% at 8,590.80. The index hit a low of 8,584.90 in intraday trade. The index hit a high of 8,654.75 in intraday trade, its highest level since 17 April 2015.
The BSE Mid-Cap index was down 4.60 points or 0.04% at 11,229.96. The decline in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was up 72.57 points or 0.62% at 11,748.73, outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,472 shares gained and 1,217 shares fell. A total of 118 shares were unchanged.
Shares of public sector banks were mixed. Syndicate Bank (up 2.06%), Punjab National Bank (up 1.11%), State Bank of India (up 0.41%), Bank of India (up 0.35%), Bank of Baroda (up 0.26%) and Oriental Bank of Commerce (up 0.07%) edged higher. Union Bank of India (down 1.18%), Indian Overseas Bank (down 0.26%), Central Bank of India (down 0.09%) and United Bank of India (down 0.42%) edged lower.
Shares of private sector banks edged lower. ICICI Bank (down 1.14%), Kotak Mahindra Bank (down 0.87%), HDFC Bank (down 0.76%), Axis Bank (down 0.17%) and Yes Bank (down 0.02%) edged lower.
IndusInd Bank was down 0.81% at Rs 949.15. The stock hit a high of Rs 964.95 and a low of Rs 945.25 so far during the day. IndusInd Bank said after market hours yesterday, 22 July 2015, that it has inaugurated a new branch in Chandigarh. The bank plans to further strengthen its presence and customer reach in Punjab and Haryana with more branches in the coming quarters, IndusInd Bank said.
Cairn India surged on media reports that Cairn Energy Plc is set to vote against Vedanta's $2.3 billion buyout offer for Cairn India's minority shareholders. The stock jumped 6.74% to Rs 178.20. The stock hit a high of Rs 184.20 and a low of Rs 168.50 so far during the day. According to reports, Cairn Energy Plc's objections to the merger of Cairn India with Vedanta are due to fundamental disagreements over valuations used to reach the proposed swap ratio and the unnecessary exposure to a diversified minerals and metals company. Cairn UK Holdings holds 9.82% stake in Cairn India (as per shareholding patters as on 30 June 2015).
Shares of Vedanta were up 0.15% at Rs 136.30. The stock hit a high of Rs 138.80 and a low of Rs 131.85 so far during the day.
Vedanta and Cairn India had on 14 June 2015 announced that Cairn India will be merged with Vedanta. As per the merger scheme, minority shareholders of Cairn India will receive one equity share of Vedanta for each share held in the company. The minority shareholders of Cairn India will additionally get one 7.5% redeemable preference share (RPS) of Vedanta of a face value of Rs 10 each for each share held in the company. No shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India.
Sun TV Network surged on media reports that the Madras High Court today, 23 July 2015, allowed the company to take part in the auction of FM radiowaves. The stock rose 5.19% at Rs 271.75. The stock hit a high of Rs 276.90 and a low of Rs 258.50 so far during the day. The development comes in the backdrop of the government's decision not to give security clearance to the group's radio channels to participate in the FM radio phase-III auction.
Lupin fell 4.19% to Rs 1,747.60, with the stock extending recent steep losses. The stock hit a high of Rs 1,835 and a low of Rs 1,717.05 so far during the day. Shares of Lupin had fallen 7.8% in previous two trading sessions to settle at Rs 1,824.05 yesterday, 22 July 2015, from a recent high of Rs 1,978.55 on 20 July 2015. Lupin is scheduled to announce its Q1 June 2015 results today, 23 July 2015.
Dr Reddy's Laboratories rose 2.04% at Rs 3,926.40. The stock hit a high of of Rs 3,960 in intraday trade so far, which is a record high for the counter. The stock hit a low of Rs 3,875 in intraday trade so far.
Meanwhile, in the global commodities markets, Brent crude oil futures edged higher today, 23 July 2015. Brent for September settlement was currently up 8 cents at $56.21 a barrel. The contract had fallen 91 cents or 1.59% to settle at $56.13 a barrel during previous trading session, after data released by the US government showed a surprise increase in US crude inventories last week.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 63.665, compared with its close of 63.58 during the previous trading session.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 22 July 2015, that the Southwest Monsoon was active over Gujarat State 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 22 July 2015. Region wise, the rainfall was 13% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 6% above the LPA in Northwest India until 22 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for 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 higher today, 23 July 2015, after Greece's parliament passed a second set of economic overhauls demanded by the nation's international creditors as a precondition for starting talks over a third bailout package. Key indices in France, Germany and UK were up 0.05% to 0.17%.
Greece's parliament today, 23 July 2015, passed a second set of economic overhauls demanded by the nation's international creditors as a precondition for starting talks over a third bailout package. The measures were supported by a majority of lawmakers, with backing from opposition parties.
Asian stocks edged higher today, 23 July 2015, after Greece's parliament passed a second set of economic overhauls demanded by the nation's international creditors as a precondition for starting talks over a third bailout package. Key indices in Japan, China, Hong Kong, South Korea and Singapore were up 0.02% to 2.43%. Key indices in Taiwan and Indonesia were off 0.07% to 2.44%.
US stocks edged lower yesterday, 22 July 2015, after disappointing earnings from Apple Inc. and Microsoft Corp. US home resales rose in June to their highest level in nearly 8-1/2 years. The National Association of Realtors said yesterday, 22 July 2015, existing home sales increased 3.2% to an annual rate of 5.49 million units.
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