A divergent trend was witnessed among various index constituents in afternoon trade with the barometer index, the S&P BSE Sensex, trading with small gains and the Nifty 50 index trading with minuscule losses. At 13:15 IST, the Sensex was up 31.90 points or 0.12% at 27,198.77. The Nifty was down 4.35 points or 0.05% at 8,331.60.
The Sensex rose 83.40 points or 0.3% at the day's high of 27,250.27 in morning trade. The barometer index lost 18.19 points or 0.06% at the day's low of 27,148.68 in early afternoon trade. The Nifty rose 9.65 points or 0.11% at the day's high of 8,345.60 in morning trade. The index lost 18.25 points or 0.21% at the day's low of 8,317.70 in early afternoon trade, its lowest level since 1 July 2016.
In overseas stock markets, European stocks edged higher after a rally on Wall Street overnight following some better US data and a bounce in oil helped quell the latest bout of worries triggered by the UK's vote last month to leave the European Union (EU) known as Brexit. Asian stocks witnessed a mixed trend. Japanese stocks fell as the yen strengthened against the dollar. The Nikkei 225 Average ended 0.67% lower. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks rose yesterday, 6 July 2016, after a stronger-than-expected report on nonmanufacturing activity in June 2016 and after the minutes from the Federal Reserve's June policy meeting confirmed dovish stance from the US central bank. The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June to its highest reading since November 2015. Meanwhile, the minutes from the Federal Reserve's June meeting showed that the majority of policy makers were in favor of keeping rates on hold. The two-day Fed meeting on 14-15 June 2016 was held just a few days before the Brexit. The minutes showed that Fed officials saw risks to the US economy and global markets from the UK's then-upcoming vote on EU membership. Fed officials also had concerns about a possible slowdown in the US labour market.
Closer home, the market breadth indicating strength of the market was positive. On BSE, 1,480 shares rose and 1,073 shares fell. A total of 136 shares were unchanged The BSE Mid-Cap index was currently down 0.08%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.37%, outperforming the Sensex.
Bank stocks edged higher on renewed buying. Among public sector banks, Punjab National Bank (up 3.03%), Canara Bank (up 0.96%), Corporation Bank (up 0.33%), Bank of India (up 0.09%), Bank of Baroda (up 0.06%) and Indian Bank (up 0.03%) gained. State Bank of India (down 0.25%) and IDBI Bank (down 1.37%) edged lower.
Stocks of private sector banks witnessed a mixed trend. Kotak Mahindra Bank (up 0.45%) and ICICI Bank (up 0.04%) edged higher. Yes Bank (down 0.88%) and IndusInd Bank (down 0.42%) edged lower.
Index heavyweight HDFC Bank was up 0.9% at Rs 1,175.50. The stock hit a high of Rs 1,177 and a low of Rs 1,161 so far during the day.
The government has finalized interest subvention scheme for farmers for the year 2016-17. The government will provide interest subvention of 5% per annum to all farmers for short term crop loan upto one year for loan upto Rs 3 lakh borrowed by them during the year 2016-17. In case farmers do not repay the short term crop loan in time, they would be eligible for lower interest subvention of 2% as against 5%. The government has approved interest subvention of 2% to farmers for loans upto 6 months for the post harvest storage of farm produce. To provide relief to the farmers affected by natural calamities, interest subvention of 2% will be provided to banks for the first year on the restructured amount. The announcement hit the market after trading hours on Tuesday, 5 July 2016.
Axis Bank rose 0.95% at Rs 544.70 after the Union Cabinet approved increase in the ceiling on foreign investment in the private sector bank to 74% of equity capital on a fully fungible basis from 62% earlier. With the hike in foreign investment ceiling, foreign direct investment to the tune of Rs 12973.14 crore will be received in the country with an estimated creation of 6,000 to 7,000 jobs over the next three years, according to a government statement.
Foreign institutional investors held 40.86% stake in Axis Bank as on 31 March 2016. The holding through Global Depository Receipts (GDR) in the bank stood at 3.36% as on 31 March 2016.
Meanwhile, shares of Axis Bank turned ex-dividend today, 7 July 2016, for dividend of Rs 5 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.91% based on its closing price of Rs 543.90 on the BSE on Tuesday, 5 July 2016. The stock market was closed yesterday, 6 July 2016, for a holiday.
Cement stocks edged higher. Shree Cement (up 2.19%), Ambuja Cements (up 1.54%), ACC (up 0.42%) and UltraTech Cement (up 1.03%) gained.
Grasim Industries was up 0.48%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Index heavyweight and housing finance major HDFC rose 1.92% at Rs 1,283.50. The stock hit a high of Rs 1,286.90 and a low of Rs 1,252.50 so far during the day.
Vakrangee rose 4.1% at Rs 205.45 after the company tied up with Religare Health Insurance Company (Religare) to distribute the latter's health insurance products through Vakrangee distribution network. Vakrangee said in a statement that citizens, especially in un-served and undeserved areas shall be able to access health insurance products and services offered/to be offered by Religare through Vakrangee distribution network. The announcement was made after market hours on Tuesday, 5 July 2016. The stock market was closed yesterday, 6 July 2016, for a holiday.
Religare Health Insurance is promoted by Religare Enterprises. Union Bank of India and Corporation Bank are the two other shareholders of Religare Health Insurance.
Meanwhile, Prime Minister Narendra Modi after expanding the Council of Ministers with 19 new members also reshuffled some portfolios in his Cabinet on Tuesday, 5 July 2016. Prakash Javadekar, who was earlier promoted to Cabinet rank, was given the HRD Ministry. He had been the Minister of State (Independent charge) for Environment and Forests. Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Other than that, Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given additional charge of I&B. The government has appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. The Council of Ministers now has 77 members. The previous strength of the government was 63. Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in the earlier batch. The total strength of the Union Council of Ministers has been capped at 82.
Powered by Capital Market - Live News
