Key benchmark indices logged modest gains on last trading session of the week on positive global stocks. The barometer index, the S&P BSE Sensex rose 100.45 points or 0.38% at 26,625.91, as per the provisional closing data. The Nifty 50 index gained 29.45 points or 0.36% at 8,170.20, as per the provisional closing data. After hitting intraday high at onset of the day's trading session, key indices saw volatile swings throughout the day. The Sensex hit an intraday low in late trade a tad above the positive zone while the Nifty hit an intraday low a tad below the flat line.
The Sensex gained 205.09 points or 0.77% at the day's high of 26,730.55 at onset of the day's trading session, its highest level since 15 June 2016. The index rose 13.05 points or 0.04% at the day's low of 26,538.51 in late trade. The Nifty gained 54.50 points or 0.66% at the day's high of 8,195.25, its highest level since 15 June 2016. The index fell 4.95 points or 0.06% at the day's low of 8,135.80 in late trade.
In overseas markets, European stocks edged higher, tracking gains in the US and Asia and underpinned by higher oil prices as worries about Brexit receded, at least for now. Meanwhile, the Bank of England yesterday, 16 June 2016 kept its key interest rate at a record low of 0.5% and made no changes to its 375-billion-pound ($530 billion) asset-purchase program. All nine rate-setting policy makers voted to hold rate unchanged. The decision marked the last before the 23 June 2016 referendum in the UK on whether the country should stay or exit the European Union (EU). A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy, the BOE said in a statement. The interest rate decision was announced after close of Indian market hours yesterday, 16 June 2016.
Most Asian stocks edged higher after a rebound on Wall Street overnight ahead of the UK's upcoming 23 June 2016 referendum vote on its future within the European Union. Meanwhile, Japan's government kept its assessment of the economy unchanged this month but warned that consumer prices are rising at a slower pace, casting more doubt on policymakers' three-year effort to shake off deflation. The assessment comes a day after the Bank of Japan cut its view on consumer inflation and refrained from offering additional monetary stimulus despite a weak global economy and anaemic inflation. US stocks closed modestly higher yesterday, 16 June 2016 ending a five-day streak of losses with telecoms leading sector advancers.
Closer home, the market breadth, indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,311 shares declined and 1,262 shares advanced. A total of 195 shares were unchanged. The BSE Mid-Cap index was provisionally off 0.05%. The BSE Small-Cap index was provisionally up 0.29%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2810.58 crore, lower than turnover of Rs 2948.02 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC gained 0.96% to Rs 358.15. The stock hit a high of Rs 360 and low of Rs 355.10 in intraday trade.
Realty stocks gained on hopes that market regulator will relax rules for investment in real estate investment trust. DLF (up 2.71%), Indiabulls Real Estate (up 3.05%), Housing Development and Infrastructure (up 7.31%), D B Realty (up 3.33%), Unitech (up 16.36%), Sobha (up 4.22%), Godrej Properties (up 2.14%) and Oberoi Realty (up 5.73%) rose.
The Securities and Exchange Board of India (Sebi) reportedly holds a board meeting today, 17 June 2016. According to reports, the Sebi board is likely to examine a proposal to make Real Estate Investment Trusts (REITs) more attractive to investors by allowing them to invest a large portion of funds in under-construction assets. Besides, REITs may be allowed to have a larger number of sponsors. Further, regulations regarding the minimum public offer size and related party transactions would also be considered, reports added.
On the macro front, India's current account deficit (CAD) narrowed sharply to $0.3 billion (0.1% of GDP) in Q4 of 2015-16, significantly lower than $7.1 billion (1.3% of GDP) in Q3 of 2015-16 and marginally lower than $0.7 billion (0.1% of GDP) in Q4 of 2014-15. The contraction in CAD was primarily on account of a lower trade deficit ($24.8 billion) than in Q4 of last year ($31.6 billion) and $34 billion in the preceding quarter. The government announced the economic data after market hours yesterday, 16 June 2016.
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