Gains in index heavyweights HDFC, ITC and L&T and state-run banks helped key benchmark indices register modest gains. Benchmark indices hovered in positive zone for most part of the trading session. The overall movement for the benchmark indices was within a relatively narrow range during the trading session. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in more than three weeks. The Sensex garnered 74.16 points or 0.27% to settle at 27,804.37. In overseas stock markets, Asian and European stocks edged higher, buoyed by expectations that a long-awaited deal between debt-burdened Greece and its creditors was firmly taking shape.
Shares of public sector banks edged higher after Finance Secretary Rajiv Mehrishi reportedly said in an interview to a business TV channel that the government plans to inject about $3 billion into state-owned banks this fiscal year and potentially $6 billion next year to help recapitalise the sector and allow it to meet Basel III rules. Cement stocks edged higher. Coal India hit 52-week high. Realty and auto stocks declined.
Key benchmark indices edged higher for the 8th straight trading session today, 23 June 2015.
Meanwhile, Japan headquartered telecommunications and Internet major SoftBank Corp. (SoftBank), leading Indian business conglomerate Bharti Enterprises (Bharti) and Taiwan-based top design and manufacturing services provider Foxconn Technology Group (Foxconn) yesterday, 22 June 2015, announced the setting up of a joint venture under the name SBG Cleantech to promote renewable energy projects in India. SoftBank Chairman & CEO Masayoshi Son and Bharti Enterprises Chairman Sunil Bharti Mittal reportedly said at a news conference in New Delhi yesterday, 22 June 2015, that the joint venture would aim to generate 20 gigawatts of electricity, which would translate to around $20 billion worth of investments.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire on Thursday, 25 June 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 704.17 crore from the secondary equity markets yesterday, 22 June 2015, as per data from National Securities Depository. Domestic institutional investors (DIIs) sold shares worth a net Rs 94.03 crore yesterday, 22 June 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian and European stocks edged higher on enduring hopes that Greece will strike a deal with its international creditors to avert bankruptcy. US stocks edged higher yesterday, 22 June 2015, following a global rally in equities, as investors cheered signs of progress in the Greece debt negotiations.
The S&P BSE Sensex rose 74.16 points or 0.27% to settle at 27,804.37, its highest closing level since 1 June 2015. The index jumped 152.45 points at the day's high of 27,882.66 in morning trade. The index fell 63.62 points at the day's low of 27,666.59 in early trade.
The CNX Nifty gained 28.45 points or 0.34% to settle at 8,381.55, its highest closing level since 1 June 2015. The index hit a high of 8,398.45 and a low of 8,334.95 in intraday trade.
The BSE Mid-Cap index rose 8.23 points or 0.08% to settle at 10,651.92, underperforming the Sensex. The BSE Small-Cap index gained 49.47 points or 0.45% to settle at 11,144.97, outperforming the Sensex.
Among sectoral indices on BSE, the S&P BSE Realty index (up 0.33%), the S&P BSE Oil & Gas index (up 0.83%), the S&P BSE Metal index (up 1.71%), the S&P BSE Capital Goods index (up 1.41%), the S&P BSE FMCG index (up 0.28%), and the S&P BSE Bankex (up 0.33%) outperformed the Sensex. The S&P BSE Consumer Durables index (down 0.44%), the S&P BSE IT index (down 1.08%), the S&P BSE Power index (up 0.24%), the S&P BSE Healthcare index (up 0.14%), the S&P BSE Auto index (up 0.14%), and the S&P BSE Teck index (down 0.76%) underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,468 shares rose and 1,241 shares fell. A total of 112 shares were unchanged.
The total turnover on BSE amounted to Rs 2477 crore, higher than turnover of Rs 2324.97 crore registered during the previous trading session.
Shares of index heavyweight and housing finance major HDFC rose 1.28% to Rs 1,284.60. The stock hit high of Rs 1,290 and low of Rs 1,247.
Shares of public sector banks edged higher after Finance Secretary Rajiv Mehrishi reportedly said in an interview to a business TV channel that the government plans to inject about $3 billion into state-owned banks this fiscal year and potentially $6 billion next year to help recapitalise the sector and allow it to meet Basel III rules. Union Bank of India (up 5.68%), Punjab National Bank (up 3.63%), Bank of Baroda (up 2.66%), United Bank of India (up 2.25%), Indian Overseas Bank (up 0.39%), Bank of India (up 0.9%), State Bank of India (up 0.58%) and IDBI Bank (up 0.63%) edged higher.
The intended injection of about $3 billion into state-run banks is significantly higher than the estimate of Rs 7940 crore ($1.25 billion) given in the government's budget for this fiscal year. Mehrishi said that he did not have a specific time frame for the injections. The finance secretary said India could finance the increased injection amount through supplemental funding that is available to the government outside the budget. Mehrishi is accompanying Finance Minister Arun Jaitley who is currently on a US visit seeking more investment in India.
Central Bank of India was up 0.25% at Rs 102. The stock hit a high of Rs 103.35 and a low of Rs 101.40 in intraday trade. Central Bank of India turned ex-dividend today, 23 June 2015, for final dividend of Rs 0.50 per share for the year ended 31 March 2015 (FY 2015).
Indian Bank was off 1.39% at Rs 152.35 as the stock turned ex-dividend today, 23 June 2015, for dividend of Rs 4.20 per share for the year ended 31 March 2015 (FY 2015).
UCO Bank was off 3.25% at Rs 58.10 as the stock turned ex-dividend today, 23 June 2015, for final dividend of Rs 2 per share for the year ended 31 March 2015 (FY 2015).
Shares of private sector banks were mixed. HDFC Bank (up 0.29%), Kotak Mahindra Bank (up 1.77%) and Yes Bank (up 0.72%) edged higher. IndusInd Bank (down 0.5%), ICICI Bank (down 0.4%), Axis Bank (down 0.17%) edged lower.
City Union Bank was up 0.59% at Rs 101.95. The stock hit a high of Rs 103.35 and a low of Rs 101.25 in intraday trade. City Union Bank announced after market hours yesterday, 22 June 2015, that the board of directors of the bank at its meeting held on 22 June 2015 resolved to seek shareholders' approval for an enabling resolution to raise equity capital including premium upto Rs 500 crore through Qualified Institutions Placement (QIP) as and when necessary subject to the applicable laws and regulations including the guidelines issued by SEBI and RBI. The board has also finalized the agenda for annual shareholders meeting to be held in the month of August 2015.
Cement stocks edged higher. UltraTech Cements (up 3.04%), ACC (up 1.38%) and Ambuja Cements (up 0.88%) edged higher. Shree Cement (down 1.64%) edged lower.
Grasim Industries was up 0.75% at Rs 3,428.25. The stock hit a high of Rs 3,446.35 and a low of Rs 3,394.25 in intraday trade. Grasim Industries before market hours today, 23 June 2015, announced that with the onset of the monsoon, the availability of water has improved and accordingly the production at the company's staple fibre plant at Nagda will start in phased manner. Earlier, Grasim Industries had on 24 April 2015 announced phased shut down of the staple fibre plant at Nagda due to water shortage caused by deficient rains.
L&T edged higher after the company's Chairman AM Naik was quoted as saying that the company will list its IT services unit L&T Infotech by December this year. The stock was up 2.1% at Rs 1,767.40. The stock hit a high of Rs 1,770 and a low of Rs 1,736.90 in intraday trade. L&T will sell a 10% stake in the unit, Naik reportedly said in an interview to a business TV channel. L&T will also look at listing other businesses, including its hydrocarbons and transmission and distribution units over the next few years, Naik said.
Meanwhile, with regard to a related news item titled "L&T to List IT Arm by Dec, Plans to Rs Raise 1,800 crore", L&T clarified during market hours today, 23 June 2015, that from time to time, L&T has been communicating to stakeholders its intention to list its IT & Technology business. This has been reiterated in the newspaper article of 23 June 2015, L&T said. The reference to the valuation is the inference of the media, the company added. As and when the information becomes credible, the company will suitably inform the exchanges, L&T said.
Coal India rose 3.85% to Rs 415.15. The stock hit 52-week high of Rs 419.60 in intraday trade.
Index heavyweight and cigarette maker ITC rose 1.37% to Rs 314.55. The stock hit high of Rs 315 and low of Rs 307.50.
Auto stocks were mixed. Eicher Motors (down 0.63%), Tata Motors (down 0.91%), TVS Motor Company (down 0.84%), and Bajaj Auto (down 1%) edged lower. Maruti Suzuki India rose 0.95%.
Hero MotoCorp fell 2.22% at Rs 2,523.20. The stock hit a high of Rs 2,713.70 and a low of Rs 2,516.80. With regard to news article titled "Hero picks up majority stake in Mybox, enters electronics biz", Hero MotoCorp clarified during market hours today, 23 June 2015, that the news pertains to the investment by Munjal family. The company has no information about this investment, Hero MotoCorp said.
Ashok Leyland edged higher after the company said it has received orders worth $82.06 million in Senegal. The stock rose 1.42% at Rs 71.40. The announcement was made during market hours today, 23 June 2015. Ashok Leyland said that DAKAR DEM DIKK, a public transport organization under the aegis of the Ministry of Transport, Senegal, has commissioned a comprehensive logistics program with Ashok Leyland, that comprises supply of 475 buses, genuine spares, assistance in development of workshops, training and consultancy on fleet management and structuring of vehicle tracking and monitoring systems.
Mahindra & Mahindra (M&M) edged higher after the company announced the launch of a new small commercial vehicle, Jeeto from its Zaheerabad plant in Telangana. The stock was up 1.89% at Rs 1,333.35. The stock hit a high of Rs 1,336.55 and a low of Rs 1,306.85 in intraday trade. The announcement was made during market hours today, 23 June 2015. Jeeto is the first ever product in its category with a modular range of 8 mini-trucks to cater to the varied needs of the sub 1 tonne load segment customers, M&M said. Priced competitively, Jeeto starts at Rs 2.32 lakh (ex-showroom Telangana for BSIII) and will be available in S, L & X series, catering to mini-truck, micro-truck and 3 wheelers customers, M&M said in a statement.
Realty stocks edged lower. Indiabulls Real Estate (down 1.92%), D B Realty (down 2.71%), Unitech (down 1.11%), Housing Development & Infrastructure (down 0.63%), Godrej Properties (down 0.5%), Sobha (down 0.24%) and Oberoi Realty (down 1.69%) edged lower. DLF (up 2.49%) and Prestige Estates Projects (up 0.94%) edged higher.
Key benchmark indices edged higher for the eighth straight trading session today, 23 June 2015. The Sensex has risen 1,433.39 points or 5.43% in the preceding eight trading sessions from a recent low of 26,370.98 on 11 June 2015. The Sensex has lost 24.07 points or 0.08% in this month so far (till 23 June 2015). The Sensex has risen 304.95 points or 1.1% in this calendar year so far (till 23 June 2015). From a 52-week low of 24,878.66 on 23 June 2014, the Sensex has risen 2,925.71 points or 11.75%. The Sensex is off 2,220.37 points or 7.39% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, Japan headquartered telecommunications and Internet major SoftBank Corp. (SoftBank), leading Indian business conglomerate Bharti Enterprises (Bharti) and Taiwan-based top design and manufacturing services provider Foxconn Technology Group (Foxconn) have announced the setting up of a joint venture under the name SBG Cleantech to promote the adoption of clean and safe energy in India, according to a joint press statement issued by SoftBank, Bharti and Foxconn yesterday, 22 June 2015. Subject to certain conditions, all three companies will jointly invest in the venture, according to the joint press release. SBG Cleantech will be a harbinger of solar and wind energy. Given its vast population, high irradiation, growing energy demand and power deficit, limited access to fossil fuels and a large number of unlit villages, India has great potential to be a major solar market, according to the joint statement.
SoftBank Chairman & CEO Masayoshi Son said that India offers vast potential and with this partnership, the goal is to create a market-leading ?clean energy company to fuel India's growth with clean and renewable sources of energy. Bharti Enterprises Chairman Sunil Bharti Mittal said that the Bharti group is participating in the renewable energy venture which has the potential to transform the Indian economy.
SoftBank's Son and Bharti's Mittal reportedly said at a news conference in New Delhi yesterday, 22 June 2015, that the joint venture would aim to generate 20 gigawatts of electricity, which would translate to around $20 billion worth of investments.
Meanwhile, concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the June-September southwest monsoon season. For the country as a whole, the cumulative rainfall during this year's monsoon season was 16% above the Long Period Average (LPA) until 21 June 2015. Region wise, the southwest monsoon was 32% above the LPA in Central India, 30% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 21 June 2015.
The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 22 June 2015, that the southwest monsoon has further advanced into some more parts of Gujarat region, Madhya Pradesh, most parts of Chhattisgarh and Jharkhand and some parts of Bihar. Conditions are favourable for further advance of Southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Chhattisgarh, Jharkhand and Bihar, entire Uttarakhand, Himachal Pradesh, Jammu & Kashmir, most parts of Madhya Pradesh and some parts of Uttar Pradesh, Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 3 days, the IMD said. The Southwest Monsoon was vigorous over Madhya Maharashtra, Vidarbha, Chhattisgarh and South Interior Karnataka and active over Gangetic West Bengal, Odisha, Jharkhand, West Madhya Pradesh and North Interior Karnataka during past 24 hours ending at 0830 hrs, the IMD said.
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 gained today, 23 June 2015, buoyed by expectations that a long-awaited deal between debt-burdened Greece and its creditors was firmly taking shape. Key indices in France, Germany and UK rose by 0.18% to 1.21%.
European Commission President Jean-Claude Juncker reportedly said yesterday, 22 June 2015, that he is convinced an agreement between Greece and its international creditors over the country's bailout program would be finalized this week. His comments came after Greece submitted revised reform proposals. Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.
Eurozone economic growth hit a four-year high in June, according to the latest PMI survey data released today, 23 June 2015. Markit's flash Eurozone composite PMI, based on around 85% of usual monthly survey replies, rose from 53.6 in May to 54.1 in June, its highest since May 2011.
Asian markets edged higher today, 23 June 2015, on a tide of optimism that Greece and its creditors can broker a deal to avert bankruptcy. Key indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were up 0.53% to 2.19%. In Indonesia, the IDX Composite was off 0.44%.
The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose to 49.6 in June from a final reading of 49.2 in May, HSBC Holdings PLC said today, 23 June 2015. The reading is still below 50, which separates expansion from contraction.
US stocks closed higher yesterday, 22 June 2015, following a global rally in equities, as investors cheered signs of progress in the Greece debt negotiations.
US existing home sales rose in May to the fastest pace since late 2009, as first-time buyers stepped up their purchases and more homes on the market encouraged buyers, according to data released yesterday, 22 June 2015. Sales of existing homes rose 5.1% in May to a seasonally adjusted annual rate of 5.35 million, hitting the fastest pace since November 2009 and rebounding from a drop in April, the National Association of Realtors reported.
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