Auto stocks and index heavyweights ITC and Infosys led gains for benchmark indices on the last trading session of the week today, 17 July 2015. Benchmark indices registered minuscule gains. The intraday movement for the benchmark indices was within a narrow range. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in more than 13 weeks. The Sensex garnered 17.19 points or 0.06% to settle at 28,463.31. The market breadth indicating the overall health of the market was positive. In overseas markets, Chinese shares recovered further after a series of government support measures to halt their recent crash.
IT stocks advanced. MindTree rose after reporting decent Q1 results. Telecom stocks gained. Shares of public sector banks were mixed. Shares of private sector banks declined.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 754.67 crore from the secondary equity market yesterday, 16 July 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) sold shares worth a net Rs 98.51 crore yesterday, 16 July 2015, as per provisional data released by the stock exchanges.
Key indices edged for the third day in a row today, 17 July 2015.
In overseas markets, European stocks edged lower ahead of a debate and voting by lawmakers in Germany today, 17 July 2015, on the plan for a third bailout for Greece. Earlier during the global day, Chinese stocks led gains for Asian equities. US stocks edged higher yesterday, 16 July 2015, with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress.
The S&P BSE Sensex rose 17.19 points or 0.06% to settle at 28,463.31, its highest closing level since 16 April 2015. The index jumped 130.20 points at the day's high of 28,576.32 in early trade. The index fell 28.66 points at the day's low of 28,417.46 in morning trade.
The Nifty gained 1.80 points or 0.02% to settle at 8,609.85, its highest closing level since 16 April 2015. The index hit a high of 8,642.95 and a low of 8,593.15 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,423 shares gained and 1,407 shares fell. A total of 139 shares were unchanged.
The BSE Mid-Cap index rose 21.94 points or 0.2% to settle at 11,220.18. The BSE Small-Cap index gained 50.94 points or 0.44% to settle at 11,716.37. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2932 crore, higher than turnover of Rs 2777.43 crore registered during the previous trading session.
Index heavyweight and cigarette maker ITC gained 1.23% to Rs 321.80. The stock hit high of Rs 322.80 and low of Rs 317.70.
Auto stocks gained. Ashok Leyland (up 0.94%) and Eicher Motors (up 0.06%) edged higher.
Maruti Suzuki India gained 0.33% to Rs 4,194.05. The stock hit a high of Rs 4,225.25 in intraday trade, which was also a record high for the stock. Media reports suggested that Maruti Suzuki India may get a boost from the Seventh Pay Commission's recommendations later this year that will lead to salaries of government employees rising. According to reports, the Pay Commission is expected to submit its report by October 2015 and this is likely to be implemented from July 2016, likely adding to an expected double-digit growth in passenger car sales in the fiscal year ending March 2017.
Tata Motors rose 0.92%. The company after market hours yesterday, 16 July 2015, announced that its global wholesales, including Jaguar Land Rover (JLR), remained flat on year-on-year basis at 76,602 units in June 2015. Global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range remained flat on year-on-year basis at 31,083 units in June 2015. Global wholesales of all passenger vehicles rose 3% to 45,519 units in June 2015 over June 2014. Global wholesales of Tata Motors passenger vehicles rose 29% to 10,611 units in June 2015 over June 2014.
Global wholesales for Jaguar Land Rover (JLR) stood at 34,908 vehicles (including CJLR wholesales) in June 2015. Jaguar wholesales were 7,087 vehicles while Land Rover wholesales were 27,821 vehicles in June 2015. CJLR is a joint venture between JLR and Chery Automobiles and is an unconsolidated subsidiary for JLR.
Mahindra & Mahindra (M&M) rose 1.74%. The agri business vertical of M&M today, 17 July 2015, announced the launch of its branded edible oil NuPro for the health conscious Indian consumer. The company plans to launch a range of pure and healthy edible oils across the country over the next three years. M&M made the announcement during trading hours today, 17 July 2015.
Shares of two-wheeler makers declined. Bajaj Auto (down 0.67%), Hero MotoCorp (down 0.01%) and TVS Motor Company (down 1.2%) declined.
Telecom stocks gained. MTNL (up 0.51%), Bharti Airtel (up 0.32%) and Reliance Communications (up 1.82%) gained. Tata Teleservices (Maharashtra) fell 0.7%.
Idea Cellular rose 1.14%. With respect to news titled "Bharti in talks to buy Idea & Vodafone towers for $1.6 bn", Idea Cellular clarified during market hours that news is speculative in nature.
Shares of public sector banks were mixed. United Bank of India (up 0.2%) UCO Bank (up 1.29%), Punjab National Bank (up 0.49%), Corporation Bank (up 0.78%), Allahabad Bank (up 0.39%), Bank of Baroda (up 0.22%), and edged higher. State Bank of India (SBI) (down 0.26%), Canara Bank (down 0.37%), Bank of India (down 0.67%), Syndicate Bank (down 0.34%), and Union Bank of India (down 0.23%) edged lower.
The Minister of State for Finance Jayant Sinha reportedly said today, 17 July 2015, that the government is very much committed to supporting state-run banks. State-run banks have been facing capital constraints as bad loans, sluggish loan growth and depleting profits have eroded their funds.
Shares of private sector banks declined. Axis Bank (down 1.06%), HDFC Bank (down 0.27%), Kotak Mahindra Bank (down 1.08%), Federal Bank (down 1.11%) and Yes Bank (down 0.6%), edged lower. ICICI Bank rose 0.05%.
According to reports, the limit for foreign institutional investors (FIIs) would stay at 49% for banks after the Union Cabinet yesterday, 16 July 2015, approved clubbing of different categories of foreign investment in companies with a composite cap. Currently, overall 74% foreign investment is allowed in banks. FII investment cannot be allowed beyond the current limit of 49% for the fear of run on the bank in case foreign portfolio investors (FPIs) suddenly pull out, according to media reports. Shares of private sector banks had risen yesterday, 16 July 2015, after the Union Cabinet approved clubbing of different categories of foreign investment in companies with a composite cap.
Meanwhile, the Reserve Bank of India (RBI) yesterday, 16 July 2015, announced that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in monthly credit card statement issued by the bank to the customer, is not paid by the customer fully within 90 days from the payment due date mentioned in the statement. However, banks shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges, etc., if any, only when a credit card account remains 'past due' for more than three days, the RBI said in a notification. The number of 'days past due' and late payment charges shall, however, be computed from the payment due date mentioned in the credit card statement, the RBI said.
IndusInd Bank rose 0.29%. IndusInd Bank after trading hours yesterday, 16 July 2016, announced that it had lunched customer responsive service called QuickPay, allowing the bank customers to send money instantly to their personal contacts and/or business parties through SMS, E-mail and social media platforms, without having beneficiary bank account details. The bank will also soon launch its Wallet-based payment app, it added.
IT stocks edged higher on renewed buying. Tech Mahindra (up 2.48%), TCS (up 0.86%), Oracle Financial Services Software (up 0.68%), MphasiS (up 0.91%) and Infosys (up 1.53%), edged higher. Wipro (down 0.57%) and HCL Technologies (down 0.16%) declined.
MindTree rose 3.36% after consolidated net profit rose 7.4% to Rs 138.20 crore on 6.9% growth in revenue to Rs 981.60 crore in Q1 June 2015 over Q4 March 2015. The Q1 result was announced after market hours yesterday, 16 July 2015.
MindTree said that the Board of Directors of the company has approved the acquisition of 100% equity interest in Bluefin Solutions ('Bluefin'), a leading UK based IT solutions provider specializing in SAP HANA solutions, in an all cash transaction for GBP 42.3 million, and the definitive agreements have also been signed on 16 July 2015. The consideration includes an upfront payment of GBP 34 million and earn out of GBP 8.3 million payable over the next three years.
MindTree's Board of Directors also approved the acquisition of 100% of the equity interest in Relational Solutions, Inc a US based IT solutions provider specializing in technology services to the consumer goods industry, in an all cash transaction for $10 million, and the definitive agreements have also been signed on 16 July 2015. The consideration includes an upfront payment of $7 million and earn out of $3 million payable over the next two years. This acquisition is subject to customary closing conditions and regulatory approvals, if any, MindTree said.
Key indices edged higher for the third day in a row today, 17 July 2015. The Sensex has risen 530.41 points or 1.89% in the preceding three trading days from recent low of 27,932.90 on 14 July 2015. The Sensex has risen 682.48 points or 2.45% in this month so far (till 17 July 2015). The Sensex has risen 963.89 points or 3.5% in this calendar year so far (till 17 July 2015). From a 52-week low of 25,232.82 on 8 August 2014, the Sensex has risen 3,230.49 points or 12.8%. The Sensex is off 1,561.43 points or 5.2% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, the India's weather office, the India Meteorological Department (IMD), said in a weekly monsoon report issued yesterday, 16 July 2015, that rainfall was below normal by 14% over the country as a whole during the period from 9 to 15 July 2015. Region wise, the rainfall was 39% below the Long Period Average (LPA) in South Peninsula, 32% below the LPA in Central India and 15% below the LPA in East & Northeast India during the period from 9 to 15 July 2015. Northwest India received above normal rainfall activity during the week with heavy to very heavy rainfall. The rainfall was 28% above the LPA in Northwest India during the period from 9 to 15 July 2015.
For the country as a whole, cumulative rainfall during the period from 1 to 15 July 2015 was 32% below Long Period Average (LPA). Region wise, the rainfall was 60% below the LPA in South Peninsula, 54% below the LPA in Central India, 15% below the LPA in East & Northeast India and 4% above the LPA in Northwest India during the period from 1 to 15 July 2015. The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops.
In a separate daily monsoon update issued yesterday, 16 July 2015, the IMD said that the Southwest Monsoon was vigorous over Jharkhand and was active over Nagaland, Manipur, Mizoram & Tripura, Gangetic West Bengal, Odisha, Bihar, East Uttar Pradesh and Himachal Pradesh during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 16 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 13% below the LPA in South Peninsula, 4% below the LPA in East & Northeast India and 12% above the LPA in Northwest India until 16 July 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 fell today, 17 July 2015, European stocks edged lower ahead of a debate and voting by lawmakers in Germany today, 17 July 2015, on the plan for a third bailout for Greece. Key indices in UK and Germany were off 0.07% to 0.19%. France's CAC 40 rose 0.1%. In Spain, the IBEX 35 index was off 0.06%. In Italy, the FTSE MIB index was off 0.25%.
German lawmakers will today, 17 July 2015, debate and vote on whether to approve the plan for a third bailout for Greece. The parliamentary approval is the next hurdle the financial-aid deal must pass before formal talks can begin. The agreement, sealed early this week between Greece and its eurozone partners, must also get legislative approval from a handful of other eurozone member nations to proceed.
The European Central Bank (ECB) yesterday, 16 July 2015, increased emergency funding for Greek lenders, although capital controls will have to remain in place to avoid a run on the banks when they reopen on Monday, 20 July 2015. European Union finance ministers also approved 7 billion euros ($7.6 billion) in bridge loans to Greece, allowing it to make a bond payment to the ECB on Monday, 20 July 2015, and clear its arrears with the International Monetary Fund. Greece's parliament yesterday, 16 July 2015, approved tough austerity measures needed for the country to receive financial aid.
Meanwhile, the European Central Bank left interest rates unchanged at record low after monetary policy review yesterday, 16 July 2015.
In UK, Bank of England Governor Mark Carney yesterday, 16 July 2015, said in a speech that the Bank of England's decision on when to start raising interest rates in the UK is likely to become clearer around the turn of the year. Carney also said that when the rate starts rising, the increases are likely to be gradual and limited to a level below past averages. Carney's comments suggest central bank officials may be prepared to tighten monetary policy earlier than expected. The central bank has kept its benchmark rate at a record low 0.5% since early 2009.
Chinese stocks led gains for Asian equities today, 17 July 2015. Key benchmark indices in Taiwan and Japan were up 0.04% to 0.25%. South Korea's Kospi was off 0.53%. Chinese shares recovered further after a series of government support measures to halt their recent crash. In mainland China, the Shanghai Composite index jumped 3.51%. In Hong Kong, the Hang Seng index rose 1%.
US stocks edged higher yesterday, 16 July 2015, with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress. Stocks rose steadily as Yellen told the Senate Banking Committee yesterday, 16 July 2015, that she doesn't want to see inflation linger below 2% and that risks lie on tightening too early or too late. On Wednesday, 15 July 2015, Yellen repeated her intent to raise rates sometime this year because the US economy is looking better.
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