Firmness continued on the bourses in mid-morning trade. The broad market depicted strength. There were more than two gainers against every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 231.05 points or 0.84% at 27,794.48. The BSE Mid-Cap index was up 1.19%, outperforming the Sensex. Key indices edged higher today, 30 July 2015, after news reports suggested that the Union Cabinet has approved amendments to the 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. In overseas markets, Asian stocks edged higher after the US Federal Reserve kept US interest rates unchanged after the conclusion of a two-day monetary policy review.
Most private sector banks were trading higher. PSU bank stocks edged higher. Bank of Baroda edged higher in volatile trade after reporting Q1 earnings. Pharmaceutical shares 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.
Indian stocks may remain volatile today, 30 July 2015, as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire today, 30 July 2015.
In overseas markets, Asian stocks edged higher after the US Federal Reserve kept US interest rates unchanged after the conclusion of a two-day monetary policy review yesterday, 29 July 2015. 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.
At 11:16 IST, the S&P BSE Sensex was up 231.05 points or 0.84% at 27,794.48. The index jumped 235.51 points at the day's high of 27,798.94 in mid-morning 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 was up 65.65 points or 0.78% at 8,440.70. The index hit a high of 8,443.70 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 was up 132.09 points or 1.19% at 11,203.51. The BSE Small-Cap index was up 113.05 points or 0.97% at 11,732.07. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,643 shares rose and 693 shares fell. A total of 77 shares were unchanged.
PSU bank stocks edged higher. UCO Bank (up 2.36%), Union Bank of India (up 2.25%), Punjab National Bank (up 1.78%), IDBI Bank (up 1.69%), United Bank of India (up 1.53%), State Bank of India (up 1.48%), Corporation Bank (up 1.43%), Central Bank of India (up 1.26%), Vijaya Bank (up 1.14%), Indian Bank (up 1.01%), Canara Bank (up 0.80%), Dena Bank (up 0.71%), Bank of India (up 0.70%) and Andhra Bank (up 0.58%), edged higher. Syndicate Bank (down 0.11%), Allahabad Bank (down 0.4%) and Bank of Maharashtra (down 0.66%), edged lower.
Bank of Baroda (BoB) was up 2.45% at Rs 156.80. The stock hit a high of Rs 159.70 and a low of Rs 153.60 so far during the day. The bank's net profit fell 22.74% to Rs 1052.15 crore on 4.80% increase in total income to Rs 12243.72 crore in Q1 June 2015 over Q1 June 2014. The result was announced during trading hours today, 30 July 2015. On absolute basis, Bank of Baroda's gross non-performing assets (NPA) edged higher to Rs 17273.95 crore as on 30 June 2015 from Rs 16261.45 crore as on 31 March 2015 and Rs 12086.81 crore as on 30 June 2014. The ratio of gross NPAs to gross advances stood at 4.13% as on 30 June 2015, compared with 3.72% as on 31 March 2015 and 3.11% as on 30 June 2014. BoB's ratio of net non-performing assets (NPAs) to net advances stood at 2.07% as on 30 June 2015, compared with 1.89% as on 31 March 2015 and 1.58% as on 30 June 2014.
Provisions and contingencies rose 13.87% to Rs 599.74 crore in Q1 June 2015 over Q1 June 2014. The provisioning coverage ratio as on 30 June 2015 stood at 64.94%. The bank has made provision at 20% on Secured Sub-standard Advance as against the regulatory requirement of 15%.
The employee cost in Q1 June 2015 includes provision of Rs 262.73 crore on account of pay revision. Consequent upon wage revision effective from 1 November 2012 and pending final payment, the bank holds an estimated provision of Rs 1313.46 crore as on 30 June 2015 on account of wage revision and employee benefit for wage revision.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.98% as on 30 June 2015, compared with 12.60% as on 31 March 2015 and 11.91% as on 30 June 2014.
Most private sector banks were trading higher. IndusInd Bank (up 1.59%), Axis Bank (up 1.05%), Yes Bank (up 0.83%), HDFC Bank (up 0.76%) and ICICI Bank (up 0.52%), edged higher. City Union Bank (down 0.35%) edged lower.
Shares of Kotak Mahindra Bank (KMBL) were off 0.69% at Rs 721. The finance ministry after market hours yesterday, 29 July 2015, announced that the government has approved the proposal from KMBL for increasing the ceiling on foreign investment in the bank to 55% pursuant to merger of ING Vysya Bank with KMBL.
Pharmaceutical shares were in demand. Cipla (up 3.70%), Glenmark Pharmaceuticals (up 1.99%), Piramal Enterprises (up 1.16%), Divi's Laboratories (up 1.15%), Strides Arcolab (up 1%), Wockhardt (up 0.98%), Dr. Reddy's Laboratories (up 0.93%), Lupin (up 0.78%), Cadila Healthcare (up 0.44%), GlaxoSmithKline Pharmaceuticals (up 0.44%) and IPCA Laboratories (up 0.28%), edged higher. Aurobindo Pharma (down 0.13%) and Sun Pharmaceutical Industries (down 1.55%), edged lower.
Meanwhile, the Union Cabinet yesterday, 29 July 2015, reportedly approved amendments to the 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.
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, Asian shares edged higher today, 30 July 2015, after the US Federal Reserve kept US interest rates unchanged after the conclusion of a two-day monetary policy review yesterday, 29 July 2015. Key benchmark indices in Singapore and South Korea were down by 0.62% to 0.65%. Key benchmark indices in China, Hong Kong, Indonesia, Japan and Taiwan were up by 0.18% to 1.04%.
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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