Key benchmark indices provisionally settled with tiny gains after what was a lackluster session of trade. The barometer index, the S&P BSE Sensex rose 10.99 points or 0.04% at 27,020.66, as per the provisional closing data. The Nifty 50 index gained 3.85 points or 0.05% at 8,270.30, as per the provisional closing data. The Sensex provisionally settled above the psychologically important 27,000 mark after falling below that mark for a brief period in mid-afternoon trade. Key indices hovered in a narrow range near the flat line throughout the session.
The Sensex rose 95.74 points or 0.35% at the day's high of 27,105.41 at the onset of the trading session, its highest level since 28 October 2015. The index shed 35.96 points or 0.13% at the day's low of 26,973.71 in mid-afternoon trade. The Nifty rose 22.45 points or 0.27% at the day's high of 8,288.90 at the onset of the trading session. The index fell 14.40 points or 0.17% at the day's low of 8,252.05 in mid-afternoon trade.
In overseas markets, European market edged lower today, 8 June 2016, retreating after two straight days of gains, as a drop in Austrian bank Erste knocked back financial stocks. Asian stocks were mixed as weak Chinese export data offset a brightening energy sector outlook and an expected delay in interest rate hikes by the US Federal Reserve. Data showed that China's exports fell more than expected in May as global demand remained stubbornly weak, but imports beat forecasts, adding to hopes that the economy may be stabilising. In dollar terms, China's exports fell 4.1% and imports dropped 0.4% from a year earlier.
Separately, China's central bank People's Bank of China said it was keeping its economic growth forecast for 2016 year steady at 6.8% but it now expects exports to contract and fixed asset investment to grow more strongly than previously forecast. Meanwhile, Japan's economy grew faster than initially estimated in the first quarter. Japan's economy expanded at an annualized 1.9% rate in the first quarter of this year, revised up from a preliminary reading of 1.7% growth.
US stocks eked out modest gains yesterday, 7 June 2016, propelled by a sharp rally in the energy sector.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,563 shares rose and 1,068 shares declined. A total of 163 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.52%. The BSE Small-Cap index provisionally gained 0.89%. Both these indices outperformed the Sensex.
Shares of power generation and power distribution companies gained. Torrent Power (up 0.23%), NHPC (up 1.66%), Tata Power Company (up 3.06%), Adani Power (up 4.34%), Power Grid Corporation of India (up 1.9%), Reliance Infrastructure (up 1.71%) and Reliance Power (up 1.36%) gained. NTPC fell 0.17%.
Capital goods stocks gained. BEML (up 3.99%), Bharat Heavy Electricals (Bhel) (up 1.8%), Havells India (up 0.82%), and Bharat Electronics (up 5.52%) gained. Thermax dropped 1.07%.
L&T gained 1.52% after the company announced that its construction arm along with its joint venture (JV) partner in Qatar, Al Balagh Trading & Contracting, has signed a contract to build a 40,000 seater stadium in Qatar for the 2022 Fifa World Cup. The contract for the project is for a combined value of $360 million and is slated to be completed by 2019. The scope for the stadium includes main works and construction of the site, following completion of the enabling works, L&T said in a statement. The announcement was made after market hours yesterday, 7 June 2016
ABB India rose 1.6% after the company announced that it has opened its global business service center in Bangalore. The announcement was made during market hours today, 8 June 2016. The global business service center in Bangalore when fully established in 2017 is expected to employ over 1,000 people, ABB India said.
Siemens advanced 3.98% after the company along with Siemens Bangladesh Ltd. won an order worth approximately Rs 113 crore from Power Grid Company of Bangladesh. The announcement was made during market hours today, 8 June 2016. Siemens along with Siemens Bangladesh Ltd. has won an order from Power Grid Company of Bangladesh (PGCB) to design, procure, supply, install, test and commission 230/132 kilovolt (KV) gas insulated switchgear substation along with 225/300 Mega Volt Ampere (MVA), 132/33 and 50/75 MVA transformers at Keraniganj within Dhaka. Harald Griem, Executive Vice President and Head, Energy Management Division, Siemens said that with the latest reliable 230KV and 132KV GIS solution from Siemens, PGCB will be able to ensure transmission grid stability and provide better service to consumers across Bangladesh.
Cyient rose 2.34% to Rs 496.65 after Seafarer Overseas Growth and Income Fund bought 9.36 lakh shares of the company at Rs 482.99 per share in a bulk deal on the NSE yesterday, 7 June 2016.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan quoted by media as saying that RBI will have more room to cut interest rates if the central bank gains confidence in reaching its 5% target for consumer inflation by March 2017. The RBI had kept policy rates unchanged after its monetary policy review yesterday, 7 June 2016.
Meanwhile, the India Meteorological Department (IMD) today, 8 June 2016, announced the arrival of the monsoon rains in Kerala. That marks the beginning of the 4-month June-September southwest monsoon season in the country. IMD has forecast above normal rains for the 2016 southwest monsoon season. Quantitatively, monsoon season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of plus/minus 4%. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture.
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