A divergent trend continued on key benchmark indices in mid-morning trade as the S&P BSE Sensex continued to hover in positive terrain while the Nifty 50 index alternately swung between gains and losses near the flat line. At 11:18 IST, the barometer index, the S&P BSE Sensex was up 24.46 points or 0.09% at 27,191.33. The Nifty was down 5.65 points or 0.07% at 8,330.30.
In overseas stock markets, Asian stocks were mixed. US stocks rose yesterday, 6 July 2016, recovering from previous sessions' fall as the most beaten-down sectors in recent weeks logged the biggest gains. The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June to its highest reading since November, a turnaround from earlier in the year. The minutes from the Federal Reserve's June meeting revealed a split among officials about the health of the economy and how to proceed on interest rate decisions. The officials at the June meeting sparred over the health of the labor market, the outlook for growth and whether inflation is picking up. They agreed that it was prudent to wait for additional economic data before deciding when to raise interest rates. The US government will announce influential nonfarm payroll report for June 2016 tomorrow, 8 July 2016.
Closer home, the market breadth indicating strength of the market was strong. On BSE, 1,438 shares rose and 883 shares fell. A total of 107 shares were unchanged The BSE Mid-Cap index was unchanged, underperforming the Sensex. The BSE Small-Cap index was currently up 0.46%, outperforming the Sensex.
Power Grid Corporation of India gained 0.31% after the company announced that a meeting of Committee of Directors for Bonds is planned to be held on 12 July 2016 to consider issue of secured, redeemable, non-convertible, non-cumulative, taxable bonds (Debenture) under private placement.
Shares of telecom companies rose after Manoj Sinha took over as new Minister of Communications with independent charge after a Cabinet reshuffle by the government. Reliance Communications (up 1.25%), Bharti Airtel (up 1.03%), Tata Teleservices (Maharashtra) (up 0.7%), Idea Cellular (up 0.24%) and MTNL (up 1.33%) edged higher.
Telecom tower infrastructure provider Bharti Infratel was down 2.29%
The Narendra Modi government at the centre appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. After inducting 19 new Ministers of State, the Modi government on Tuesday, 5 July 2016, also announced a reshuffle of portfolios among the members of the Union Council of Ministers in a late night surprise announcement.
The BSE Telecom index had underperformed the market over the past month till 5 July 2016, rising 0.67% compared with Sensex's 1.21% rise. The index also underperformed the market in past one quarter, gaining 5.43% as against Sensex's 9.18% gain.
IT stocks declined after the government split the Communications and Electronics & Information Technology ministry portfolio after the Cabinet reshuffle. HCL Technologies (down 2.01%), TCS (down 0.67%), Infosys (down 1.15%), Tech Mahindra (down 1.66%) and Wipro (down 0.52%) edged lower.
The Narendra Modi government at the centre appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology.
The BSE IT index had underperformed the market over the past month till 5 July 2016, falling 4.4% compared with Sensex's 1.21% rise. The index also underperformed the market in past one quarter, declining 1.51% as against Sensex's 9.18% gain.
Meanwhile, Prime Minister Narendra Modi after expanding the Council of Ministers with 19 new members, also reshuffled some portfolios in his Cabinet on Tuesday, 5 July 2016. Prakash Javadekar, who was earlier promoted to Cabinet rank, was given the HRD Ministry. He had been the Minister of State (Independent charge) for Environment and Forests. Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Other than that, Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given additional charge of I&B. The government at the centre appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. Besides Mr. Javadekar, 19 new Ministers (17 new faces and two old hands) took oath as Ministers of State. The Council of Ministers now has 77 members. The previous strength of the government was 63. Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in the earlier batch. The total strength of the Union Council of Ministers has been capped at 82.
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