After remaining firm in afternoon trade, key benchmark indices extended gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than two weeks. The 50-unit CNX Nifty hit its highest level in almost two week. The Sensex was currently trading above the psychological 27,000 mark, after surpassing that mark in early trade. The Sensex was currently up 319.79 points or 1.19% at 27,152.45. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up 1.13%.
FMCG stocks gained after a good start for the monsoon season. Cement stocks were mixed.
Indian stocks edged higher today, 18 June 2015, after the US Federal Reserve said after the conclusion of a two-day monetary policy meeting yesterday, 17 June 2015, that its monetary-policy tightening would be gradual, easing concerns of a possible sudden outflows from emerging markets. There have been concerns that higher US interest rates will reduce the attraction of riskier emerging-markets assets. Higher interest rates in the United States will boost returns on US debt and bank deposits, drawing money back from riskier markets.
The US Federal Reserve left key interest rates unchanged near zero after the conclusion of a two-day monetary policy review yesterday, 17 June 2015, and signaled that there will be a gradual pace of interest rate increases starting with a first rate hike in the current calendar year. Meanwhile, Fed policy makers lowered their longer-term projections for US rates.
In overseas stock markets, European shares fell as hopes of a deal between Greece and its creditors at a summit later in the global day today, 18 June 2015, receded, further straining investor nerves after weeks of fruitless negotiations. Stocks in mainland China led decline in Asian stocks. US stocks eked out small gains yesterday, 17 June 2015, after the Federal Reserve left key interest rates unchanged and as Fed Chairwoman Janet Yellen reiterated policy makers' commitment to watch economic data.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 940.91 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1447.07 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges.
At 14:17 IST, the S&P BSE Sensex was up 319.79 points or 1.19% at 27,152.45. The index jumped 342.73 points at the day's high of 27,175.39 in mid-afternoon trade, its highest level since 3 June 2015. The index rose 77.60 points at the day's low of 26,910.26 in early trade.
The Nifty was up 89.95 points or 1.11% at 8,181.50. The index hit a high of 8,186.90 in intraday trade, its highest level since 5 June 2015. The index hit a low of 8,101.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,637 shares rose and 943 shares fell. A total of 110 shares were unchanged.
The BSE Mid-Cap index was up 90.29 points or 0.87% at 10,434.80. The BSE Small-Cap index was up 121.84 points or 1.13% at 10,918.14. Both these indices underperformed the Sensex.
FMCG stocks gained after a good start for the monsoon season. Tata Global Beverages (up 0.87%), Nestle India (up 1.97%), Marico (up 0.15%), Jyothy Laboratories (up 3.25%), Procter & Gamble Hygiene and Health Care (up 1.17%), Hindustan Unilever (HUL) (up 0.15%), Dabur India (up 0.45%), Colgate Palmolive India (up 0.41%), Godrej Consumer Products (up 0.04%), and Bajaj Corp (up 3.97%) gained. Britannia Industries (down 1.83%) and GlaxoSmithkline Consumer Healthcare (down 0.2%), declined. FMCG firms derive substantial revenue from rural India.
Cement stocks were mixed. Shree Cement (up 0.86%) and ACC (up 0.21%) gained. Ambuja Cements (down 0.45%), and UltraTech Cement (down 0.13%) declined.
Grasim Industries was unchanged at Rs 3,367. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Punjab National Bank (PNB) rose 1.02%. With respect to news titled "PNB seeks to sell Electrotherm, Bharati Shipyard loans to ARCs", the state-run bank clarified during market hours today, 18 June 2015, that acceptance of deposits, disbursement of loans, settlement of non-performing assets (NPA) accounts under compromise or by sale under SARFAESI or through asset reconstruction companies (ARCs) etc irrespective of the value, are part of normal banking activities. The subject matter does not fall under clause 36 of the listing agreement to be reported to the stock exchanges, PNB said.
Meanwhile, finance Minister Arun Jaitley has approved the formation of two separate committees for facilitating implementation of a nationwide Goods and Services Tax (GST) from 1 April 2016. The finance ministry said in a statement issued after trading hours yesterday, 17 June 2015, that progress is underway to finalise various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules. A Steering Committee been formed under the co-chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This committee will monitor the progress of IT preparedness of Goods and Services Tax Network (GSTN)/CBEC/tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The committee will also monitor the progress on consultations with various stakeholders like trade and industry and training of officers.
Another committee has been formed under the chairmanship of the Chief Economic Advisor, Ministry of Finance to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Central Government and the state governments. While making recommendations, this committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST, the finance ministry said in a statement. This committee would also analyse the sector-wise and state-wise impact of GST on the economy. The committee is expected to give its report within two months.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 17 June 2015, that the Southwest Monsoon was active over Marathwada, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. Conditions are favourable for further advance of southwest monsoon into some more parts of Chhattisgarh, Odisha and West Bengal, remaining parts of Coastal Andhra Pradesh and Bay of Bengal during next 2-3 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 12% above the Long Period Average (LPA) until 16 June 2015. Region wise, the southwest monsoon was 19% above the LPA in East & Northeast India, 17% above the LPA in Central India, 1% above the LPA in South Peninsula and 5% below the LPA in Northwest India until 16 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 stock markets, European shares fell today, 18 June 2015, as hopes of a deal between Greece and its creditors at a summit later in the global day today, 18 June 2015, receded, further straining investor nerves after weeks of fruitless negotiations. Key benchmark indices in UK, France and Germany were off 0.35% to 0.86%.
The Eurogroup of eurozone finance ministers meets in Luxembourg today, 18 June 2015, with Greece high on the agenda. Greece is still struggling to reach a reform agreement with its lenders, which would unlock the next portion of bailout money needed to repay 1.6 billion euros ($1.82 billion) to the International Monetary Fund by the end of June
Meanwhile, while addressing the German parliament, German Chancellor Angela Merkel today, 18 June 2015, said that a Greek deal is still possible.
Stocks in mainland China led decline in Asian stocks today, 18 June 2015. The Shanghai Composite index plunged 3.67%. In Hong Kong, the Hang Seng index lost 0.22%. In other Asian markets, key benchmark indices in Indonesia, Japan and Singapore were off 0.01% to 1.13%. Key benchmark indices in Taiwan and South Korea rose 0.31% to 0.34%.
China attracted $9.33 billion worth of foreign direct investment in May, up 7.8% from a year earlier, the Ministry of Commerce said today, 18 June 2015. The figure was down from April's $9.61 billion, which was 10.5% higher from a year earlier.
US stocks eked out small gains yesterday, 17 June 2015, after the Federal Reserve left key interest rates unchanged and as Fed Chairwoman Janet Yellen reiterated policy makers' commitment to watch economic data. In a press conference following the conclusion of the Federal Reserve's two-day policy meeting yesterday, 17 June 2015, Fed Chairwoman Janet Yellen said she wanted "more decisive evidence" that labour markets were healing, and that wages would increase beyond their current "subdued pace."
The US economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, but concerns remain over the recovery of the labour market, US Federal Reserve officials said. With the economy still on track to grow as much as 2% for the year, the central bank's latest policy statement keeps it on track for at least one and perhaps a second rate increase later this year.
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