Key benchmark indices extended gains in afternoon trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than two weeks. The 50-unit CNX Nifty hit its highest level in almost two week. The Sensex was currently up 311.18 points or 1.16% at 27,143.84. Gains in the Sensex in percentage terms were higher than those for the 50-unit CNX Nifty. The Nifty was currently up 86.10 points or 1.06% at 8,177.65.
The Sensex was currently trading above the psychological 27,000 mark, after surpassing that mark in early trade. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up 1.15%.
Pharma shares edged higher on renewed buying. Telecom stocks also edged higher. Bharti Airtel edged higher in volatile trade after the company after trading hours yesterday, 17 June 2015, said that the agreements for sale of tower assets in Tanzania and Tchad between the respective subsidiaries of Bharti Airtel and Helios Towers Africa have lapsed and therefore stands terminated. Index heavyweight Reliance Industries (RIL) surged on reports that a foreign brokerage had retained its buy rating on the stock on expectations of strong Q1 June 2015 earnings on the back of strong gross refining margins.
Indian stocks edged higher today, 18 June 2015, after the US Federal Reserve said after the conclusion of a two-day monetary policy meeting yesterday, 17 June 2015, that its monetary-policy tightening would be gradual, easing concerns of a possible sudden outflows from emerging markets. There have been concerns that higher US interest rates will reduce the attraction of riskier emerging-markets assets. Higher interest rates in the United States will boost returns on US debt and bank deposits, drawing money back from riskier markets.
The US Federal Reserve left key interest rates unchanged near zero after the conclusion of a two-day monetary policy review yesterday, 17 June 2015, and signaled that there will be a gradual pace of interest rate increases starting with a first rate hike in the current calendar year. Meanwhile, Fed policy makers lowered their longer-term projections for US rates.
In overseas stock markets, European shares fell in early trade as hopes of a deal between Greece and its creditors at a summit later in the global day today, 18 June 2015, receded, further straining investor nerves after weeks of fruitless negotiations. Asian stocks were mixed. US stocks eked out small gains yesterday, 17 June 2015, after the Federal Reserve left key interest rates unchanged and as Fed Chairwoman Janet Yellen reiterated policy makers' commitment to watch economic data.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 940.91 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1447.07 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was up 311.18 points or 1.16% at 27,143.84. The index jumped 320.96 points at the day's high of 27,153.62 in afternoon trade, its highest level since 3 June 2015. The index rose 77.60 points at the day's low of 26,910.26 in early trade.
The Nifty was up 86.10 points or 1.06% at 8,177.65. The index hit a high of 8,178.15 in intraday trade, its highest level since 5 June 2015. The index hit a low of 8,101.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,590 shares rose and 917 shares fell. A total of 90 shares were unchanged.
The BSE Mid-Cap index was up 76.38 points or 0.74% at 10,420.89. The BSE Small-Cap index was up 124.32 points or 1.15% at 10,920.87. Both these indices underperformed the Sensex.
Pharma shares advanced on renewed buying. Lupin (up 2.12%), Sun Pharmaceutical Industries (up 1.51%), GlaxoSmithKline Pharmaceuticals (up 0.22%), Dr Reddy's Laboratories (up 0.89%), Glenmark Pharmaceuticals (up 0.56%), Aurobindo Pharma (up 0.57%) and Wockhardt (up 1.54%) gained. Cipla (down 0.79%) and Cadila Healthcare (down 0.56%) fell.
Orchid Chemicals & Pharmaceuticals jumped 13.27%. Orchid Chemicals & Pharmaceuticals after market hours yesterday, 17 June 2015, said that the company has received approval from the US Food and Drug Administration (USFDA) for the Abbreviated New Drug Application (ANDA) for Gemifloxacin Mesylate Tablets (320 mg) with 180 days of generic drug exclusivity.
Telecom stocks edged higher on renewed buying. Idea Cellular (up 1.29%), MTNL (up 1.95%), Tata Teleservices (Maharashtra) (up 3.66%) and Reliance Communications (up 0.07%) rose.
Bharti Airtel edged higher in volatile trade after the company after trading hours yesterday, 17 June 2015, said that the agreements for sale of tower assets in Tanzania and Tchad between the respective subsidiaries of Bharti Airtel and Helios Towers Africa have lapsed and therefore stands terminated. The stock was up 2.16% at Rs 430.20. The stock hit a high of Rs 432.50 and low of Rs 414.10 so far during the day. It may be recalled that Bharti Airtel had on 9 July 2014 signed a deal with Helios Towers Africa for sale of 3,100 towers in four countries across its African operations.
Index heavyweight Reliance Industries (RIL) edged higher on reports that a foreign brokerage has retained its buy rating on the stock on expectations of strong Q1 June 2015 earnings on the back of strong gross refining margins. The stock was up 4.16% to Rs 969.85. The stock hit a high of Rs 973.75 and low of Rs 933 so far during the day.
Meanwhile, finance Minister Arun Jaitley has approved the formation of two separate committees for facilitating implementation of a nationwide Goods and Services Tax (GST) from 1 April 2016. The finance ministry said in a statement issued after trading hours yesterday, 17 June 2015, that progress is underway to finalise various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules. A Steering Committee been formed under the co-chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This committee will monitor the progress of IT preparedness of Goods and Services Tax Network (GSTN)/CBEC/tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The committee will also monitor the progress on consultations with various stakeholders like trade and industry and training of officers.
Another committee has been formed under the chairmanship of the Chief Economic Advisor, Ministry of Finance to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Central Government and the state governments. While making recommendations, this committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST, the finance ministry said in a statement. This committee would also analyse the sector-wise and state-wise impact of GST on the economy. The committee is expected to give its report within two months.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 17 June 2015, that the Southwest Monsoon was active over Marathwada, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. Conditions are favourable for further advance of southwest monsoon into some more parts of Chhattisgarh, Odisha and West Bengal, remaining parts of Coastal Andhra Pradesh and Bay of Bengal during next 2-3 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 12% above the Long Period Average (LPA) until 16 June 2015. Region wise, the southwest monsoon was 19% above the LPA in East & Northeast India, 17% above the LPA in Central India, 1% above the LPA in South Peninsula and 5% below the LPA in Northwest India until 16 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 stock markets, European shares fell in early trade today, 18 June 2015 as hopes of a deal between Greece and its creditors at a summit later in the global day today, 18 June 2015, receded, further straining investor nerves after weeks of fruitless negotiations. Key benchmark indices in UK, France and Germany were off 0.12% to 0.4%.
The Eurogroup of eurozone finance ministers meets in Luxembourg today, 18 June 2015, with Greece high on the agenda. Greece is still struggling to reach a reform agreement with its lenders, which would unlock the next portion of bailout money needed to repay 1.6 billion euros ($1.82 billion) to the International Monetary Fund by the end of June
Meanwhile, while addressing the German parliament, German Chancellor Angela Merkel today, 18 June 2015, said a Greek deal is still possible.
Asian stocks were mixed today, 18 June 2015. Key benchmark indices in China, Hong Kong, Japan and Singapore shed by 0.69% to 3.67%. Key benchmark indices in Indonesia, Taiwan and South Korea rose by 0.04% to 0.34%.
China attracted $9.33 billion worth of foreign direct investment in May, up 7.8% from a year earlier, the Ministry of Commerce said today, 18 June 2015. The figure was down from April's $9.61 billion, which was 10.5% higher from a year earlier.
US stocks eked out small gains yesterday, 17 June 2015, after the Federal Reserve left key interest rates unchanged and as Fed Chairwoman Janet Yellen reiterated policy makers' commitment to watch economic data. In a press conference following the conclusion of the Federal Reserve's two-day policy meeting yesterday, 17 June 2015, Fed Chairwoman Janet Yellen said she wanted "more decisive evidence" that labour markets were healing, and that wages would increase beyond their current "subdued pace."
The US economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, but concerns remain over the recovery of the labour market, US Federal Reserve officials said. With the economy still on track to grow as much as 2% for the year, the central bank's latest policy statement keeps it on track for at least one and perhaps a second rate increase later this year.
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