After seeing a bout of volatility in early trade, key benchmark indices extended intraday gains in morning trade. The upmove on the bourses was triggered by reports 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. The broad market depicted strength. There were nearly three gainers against every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 206.48 points or 0.75% at 27,769.91. The BSE Mid-Cap index was up 1.01%, outperforming the Sensex.
Capital goods shares edged higher. Realty shares were also 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 shares were mixed. 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 10:15 IST, the S&P BSE Sensex was up 206.48 points or 0.75% at 27,769.91. The index jumped 215.82 points at the day's high of 27,779.25 in 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 57.45 points or 0.69% at 8,432.50. The index hit a high of 8,436.15 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 112.20 points or 1.01% at 11,183.62. The BSE Small-Cap index was up 114.44 points or 0.98% at 11,733.46. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were nearly three gainers against every loser on BSE. 1,513 shares rose and 509 shares fell. A total of 53 shares were unchanged.
Capital goods shares edged higher. BEML (up 2.73%), Jindal Saw (up 1.91%), Suzlon Energy (up 1.65%), ABB India (up 1.56%), Havells India (up 1.54%), Lakshmi Machine Works (up 1.43%), SKF India (up 1.18%), Punj Lloyd (up 1.14%), Thermax (up 1.10%), Larsen & Toubro (up 0.97%), Crompton Greaves (up 0.81%), AIA Engineering (up 0.77%), Bharat Heavy Electricals (up 0.76%), Siemens (up 0.38%) and Bharat Electronics (up 0.23%), edged higher. Pipavav Defence and Offshore Engineering Company (down 0.17%), Praj Industries (down 0.44%), ALSTOM India (down 0.47%) and Alstom T&D India (down 2.91%) edged lower.
Realty shares were in demand. Unitech (up 5.28%), DLF (up 4.93%), Housing Development and Infrastructure (HDIL) (up 2%), Oberoi Realty (up 1.86%), Sobha (up 1.22%), D B Realty (up 1.15%), Peninsula Land (up 1.01%), Parsvnath Developers (up 0.79%), Godrej Properties (up 0.71%), Prestige Estates Projects (up 0.70%), Sunteck Realty (up 0.60%) and Indiabulls Real Estate (up 0.50%), edged higher. Anant Raj (down 0.12%) and Phoenix Mills (down 0.56%) edged lower.
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 were mixed. Key benchmark indices in China, Hong Kong, Singapore and South Korea were down by 0.04% to 0.56%. Key benchmark indices in Indonesia, Japan and Taiwan were up by 0.19% to 1.17%.
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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