Gains in European stocks triggered by a pair of opinion polls predicting that British voters will vote for Britain to remain in the European Union in a landmark referendum aided the upmove on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 226.65 points or 0.85% at 26,992.30, as per the provisional closing data. The Nifty 50 index rose 66.75 points or 0.81% to 8,270.45, as per the provisional closing data. The Sensex provisionally settled below the psychologically important 27,000 mark after surpassing that level in late trade. The Sensex and the Nifty, both, hit their highest level in more than two weeks as these two key benchmark indices extended gains in late trade.
The Sensex jumped 295.33 points, or 1.10% at the day's high of 27,060.98 in late trade, its highest level since 8 June 2016. The index fell 29.13 points, or 0.11% at the day's low of 26,736.52 in mid-morning trade. The Nifty rose 81.90 points, or 1% at the day's high of 8,285.60 in late trade, its highest level since 8 June 2016. The index fell 15.50 points, or 0.19% at the day's low of 8,188.30 in morning trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,495 shares fell and 1,095 shares rose. A total of 185 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.27%. The BSE Small-Cap index provisionally fell 0.04%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2278 crore, lower than turnover of Rs 2383.96 crore registered during the previous trading session.
In overseas stock markets, European stocks edged higher after a pair of opinion polls released yesterday, 22 June 2016, ahead of the Brexit referendum on European Union membership suggested the remain camp is gaining momentum. In UK, the FTSE 100 was currently up 1.63%. Voting began in the landmark British referendum to determine whether the UK remains a member of the European Union (EU) dubbed "Brexit". Voting in the referendum will close at 10 p.m. London time. Referendum results from the first counting areas are expected around 12:30 a.m. London time on Friday, 24 June 2016.
Trading in US index futures indicated that the Dow Jones Industrial Average could jump 175 points at the opening bell today, 23 June 2016. US stocks finished slightly lower yesterday, 22 June 2016, as opinion polls showed the outcome of a UK referendum on whether to leave the European Union remained too close to call. If the UK votes to leave the EU, it could send British pound and euro tumbling, with ripple effects across global asset classes.
Earlier during the global day, Asian stocks ended on a mixed note. Japanese stocks edged higher as the yen weakened against the dollar after the latest opinion polls ahead of the Brexit referendum on European Union membership suggested the remain camp is gaining momentum. The Nikkei 225 Average ended 1.07% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas.
Closer home, the Reserve Bank of India (RBI) has assured liquidity support to ensure orderly conditions in financial markets if the Brexit poll outcome causes turbulence in global financial markets. The RBI said a statement issued yesterday, 22 June 2016, that it is maintaining a close vigil on developments, and will take all necessary steps, including liquidity support, to ensure orderly conditions in financial markets.
Index heavyweight and cigarette major ITC rose 1.47% to Rs 359.75. The stock hit a high of Rs 361.85 and a low of Rs 354.60 in intraday trade
Index heavyweight and IT major Infosys rose 0.84% to Rs 1,208.65. The stock hit a high of Rs 1,214.65 and a low of Rs 1,193.45 in intraday trade.
Tata Motors rose 3.15% and Tata Steel rose 0.3% after a pair of opinion polls released yesterday, 22 June 2016, ahead of the Brexit referendum on European Union membership suggested the remain camp is gaining momentum. Both Tata Steel and Tata Motors have large operations in UK and Europe. Tata Motors derives majority of its revenue from its British luxury car unit Jaguar Land Rover (JLR). JLR is the largest automotive manufacturer in Britain. It is one of the UK's largest exporters and generates over 80% of its revenue from exports.
Tata Steel is Europe's second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. Tata Steel Europe has initiated the process to sell its UK business viz. Tata Steel UK. Tata Steel Europe has invited seven short listed potential investors to submit binding bids for Tata Steel UK.
Drug major Sun Pharmaceutical Industries rose 1.37% at Rs 750.05 ahead of the company's board meeting today, 23 June 2016, for evaluating a proposal of buyback of equity shares of the company.
Lupin rose 1.01% to Rs 1,479.40 after the company announced after market hours yesterday, 22 June 2016, that it has received final approval from the United States Food and Drug Administration (FDA) to market a generic version of Amneal Pharmaceuticals' Activella Tablets. The drug is indicated in a woman with a uterus for treatment of moderate to severe vasomotor symptoms due to menopause and prevention of postmenopausal osteoporosis. It is also indicated in a woman with a uterus for treatment of moderate to severe symptoms of vulvar and vaginal atrophy due to menopause. Activella had annual US sales of $95.6 million, as per IMS MAT March 2016 data.
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