After hovering in green in early afternoon trade, key benchmark indices extended intraday gains in afternoon trade as European stocks edged higher in early trade after Greece's parliament today, 16 July 2015, approved austerity measures to secure a bailout for the country and potentially avoid its exit from the eurozone. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than twelve weeks. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 163.10 points or 0.58% at 28,361.39. The BSE Mid-Cap index was up 1.19%, outperforming the Sensex.
Shares of private sector banks were in demand after Finance Minister Arun Jaitley said at a press conference after a meeting of the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) that the government has approved clubbing of different categories of foreign investment in companies into a composite cap. Pharma shares gained edged higher on renewed buying. Shares of pharma major Dr Reddy's Laboratories scaled record high. Power generation stocks edged higher on renewed buying.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 407.69 crore yesterday, 15 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 50.38 crore yesterday, 15 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian and European stocks edged higher after Greece's parliament today, 16 July 2015, approved austerity measures to secure a bailout for the country and potentially avoid its exit from the eurozone. US stocks closed slightly lower yesterday, 15 July 2015, snapping a four-session winning streak, as investors monitored developments in Greece.
At 13:15 IST, the S&P BSE Sensex was up 163.10 points or 0.58% at 28,361.39. The index jumped 176.88 points at the day's high of 28,375.17 in afternoon trade, its highest level since 20 April 2015. The index rose 47.52 points at the day's low of 28,245.81 in early trade.
The CNX Nifty was up 61.30 points or 0.72% at 8,585.10. The index hit a high of 8,586.20 in intraday trade, its highest level since 20 April 2015. The index hit a low of 8,542.90 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,498 shares gained and 1,064 shares fell. A total of 121 shares were unchanged.
The BSE Mid-Cap index was up 130.99 points or 1.19% at 11,182.65. The BSE Small-Cap index was up 90.94 points or 0.79% at 11,669.63. Both these indices outperformed the Sensex.
Shares of private sector banks were in demand after Finance Minister Arun Jaitley said at a press conference after meeting of the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) that the government approved clubbing of different categories of foreign investment in companies with a composite cap. Jaitley said that foreign direct investment, foreign portfolio investment and investments by non-resident Indians would be "clubbed together under a composite cap". Axis Bank (up 4.52%), ICICI Bank (up 0.84%), IndusInd Bank (up 0.71%) and Yes Bank (up 3.29%) gained.
HDFC Bank rose 1.12% to Rs 1,108.95 on reports that a prominent domestic brokerage has maintained its buy call on the stock. The stock hit a high of Rs 1,115 so far during the day, which is a record high for the counter. The brokerage reportedly said that HDFC Bank is best placed in the current environment. It further added that HDFC Bank has most granular balance sheet amongst the Indian lenders and digitalization initiatives are gaining traction.
Kotak Mahindra Bank jumped 3.96%. The government yesterday, 15 July 2015, deferred a decision on a proposal to raise the aggregate foreign investment ceiling in Kotak Mahindra Bank to 55%. The bank had sought approval from the Foreign Investment Promotion Board (FIPB) for increasing the aggregate foreign investment ceiling in the bank to 55% pursuant to a merger of ING Vysya Bank with Kotak Mahindra Bank.
Pharma shares gained edged higher on renewed buying. Cadila Healthcare (up 1.63%), Cipla (up 0.91%), Glenmark Pharmaceuticals (up 1.39%), Lupin (up 0.06%), Sun Pharmaceutical Industries (up 0.69%), Aurobindo Pharma (up 0.42%) and Wockhardt (up 0.49%) rose. GlaxoSmithKline Pharmaceuticals was unchanged at Rs 3,430.
Dr Reddy's Laboratories rose 0.58% to Rs 3,832.10. The stock hit a high of Rs 3,841.40 in intraday trade, which is a record high for the stock.
Power generation stocks edged higher on renewed buying. Reliance Infrastructure (up 1.48%), Torrent Power (up 1.23%), Tata Power Company (up 1.61%), CESC (up 2.18%), NTPC (up 0.98%), Reliance Power (up 1.22%), NHPC (up 0.05%), Adani Power (up 4.46%) rose.
Finance Minister Arun Jaitley today, 16 July 2015, said at a press conference after a meeting of the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) that the government has approved clubbing of different categories of foreign investment in companies into a composite cap. He added that foreign direct investment, foreign portfolio investment and investments by non-resident Indians would be "clubbed together under a composite cap".
Meanwhile, in the global commodities markets, Brent crude oil prices edged higher today, 16 July 2015, after weekly data showed that US crude inventories dropped last week and refinery demand was high. Brent for August settlement was currently up 9 cents at $57.14 a barrel. The contract had dropped $1.46 a barrel or 2.49% to settle at $57.05 a barrel during the previous trading session. The August Brent contract is set to expire today, 16 July 2015. Brent for September settlement was currently unchanged for the day at $57.12 a barrel.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 63.49, compared with its close of 63.4225 during the previous trading session.
Meanwhile, state-run oil marketing companies yesterday, 15 July 2015, announced a reduction in petrol and diesel prices. Indian Oil Corporation said that the company has decided to reduce the basic retail selling price of petrol by Rs 2 per litre (excluding state levies) with effect from the midnight of 15 July/16 July 2015. IOCL also announced reduction in basic retail selling price of diesel by Rs 2 per litre (excluding state levies).
Meanwhile, the data released by the Ministry of Commerce & Industry after trading hours yesterday, 15 July 2015, showed that India's merchandise exports fell 15.82% to $22.29 billion in June 2015 over June 2014. Imports fell 13.4% to $33.11 billion in June 2015 over June 2014. Oil imports fell 34.97% to $8.67 billion in June 2015 over June 2014. Non-oil imports fell 1.85% to $24.44 billion in June 2015 over June 2014. The trade deficit declined to $10.82 billion in June 2015 from $11.76 billion in June 2014.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 15 July 2015, that the Southwest Monsoon was vigorous over Arunachal Pradesh and Rayalaseema and was active over Assam & Meghalaya, Sub-Himalayan West Bengal & Sikkim, Bihar and Coastal Andhra Pradesh during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 15 July 2015. Region wise, the southwest monsoon was 15% above the LPA in Northwest India, 6% below the LPA in East & Northeast India, 12% below the LPA in South Peninsula and 13% below the LPA in Central India until 15 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif 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, European stocks edged higher in early trade today, 16 July 2015, after Greece's parliament today, 16 July 2015, approved austerity measures to secure a bailout for the country and potentially avoid its exit from the eurozone. Key indices in France, UK and Germany were up 0.3% to 0.98%. In Spain, the IBEX 35 index was up 1.19%. In Italy, the FTSE MIB index was up 1.08%.
The Greek parliament today, 16 July 2015, passed a sweeping bundle of austerity measures, a prerequisite for 86 billion euros ($95 billion) in loans for the next three years from the eurozone and International Monetary Fund. The austerity measures call for steep spending cuts, market reforms and tax increases. Early this week, eurozone leaders agreed on a three-year bailout for the debt-laden country.
Greece's financial institutions have been on life support for weeks. Depositor withdrawals have been limited to euro 60 a day during a bank holiday that has been in place since 29 June 2015.
Meanwhile, the European Central Bank (ECB) is widely expected to keep interest rates unchanged after a monetary policy meeting today, 16 July 2015.
Asian stocks rose today, 16 July 2015, after Greece's parliament today, 16 July 2015, approved austerity measures to secure a bailout for the country and potentially avoid its exit from the eurozone. Key benchmark indices in China, Hong Kong, Singapore, Japan, and South Korea rose 0.27% to 0.72%. Taiwan's Taiwan Weighted Average fell 0.13%.
The Asian Development Bank (ADB) has reportedly cut its 2015 and 2016 growth forecasts for China and the rest of Asia, largely as a result of the slower than expected growth in the region's largest economy and in developed economies elsewhere. Developing Asia is now expected to grow 6.1% and 6.2% this year and in 2016 against the ADB's March forecast of 6.3% for both years, the bank said in its 2015 outlook supplement released today, 16 July 2015.
US stocks closed slightly lower yesterday, 15 July 2015, snapping a four-session winning streak, as investors monitored developments in Greece. In macro data in the US, the producer-price index, which measures the prices at which companies sell goods and services, rose 0.4% in June, the Labor Department said yesterday, 15 July 2015. Core prices rose 0.3%. US industrial production rose 0.3% in June from May.
In her semiannual testimony to Congress yesterday, 15 July 2015, Federal Reserve Chairwoman Janet Yellen repeated her view that the Fed will likely hike interest rates this year if the US economy expands as expected, and cited improvement in the labor market.
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