A range bound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, retained the psychological 28,000 level. Earlier, initial gains took the Sensex past the psychological 28,000 level. The market breadth indicating the overall health of the market was strong. The Sensex was currently up 165.10 points or 0.59% at 28,110.90. In overseas markets, Asian stocks were mixed.
Realty shares were mixed. Most metal shares were trading lower. Larsen & Toubro edged higher after the company announced the successful completion of India's first 700 MWe nuclear steam generator. Infosys rose after the company said it was selected as a strategic partner by Allied Irish Banks, plc (AIB), a financial services group operating predominantly in the Republic of Ireland and the UK.
Earlier, the Sensex hit 10-1/2-week high and the 50-unit CNX Nifty hit its highest level in more than 10 weeks in morning trade as these two key benchmark indices extended initial gains.
Foreign portfolio investors bought shares worth a net Rs 575.32 crore yesterday, 2 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 219.02 crore yesterday, 2 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were mixed. US stocks edged lower yesterday, 2 July 2015, as investors grappled with heightened uncertainty tied to Greece ahead of a referendum on Sunday, 5 July 2015, to vote on the country's status as a eurozone member.
At 11:16 IST, the S&P BSE Sensex was up 165.10 points or 0.59% at 28,110.90. The index jumped 189.63 points at the day's high of 28,135.43 in morning trade, its highest level since 20 April 2015. The index fell 48.35 points at the day's low of 27,897.45 at the onset of trading session.
The CNX Nifty was up 44.70 points or 0.53% at 8,489.60. The index hit a high of 8,497.75 in intraday trade, its highest level since 23 April 2015. The index hit a low of 8,424.15 in intraday trade.
The BSE Mid-Cap index was up 22.69 points or 0.21% at 10,894.53. The BSE Small-Cap index was up 61.17 points or 0.54% at 11,361.16. Both theses indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,484 shares rose and 790 shares fell. A total of 117 shares were unchanged.
Infosys was up 0.34%. The company announced during trading hours today, 3 July 2015, that the company has been selected as a strategic partner by Allied Irish Banks, plc (AIB), a financial services group operating predominantly in the Republic of Ireland and the UK. Leveraging the momentum of this partnership, Infosys will also make significant investments in the Republic of Ireland. As a strategic partner to AIB, Infosys will provide application development and management, and transformation and innovation services. Infosys will also set up a 200-seat facility in Dublin to house the staff who will be transferring from AIB as well as any additional staff who will be appointed locally following recent agreements that Infosys has signed in the region.
This exciting partnership with AIB is a springboard for Infosys to expand its services into a new market. Infosys intends to set aside $10 million from its global Innovation Fund for Ireland-based start-ups. Earlier this year, lnfosys announced the US$500m Innovation Fund earmarked for investments in the growth of disruptive new technologies. infosys is keen to continue sharing its expertise to assist start-ups that are developing and enabling these technologies, the company said in a statement.
Larsen & Toubro (L&T) was up 0.7%. The company announced during trading hours today, 3 July 2015, that L&T Heavy Engineering has successfully flagged off India's first Nuclear 700 MWe Steam Generator for Kakrapar nuclear power plant in Gujarat. The indigenously-designed Pressurised Heavy Water Reactor (PHWR) is for the Unit 3 Kakrapar power station of Nuclear Power Corporation of India (NPCIL). The first steam generator reached Kakrapar nuclear power plant on 16 June 2015. The second steam generator is scheduled to be dispatched on 4 July 2015.
A nuclear steam generator is one of the most critical safety Class 1 equipment in a nuclear island.
Most metal shares were trading lower. Vedanta (down 0.09%), NMDC (down 0.17%), Tata Steel (down 0.2%), JSW Steel (down 0.56%), Hindalco Industries (down 1.12%), Steel Authority of India (down 1.32%), Hindustan Zinc (down 1.61%) and Jindal Steel & Power (down 1.85%), edged lower. National Aluminum Company (up 1.01%), Hindustan Copper (up 0.39%) and Bhushan Steel (up 0.17%), edged higher.
Realty shares were mixed. Peninsula Land (up 1.95%), D B Realty (up 1.22%), Unitech (up 1.01%), Phoenix Mills (up 0.74%), Sobha (up 0.70%), Prestige Estates Projects (up 0.40%), Indiabulls Real Estate (up 0.35%) and DLF (up 0.30%), edged higher. Godrej Properties (down 0.1%), Parsvnath Developers (down 0.23%), Oberoi Realty (down 0.41%), Housing Development and Infrastructure (HDIL) (down 0.64%), Sunteck Realty (down 0.76%) and Anant Raj (down 2.17%), edged lower.
Meanwhile, the Reserve Bank of India (RBI) Governor Dr. Raghuram G. Rajan yesterday, 2 July 2015, said that the Indian economy was recovering and there were signs of capital investments picking up. Rajan said that the government was trying to put stalled projects back on track. He said that the monsoon, thus far, was above normal. Exports were relatively weak and the weakness was on account of global factors. The RBI governor said that the RBI will continue to do spade work for sustainable growth in the coming year. The RBI governor was speaking to the media after the conclusion of a meeting of the Central Board of Reserve Bank of India in Chennai.
Rajan said in response to a query from the media that Greece was an evolving situation. Direct exposure to Greece for India was limited as indicated by a few reports done by the Reserve Bank of India, he said. There might be initial burst of volatility in financial markets if there are untoward developments in Greece, after which discerning investors will be able to distinguish the India's story which is of growth and stability, the RBI governor said. Rajan also said that India's macro policies were good and that India had enough buffers, including foreign exchange reserves to protect against any possible eventuality.
Meanwhile, the India Meteorological Department (IMD) said in its weekly monsoon report issued yesterday, 2 July 2015, that the rainfall was below normal by 14% over the country as a whole during the period from 25 June 2015 to 1 July 2015. Region wise, the rainfall was 45% below the Long Period Average (LPA) in Central India, 27% below the LPA in South Peninsula, 17% below the LPA in East & Northeast India and 79% above the LPA in Northwest India during that period.
The IMD expects rainfall to be above normal over northwest, central and over some parts of east India during the period from 6 to 10 July 2015. Rainfall activity may remain above normal over west India during 11-15 July 2015 and over northern plains during 16-20 July 2015, as per IMD's Extended Range Forecast. The IMD has forecast below normal rainfall activity over interior Peninsular India.
Separately, the IMD said in its daily monsoon update issued yesterday, 2 July 2015, that the Southwest Monsoon was normal over Andaman & Nicobar Islands, Arunachal Pradesh, Jharkhand, Bihar, Uttarakhand, Rajasthan, East Madhya Pradesh, Marathawada, Vidarbha, Chhattisgarh, Telangana and North Interior Karnataka during past 24 hours until 8:30 IST.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 10% above the Long Period Average (LPA) until 2 July 2015. Region wise, the southwest monsoon was 23% above the LPA in Northwest India, 15% above the LPA in Central India, 12% above the LPA in South Peninsula and 3% below the LPA in East & Northeast India until 2 July 2015.
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 Ministry of Water Resources today, 3 July 2015, announced in its weekly report that water storage available in 91 important reservoirs of the country as on July 2 2015 was 48.07 BCM which is 31% of total storage capacity of these reservoirs. This storage is 129% of the storage of corresponding period of last year and 145% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years.
States having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Odisha, Tripura, Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand, Karnataka, Kerala and Tamil Nadu. States having lesser storage than last year for corresponding period are Rajasthan, Jharkhand, West Bengal, Madhya Pradesh, Chhattisgarh, Andhra Pradesh and Telangana.
In overseas markets, Asian stocks were mixed today, 3 July 2015. Key benchmark indices in Hong Kong, South Korea and Taiwan were off 0.03% to 0.30%. Key benchmark indices in Japan, Indonesia and Singapore were up 0.09% to 0.46%.
China's Shanghai Composite staged a strong intraday rebound. The index was currently off 0.75%. The China Securities Regulatory Commission yesterday, 2 July 2015, announced that it would launch an investigation into suspected manipulation of shares and futures.
The HSBC China Services Purchasing Managers' Index fell to 51.8 in June from 53.5 in May, HSBC Holdings PLC said Friday, suggesting activity outside the nation's factories remains under pressure. China's service sector activity growth also eased to a five-month low in June, HSBC and Markit said in the statement. The HSBC China Services PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives at more than 400 private service-sector companies. China's official nonmanufacturing PMI, a competing a gauge, rose to 53.8 in June from 53.2 in May, according to the China Federation of Logistics and Purchasing.
US stocks edged lower yesterday, 2 July 2015, as investors grappled with heightened uncertainty tied to Greece ahead of a referendum on Sunday, 5 July 2015, to vote on the country's status as a eurozone member. The US stock market is closed today, 3 July 2015, for the Independence Day holiday.
Investors digested reports on the health of the labor market with monthly jobs report and weekly unemployment claims coming in softer than expected. Government data for June showed the economy added 223,000 new jobs. However, May and April numbers were cut. The unemployment rated ticked down to 5.3%, mostly due to more people leaving the labor force. Separately, weekly jobless claims climbed 10,000 to 281,000.
In Europe, Greece's Finance Minister Yanis Varoufakis reportedly said yesterday, 2 July 2015, that he will resign if Greece votes "yes" in a referendum on Sunday, 5 July 2015. Greece and its lenders failed to reach an agreement over bailout funds, resulting in a missed payment to the International Monetary Fund (IMF) on Tuesday, 30 June 2015. Greece will hold a referendum Sunday, 5 July 2015, on whether to accept the reform proposals put forward by its international lenders to unlock more aid. A "no" vote by Greeks could force the country out of the eurozone and push the country into what could be the darkest chapter of its six-year debt crisis. A "yes" vote could cause the Syriza party led coalition government to collapse. Opinion polls have showed the outcome of the referendum was too close to call.
The closure of Greece's banking system entered the 4th day yesterday, 2 July 2015. After the collapse of the bailout talks, Greece ordered the shut down of its banking system for six days from 29 June 2015 to avoid a run on the country's banks and the nation's central bank moved to impose controls to prevent money from flooding out of the country.
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