A divergent trend was witnessed in key benchmark indices in morning trade as the S&P BSE Sensex hovered within a narrow range in positive terrain while the Nifty 50 index swung between gains and losses near the flat line. At 10:16 IST, the barometer index, the S&P BSE Sensex was up 60.11 points or 0.22% at 27,226.98. The Nifty was almost unchanged at 8,335.75.
In overseas stock markets, Asian stocks were mixed. US stocks rose yesterday, 6 July 2016, recovering from previous sessions' fall as the most beaten-down sectors in recent weeks logged the biggest gains. The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June to its highest reading since November, a turnaround from earlier in the year. The minutes from the Federal Reserve's June meeting revealed a split among officials about the health of the economy and how to proceed on interest rate decisions. The officials at the June meeting sparred over the health of the labor market, the outlook for growth and whether inflation is picking up. They agreed that it was prudent to wait for additional economic data before deciding when to raise interest rates.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,409 shares rose and 649 shares fell. A total of 106 shares were unchanged The BSE Mid-Cap index was currently up 0.1%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.59%, outperforming the Sensex.
Realty stocks rose. DLF (up 0.8%), D B Realty (up 1.77%), Sobha (up 0.28%), Indiabulls Real Estate (up 0.32%), Unitech (up 3.9%), Godrej Properties (up 0.15%), Housing Development & Infrastructure (HDIL) (up 1.1%), and Oberoi Realty (up 1.99%) edged higher.
NBCC (India) jumped 12.57% to Rs 219.40 after the company said it secured a total business of about Rs 587.47 crore in June 2016. The announcement was made after market hours on Tuesday, 5 July 2016.
The BSE Realty index had outperformed the market over the past month till 5 July 2016, rising 10.92% compared with Sensex's 1.21% rise. The index also outperformed the market in past one quarter, gaining 27.91% as against Sensex's 9.18% gain.
Auto stocks were mixed. Ashok Leyland (down 2.06%), Maruti Suzuki India (down 0.21%), Eicher Motors (down 0.26%), Bajaj Auto (down 0.03%), and TVS Motor Company (down 0.67%) declined. Mahindra & Mahindra (M&M) (up 0.68%), Hero MotoCorp (up 0.65%), and Tata Motors (up 0.84%) rose.
Swaraj Engines fell 4.33% to Rs 1,185 after the stock turned ex-dividend today, 7 July 2016, for total dividend of Rs 33 per share for the year ended 31 March 2016 (FY 2016). The dividend includes a special dividend of Rs 18 per share. Before turning ex-dividend, the stock offered a dividend yield of 2.66% based on its closing price of Rs 1,238.65 on the BSE on Tuesday, 5 July 2016.
The BSE Auto index had outperformed the market over the past month till 5 July 2016, rising 1.38% compared with Sensex's 1.21% rise. The index also outperformed the market in past one quarter, gaining 11.97% as against Sensex's 9.18% gain.
Shares of textile companies rose after Smriti Zubin Irani took over as the new Union Textiles Minister yesterday, 6 July 2016 after the Cabonet reshuffle by the government. Alok Industries (up 2.75%), Hanung Toys and Textiles (up 7.37%), Bombay Dyeing & Manufacturing Company (up 3.82%), Gokaldas Exports (up 1.43%), Nitin Spinners (up 1.22%), Arvind (up 0.96%), Raymond (up 0.52%), Vardhman Textiles (up 1.66%) and Century Textiles and Industries (up 0.74%), edged higher.
Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Speaking to media persons on the occasion, she thanked the Prime Minister Narendra Modi for placing her in charge of a sector that employs the largest number of people, next only to agriculture. She said that the sector has a lot of unrealized potential in terms of skill and employment, and that it can play a very important role in scaling up the 'Make In India' vision of the Prime Minister. She noted that the textiles sector provides employment to a large number of women, and that she will continue the efforts being taken under the leadership of the Prime Minister to engage with the industry and help increase the exports of the sector. Citing that the weavers are the foundation of the sector, Irani assured that the Government would strive to help them to the maximum possible extent.
Fiem Industries rose 1.64% to Rs 986.90 after the company said that it has received letter of intent for design, manufacture and supply of self-ballasted 9-watt LED bulbs with 3-year warranty from Energy Efficiency Services (EESL). The order is for 22.14 lakh LED bulbs, Fiem Industries said. The order value is Rs 12.31 crore, the company said. The supply period is one month, it added. The announcement was made after market hours on Tuesday, 5 July 2016.
Skipper rose 2.77% to Rs 161.60 after the company announced that it has further expanded its international business by bagging new orders worth about Rs 100 crore in the countries of Kenya, Cameroon, Congo, Ghana & Malaysia as well as in the domestic market. These orders are for supply of transmission & sub-station towers, distribution poles and steel angles. The company has further received approval from Power Grid Corporation of India (PGCIL) for its poles division. The announcement was made yesterday, 6 July 2016.
Meanwhile, Prime Minister Narendra Modi after expanding the Council of Ministers with 19 new members, also reshuffled some portfolios in his Cabinet on Tuesday, 5 July 2016. Prakash Javadekar, who was earlier promoted to Cabinet rank, was given the HRD Ministry. He had been the Minister of State (Independent charge) for Environment and Forests. Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Other than that, Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given additional charge of I&B. Besides Mr. Javadekar, 19 new Ministers (17 new faces and two old hands) took oath as Ministers of State. The Council of Ministers now has 77 members. The previous strength of the government was 63. Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in the earlier batch. The total strength of the Union Council of Ministers has been capped at 82.
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