Key benchmark indices strengthened and hit fresh intraday high in mid-afternoon trade as firmness in European stocks supported gains on the domestic bourses. At 14:20 IST, the barometer index, the S&P BSE Sensex was up 103.77 points or 0.38% at 27,270.64. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was up 22.50 points or 0.27% at 8,356.90.
The Sensex rose 121.35 points or 0.44% at the day's high of 27,288.22 in mid-afternoon trade. The barometer index lost 18.19 points or 0.06% at the day's low of 27,148.68 in early afternoon trade. The Nifty rose 26 points or 0.31% at the day's high of 8,361.95 in mid-afternoon trade. The index lost 18.25 points or 0.21% at the day's low of 8,317.70 in early afternoon trade, its lowest level since 1 July 2016.
In overseas stock markets, European stocks edged higher after a rally on Wall Street overnight following some better US data and a bounce in oil helped quell the latest bout of worries triggered by the UK's vote last month to leave the European Union (EU) known as Brexit. Asian stocks witnessed a mixed trend. Japanese stocks fell as the yen strengthened against the dollar. The Nikkei 225 Average ended 0.67% lower. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks rose yesterday, 6 July 2016, after a stronger-than-expected report on nonmanufacturing activity in June 2016 and after the minutes from the Federal Reserve's June policy meeting confirmed dovish stance from the US central bank. The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June to its highest reading since November 2015. Meanwhile, the minutes from the Federal Reserve's June meeting showed that the majority of policy makers were in favor of keeping rates on hold. The two-day Fed meeting on 14-15 June 2016 was held just a few days before the Brexit. The minutes showed that Fed officials saw risks to the US economy and global markets from the UK's then-upcoming vote on EU membership. Fed officials also had concerns about a possible slowdown in the US labour market.
Closer home, the market breadth indicating strength of the market was strong. On BSE, 1,645 shares rose and 1,013 shares fell. A total of 152 shares were unchanged The BSE Mid-Cap index was currently down 0.03%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.4%, outperforming the Sensex.
Shares of power generation and power distribution companies were mixed. Torrent Power (down 0.26%), NHPC (down 0.2%), Adani Power (down 0.5%), and NTPC (down 0.33%) declined. Reliance Infrastructure (up 1.42%) and Reliance Power (up 0.28%) gained.
Tata Power Company declined 0.74%. The company announced that a meeting of its board of directors is scheduled on 11 July 2016, to consider issuing non-convertible debentures on private placement basis, within the limits approved by the shareholders of the company. The announcement was made on Wednesday, 6 July 2016.
Power Grid Corporation of India gained 1.64% after the company announced that a meeting of Committee of Directors for Bonds is planned to be held on 12 July 2016 to consider issue of secured, redeemable, non-convertible, non-cumulative, taxable bonds (Debenture) under private placement.
The BSE Power index had outperformed the market over the past month till 5 July 2016, rising 6.72% compared with Sensex's 1.21% rise. The index also outperformed the market in past one quarter, gaining 13.45% as against Sensex's 9.18% gain.
FMCG stocks were also mixed. Tata Global Beverages (up 0.56%), Hindustan Unilever (HUL) (up 2.7%), Dabur India (up 0.73%), Colgate Palmolive India (up 0.88%), and GlaxoSmithkline Consumer Healthcare (up 0.14%) gained. Nestle India (down 0.25%), Marico (down 0.24%), Britannia Industries (down 0.5%), Jyothy Laboratories (down 0.21%), Procter & Gamble Hygiene and Health Care (down 0.04%), Godrej Consumer Products (down 1.7%), and Bajaj Corp (down 0.87%) declined.
Index heavyweight and cigarette maker ITC rose 1.27%.
The BSE FMCG index had outperformed the market over the past month till 5 July 2016, rising 3.56% compared with Sensex's 1.21% rise. The index also outperformed the market in past one quarter, gaining 10.94% as against Sensex's 9.18% gain.
Tata Motors declined 0.55%. The company said that its British luxury car unit, Jaguar Land Rover reported the company's best-ever June performance, with retail sales rising 17% to 46,456 vehicles in June 2016 over June 2015. Jaguar sales jumped 84% to 13,171 units in June 2016 over June 2015. Land Rover sales gained 3% to 33,285 units in June 2016 over June 2015. The announcement was made during market hours today, 7 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. The government has appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. 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.
Powered by Capital Market - Live News
