State-run banks led gains for key benchmark indices. The market sentiment was boosted by news reports that the Union Cabinet has approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, provisionally rose 191.97 points or 0.7% to 27,755.40. Key benchmark indices hovered in positive zone throughout the trading session today, 30 July 2015.
Crompton Greaves edged higher after winning a contract. Power generation stocks were in demand.
Foreign portfolio investors sold shares worth a net Rs 186.24 crore yesterday, 29 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 642.69 crore yesterday, 29 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher, with investors assessing a fresh crop of earnings reports. Chinese stocks led decline in Asian stocks. US stocks ended higher yesterday, 29 July 2015, after the Federal Reserve's latest policy statement flagged a nagging concern about low inflation, which could give officials a reason to delay raising rates.
As per provisional closing, the S&P BSE Sensex rose 191.97 points or 0.7% to 27,755.40. The index jumped 291.03 points at the day's high of 27,854.46 in early afternoon trade, its highest level since 27 July 2015. The index gained 86.54 points at the day's low of 27,649.97 at the onset of the trading session.
The CNX Nifty rose 54.95 points or 0.66% at 8,430, as per provisional closing. The index hit a high of 8,458.90 in intraday trade, its highest level since 27 July 2015. The index hit a low of 8,408.90 in intraday trade.
The BSE Mid-Cap index rose 86.98 points or 0.79% at 11,158.40. The BSE Small-Cap index rose 104.86 points or 0.9% at 11,723.88. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,743 shares rose and 1,120 shares fell. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 3345 crore, lower than turnover of Rs 3348.48 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC edged higher after the company reported Q1 June 2015 earnings. The stock rose 4.62% at Rs 318, also its day's high. The stock hit a low of Rs 300.60 in intraday trade. ITC's net profit rose 3.61% to Rs 2265.44 crore on 6.11% decline in total income to Rs 8902.71 crore Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 30 July 2015.
Crompton Greaves (CG) rose 2.61% to Rs 182.90. The company announced during trading hours that it has won an important contract to supply ZIV single phase smart meters to Energias de Portugal (EDP), one of the major European operators in the energy sector. This follows another major order awarded by EDP, selecting CG as the main supplier for data concentrators. Financial details of the deal were not disclosed.
Power generation stocks were in demand. GMR Infrastructure (up 6.73%), Reliance Infrastructure (up 5.73%), Reliance Power (up 3.93%), Jaiprakash Power Ventures (up 3.74%), Torrent Power (up 3.12%), Tata Power (up 1.54%), Adani Power (up 1.50%) and CESC (up 0.10%), edged higher. JSW Energy was down 0.06%.
NHPC fell 0.79% to Rs 18.75. The company's net profit rose 24.53% to Rs 767.17 crore on 0.05% growth in total income to Rs 2218.80 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 29 July 2015.
NTPC rose 0.55% to Rs 136. The stock hit a high of Rs 138.75 and low of Rs 135.35 in intraday trade. NTPC's net profit fell 2.99% to Rs 2135.35 crore on 8.19% decline in total income to Rs 17323.30 crore in Q1 June 2015 over Q1 June 2014. The result was declared during market hours today, 30 July 2015.
Meanwhile, the Union Cabinet yesterday, 29 July 2015, reportedly approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee. The Cabinet agreed to the recommendation made by the Select Committee on compensation to states to win over support of regional parties like TMC of West Bengal and Odisha's BJD, in getting the landmark Constitution Amendment approved by the Upper House where the ruling NDA does not have a majority. The Cabinet decided that the modalities for levy of 1% tax over and above the GST rate by states as well as the ''band'' rate would be finalised while framing the rules, reports added.
If the GST bill gets passed in the Rajya Sabha during the ongoing monsoon session, the government will have to again go to the Lok Sabha for getting the Lower House's approval for the proposed amendments. The Constitutional Amendment Bill for GST needs the support of two-thirds of the members in both houses. The NDA, which has a comfortable majority in the Lok Sabha, lacks sufficient numbers in the Rajya Sabha. The government hopes to implement GST from 1 April 2016. But it is running short of time. Once both houses of Parliament pass the Constitution Amendment Bill, the bill has to be sent to the states for ratification. At least 50% of the states have to ratify the bill.
The Cabinet yesterday, 29 July 2015, reportedly also approved a proposal to set up a fund to kick-start stranded infrastructure projects and a bill to replace the Consumer Protection Act, 1986, which would bring e-commerce companies under the consumer protection and competition laws, aimed at safeguarding the interests of online shoppers. The National Investment and Infrastructure Fund (NIIF), announced in the Union Budget and approved by the Cabinet, will have an initial authorized capital of Rs 20000 crore and a government contribution of up to 49%, according to news reports. NIIF will function as a sovereign fund and will seek equity participation from overseas investors as well.
The Cabinet also reportedly approved a proposal to allow foreign investment in alternative investment funds announced in this year's Union Budget.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 29 July 2015, that the Southwest monsoon was vigorous over Rajasthan and Gujarat state and was active over Gangetic West Bengal during past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 3% below the Long Period Average (LPA) until 29 July 2015. Region wise, the rainfall was 18% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, near normal in Central India and 12% above the LPA in Northwest India until 29 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. 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 higher today, 30 July 2015. Key indices in Germany, UK and France were up 0.18% to 0.47%.
Asian shares edged lower today, 30 July 2015. In China, the Shanghai Composite lost 2.2%. In Hong Kong, the Hang Seng index shed 0.49%. In other Asian markets, key benchmark indices in Indonesia, Singapore and South Korea were off 0.91% to 1.05%. Key benchmark indices in Japan and Taiwan were up 1.03% to 1.08%.
US stocks ended higher yesterday, 29 July 2015, after the Federal Reserve's latest policy statement flagged a nagging concern about low inflation, which could give officials a reason to delay raising rates. After a two-day policy meeting, the Fed said in a statement yesterday, 29 July 2015, that the world's top economy had expanded "moderately" in recent months and the jobs market had strengthened, but it noted continued "soft" business investment and exports. The Fed left room for a September rate hike.
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