Decline in stocks of private sector bank pulled key benchmark indices into the red from green in mid-afternoon trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently off 59.16 points or 0.21% at 27,585.99. The losses for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty. The Nifty was currently off 6.90 points or 0.08% at 8,311.50.
In overseas markets, European stocks edged lower, with Greece set to default on a 1.5 billion euro debt payment due to the International Monetary Fund (IMF) which is due today, 30 June 2015, after bailout negotiations broke down over the weekend. Chinese stocks jumped as the government and regulators stepped up efforts to prevent a plunge of 20% in the Shanghai Composite index in the last few weeks from inflicting further damage on the already slowing economy.
FMCG stocks were in demand. Nestle India edged higher after the Bombay High Court allowed the company to continue the export of Maggi Noodles. Pharmaceutical shares edged higher.
Meanwhile, CEO of Airbus Defence and Space Mr. Bernhard Gerwert expressed Airbus's keen interest in becoming a partner in the "Make in India" initiative through a cluster approach with regional partners, according to a statement issued by Indian Prime Minister's Office today, 30 June 2015. Bernhard held a meeting with Prime Minister Narendra Modi today, 30 June 2015.
Foreign portfolio investors sold shares worth a net Rs 711.88 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 906.38 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower, with Greece set to default on a 1.5 billion euro debt payment due to the International Monetary Fund (IMF) which is due today, 30 June 2015, after bailout negotiations broke down over the weekend. Chinese stocks led rally in Asian markets. US stocks tumbled yesterday, 29 June 2015, on fears Greece will leave the eurozone.
At 14:16 IST, the S&P BSE Sensex was down 59.16 points or 0.21% at 27,585.99. The index jumped 117.80 points at the day's high of 27,762.95 at the onset of trading session, its highest level since 26 June 2015. The index fell 74.20 points at the day's low of 27,570.95 in early trade.
The 50-unit CNX Nifty was down 6.90 points or 0.08% at 8,311.50. The index hit a high of 8,356.45 in intraday trade, its highest level since 26 June 2015. The index hit a low of 8,298.95 in intraday trade.
The BSE Mid-Cap index was up 88.87 points or 0.84% at 10,629. The BSE Small-Cap index was up 69.04 points or 0.63% at 11,027.60. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,564 shares rose and 988 shares fell. A total of 119 shares were unchanged.
FMCG stocks were in demand. Bajaj Corp (up 4.11%), Godrej Consumer Products (up 3.68%), Marico (up 3.30%), Britannia Industries (up 2.65%), GlaxoSmithKline Consumer Healthcare (up 2.30%), Colgate Palmolive (India) (up 2.21%), Hindustan Unilever (up 1.86%), Procter & Gamble Hygiene & Health Care (up 1.82%), Tata Global Beverages (up 1.39%) and Dabur India (up 0.83%), edged higher. Jyothy Laboratories was down 1.46%.
Nestle India edged higher after the Bombay High Court allowed the company to continue the export of Maggi Noodles. The stock was up 3.02% to Rs 6,250. The announcement was made during trading hours today, 30 June 2015. Nestle India said that the Bombay High has fixed the matter for further hearing on 14 July 2015. As the matter is sub-judice, the company cannot make any further comment on the case at this stage. The company said it is awaiting the official order from the High Court.
Pharmaceutical shares edged higher. Cadila Healthcare (up 4.04%), Lupin (up 2.65%), Aurobindo Pharma (up 2.20%), Glenmark Pharmaceuticals (up 1.97%), Wockhardt (up 1.93%), Strides Arcolab (up 1.47%), Divi's Laboratories (up 0.88%), IPCA Laboratories (up 0.75%), Piramal Enterprises (up 0.41%) and GlaxoSmithKline Pharmaceuticals (up 0.11%), edged higher. Cipla (down 0.08%) and Dr. Reddy's Laboratories (down 0.14%), edged lower.
Sun Pharmaceutical Industries was up 2.78% to Rs 392.10. The company after market hours yesterday, 29 June 2015, announced an open offer to the shareholders of Zenotech Laboratories (Zenotech), for acquisition of upto 96.93 lakh shares, representing 28.16% of the fully diluted share capital of Zenotech. The open offer price is Rs 20.87 per share, which includes interest computed at the rate of 10% per annum for the period between 6 April 2014 and the date of the the Detailed Public Statement i.e. 30 March 2015 in terms of Regulation 8(12) of SEBI (SAST) Regulations.
Shares of Zenotech Laboratories were currently locked at 2% upper circuit at Rs 37.10 on BSE.
Meanwhile, CEO of Airbus Defence and Space Mr. Bernhard Gerwert expressed Airbus's keen interest in becoming a partner in the "Make in India" initiative through a cluster approach with regional partners, according to a statement issued by Indian Prime Minister's Office today, 30 June 2015. Bernhard held a meeting with Prime Minister Narendra Modi today, 30 June 2015.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 29 June 2015, that the Southwest Monsoon was vigorous over East Uttar Pradesh and active over Arunachal Pradesh, Uttarakhand and East Madhya Pradesh during the past 24 hours until 8:30 IST.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 18% above the Long Period Average (LPA) until 29 June 2015. Region wise, the southwest monsoon was 28% above the LPA in Central India, 24% above the LPA in Northwest India, 22% above the LPA in South Peninsula and 3% above the LPA in East & Northeast India until 29 June 2015.
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 markets, European stocks edged lower today, 30 June 2015, with Greece set to default on a 1.5 billion euro debt payment due to the International Monetary Fund (IMF) which is due today, 30 June 2015, after bailout negotiations broke down over the weekend. Key benchmark indices in Germany, UK and France were off 0.87% to 1.11%. In Italy, the FTSE MIB index was currently off 1.01%. In Spain, the IBEX 35 index was currently off 1.16%.
Investors continue to monitor developments in Greece which looks set to default on its payment to the International Monetary Fund that is due today, 30 June 2015. The eurozone portion of Greece's bailout also expires on 30 June 2015. Global rating agency S&P yesterday, 29 June 2015, cut Greece's credit rating by one level, saying the probability of the country leaving the euro area is now 50%. Greece shut down its banking system, ordering lenders to stay closed for six days starting Monday, 29 June 2015, to avoid a run on the country's banks and the nation's central bank moved to impose controls to prevent money from flooding out of the country. Negotiations between Greece and its creditors deteriorated over the weekend after Greece's Prime Minister Alexis Tsipras on Friday, 26 June 2015, unexpectedly called for a referendum on whether to accept reform measures demanded by the country's lenders.
The European Central Bank on Sunday, 28 June 2015, froze emergency loans to Greek banks at their current level of around euro 89 billion, a move that left Greek authorities with little choice but to keep the country's banks closed.
Tsipras was quoted as saying yesterday, 29 June 2015, that regional leaders didn't have the nerve to kick Greece out of the euro and that a "no" vote in the July 5 referendum will strengthen the country's bargaining position. European Central Bank Executive Board member Benoit Coeure said in a newspaper interview yesterday, 29 June 2015, that a "yes" decision will prompt euro zone members to "find the means, under one form or another, to honor their commitments".
Tsipras has called a referendum on Sunday, 5 July 2015, on whether the country should accept creditors' bailout terms. Greeks will be asked to decide whether to accept reform measures demanded by the country's lenders that would ultimately unlock about euro 15.3 billion in funds. A "no" vote by Greeks could force the country out of the eurozone and push the country into what could be the darkest chapter of its six-year debt crisis.
Asian stocks edged higher today, 30 June 2015, as investors push off concerns about a default in Greece until the outcome of a referendum on Sunday, 5 July 2015. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Japan, Singapore and South Korea were up 0.67% to 1.22%.
China's Shanghai Composite recovered sharply after an in initial slide and was currently up 5.53%. China said late on Monday, 29 June 2015, it is preparing to allow pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the sagging equity market.
Separately, a China Securities Regulatory Commission (CSRC) spokesperson said in a blog posting yesterday, 29 June 2015, evening that risks from brokerages' margin financing business are also controllable.
US stocks tumbled yesterday, 29 June 2015, on fears Greece will leave the eurozone.
Meanwhile, Puerto Rico's governor Alejandro Garc Padilla yesterday, 29 June 2015, laid out a plan to seek restructuring of the government's approximately $72 billion in debt, while also vowing to make Puerto Rico more economically competitive. A key point in the proposal is to get permission for Puerto Rico to go through bankruptcy as Detroit did in 2013, something that current law prohibits. Puerto Rico is a United States territory located in the northeastern Caribbean, east of the Dominican Republic, and west of both the United States Virgin Islands and the British Virgin Islands.
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