Shrugging off weakness in Asian and European stocks, key equity benchmark indices in India extended intraday gains in mid-afternoon trade. The 50-unit CNX Nifty was currently trading above the psychological 8,000 mark, having alternately moved above and below that mark in intraday trade so far. Earlier, the Nifty had fallen below the psychological 8,000 mark in morning trade after moving past that mark in early trade. The barometer index, the S&P BSE Sensex, was currently up 253.45 points or 0.96% at 26,678.75. In percentage terms, the gains for the Sensex were higher than those for the Nifty. The Nifty was currently up 58.25 points or 0.73% at 8,041.15. The market breadth indicating the overall health of the market was positive. In overseas markets, European and Asian stocks edged lower as Greece's talks with lenders to avert a default ended with no agreement over the weekend.
Realty stocks gained. FMCG stocks rose after the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 14 June 2015, that the cumulative rainfall during this year's monsoon season was 5% above the Long Period Average (LPA) until 13 June 2015.
Key benchmark indices edged higher today, 15 June 2015, amid optimism above-average monsoon rain may improve the odds for further monetary policy easing. For the country as a whole, the cumulative rainfall during this year's monsoon season was 5% above the Long Period Average (LPA) until 13 June 2015. The Reserve Bank of India (RBI) cut its main benchmark lending rate viz. the repo rate by 25 basis points after a monetary policy review on 2 June 2015. The central bank at that time said that the monsoon and its impact on food costs will be key to further easing. 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.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 12 June 2015, showed that the total sown area for Kharif crops as on 12 June 2015 stands at 75.10 lakh hectares, which is lower than 82.87 lakh hectares at this time last year.
On macro front, data released by the government today, 15 June 2015, showed that the annual rate of inflation based on the monthly wholesale price index (WPI) remained in negative zone in May 2015. The index of industrial production (IIP) rose at an accelerated pace of 4.1% in April 2015 over a year ago compared with the revised growth of 2.5% in March 2015. Inflation based on consumer price index (CPI) moved up slightly to 5.01% in May 2015 from 4.87% in April 2015. Both, IIP and CPI data was announced after market hours on Friday, 12 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 670.96 crore during the previous trading session on Friday, 12 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 705.58 crore on Friday, 12 June 2015, as per provisional data released by the stock exchanges
In overseas markets, European stocks edged lower as Greece's talks with lenders to avert a default ended with no agreement over the weekend. Asian stocks edged lower as talks between Greece and its European creditors collapsed over the weekend. US stocks dropped during the previous trading session on Friday, 12 June 2015, on fears about possible Greek default.
At 14:17 IST, the S&P BSE Sensex was up 253.45 points or 0.96% at 26,678.75. The index jumped 303.30 points at the day's high of 26,728.60 in mid-afternoon trade, its highest level since 11 June 2015. The index fell 117.46 points at the day's low of 26,307.84 at the onset of the trading session.
The CNX Nifty was up 58.25 points or 0.73% at 8,041.15. The index hit a high of 8,057.70 in intraday trade, its highest level since 11 June 2015. The index hit a low of 7,944.85 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,467 shares rose and 1,012 shares fell. A total of 116 shares were unchanged.
The BSE Mid-Cap index was up 48.37 points or 0.48% at 10,170.31. The BSE Small-Cap index was up 79.78 points or 0.75% at 10,653.56. Both these indices underperformed the Sensex.
Realty stocks gained. Sobha (up 1.23%), Indiabulls Real Estate (up 2.72%), Unitech (up 3.85%), Housing Development & Infrastructure (HDIL) (up 2.28%), Phoenix Mills (up 1.05%), and DLF (up 0.84%) edged higher.
FMCG stocks gained after the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 14 June 2015, the cumulative rainfall during this year's monsoon season was 5% above the Long Period Average (LPA) until 13 June 2015. Tata Global Beverages (up 0.51%), Marico (up 0.95%), Britannia Industries (up 1.38%), Dabur India (up 2.16%), Colgate Palmolive India (up 0.44%), Godrej Consumer Products (up 0.76%), Procter & Gamble Hygiene and Health Care (up 0.54%) and Hindustan Unilever (up 1.34 %) gained. Nestle India (down 1.99%), Jyothy Laboratories (down 1.92%), GlaxoSmithkline Consumer Healthcare (down 0.31%), and Bajaj Corp (down 2.53%) declined.
FMCG firms derive substantial revenue from rural India.
In the global commodities market, Brent crude futures extended previous session's losses as high production offset strong refinery runs. Brent for July settlement was off 30 cents at $63.57 a barrel. The contract had fallen $1.24 or 1.9% a barrel to settle at $63.87 a barrel during the previous trading session. Near month July contract expires today, 15 June 2015. Brent for August settlement was down 27 cents at $64.37 a barrel.
The decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
India's industrial production rose at an accelerated pace of 4.1% in April 2015 over a year ago compared with the revised growth of 2.5% in March 2015. The growth in industrial production for March 2015 was scaled up to 2.5% in the first revision compared with 2.1% reported provisionally. Meanwhile, the growth in January 2015 has been revised slightly upwards to 2.83% in the second and final revision compared with 2.77% at the first revision and 2.55% released provisionally.
Inflation based on consumer price index (CPI) moved up slightly to 5.01% in May 2015 from 4.87% in April 2015. An increase in inflation for transportation and communication contributed to the rise in overall CPI inflation, while food items inflation declined restructuring the increase in overall CPI inflation in May 2015. The core CPI inflation rose to 4.4% in May 2015 from 4% in April 2015 and 3.9% in March 2015.
The data on both industrial production and CPI was announced after market hours on Friday, 12 June 2015.
Meanwhile, data released by the government today, 15 June 2015, showed that the annual rate of inflation based on the monthly wholesale price index (WPI) remained in negative zone in May 2015. WPI inflation was negative 2.36% (provisional) for the month of May 2015 as compared to a reading of negative 2.65% (provisional) for April 2015. Build up inflation rate in the financial year so far was 0.91% compared to a build up rate of 0.94% in the corresponding period of the previous year.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 12 June 2015, showed that the total sown area for Kharif crops as on 12 June 2015 stands at 75.10 lakh hectares, which is lower than 82.87 lakh hectares at this time last year.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 14 June 2015, that the southwest monsoon has further advanced into some parts of north Arabian Sea & Gujarat region, remaining parts of Maharashtra, some parts of Saurashtra and Madhya Pradesh and some more parts of Chhattisgarh, south Odisha and northwest Bay of Bengal. The IMD said that conditions are favourable for further advance of southwest monsoon into some more parts of north Arabian Sea, Gujarat state, Madhya Pradesh, Chhattisgarh and Odisha, remaining parts of Coastal Andhra Pradesh, northwest Bay of Bengal and West Bengal and some parts of Jharkhand and Bihar during next 3 days. The Southwest Monsoon has been vigorous over West Madhya Pradesh, Chhattisgarh and Telangana and active over Arunachal Pradesh, Gangetic West Bengal, Odisha, East Madhya Pradesh, Konkan & Goa, Marathawada, Vidarbha, Coastal Andhra Pradesh and Kerala during past 24 hours, the weather office said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 5% above the Long Period Average (LPA) until 13 June 2015. Region wise, the southwest monsoon was 22% above the LPA in East & Northeast India, 10% below the LPA in Northwest India, 6% below the LPA in Central India and 4% below the LPA in South Peninsula.
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.
Meanwhile, data on the first installment of advance tax payment by corporate taxpayers may provide cues on likely Q1 June 2015 corporate earnings. Companies have to pay 15% of the full year's estimated tax liability as the first installment of the advance tax on or before 15 June every year.
The Reserve Bank of India (RBI) on Friday, 12 June 2015, issued final guidelines for introduction of 6-year and 13-year cash settled interest rate futures (IRF) on Government of India Securities with residual maturity of 4-8 years and 11-15 years respectively. The RBI also expanded the residual maturity for the existing 10-year cash settled IRF from 9-11 years to 8-11 years. This would provide market participants greater choice and flexibility to hedge their interest rate risk across different tenors, the RBI said in a press release.
In overseas markets, European stocks declined today, 15 June 2015, as Greece's talks with lenders to avert a default ended with no agreement over the weekend. Key benchmark indices in UK, France and Germany were off by 0.62% to 1.22%.
The International Monetary Fund last week halted bailout talks with Greece over a lack of progress toward a deal to avert a Greek default. Greece has a debt repayment of 1.6 billion euros ($1.8 billion) due at the end of this month to the International Monetary Fund after the European nation bundled all its four June repayments into one.
Greece Finance Minister Yanis Varoufakis reportedly told a German newspaper that he would rule out a 'Grexit', or the country's exit from the euro zone, because it's not a sensible solution. Varoufakis told the newspaper that his country could reach a deal with creditors quickly if there was a restructuring and if German Chancellor Angela Merkel was part of talks. Varoufakis said that Greece doesn't want any more money as it has been given far too much already, according to reports.
Asian stocks edged lower today, 15 June 2015, after Greece's talks with lenders to avert a default ended with no agreement over the weekend. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Indonesia, Japan, and South Korea shed by 0.09% to 2%.
US stocks dropped during the previous trading session on Friday, 12 June 2015, on fears about possible Greek default.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy starts tomorrow, 16 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
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