After languishing in positive zone in morning trade, key benchmark indices extended intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 28,000 mark after surpassing that level in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest levels in more than four weeks. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 183.23 points or 0.66% at 27,889.10. In overseas markets, Chinese stocks led gains in Asian stocks.
State Bank of India and ITC, both, edged higher ahead of their Q4 March 2015 results today, 22 May 2015. FMCG shares were mixed. Power generation stocks were also mixed.
Foreign portfolio investors sold shares worth a net Rs 186.26 crore yesterday, 21 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.01 crore yesterday, 21 May 2015, as per provisional data released by the stock exchanges.
Meanwhile, the government yesterday, 21 May 2015, announced an overhaul of the country's foreign direct investment (FDI) policy rules for overseas Indians.
In the overseas market, Chinese stocks led gains in Asian stocks. US stocks ended slightly higher yesterday, 21 May 2015, sending the S&P 500 to a fresh record.
At 11:17 IST, the S&P BSE Sensex was up 183.23 points or 0.66% at 27,889.10. The index jumped 198.14 points at the day's high of 28,007.49 in mid-morning trade, its highest level since 23 April 2015. The index gained 19.26 points at the day's low of 27,828.61 in early trade.
The Nifty was up 41.65 points or 0.49% at 8,462.65. The index hit a high of 8,469.90 in intraday trade, its highest level since 23 April 2015. The index hit a low of 8,420.60 in intraday trade.
The BSE Mid-Cap index was up 55.32 points or 0.52% at 10,662.24. The BSE Small-Cap index was 56.67 points or 0.51% at 11,257.53. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,236 shares rose and 910 shares fell. A total of 100 shares were unchanged.
State Bank of India (SBI) was up 3.30% at Rs 298.90. The stock hit a high of Rs 299.20 and a low of Rs 292.35 so far during the day. SBI is scheduled to announce its Q4 March 2015 results today, 22 May 2015.
Index heavyweight and cigarette major ITC was up 1.63% at Rs 332.70. The stock hit a high of Rs 332.85 and a low of Rs 328.80 so far during the day. ITC is scheduled to announce its Q4 March 2015 results today, 22 May 2015.
FMCG shares were mixed. Tata Global Beverages (up 1.40%), Marico (up 0.86%), GlaxoSmithKline Consumer Healthcare (up 0.05%) and Jyothy Laboratories (up 0.04%), edged higher. Procter & Gamble Hygiene & Health Care (down 0.09%), Bajaj Corp (down 0.31%), Colgate Palmolive (India) (down 0.62%), Hindustan Unilever (down 0.64%) and Godrej Consumer Products (down 3.16%), edged lower.
Britannia Industries surged after the biscuits major reported strong Q4 March 2015 results after market hours yesterday, 21 May 2015. The stock was up 7.27% at Rs 2,451.45. The stock hit a high of Rs 2,556.45 and a low of Rs 2,381.75 so far during the day. The company's consolidated net profit rose 55.4% to Rs 167 crore on 14.3% growth in revenue to Rs 2032 crore in Q4 March 2015 over Q4 March 2014.
Dabur India was up 1.48%. The company after market hours yesterday, 21 May 2015, said that CRISIL has reaffirmed its rating on the company's long term bank facilities of Rs 125 crore at CRISIL AAA/Stable. CRISIL also reaffirmed the rating on the company's short term bank facilities (bank guarantees) of Rs 32.50 crore at CRISIL A1+. CRISIL reaffirmed the rating on the company's non convertible debenture programme of Rs 20 crore at CRISIL AAA/Stable and commercial paper programme of Rs 200 crore at CRISIL A1+.
Nestle India was up 0.57%. Nestle India after market hours yesterday, 21 May 2015, said that On 30 April 2015 the local authorities in Lucknow asked the company to recall one batch of MAGGI Noodles (around 2 lakh packs) which were manufactured in February 2014 and had already reached the 'Best Before date' in November 2014. The company's current practice is to collect stock that is near 'Best Before date' from distributors/retailers so the company is confident that these packs are no longer in the market, Nestle India said. The company does not agree with the order and is filing the requisite representations with the authorities. In the meantime it is important to note that there are no other orders to recall MAGGI Noodle products in the market, the company said. People can be confident that Maggi Noodle products are safe to eat, it added.
Nestle India said that the quality and safety of its products is its top priority. The company has in place strict food safety and quality controls at MAGGI factories, including thorough quality checks at each stage of raw material sourcing and manufacturing process. This includes comprehensive testing to ensure that MAGGI Noodles comply with all applicable food safety laws, as well as the company's own high standards of quality and safety before they reach consumers.
Nestle India said that the company is aware of reports that tests by the local authorities have detected Monosodium Glutamate (MSG) in a sample of MAGGI Noodles and that they are continuing their investigation. The company has submitted product samples to an independent accredited laboratory and will share the results with the authorities.
Nestle India said that the company does not add MSG to MAGGI Noodles sold in India and this is also stated on the concerned product. However, the company uses hydolysed groundnut protein, onion powder and wheat flour to make MAGGI Noodles sold in India, which all contain glutamate. The company is of the opinion that the tests by the local authorities may have detected glutamate, which occurs naturally in many foods.
The company also said that it was also aware of the reports of elevated levels of lead in a pack of MAGGI Noodles analysed by the authorities. The company regularly monitors for lead as part of its stringent quality control processes, including testing by accredited laboratories, Nestle India said. These tests have consistently shown lead levels in MAGGI Noodles to be within permissible limits. The company has submitted product samples to an independent accredited laboratory and will share the results with the authorities, Nestle India said.
Nestle India further said that it is important to note that there are no other orders to recall MAGGI Noodle products from the market.
Power generation stocks were mixed. NHPC (up 0.78%), Reliance Infrastructure (up 0.74%), Reliance Power (up 0.74%), Tata Power (up 0.66%) and Torrent Power (up 0.40%), edged higher. GMR Infrastructure (down 0.07%), NTPC (down 0.07%), Jaiprakash Power Ventures (down 0.55%), Adani Power (down 0.73%), JSW Energy (down 1.33%) and CESC (down 2.24%) edged lower.
Meanwhile, the government yesterday, 21 May 2015, announced an overhaul of the country's foreign direct investment (FDI) policy rules for overseas Indians. Investment by NRIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will now be deemed to be domestic investment at par with the investment made by residents. This decision is meant to provide clarity in the FDI policy as such investment is not included in the category of foreign investment, a government statement said. The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country, the statement said.
In overseas markets, Chinese stocks led gains in Asian stocks today, 22 May 2015. In mainland China, the Shanghai Composite index was up 2.3%. In Hong Kong, the Hang Seng index was up 1.76%. In other Asian markets, key benchmark indices in Singapore, South Korea and Taiwan were up 0.35% to 1.1%. Indonesia's Jakarta Composite was off 0.10%.
In Japan, the Nikkei 225 was up 0.17%. The Bank of Japan today, 22 May 2015, kept its policy on hold, saying the country's economy is improving moderately. The BOJ's nine-member policy board voted 8-1 to leave its policy framework unchanged, keeping the bank's annual asset purchases at 80 trillion Yen ($660 billion). The BOJ last expanded its easing measures in October.
US stocks ended slightly higher yesterday, 21 May 2015, sending the S&P 500 to a fresh record. The main indexes continued to trade in narrow ranges in the absence of a major catalyst to move prices either direction. Investors mostly brushed off a flurry of weaker-than-expected economic data a day after minutes from Federal Reserve's last meeting signaled a June interest-rate hike was unlikely.
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