After languishing in negative zone in early afternoon trade, key benchmark indices reversed direction in mid-afternoon trade. The barometer index, the S&P BSE Sensex, fell below the psychological 28,000 mark soon after surpassing that level in mid-afternoon trade. The Sensex hit its highest level in almost a week. The 50-unit CNX Nifty hit one-week high. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 35.64 points or 0.13% at 27,996.83. Meanwhile, in global commodities markets, Brent crude oil prices edged lower in choppy trade after Iran today, 14 July 2015, reached a historic nuclear deal with the US and five other world powers. In overseas stock markets, European stocks edged lower, with energy shares falling after Iran reached a historic nuclear deal and as cautiousness set in over Greece's bailout deal.
Cement stocks dropped. Shares of some power generation and power distribution companies gained.
On macro front, the data released by the government during market hours today, 14 July 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone last month. Data released by the government after trading hours yesterday, 13 July 2015, showed increase in consumer price inflation last month.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 527.98 crore yesterday, 13 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 171.55 crore yesterday, 13 July 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, European stocks edged lower, with energy shares falling after Iran reached a historic nuclear deal and as cautiousness set in over Greece's bailout deal. Asian stocks were mixed. US stocks closed sharply higher yesterday, 13 July 2015, as investors were relieved that Greece and its creditors reached an agreement for a third bailout program, averting a potential 'Grexit'.
At 14:16 IST, the S&P BSE Sensex was up 35.64 points or 0.13% at 27,996.83. The index gained 57.40 points at the day's high of 28,018.59 in mid-afternoon trade, its highest level since 8 July 2015. The index lost 107.23 points at the day's low of 27,853.96 in early afternoon trade.
The 50-unit CNX Nifty was up 12.40 points or 0.15% at 8,472.05. The index hit a high of 8,480.25 in intraday trade, its highest level since 7 July 2015. The index hit a low of 8,424.10 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,600 shares gained and 1,099 shares fell. A total of 117 shares were unchanged.
The BSE Mid-Cap index was up 39.46 points or 0.36% at 11,066.87. The BSE Small-Cap index was up 80.37 points or 0.7% at 11,553.34. Both these indices outperformed the Sensex.
Cement stocks dropped. ACC (down 0.12%), Shree Cement (down 0.63%), and UltraTech Cement (down 0.49%) declined. Ambuja Cements rose 1.88%.
Grasim Industries declined 0.04%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Shares of some power generation and power distribution companies gained. NTPC (up 0.49%), NHPC (up 0.01%), Tata Power Company (up 0.17%), JSW Energy (up 1.67%), Adani Power (up 1.4%), and Power Grid Corporation of India (up 0.75%), gained. Torrent Power (down 1.12%), Reliance Infrastructure (down 0.51%) and Reliance Power (down 0.44%) declined.
Meanwhile, in global commodities markets, Brent crude oil prices edged lower in choppy trade after Iran today, 14 July 2015, reached a historic nuclear deal with the US and five other world powers. The accord, which is expected to be signed off in Vienna today, 14 July 2015, aims to prevent Iran from producing nuclear weapons, in exchange for sanctions relief. The lifting of economic sanctions on Iran will allow the country to resume oil exports. Brent for August settlement was currently off $1.01 a barrel at $56.84 a barrel. The contract had declined 88 cents or 1.49% to settle at $57.85 a barrel during the previous trading session. The August Brent contract is set to expire on 16 July 2015. Brent for September settlement was currently off $1.02 a barrel at $57.13 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.
On macro front, the rate of inflation based on the consumer price index (CPI) accelerated to 5.4% in June 2015 from 5.01% in May 2015, data released by the government after trading hours yesterday, 13 July 2015, showed. The increase in CPI was driven by food price inflation. Consumer Food Price Index (CFPI) surged to 5.48% in June 2015 from 4.8% in May 2015.
Meanwhile, data released by the government during trading hours today, 14 July 2015, showed that the rate of inflation based on the wholesale price index (WPI) stood at negative 2.4% in June 2015 compared with a reading of minus 2.36% in May 2015. Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.5% in the corresponding period of the previous year. Meanwhile, the government revised upwards the reading on WPI for April 2015 to minus 2.43% from a reading of minus 2.65% reported on 14 May 2015.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 13 July 2015, that the Southwest Monsoon was active over West Uttar Pradesh, Haryana, Chandigarh & Delhi, Punjab and Jammu & Kashmir during past 24 hours ending 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 13 July 2015. Region wise, the southwest monsoon was 26% above the LPA in Northwest India, 7% below the LPA in East & Northeast India, 8% below the LPA in Central India and 12% below the LPA in South Peninsula and until 13 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 lower today, 14 July 2015, with energy shares falling after Iran reached a historic nuclear deal and as cautiousness set in over Greece's bailout deal. Key indices in UK, Germany and France were off 0.15%% to 0.42%. In Spain, the IBEX 35 index was off 0.39%. In Italy, the FTSE MIB index was off 0.82%.
In Greece, Prime Minister Alexis Tsipras faces a tough battle to win support in parliament for a third bailout of the country. By Wednesday, 15 July 2015, Greece's Parliament has to pass pension overhauls and sales tax increases that the country's voters overwhelmingly rejected in a referendum held on 5 July 2015. If the deal fails, Greece's banks face collapse and the country could then be forced to leave the euro. Eurozone leaders yesterday, 13 July 2015, reached an agreement for a third bailout program for cash-strapped Greece, averting a potential 'Grexit'. After a 17-hour meeting, eurozone leaders agreed on a package of reform measures in principle for the debt-laden country, paving the way for formal negotiations on financial aid through the eurozone's bailout fund, the European Stability Mechanism, or ESM.
The left-wing Syriza party won elections in January on a promise to end austerity. Greece has already received two bailouts totalling euro 240 billion since 2010. Greek banks have been closed for two weeks, with withdrawals at cash machines limited to 60 euro per day, and will remain closed until after Wednesday, 15 July 2015.
Parliaments in several eurozone states also have to approve the bailout deal for Greece.
Meanwhile, finance ministers from all 28 European Union countries are holding a scheduled meeting in Brussels today, 14 July 2015, where they will discuss the situation in Greece.
Meanwhile, the latest data in Germany showed that the annual inflation rate eased to 0.1% in June from 0.7% in May.
Asian stocks were mixed today, 14 July 2015. Key benchmark indices in Japan, Singapore, Taiwan and Indonesia were up 0.04% to 1.47%. In South Korea, the Seoul Composite was off 0.11%.
Chinese stocks edged lower in volatile trade. In mainland China, the Shanghai Composite was off 1.16%. In Hong Kong, the Hang Seng index was off 0.41%.
US stocks closed sharply higher yesterday, 13 July 2015, as investors were relieved that Greece and its creditors reached an agreement for a third bailout program, averting a potential 'Grexit'.
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