A divergent trend was witnessed for the two key benchmark indices in afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 9.55 points or 0.03% at 28,011.32. The 50-unit CNX Nifty was currently up 12 points or 0.14% at 8,465.05. The market breadth indicating the overall health of the market was positive. The Sensex was currently trading above the psychological 28,000 level. Earlier, the Sensex had regained the psychological 28,000 level after falling below that mark in early trade. A rally took the Sensex past the psychological 28,000 level yesterday, 1 July 2015.
Shares of public sector banks were mostly lower. Shares of private sector banks edged higher. Shares of public sector oil marketing companies (PSU OMCs) rose as global crude oil prices dropped overnight. Shares of upstream oil exploration & production (E&P) firms also edged higher.
Foreign portfolio investors bought shares worth a net Rs 75.03 crore yesterday, 1 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 52.12 crore yesterday, 1 July 2015, as per provisional data released by the stock exchanges.
Earlier, the S&P BSE Sensex hit its highest level in more than 10 weeks at the onset of trading session.
In overseas markets, European stocks edged higher in early trade. Asian stocks were in green. But, Chinese shares slumped. US stocks finished higher yesterday, 1 July 2015, as investors looked beyond the latest developments in Greece and focused on economic data.
At 13:15 IST, the S&P BSE Sensex was down 9.55 points or 0.03% at 28,011.32. The index rose 95.09 points at the day's high of 28,115.96 at the onset of trading session, its highest level since 20 April 2015. The index fell 59.79 points at the day's low of 27,961.08 in morning trade.
The CNX Nifty was up 12 points or 0.14% at 8,465.05. The index hit a high of 8,479.25 in intraday trade. The index hit a low of 8,437.20 in intraday trade.
The BSE Mid-Cap index was up 80.07 points or 0.74% at 10,899.38. The BSE Small-Cap index was up 88.70 points or 0.79% at 11,324.38. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,431 shares rose and 1,023 shares fell. A total of 128 shares were unchanged.
Shares of public sector banks were mostly lower. Central Bank of India (down 1.67%), UCO Bank (down 1.29%), Indian Overseas Bank (down 0.66%), Bank of India (down 0.53%), Union Bank of India (down 0.38%) and IDBI Bank (down 0.16%) edged lower. Bank of Baroda (up 0.37%), Oriental Bank of Commerce (up 0.09%), United Bank of India (up 1.04%), Bank of Maharashtra (up 2.2%), Punjab National Bank (up 0.78%) and State Bank of India (up 0.52%) edged higher.
Shares of private sector banks edged higher. Kotak Mahindra Bank (up 0.91%), Yes Bank (up 0.77%), ICICI Bank (up 0.5%) and Axis Bank (up 0.59%) edged higher. IndusInd Bank (down 0.19%) and HDFC Bank (down 0.66%) edged lower.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after drop in global crude oil prices overnight. Indian Oil Corporation (up 5.08%), BPCL (up 1.53%) and HPCL (up 4.44%) edged higher.
In global commodities markets, Brent crude oil futures edged higher today, 2 July 2015, after an overnight decline. Brent for August settlement was up 51 cents at $62.52 a barrel. The contract had dropped $1.58 a barrel or 2.48% to settle at $62.01 a barrel during previous trading session.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Shares of upstream oil exploration & production (E&P) firms gained. Oil India (up 1.5%), Reliance Industries (up 0.57%) and Cairn India (up 0.46%) edged higher. ONGC (down 0.4%) edged lower.
Tata Motors was off 1.36% at Rs 438.75. The stock hit a high of Rs 446.20 and a low of Rs 437.30 so far during the day. Tata Motors said after market hours yesterday, 1 July 2015, that its total commercial and passenger vehicles sales (including exports) rose 6% to 40,870 units in June 2015 over June 2014. The company's domestic sales of Tata commercial and passenger vehicles rose 3% to 35,823 units in June 2015 over June 2014. Sales of Tata Motors passenger vehicles rose 30% to 10,281 units in June 2015 over June 2014. Sales of medium & heavy commercial vehicles (M&HCV) rose 18% to 11,450 units in June 2015 over June 2014. Sales of light & small commercial vehicles (L&SCV) dropped 18% to 14,092 units in June 2015 over June 2014. The company's sales from exports rose 32% to 5,047 units in June 2015 over June 2014.
Meanwhile, Tata Motors' British luxury car unit Jaguar Land Rover (JLR) said today, 2 July 2015, that it has agreed a manufacturing partnership with Magna Steyr, an operating unit of Magna International Inc, to build some future vehicles in Graz, Austria. With plans already in place to take JLR's three vehicle manufacturing plants in the UK close to their operating capacity, the collaboration with Magna Steyr will create additional volumes needed to support the company's plans to achieve further growth, JLR said in a statement.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 1 July 2015, that the Southwest Monsoon was active over Sub-Himalayan West Bengal & Sikkim and Uttarakhand during the past 24 hours until 8:30 IST.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 1 July 2015. Region wise, the southwest monsoon was 28% above the LPA in Northwest India, 20% above the LPA in Central India, 15% above the LPA in South Peninsula and 1% below the LPA in East & Northeast India until 1 July 2015.
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 government today, 2 July 2015, announced that the Cabinet Committee on Economic Affairs (CCEA) has given its approval to a new scheme the "Pradhan Mantri Krishi Sinchayee Yojana" (PMKSY). It will have an outlay of Rs 50000 crore over a period of five years (2015-16 to 2019-20). The allocation for the current financial year is Rs 5300 crore. The major objective of the PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation (Har Khet ko pani), improve on-farm water use efficiency to reduce wastage of water, enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop), enhance recharge of aquifers and introduce sustainable water conservation practices by exploring the feasibility of reusing treated municipal based water for peri-urban agriculture and attract greater private investment in precision irrigation system. It is expected that PMKSY will provide convergence to existing schemes of water management, thus bringing efficiency to the use of water, according to a government statement.
The Cabinet Committee on Economic Affairs (CCEA) has also given its approval to a Central Sector Scheme for Promotion of National Agricultural Market through Agri-Tech Infrastructure Fund (ATIF). An amount of Rs 200 crore has been earmarked for the scheme from 2015-16 to 2017-18. The target is to cover 585 selected regulated markets across the country with the common e-platform to provide farmers and traders with access to opportunities for purchase/sale of agri-commodities at optimal prices in a transparent manner across the country. Besides, private markets will also be allowed access to the e-platform thereby enhancing its outreach.
Meanwhile, the Union Cabinet today, 2 July 2015, gave its approval for India's first integrated National Policy for Skill Development and Entrepreneurship 2015. The policy acknowledges the need for an effective roadmap for promotion of entrepreneurship as the key to a successful skills strategy, according to a government statement. In the entrepreneurship domain, the policy seeks to educate and equip potential entrepreneurs, both within and outside the formal education system. It also seeks to connect entrepreneurs to mentors, incubators and credit markets, foster innovation and entrepreneurial culture, improve ease of doing business and promote a focus on social entrepreneurship.
In overseas marker, European stocks edged higher in early trade today, 2 July 2015. Key indices in Germany, France and UK were up 0.03% to 0.21%. In Italy, the FTSE MIB index was currently up 0.19%. In Spain, the IBEX 35 index was currently up 0.3%.
Sweden's central bank Riksbank today, 2 July 2015, cut its main repurchase, or repo, rate to minus 0.35% from minus 0.25%, saying the Swedish krona has become stronger than the central bank had forecast. In the euro area, economic activity is strengthening, but the events in Greece over the past few days have substantially increased the uncertainty, the bank said in its announcement, citing risks to the upturn in inflation in Sweden. The Riksbank added that the repo rate is expected to remain at minus 0.35% for just over a year, noting it leaves open the possibility of cutting that rate further. The Riksbank also said it will increase its bond-buying program by 45 billion Swedish krona ($5.32 billion) from September until the end of the year.
Greece proposed of a reworked deal yesterday, 1 July 2015, as Athens continued to seek a bailout that would keep it in the eurozone. The proposals were contained in a letter dated June 30, in which Mr Tsipras offered to accept a draft proposal disclosed on the commission's website this weekend with a handful of changes.
Greece defaulted on a payment to the International Monetary Fund on Tuesday, 30 June 2015.
Asian markets edged higher today, 2 July 2015. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.05% to 1.11%.
China's Shanghai Composite was down 3.49%. China's securities regulator has relaxed rules on margin trading -- borrowed funds that fuelled a spectacular stock market rally -- after measures including an interest rate cut failed to stop equities falling. Margin investors only need to deposit a small proportion of the value of their trade, generating bigger profits for a given amount of money put down -- but also bigger losses. Authorities tightened rules on the practice in June in an attempt to curb enhanced market risks, but the move was among the triggers for the recent heavy falls in Chinese shares.
US stocks finished higher yesterday, 1 July 2015, as investors looked beyond the latest developments in Greece and focused on economic data.
US private employers hired the most workers in six months in June and factory activity picked up, providing fresh evidence the economy was gathering solid momentum after contracting at the start of the year. The brightening growth outlook in the US was also bolstered by other data yesterday showing auto sales remained strong in June 2015 and construction spending rose in May 2015 to its highest level in just over 6-1/2 years.
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