After a range bound movement in morning trade, key benchmark indices extended intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than a week. The Sensex retained the psychological 28,000 mark after surpassing that mark in early trade. The Sensex was currently up 258.77 points or 0.93% at 28,191.67. The gains for the Sensex in percentage terms were higher than those for the Nifty. The Nifty was currently up 69.70 points or 0.82% at 8,523.80. The broad market depicted strength. There were more than two gainers against every loser on BSE. In overseas markets, stocks fell sharply in mainland China as surprisingly strong GDP growth data diminished hopes for more stimulus.
Key equity benchmark indices edged higher today, 15 July 2015, as a fall in US retail sales fueled bets the Federal Reserve will delay raising interest rates. There had been concerns that higher interest rates in the United States will boost returns on US debt and bank deposits, drawing money back from riskier markets.
Zee Entertainment Enterprises edged higher in volatile trade after reporting Q1 June 2015 results. Metal & mining stocks gained after better than expected GDP growth data in China. Realty stocks also edged higher.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 269.90 crore yesterday, 14 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 130.90 crore yesterday, 14 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were mixed. US stocks edged higher yesterday, 14 July 2015, as investors took stock of disappointing June retail sales numbers and how the data factor into the Federal Reserve's plans for a rate hike.
At 11:16 IST, the S&P BSE Sensex was up 258.77 points or 0.93% at 28,191.67. The index jumped 262.34 points at the day's high of 28,195.24 in mid-morning trade, its highest level since 7 July 2015. The index rose 53.58 points at the day's low of 27,986.48 in early trade.
The CNX Nifty was up 69.70 points or 0.82% at 8,523.80. The index hit a high of 8,525.45 in intraday trade, its highest level since 7 July 2015. The index hit a low of 8,462.95 in intraday trade.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,632 shares gained and 710 shares fell. A total of 107 shares were unchanged.
The BSE Mid-Cap index was up 58.58 points or 0.53% at 11,101.05. The BSE Small-Cap index was up 97.25 points or 0.84% at 11,619.17. Both these indices underperformed the Sensex.
Metal & mining stocks gained after better than expected GDP growth data in China. JSW Steel (up 0.15%), Hindustan Copper (up 0.24%), Vedanta (up 0.62%), Hindalco Industries (up 1.48%), Hindustan Zinc (up 1.34%), Tata Steel (up 0.8%), Steel Authority of India (Sail) (up 0.95%), National Aluminum Company (up 2.22%) and NMDC (up 0.96%) gained. Bhushan Steel (down 3.34%) and Jindal Steel & Power (down 1.81%) declined. China is the world's largest consumer of steel, copper and aluminum.
Realty stocks gained. Sobha (up 0.82%), Indiabulls Real Estate (up 2.35%), Unitech (up 2.44%), Housing Development & Infrastructure (HDIL) (up 1.5%), Oberoi Realty (up 0.51%), DLF (up 2.36%), Godrej Properties (up 0.06%), Phoenix Mills (up 0.86%), and Anant Raj (up 5.63%) edged higher.
Zee Entertainment Enterprises edged higher in volatile trade after reporting Q1 June 2015 results. The stock was up 0.76% at Rs 377.50. The stock hit high of Rs 385.70 and low of Rs 374.65 so far during the day. The company's consolidated net profit rose 15.76% to Rs 243.76 crore on 28.68% rise in total income to Rs 1407.84 crore in Q1 June 2015 over Q1 June 2014. The company announced Q1 results during market hours.
Zee's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 0.7% to Rs 311.20 crore in Q1 June 2015 over Q1 June 2014. The EBITDA margin fell sharply to 23.22% in Q1 June 2015 from 29.29% in Q1 June 2014.
At the board meeting held today, 15 July 2015, the board has approved in-principle acquisition of 100% equity stake in Sarthak Entertainment, an entity which owns and operates a leading Odia language general entertainment channel SARTHAK. The acquisition shall be from current shareholders of Sarthak Entertainment, subject to requisite regulatory approvals, as an all-cash deal at a consideration of maximum of Rs 115 crore, including Rs 15 crore payable in financial year 2017 and 2018, linked to certain performance milestones of the channel.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 14 July 2015, that the Southwest Monsoon was active over Andaman & Nicobar Island during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 5% below the Long Period Average (LPA) until 14 July 2015. Region wise, the southwest monsoon was 20% above the LPA in Northwest India, 8% below the LPA in East & Northeast India, 11% below the LPA in Central India and 14% below the LPA in South Peninsula and until 14 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, Asian stocks were mixed today, 15 July 2015. Key benchmark indices in Singapore, Japan, and South Korea were up 0.3% to 0.44%. Key benchmark indices in Indonesia and Taiwan were off 0.14% to 0.63%.
Stocks fell sharply in mainland China as surprisingly strong GDP growth data diminished hopes for more stimulus. The Shanghai Composite was off 4.21%. In Hong Kong, the Hang Seng index was off 0.93%. The continued slide among Chinese stocks reflects deepening doubts that Beijing can turn things around, despite heavy intervention in recent days. China's economy grew an annual 7% in the second quarter, data released by the National Bureau of Statistics today, 15 July 2015, showed. Other statistics released by the National Bureau of Statistics showed little sign of turnaround in a quarter that started against the backdrop of a broad stock rally and ended under the shadow of that rally's collapse. Value-added industrial production grew 6.3% year-over-year in the first half, down from the 6.4% growth in the first quarter, while growth in fixed-asset investment fell to 11.4% from 13.5%, and retail-sales gains slowed to 10.4% from 10.6%, the statistics bureau said.
In Japan, the Bank of Japan trimmed its forecasts for inflation and economic growth, but kept the scope of its monetary easing unchanged as widely expected after a monetary policy review today, 15 July 2015. The central bank said the current fiscal year, ending in March 2016, would see the core consumer price index rise 0.7%, down from its April forecast for a gain of 0.8%. Likewise, it said the economy would grow by 1.7%, down from a previous projection of 2%. The Bank of Japan also cut its core CPI forecasts for fiscal 2016 and 2017, but kept its growth estimates for those years unchanged.
US stocks rose yesterday, 14 July 2015, as investors took stock of disappointing June retail sales numbers and how the data factor into the Federal Reserve's plans for a rate hike. US retail sales unexpectedly fell 0.3% in June from the prior month, the Commerce Department said. Figures for the prior two months were also revised down. Weaker economic growth may delay the first rate hikes as the Federal Reserve tries to find a balance between normalizing rates and accommodating an uneven recovery.
In Europe, a study published yesterday, 14 July 2015, by the International Monetary Fund (IMF) showed that Greece needs far more debt relief than European governments have been willing to contemplate so far. Early this week, eurozone leaders agreed on a three-year bailout for the debt-laden country. The IMF's stark warning on Greece's debt came as Prime Minister Alexis Tsipras struggled to persuade deeply unhappy leftist lawmakers to vote for a package of austerity measures and liberal economic reforms to secure a new bailout. The Greek parliament must pass four pieces of legislation today, 15 July 2015, which requires Athens to carry out deep austerity and free-market economic overhauls. The high bar means Greece's exit from the eurozone still isn't entirely ruled out.
Greece also faces an immediate cash crisis. The country's banks have been shut since 29 June 2015.
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