Key benchmark indices trimmed gains in afternoon trade as European stocks edged lower amid initial volatility on worries debt-laden Greece is heading for a default or even an exit from the eurozone. The barometer index, the S&P BSE Sensex, was currently up 124.86 points or 0.47% at 26,811.37. The gains in Sensex in percentage terms were higher than those for the 50-unit CNX Nifty. The Nifty was currently up 29.25 points or 0.36% at 8,076.55. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 1.18%. The BSE Small-Cap index was up 1.24%. Both these indices outperformed the Sensex.
Meanwhile, Central Board of Direct Taxes (CBDT) chairman Anita Kapur was quoted as saying at a press conference yesterday, 16 June 2015, that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs).
Metal and mining stocks edged higher. Tata Steel surged on reports trade unions decided to suspend industrial action at the steelmaker's UK plants. National Aluminium Company rose on reports a foreign brokerage has maintained outperform rating on the stock. Capital goods stocks edged higher on renewed buying. Power equipment major Bharat Heavy Electricals (Bhel) fell on huge volume after a large bulk deal was executed on the scrip on BSE.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week in early trade.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 16 June 2015, that the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 15 June 2015.
In overseas markets, European stocks edged lower, with investors nervously digesting the lack of progress in Greece's debt talk with lenders ahead of a closely watched Eurogroup meeting later in the week. Asian stocks edged higher after US stocks registered modest gains overnight. US stocks edged higher yesterday, 16 June 2015, as investors shrugged off worries about unsuccessful Greek debt talks and awaited the outcome of a two-day Federal Reserve policy meeting.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 521.65 crore yesterday, 16 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 644.81 crore yesterday, 16 June 2015, as per provisional data released by the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was up 124.86 points or 0.47% at 26,811.37. The index jumped 170.86 points at the day's high of 26,857.37 in early trade, its highest level since 11 June 2015. The index rose 42.38 points at the day's low of 26,728.89 in morning trade.
The Nifty was up 29.25 points or 0.36% at 8,076.55. The index hit a high of 8,092.55 in intraday trade, its highest level since 11 June 2015. The index hit a low of 8,048.95 in intraday trade.
The market breadth indicating the overall health of the market was strong. 1,548 shares rose and 827 shares fell. A total of 123 shares were unchanged.
The BSE Mid-Cap index was up 120.11 points or 1.18% at 10,317.79. The BSE Small-Cap index was up 132.50 points or 1.24% at 10,787.40. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1998 crore by 13:15 IST.
Metal and mining stocks edged higher. JSW Steel (up 5.46%), Steel Authority of India (Sail) (up 3.75%), Jindal Steel & Power (up 2.63%), Hindalco Industries (up 1.86%) and Hindustan Copper (up 0.93%) edged higher. Vedanta (down 2.27%), Hindustan Zinc (down 0.49%) and NMDC (down 0.04%) fell.
Tata Steel surged on reports trade unions decided to suspend industrial action at the steelmaker's UK plants. The stock was up 4.02%. According to reports, trade unions representing workers of Tata Steel in the UK have decided to suspend its 22 June 2015 strike action after the steel major approached the Advisory, Conciliation and Arbitration Service (ACAS) to resolve the pension dispute in an independent manner. Tata Steel is keen to resolve dispute without industrial action, reports added.
ACAS provides collective conciliation services to help employers and employees' representatives (Trade Unions) to reach agreement on a range of issues affecting groups of employees. Reports added that the trade unions have agreed to suspend industrial action as they are confident that ACAS involvement will ensure fair negotiations. They are expecting a revised offer from Tata Steel.
Unions in UK recently notified plans to take industrial action in dispute over the Tata Steel UK's proposals to revise the British Steel Pensions Scheme's contribution and benefits framework.
National Aluminium Company (Nalco) rose 3.15% on reports a foreign brokerage has maintained outperform rating on the stock. The foreign brokerage reportedly said that alumina prices are at nine year high and capital expenditure on alumina refinery should aid return on capital employed for Nalco. The brokerage said that Nalco's valuations are attractive and its EBITDA (earnings before interest, taxation, depreciation and amortization) discount is attractive compared to its rival Hindalco Industries.
Capital goods stocks gained. ABB India (up 1.59%), BEML (up 1.57%), Bharat Electronics (up 0.54%), Crompton Greaves (up 1.46%), L&T (up 1.26%), Siemens (up 0.84%) and Thermax (up 1.55%) rose.
Power equipment major Bharat Heavy Electricals (Bhel) lost 1.71% to Rs 241.70. The stock hit high of Rs 246.90 and low of Rs 241.30 so far during the day. On BSE, so far 1.09 crore shares were traded in the counter so far during the trading session as against average daily volume of 3.94 lakh shares in the past one quarter. A massive bulk deal of 84.45 lakh shares was executed on the scrip at Rs 243 per share at 10:30 IST on BSE today, 17 June 2015.
Meanwhile, Central Board of Direct Taxes (CBDT) chairman Anita Kapur was quoted as saying at a press conference yesterday, 16 June 2015, that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs). The tax department had asked several FIIs to pay 18.5% MAT on their trading income in India, forcing some of them to take it to the court. Although the government says that the notices have been served in only 68 cases involving a total demand of just Rs 603 crore for the period prior to 1 April 2015, FIIs are worried that more such notices could be in the offing. In the Union Budget 2015-16, the government exempted FIIs' trading income from MAT with effect from 1 April 2015.
Last month, the government set up a committee to examine the matter relating to the levying of MAT on FIIs for the period prior to 1 April 2015. Earlier, the government had said that FIIs can avail of treaty benefits to ward off the tax demands.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 16 June 2015, that the Southwest Monsoon was active over Gangetic West Bengal and Telangana during past 24 hours ending at 0830 hrs. Conditions are favourable for further advance of southwest monsoon into some more parts of Chhattisgarh, Odisha and West Bengal and remaining parts of Coastal Andhra Pradesh and Bay of Bengal during next 3 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 13% above the Long Period Average (LPA) until 15 June 2015. Region wise, the southwest monsoon was 22% above the LPA in East & Northeast India, 18% above the LPA in Central India and 1% below the LPA in Northwest India until 15 June 2015. The rainfall was 100% of the Long Period Average 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.
In overseas markets, European stocks edged lower in early trade today, 17 June 2015, with investors nervously digesting the lack of progress in Greece's debt talk with lenders ahead of a closely watched Eurogroup meeting later in the week. Key benchmark indices in UK, France and Germany were off 0.03% to 0.29%.
Greece Prime Minister Alexis Tsipras accused Greece's creditors yesterday, 16 June 2015, of trying to "humiliate" Greeks with more cuts as he defied a growing drumbeat of warnings that Europe was preparing for his country to leave the euro. The unrepentant address to lawmakers after the collapse of talks with European and International Monetary Fund (IMF) lenders at the weekend was the clearest sign yet that the leftist leader has no intention of making a last-minute U-turn and accepting austerity cuts needed to unlock frozen aid and avoid a debt default within two weeks.
Meanwhile, Austrian chancellor Werner Faymann is due to speak with Tsipras in Athens today, 17 June 2015, in an effort to break the deadlock, according to reports. 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.
Meanwhile, a meeting of eurozone finance ministers is scheduled in Luxembourg tomorrow, 18 June 2015.
Asian stocks edged higher today, 17 June 2015, after US stocks registered modest gains overnight. Key benchmark indices in China, Indonesia, South Korea, Hong Kong and Singapore were up 0.3% to 1.65%. Key benchmark indices in Taiwan and Japan were off 0.19% to 0.25%.
Japanese exports grew at the slowest pace in nine months in May as shipments to the US and China moderated, while export volumes for the month fell compared with a year earlier. Exports rose 2.4% from a year earlier to 5.741 trillion yen in May 2015, the finance ministry said today, 17 June 2015. The rate of expansion was the smallest since the start of a gentle uptrend in September, in a sign that a slowdown in the US and weakening growth in China may be beginning to hinder a Japanese economic recovery.
US stocks closed higher yesterday, 16 June 2015, as investors shrugged off worries about unsuccessful Greek debt talks and awaited the outcome of a two-day Federal Reserve policy meeting. In macroeconomic data in US, construction starts on new US homes fell 11.1% to an annual rate of 1.04 million in May, pulling back from a surge in April and missing expectations. But the annual pace of permits for new construction, a sign of future demand, rose 11.8% to 1.28 million in Ma, the fastest pace since August 2007.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy concludes today, 17 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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