Key benchmark indices eked out small gains after alternately swinging between positive and negative zone in intraday trade. However, the overall movement for the benchmark indices was confined to a relatively narrow range. A divergent trend was witnessed among various index constituents. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was provisionally up 87.97 points or 0.33% at 26,458.95.
Index heavyweight Reliance Industries (RIL) edged higher after the company's chairman Mukesh Ambani said at the company's annual general meeting (AGM) that RIL will start commercial 4G telecommunication services around December 2015. IT stocks declined. TCS and Infosys dropped on reports that the US Department of Labour has opened probe against these two Indian IT companies for H1-B visa violations. Shares of private sector banks rose. Shares of state-run banks witnessed a mixed trend.
Key benchmark indices witnessed intraday volatility today, 12 June 2015. Earlier during the trading session, key benchmark indices bounced back in volatile trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade. After hovering in positive zone near the flat line in afternoon trade, key benchmark indices reversed direction in mid-afternoon trade. The Sensex hit its lowest level in 34 weeks and the 50-unit CNX Nifty hit its lowest level in more than 33 weeks in mid-afternoon trade. Key indices moved into green from red in late trade.
In overseas markets, European stocks dropped after the International Monetary Fund walked out on Greece's bailout talks, increasing the risk of a Greek default and exit from the eurozone. Asian stocks rose as US retail sales data for May 2015 released overnight provided more evidence of a strengthening US economy. US stocks closed higher yesterday, 11 June 2015, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 622.89 crore yesterday, 11 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 589.29 crore yesterday, 11 June 2015, as per provisional data.
As per provisional closing, the S&P BSE Sensex was up 87.97 points or 0.33% at 26,458.95. The index rose 118.60 points at the day's high of 26,489.58 in early afternoon trade. The index fell 63.91 points at the day's low of 26,307.07 in late trade, its lowest level since 17 October 2014.
The CNX Nifty was up 17.55 points or 0.22% at 7,982.90. The index hit a high of 7,995.60 in intraday trade. The index hit a low of 7,940.30 in intraday trade, its lowest level since 21 October 2014.
The market breadth indicating the overall health of the market was negative. On BSE, 1,480 shares declined and 1,158 shares rose. A total of 107 shares were unchanged.
The BSE Mid-Cap index was up 33.87 points or 0.34% at 10,121.94, outperforming the Sensex. The BSE Small-Cap index was off 38.40 points or 0.36% at 10,573.78, underperforming the Sensex.
The total turnover on BSE amounted to Rs 2192 crore, lower than turnover of Rs 2508.28 crore registered during the previous trading session.
Index heavyweight Reliance Industries (RIL) edged higher after the company's chairman Mukesh Ambani said at the company's annual general meeting (AGM) that Reliance Jio Infocomm will start commercial 4G telecommunication services around December 2015. The stock was up 1.53% at Rs 890.60. The stock hit high of Rs 892.50 and low of Rs 878.85. The financial year 2016-17 will be the first full year of commercial operations for Reliance Jio Infocomm, Ambani said.
Ambani said at the company's 41st annual general meeting (AGM) today, 12 June 2015, that Reliance Industries has embarked on a journey of investing over Rs 2 lakh crore in building new facilities and creating new businesses that will come to fruition in the next 12 to 18 months. These investments will build new capacities, strengthen the company's global positions, improve the return on capital and make the company's existing refinery and petrochemical businesses among the most competitive in the world.
RIL plans to re-commission the entire network of petroleum retail outlets by the end of the current financial year. Currently, close to 400 outlets are operational, Ambani said.
With regard to its organized retail business, Reliance Retail will be embarking on its next phase of building a high growth trajectory supported with e-commerce and larger geographic coverage, Ambani said.
IT stocks declined. HCL Technologies (down 1.63%) and MphasiS (down 0.24%) fell.
TCS (down 1.83%) and Infosys (down 0.65%) edged lower on reports that the US Department of Labour has opened probe against these two Indian IT companies for H1-B visa violations. The US Department of Labour has opened the investigation against TCS and Infosys for possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison, reports said. Senators Richard Durbin of Illinois, a Democrat, and Jeff Sessions of Alabama, a Republican, announced the investigation after they were notified by the department, according to reports.
Wipro shed 1.93%. Wipro announced after market hours yesterday, 11 June 2015, that it will implement a next generation customer helpdesk management solution, powered by its artificial intelligence (Al) platform - Wipro HOLMES for Nexenta, the global leader in Open Source-driven Software-Defined Storage (OpenSDS). Wipro will also implement a Service Bot Workbench for Nexenta's internal Technical Team.
Tech Mahindra fell 0.96%. Tech Mahindra announced after market hours yesterday, 11 June 2015, the launch of its next generation cloud management platform mPAC (managed platform for adaptive computing) for hybrid IT management. mPAC is the next generation cloud management platform which simplifies IT by transforming legacy datacenters into adaptive infrastructure enabling software defined datacenter. It aims to improve agility by reducing service deployment time from months to minutes, thereby resulting in significant cost savings.
Shares of private sector banks edged higher. HDFC Bank (up 0.82%), Kotak Mahindra Bank (up 2.37%), ICICI Bank (up 2.69%), Axis Bank (up 0.85%) and Yes Bank (up 0.09%) edged higher.
IndusInd Bank rose 1.24%. IndusInd Bank said after market hours yesterday, 11 June 2015, that the board of directors of the bank, at their meeting held yesterday, 11 June 2015, approved preferential allotment of shares to promoters of the bank up to 1.5% of the authorised share capital of the bank of Rs 600 crore (preferential allotment), so that post any other issue of equity shares that the bank may do pursuant to the shareholders approval and the preferential allotment, the aggregate holding of the promoters i.e. IIHL and its subsidiary is retained at 15%.
Among PSU bank stocks, State Bank of India (SBI) (up 0.26%), Bank of India (up 0.35%), Canara Bank (up 0.58%), Andhra Bank (up 0.66%) and Union Bank of India (up 2.5%) rose. Punjab National Bank (down 0.38%) and Bank of Baroda (down 1.35%) dropped.
Finance Minister Arun Jaitley reportedly said at a news conference after holding Quarterly Review Meeting with the CEOs of the public sector banks (PSBs) and Financial Institutions (FIs) for the year ended 31 March 2015 (Financial Year 2014-15) that PSBs have made a strong case for higher capital infusion by the government. Jaitley further said that he sees a merit in the demand. However, he didn't specify how much more the government was ready to inject.
Vijaya Bank declined 4.49% after the stock turned ex-dividend for final dividend of Rs 1.50 per share for the year ended 31 March 2015. Before turning ex-dividend, the stock offered a dividend yield of 3.45% based on the closing price of Rs 43.45 yesterday, 11 June 2015.
On the macro front, the government is scheduled to unveil industrial production data for April 2015 at 17:30 IST today, 12 June 2015. Industrial output growth touched a five-month low of 2.1% in March from a revised 4.9% in February on the back of an across-the-board slowdown in production.
The government is also scheduled to unveil the consumer price index (CPI) data for the month of May 2015 at 17:30 IST today, 12 June 2015. Consumer price index-based retail inflation eased to a four-month low of 4.87% in April from a revised 5.25% in March.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 11 June 2015, that the Southwest Monsoon has been active over Assam & Meghalaya, Nagaland, Manipur, Mizoram & Tripura and Sub-Himalayan West Bengal & Sikkim during past 24 hours. In its weekly report, the IMD said that conditions are becoming favourable for advance of monsoon over remaining parts of south peninsula and some parts of east India during next one week. The rainfall is likely to be above normal over many parts of south Peninsula and adjoining areas of east and central India during next two weeks. As per IMD's Extended Range Forecast (next 20 days), rainfall would be above normal over Indo Gangetic plains during the third week of June 2015. Over north eastern states, the rainfall intensity would be above normal during next 5 days and near normal/below normal thereafter.
For the country as a whole, cumulative rainfall during this year's monsoon season has been 100% of the Long Period Average (LPA) until 10 June 2015. Region wise, the southwest monsoon has been 31% below the LPA in Central India, 13% below the LPA in Northwest India, 2% below the LPA South Peninsula and 24% above the LPA in east & northeast India
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 shares were trading lower today, 12 June 2015, as tensions surrounding Greece continued to overshadow sentiment. Key benchmark indices in UK, France and Germany were off 0.02% to 0.37%.
The International Monetary Fund yesterday, 11 June 2015, announced that it was halting bailout talks with Greece over a lack of progress toward a deal to avert a Greek default. Greece deferred a payment to the International Monetary Fund last week and needs to crack a deal or get another extension before its euro-area bailout package expires on 30 June 2015.
Industrial production in the eurozone rose only slightly in April. The European Union's statistics agency said today, 12 June 2015 that production by factories, mines and utilities was 0.1% higher than in March, and 0.8% higher than in the same month of last year.
Asian stocks edged higher today, 12 June 2015, as US retail sales data for May 2015 released overnight provided more evidence of a strengthening US economy. Key benchmark indices in China, Singapore, Indonesia, Japan and Hong Kong were up 0.14% to 1.39%. Key benchmark indices in South Korea and Taiwan were off 0.01% to 0.22%.
US stocks closed higher yesterday, 11 June 2015, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy. In economic data, sales at US retailers climbed 1.2% in May and rose for the third month in a row, offering more evidence of springtime rebound in consumer spending after a winter lull.
The number of people who applied for US unemployment benefits rose slightly in the first week of June but remained near a 15-year low amid a sharp upsurge in hiring over the past few years. Initial jobless claims edged up by 2,000 to 279,000 in the seven days from May 31 to June 6, the government said yesterday, 11 June 2015.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 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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