Banking and auto stocks led a strong rebound for key benchmark indices during the latter part of the trading session. The intraday rebound in late trade materialised after benchmark indices hovered in negative zone from the beginning of the trading session until mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in almost a week. The Sensex garnered 99.96 points or 0.38% to settle at 26,686.51.
The Nifty regained the psychological 8,000 mark after falling below that level in intraday trade. The Nifty had settled above the psychological 8,000 mark after registering modest gains yesterday, 15 June 2015. The market breadth indicating the overall health of the market was negative. In overseas markets, fears of a Greek default continued to spook European stocks.
Metal & mining stocks were mixed. Shares of Vedanta and Cairn India, both, edged lower after Indian proxy advisory firm InGovern Research Services said that the proposed merger of Cairn India with Vedanta would be against the interest of Cairn India's minority shareholders. IT stocks were mixed. Telecom stocks declined. Kotak Mahindra Bank fell on reports that the Foreign Investment Promotion Board has once again deferred the bank's proposal for raising foreign investment limit in the bank to 55%. PSU OMCs rose after announcing fuel price changes after trading hours yesterday, 15 June 2015.
Key indices edged higher for the 3rd trading session in a row today, 16 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 585.86 crore into the secondary equity market yesterday, 15 June 2015, as per data from National Securities Depository. Domestic institutional investors (DIIs) bought shares worth a net Rs 650.47 crore yesterday, 15 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower as investors grew increasingly worried about a lack of progress in negotiations between Greece and its creditors. Asian stocks edged lower as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution. US stocks edged lower yesterday, 15 June 2015, after the collapse of weekend talks over Greece's bailout plan and on disappointing economic data.
The S&P BSE Sensex rose 99.96 points or 0.38% to settle at 26,686.51, its highest closing level since 10 June 2015. The index jumped 144.80 points at the day's high of 26,731.35 in late trade. The index fell 206.62 points at the day's low of 26,379.93 in mid-afternoon trade.
The Nifty rose 33.40 points or 0.42% to settle at 8,047.30, its highest closing level since 10 June 2015. The index hit a high of 8,061.85 in intraday trade. The index hit a low of 7,952.35 in intraday trade.
The BSE Mid-Cap index rose 76.88 points or 0.76% to settle at 10,197.68, outperforming the Sensex. The BSE Small-Cap index rose 36.50 points or 0.34% to settle at 10,654.90, underperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,351 shares fell and 1,275 shares rose. A total of 128 shares were unchanged.
The total turnover on BSE amounted to Rs 2495 crore, higher than turnover of Rs 2353.06 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.18%), the S&P BSE Auto index (up 1.08%), the S&P BSE Bankex (up 0.87%) and the S&P BSE Power index (up 0.73%) outperformed the Sensex. The S&P BSE Oil & Gas index (down 0.15%), the S&P BSE FMCG index (down 0.07%), the S&P BSE Metal index (up 0.12%), the S&P BSE Capital Goods index (up 0.13%), the S&P BSE Realty index (up 0.22%), the S&P BSE Healthcare index (up 0.25%), the S&P BSE IT index (up 0.29%) and the S&P BSE Teck index (up 0.29%) underperformed the Sensex.
Index heavyweight and housing finance major HDFC fell 0.95% to Rs 1,203.20. The stock hit high of Rs 1,210.35 and low of Rs 1,180.15. As per reports, the company's advance tax payment for the first installment of 15 June 2015 rose 12.05% at Rs 465 crore.
Auto stocks rose. Tata Motors (up 1.54%), Maruti Suzuki India (up 1.07%), TVS Motor Company (up 0.04%) and Bajaj Auto (up 2.73%), Mahindra & Mahindra (M&M) (up 1.18%) and Eicher Motors (up 2.5%) rose. Ashok Leyland declined 0.84%.
Hero MotoCorp gained 1.27%. Hero MotoCorp after market hours today, 16 June 2015, announced the launch of the stylish and more powerful new Passion Pro bike. One of the most popular motorcycle brands in the country with over a million units in annual sales, Passion has captured the imagination of customers for over a decade, Hero MotoCorp said in a statement. The new Passion Pro is now available at all Hero dealerships across the country. It is available at Rs 50,057 (ex-showroom Mumbai), Rs 49,250 (ex-showroom Chennai), Rs 49,819 (ex-showroom Kolkata) and Rs 49,450 (ex-showroom Bangalore).
Telecom stocks declined. Bharti Airtel (down 0.04%), MTNL (down 1.32%) and Idea Cellular (down 3.76%) declined. Tata Teleservices (Maharashtra) rose 1.54%.
Reliance Communications (RCom) edged lower in volatile trade. The stock shed 0.25% to Rs 58.70. The stock hit high of Rs 60.60 and low of Rs 57.60 in intraday trade. RCom after market hours yesterday, 15 June 2015, announced that the company and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices (SSTL) and RCom through a stock swap. RCom said that the discussions are indicative and non-binding in nature and remain subject to due diligence, definitive documentation and approvals, as may be necessary. There is no certainty that any transaction will result, it added.
PSU OMCs rose after announcing fuel price changes after trading hours yesterday, 15 June 2015. HPCL rose 1.47%. Indian Oil Corporation (IOCL) rose 1.03%.
IOCL after trading hours yesterday, 15 June 2015, announced increase in petrol price by 64 paise per litre with effect from the midnight of 15/16 June 2015. With the latest revision, the price of petrol in Delhi has risen to Rs 66.93 per litre. The price of diesel was reduced by Rs 1.35 per litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of diesel in Delhi declined to Rs 50.93 per litre.
BPCL fell 1.1% on reports that government is planning to sell 3% stake in the company. According to reports, the Finance Ministry has send proposals to BPCL with regard to government's stake-sale. The Government of India holds 54.93% stake in BPCL (as per the shareholding pattern as on 31 March 2015).
Bank stocks edged higher in volatile trade. Among public sector banks, UCO Bank (up 0.91%), Syndicate Bank (up 2.18%), Punjab National Bank (up 1.65%), Corporation Bank (up 0.59%), Allahabad Bank (up 1.95%), Union Bank of India (up 3.55%), Canara Bank (up 3.02%), Bank of India (up 2.43%) and United Bank of India (up 2.02%) edged higher.
State Bank of India (SBI) rose 2.04%. As per reports, SBI's advance tax payment for the first installment of 15 June 2015 rose 4% at Rs 1290 crore.
Bank of Baroda fell 0.21% as the stock turned ex-dividend today, 16 June 2015, for dividend of Rs 3.20 per share for the year ended 31 March 2015.
Among private sector banks, Axis Bank (up 0.61%), ICICI Bank (up 1.24%), Federal Bank (up 1.85%), Yes Bank (up 1.43%), and IndusInd Bank (up 3.52%) edged higher.
HDFC Bank gained 0.46%. With regard to news item titled CSB Promoters in Talks with Banks to Sell Stake, HDFC Bank after market hours yesterday, 15 June 2015, said in a clarification to the news reports that it is not in talks with the entities mentioned in the news item for purchasing promoters' stakes. The bank continues its practices of fair and prompt disclosure of information in pursuance of the Listing Agreement with the stock exchanges, HDFC Bank said.
Meanwhile, HDFC Bank's advance tax payment for the first installment of 15 June 2015 rose 22% at Rs 1000 crore, according to reports.
Kotak Mahindra Bank rose 0.38% to Rs 1,294.60. The stock hit high of Rs 1,297 and low of Rs 1,263.75 in intraday trade. The Foreign Investment Promotion Board reportedly once again deferred the bank's proposal for raising foreign investment limit in the bank to 55%. According to reports, the proposal for raising foreign investment limit in Kotak Mahindra Bank (KMBL) was put off by the Foreign Investment Promotion Board (FIPB) as comments from the Department of Financial Services (DFS) about the impact of the proposal on downstream investment by the bank in the insurance venture did not come. The Insurance Regulatory and Development Authority of India (IRDAI) was to give its comments to DFS, reports added.
IT stocks were mixed. HCL Technologies fell 0.57%. Tech Mahindra (up 0.14%) and Infosys (up 0.9%) rose.
TCS fell 0.47%. TCS after market hours today, 16 June 2015, announced the launch of a new Next-Gen Technology Solutions Center of Excellence (CoE). The state-of-the-art NextGen Technology Solutions CoE is spread across 10,000 sq. ft. and is located at the TCS Hyderabad campus. The NextGen Technology CoE will focus on the research and development of futuristic technologies and creation of next-generation products and solutions for its global customers in the semiconductor, devices and networks space, TCS said.
Wipro declined 0.43% to Rs 538.60. The stock hit high of Rs 546 and low of Rs 535.10. The company after market hours yesterday, 15 June 2015, announced that it has won a contract from T-Mobile Poland to provide integrated applications and infrastructure services. Wipro has committed to T-Mobile a significant improvement of its legacy application consolidation & rationalization, transforming its operating model from application-focus to domain-focus leading to better customer service. Over the next five years, Wipro will help T-Mobile systemize and standardize the IT architecture and operations of Polish entity. A significant portion of the services will be provided from Wipro's Delivery Center in Warsaw as a part of their development strategy for Poland.
Separately, Wipro announced after market hours yesterday, 15 June 2015, that Wipro Digital, the digital business unit of Wipro, has been appointed by the Lawn Tennis Association (LTA) as its official digital technology services partner for three years. Wipro Digital will assist LTA in achieving its strategy and high performance vision to build the future of British Tennis by enabling its digital transformation. Both parties will work together to identify areas where they can collaborate.
Metal & mining stocks were mixed. Hindalco Industries (up 1.18%), National Aluminum Company (up 0.12%), Hindustan Copper (up 2.84%) and NMDC (up 1.47%) gained.
JSW Steel (down 0.44%), Hindustan Zinc (down 0.33%), Jindal Steel & Power (down 0.68%) and Tata Steel (down 1.03%) fell.
Vedanta shed 1.9% and Cairn India dropped 3.2%. Indian proxy advisory firm InGovern Research Services has red flagged the proposed merger of Cairn India with Vedanta, stating that it would be against the interest of Cairn India's minority shareholders. As a result of the merger, public shareholders of a debt-free Cairn India will become shareholders of a heavily levered Vedanta. In other words, the merger will socialize the debt of Vedanta across the minority shareholders of both Vedanta and Cairn India. However, the promoter Vedanta plc will continue to hold majority control with 50.1% stake in the combined entity.
InGovern also said that the minority shareholders of Cairn India will inherit problems of Vedanta Aluminum. Vedanta Aluminum has been battling the activists for the refinery expansion in Orissa. Amnesty International has consistently highlighted human rights abuses associated with the operations of the Lanjigarh refinery, which commenced production in 2007, InGovern said in its research report.
Vedanta and Cairn India 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. Approximately 75.2 crore of each of equity shares and RPS will be issued to the minority shareholders of Cairn India by Vedanta pursuant to the merger. Post completion of the transaction, Vedanta plc's ownership in Vedanta is expected to decrease to 50.1% from its current 62.9% shareholding. Cairn India minority shareholders will own 20.2% and Vedanta minority shareholders will own a 29.7% stake in the enlarged entity.
Aurobindo Pharma gained 3.31% after the company announced after market hours yesterday, 15 June 2015, that it has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market Extended Phenytoin Sodium Capsules USP, 100mg. The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Dilantin of Parke-Davis Division of Pfizer Inc. Phenytoin Sodium Extended Capsules is an anti-epileptic product and indicated for the control of seizures and prevention and treatment of seizures occurring during or following neurosurgery. The product has an estimated market size of $125 million in the United States for the twelve months ending April 2015, according to IMS.
Jet Airways (India) jumped 14.36% to Rs 289.50 on bargain hunting after the stock slumped 34.31% in the preceding eleven trading sessions to Rs 253.15 on 15 June 2015, from a recent high of Rs 385.40 on 29 May 2015.
Key benchmark indices edged higher for the third straight trading session today, 16 June 2015. The Sensex has risen 315.53 points or 1.19% in the preceding three trading sessions from a recent low of 26,370.98 on 11 June 2015. The Sensex has lost 1,141.93 points or 4.1% in this month so far (till 16 June 2015). The Sensex has lost 812.91 points or 2.95% in this calendar year so far (till 16 June 2015). From a 52-week low of 24,878.66 on 23 June 2014, the Sensex has risen 1,807.85 points or 7.26%. The Sensex is off 3,338.23 points or 11.11% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, data released by the Ministry of Commerce & Industry today, 16 June 2015, showed that India's merchandise exports fell 20.19% to $22.35 billion in May 2015 over May 2014. Merchandise exports registered a fall of 17.21% to $44.40 billion during the two-month period April-May 2015 over the corresponding period in the previous year.
Imports fell 16.52% to $32.75 billion in May 2015 over May 2014. Oil imports fell 40.97% to $8.54 billion in May 2015 over May 2014. Non-oil imports fell 2.24% to $24.21 billion in May 2015 over May 2014. The trade deficit declined to $10.40 billion in May 2015 from $11.23 billion in May 2014.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 15 June 2015, that the Southwest Monsoon was active over Arunachal Pradesh, Gangetic West Bengal, Odisha, Konkan & Goa, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. The conditions are becoming favourable for further advance of southwest monsoon into some more parts of West Bengal and Odisha, remaining parts of Coastal Andhra Pradesh, Bay of Bengal and some parts of Jharkhand and Bihar during next 3-4 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 11% above the Long Period Average (LPA) until 14 June 2015. Region wise, the southwest monsoon was 20% above the LPA in East & Northeast India, 12% above the LPA in Central India, 1% above normal in South Peninsula and 6% below the LPA in Northwest India until 14 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, 16 June 2015, as investors grew increasingly worried about a lack of progress in negotiations between Greece and its creditors. Key benchmark indices in UK, France and Germany were off 0.56% to 0.99%.
Greek Prime Minister Alexis Tsipras yesterday, 15 June 2015, expressed defiance over demands by his country's creditors, insisting lenders soften their calls for pension cuts. That followed a collapse of talks between the two sides over the weekend. Greek Finance Minister Yanis Varoufakis reportedly said that his country has no plans of presenting a new reform proposal at a closely watched Eurogroup meeting scheduled on Thursday, 18 June 2015, insisting the lenders take Greece's suggested reforms seriously.
Last week the International Monetary Fund pulled out of talks, citing a lack of progress. Greece has a debt repayment of 1.6 billion euros ($1.8 billion) due at the end of this month to the International Monetary Fund after the European nation bundled all its four June repayments into one.
European Central Bank President Mario Draghi yesterday, 15 June 2015, raised pressure on the Greek government to come to an agreement with its international creditors to unlock financing. While all actors will now need to go the extra mile, the ball lies squarely in the camp of the Greek government to take the necessary steps, Draghi was quoted as saying.
German consumer prices rose at their fastest rate in seven months in May, a sign that the European Central Bank's bond purchase program may be starting to have its desired effect. Consumer prices measured according to common European standards, or the HICP, increased 0.1% on the month and 0.7% on the year, the federal statistics office said today, 16 June 2015, confirming preliminary estimates. That was the largest annual increase since October 2014, when prices increased by the same rate.
German economic sentiment slumped to a seven-month low in June, a sign that the economic upswing in Europe's largest economy is losing momentum. The ZEW think tank said today, 16 June 2015, its indicator of economic expectations dropped for the third straight month to 31.5 in June, from 41.9 in May. That was the lowest level since November 2014, when the indicator stood at 11.5.
Asian stocks edged lower today, 16 June 2015, as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution. Key benchmark indices in Singapore, Hong Kong, Taiwan, Japan, and South Korea shed by 0.5% to 1.1%. In Indonesia, the Jakarta Composite was up 0.72%.
China's Shanghai Composite plunged 3.47%. Mainland China share market declined for second straight day on Tuesday, 16 June 2015, after Beijing's latest ruling on margin financing and ahead of fresh wave of IPOs this week. Chinese regulators' tightened margin regulations for over-the-counter shares. China Securities Regulatory Commission said investors need to have a minimum daily balance of 500000 yuan ($80000) securities assets in the last 20 trading days to take margin loans. The securities regulator also said the size of margin finance balance at each broker may not exceed four times of their net capital.
The tightening adds stress to a market already facing liquidity pressure from a prospective wave of 25 initial public offerings this week, which is estimated to lock up 5.7 trillion yuan ($918 billion) of liquidity.
US stocks edged lower yesterday, 15 June 2015, after the collapse of weekend talks over Greece's bailout plan and on disappointing economic data. The losses followed a breakdown in talks between Greece and its creditors over the weekend. The lack of progress in negotiations has rattled investors and raised fears of a default on Greece's debt and a possible exit from the currency bloc.
Among US macroeconomic data, US industrial production unexpectedly fell in May as manufacturing and mining activity remained weak, a sign that a strong dollar and spending cuts in the energy sector continued to constrain economic growth. Industrial output slipped 0.2% last month after declining 0.5% in April, In a separate report, the New York Fed said its Empire State general business conditions index dropped to a reading of minus 1.98 in June from 3.09 in May.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy begins today, 16 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
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