A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in early afternoon trade. Gains for the benchmark indices were currently small. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 85.32 points or 0.31% at 27,889.69.
Shares of public sector banks dropped. Shares of private sector banks were mixed. Realty stocks depicted a mixed trend. Index heavyweight and cigarette major ITC edged higher after a bulk deal of 7.39 lakh shares was executed on the counter at Rs 316.50 per share at 09:33 IST on BSE. Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks in the morning trade as these two indices extended intraday gains after seeing initial volatility.
Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) released by the RBI yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire tomorrow, 25 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 374.97 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.20 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian stocks edged higher as optimism around Greece's debt talks continue to buoy sentiment. US stocks ended a choppy trading session slightly higher yesterday, 23 June 2015, though modest gains were enough to push the Nasdaq Composite and Russell 2000 to record closing levels.
At 12:15 IST, the S&P BSE Sensex was up 85.32 points or 0.31% at 27,889.69. The index gained 116.23 points at the day's high of 27,920.60 in morning trade, its highest level since 1 June 2015. The index fell 19.93 points at the day's low of 27,784.44 in early trade.
The CNX Nifty was up 24.70 points or 0.29% at 8,406.25. The index hit a high of 8,414.30 in intraday trade, its highest level since 2 June 2015. The index hit a low of 8,376.10 in intraday trade.
The BSE Mid-Cap index was up 26.14 points or 0.25% at 10,678.06. The BSE Small-Cap index was up 29.55 points or 0.27% at 11,174.52. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,296 shares rose and 1,013 shares fell. A total of 109 shares were unchanged.
Shares of state-run banks dropped. Among public sector banks, Union Bank of India (down 2.29%), Bank of India (down 1.9%), Punjab National Bank (down 1.71%), Bank of Baroda (down 1.26%), Syndicate Bank (down 1.18%), IDBI Bank (down 1.09%), Central Bank of India (down 0.49%), United Bank of India (down 0.6%) and State Bank of India (down 0.39%) edged lower. State Bank of Travancore (up 0.14%) and Indian Overseas Bank (up 0.13%) edged higher.
Shares of private sector banks were mixed. IndusInd Bank (up 1.56%), ICICI Bank (up 0.89%) and Axis Bank (up 0.55%) edged higher. HDFC Bank (down 0.1%), Yes Bank (down 0.29%) and Kotak Mahindra Bank (down 0.24%) edged lower.
Realty stocks were mixed. Mahindra Lifespace Developers (up 6.94%), Prestige Estates (up 2.26%), Indiabulls Real Estate (up 2.42%), Sobha (up 1.48%) and Unitech (up 1.24%) edged higher. Godrej Properties (down 0.12%), DLF (down 1.7%), Oberoi Realty (down 0.55%), D B Realty (down 0.47%) and Housing Development & Infrastructure (down 0.74%) edged lower.
Index heavyweight and cigarette major ITC edged higher after a bulk deal of 7.39 lakh shares was executed on the scrip at Rs 316.50 per share at 09:33 IST on BSE. The stock was up 0.75% at Rs 316.90. The stock hit a high of Rs 318 and a low of Rs 313 so far during the day.
Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock. The stock was off 1.26% at Rs 546.65. The stock hit a high of Rs 552 and a low of Rs 545.65 so far during the day. The foreign brokerage reportedly said that growth challenges in Tech Mahindra's telecom industry vertical and its weak enterprise business will lead to lower earnings. The company's margins will surprise the consensus negatively going ahead, the brokerage added.
Meanwhile, concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the June-September southwest monsoon season. For the country as a whole, the cumulative rainfall during this year's monsoon season was 21% above the Long Period Average (LPA) until 22 June 2015. Region wise, the southwest monsoon was 45% above the LPA in Central India, 35% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 22 June 2015.
The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 23 June 2015, that the southwest monsoon has further advanced into some more parts of north Arabian Sea, Gujarat state, Madhya Pradesh and Bihar and remaining parts of Chhattisgarh and Jharkhand and some parts of East Uttar Pradesh. Conditions are favourable for further advance of southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Madhya Pradesh and Bihar, entire Uttarakhand, Himachal Pradesh, Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 2-3 days, the IMD said. The Southwest monsoon was vigorous over West Madhya Pradesh and active over Nagaland, Manipur, Mizoram & Tripura, Odisha, Jharkhand, East Madhya Pradesh, Madhya Maharashtra, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST, the IMD said.
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.
Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) released by the RBI yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015. Four members advocated a cut in repo rate by 25 basis points; two members suggested a 50 basis points reduction and one member proposed a reduction by 75 basis points. One of these members also recommended that the SLR should also be reduced by 50 basis points. It may be recalled that the RBI cut its benchmark lending rate viz. the repo rate by 25 basis points after the 2 June 2015 policy review.
In overseas stock markets, Asian stocks edged higher today, 24 June 2015, as optimism around Greece's debt talks continue to buoy sentiment. Key indices in China, Hong Kong, Japan, Taiwan, Singapore, South Korea and Indonesia were up 0.07% to 1.44%.
Members of the Bank of Japan's monetary policy board are satisfied with the rate of the country's economic recovery and the recovery is expected to continue, minutes from the board's meeting on May 21 and 22 showed yesterday, 23 June 2015.
US stocks closed mildly higher yesterday, 23 June 2015, as investors remained optimistic on the Greece debt talks and eyed continued signs of moderate economic growth. Data on sales of new single-family homes showed that new homes in May were sold at an annual rate of 546,000, hitting the fastest pace since February 2008. The figures showed growth in two out of four regions, while April numbers were also raised. The home-sales data came after of a report showed that orders for durable US goods fell a seasonally adjusted 1.8% in May, mostly due to weaker demand for commercial aircraft.
Meanwhile, the Markit US manufacturing PMI fell to 53.4 in June from 54 in May, data released yesterday, 23 June 2015 showed.
Federal Reserve Governor Jerome Powell was quoted as saying yesterday, 23 June 2015, that there could be two interest-rate hikes this year. He also said that the US stock market isn't showing signs of being in a bubble.
In Europe, Greece remains the focal point for global markets as the Eurogroup of finance ministers hold a meeting today, 24 June 2015, to discuss the latest set of proposals put forward by Greece early this week. Greek economy minister George Stathakis reportedly said in an interview to a TV channel today, 24 June 2015, that two or three items remained to settle with international lenders on a package of proposals put forward by Greece to break a deadlock in negotiations a cash-for-reforms deal. A European Union summit is scheduled tomorrow, 25 June 2015.
Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.
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