Market gains for fourth day in a row
With traders avoiding taking large bets ahead of the Union Budget 2016-17, key equity benchmark indices registered small gains. The barometer index, the S&P BSE Sensex, rose 79.64 points or 0.34% to settle at 23,788.79. The 50-unit Nifty 50 index gained 23.80 or 0.33% to settle at 7,234.55. Positive cues from global markets helped Indian stocks register small gains. With small gains, the Sensex and the Nifty, both, hit their closing highest level in almost two weeks. The two key benchmark indices edged higher for the fourth straight trading session.
Pharma stocks gained as the rupee edged lower against the dollar. Oriental Bank of Commerce dropped after credit rating agency ICRA revised the ratings on bank's outstanding Tier 1/Tier 2 bonds, citing sharp deterioration in asset quality indicators of the bank. Shares of public sector oil marketing companies (PSU OMCs) rose after a fall in crude oil prices during the previous trading session.
Index heavyweight and cigarette major ITC dropped on reports suggesting that tobacco products may again attract higher taxes in the upcoming Union Budget 2016-17. Maruti Suzuki India edged lower after the company announced temporary suspension of production at its facilities in Manesar and Gurgaon due to the ongoing agitation by the Jat community in Haryana for job reservation.
The Sensex rose 79.64 points or 0.34% to settle at 23,788.79, its highest closing level since 9 February 2016. The index rose 145.89 points or 0.61% at the day's high of 23,855.04. The index fell 34.29 points or 0.14% at the day's low of 23,674.86.
The Nifty gained 23.80 or 0.33% to settle at 7,234.55, its highest closing level since 9 February 2016. The index rose 41.65 points or 0.57% at the day's high of 7,252.40. The index fell 10.05 points or 0.13% at the day's high of 7,200.70.
The market breadth indicating the overall health of the market was positive. On BSE, 1,390 shares gained and 1,158 shares declined. A total of 153 shares were unchanged. The BSE Mid-Cap index rose 0.75%. The BSE Small-Cap index gained 0.46%. Both these indices outperformed the Sensex.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 0.56%), the S&P BSE Capital Goods index (up 0.35%), the S&P BSE Realty index (up 0.71%), the S&P BSE Industrials index (up 0.43%), the S&P BSE Basic Materials index (up 0.88%), the S&P BSE Energy index (up 1.39%), the S&P BSE Auto index (up 0.39%), the S&P BSE Oil & Gas index (up 0.97%), the S&P BSE Bankex (up 0.49%), the S&P BSE Healthcare index (up 1.1%), the S&P BSE FMCG index (up 0.48%), the S&P BSE Telecom index (up 0.88%), and the S&P BSE Consumer Discretionary Goods & Services index (up 0.55%) outperformed the Sensex. The S&P BSE Power index (down 0.33%), the S&P BSE Finance index (up 0.21%), the S&P BSE Utilities index (down 0.65%), the S&P BSE IT index (down 0.27%), the S&P BSE Consumer Durables index (up 0.3%), and the S&P BSE Teck index (down 0.04%) underperformed the Sensex.
In overseas stock markets, European stocks logged strong gains, tracking their Asian counterparts. Trading in US stock index futures indicated gains for US stocks at the opening bell today, 22 February 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could jump 188 points at the opening bell. Earlier during the global day, Chinese stocks led gains in Asian stocks as investors welcomed news over the weekend that the head of the securities regulator was being replaced. In mainland China, the Shanghai Composite index settled 2.35% higher. In Hong Kong, the Hang Seng index ended 0.93% higher.
The total turnover on BSE amounted to Rs 1909 crore, slightly higher than turnover of Rs 1907.05 crore registered during the previous trading session.
Pharma stocks gained as the rupee edged lower against the dollar. Cipla (up 1.71%), Dr Reddy's Laboratories (up 1.36%), Lupin (up 1.74%), Sun Pharmaceutical Industries (up 2.24%), Aurobindo Pharma (up 0.98%), Cadila Healthcare (up 0.86%), Glenmark Pharmaceuticals (up 0.44%), GlaxoSmithKline Pharmaceuticals (up 0.17%) and Wockhardt (up 0.4%) rose. Alkem Laboratories fell 1.82%.
In the foreign exchange market, the partially convertible rupee was currently hovering at 68.5525, compared with its close of 68.456 during the previous trading session. A weak rupee boosts the value of overseas earnings in local terms. Pharma companies derive substantial revenue from exports.
Divi's Laboratories shed 0.49%. The company after market hours on Friday, 19 February 2016, announced that it had a successful inspection by the US Food and Drug Administration (USFDA) for its Unit-2 at Chippada, Bheemunipatnam near Visakhapatnam during February 2016 with no observations.
Realty stocks rose. Godrej Properties (up 2.18%), DLF (up 1.02%), Indiabulls Real Estate (up 1.95%), Parsvnath Developers (up 0.3%), Housing Development and Infrastructure (up 0.24%) and D B Realty (up 3.8%), Unitech (up 1.84%) gained. Sobha (down 0.18%) and Oberoi Realty (down 0.95%) fell.
Shares of private sector banks rose. HDFC Bank (up 0.35%), Kotak Mahindra Bank (up 1.44%), Axis Bank (up 1.17%), and IndusInd Bank (up 0.72%) gained. Yes Bank (down 0.19%) and ICICI Bank (down 0.05%) declined.
Stocks of public sector banks declined. Canara Bank (down 2.04%), Bank of India (down 0.52%), Union Bank of India (down 1.82%), Punjab National Bank (down 0.66%) and Bank of Baroda (down 0.14%) declined. State Bank of India (SBI) rose 0.18%.
Oriental Bank of Commerce lost 1.97% after credit rating agency ICRA revised the ratings on bank's outstanding Tier 1/Tier 2 bonds, citing sharp deterioration in asset quality indicators of the bank.
Shares of public sector oil marketing companies (PSU OMCs) rose after a fall in crude oil prices during the previous trading session. Indian Oil Corporation (up 1.54%) and HPCL (up 1.71%) edged higher. BPCL declined 0.71%. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
Shares of most oil exploration and production companies rose. Reliance Industries (RIL) (up 1.9%), ONGC (up 1.54%), and Cairn India (up 0.5%) gained. Oil India declined 0.64%.
In global commodities markets, Brent for April settlement was currently up 93 cents at $33.94 a barrel. The contract had declined $1,27 a barrel or 3.7% to settle at $33.01 a barrel during previous trading session.
Index heavyweight and cigarette major ITC dropped on reports suggesting that tobacco products may again attract higher taxes in the upcoming Union Budget 2016-17. The stock dropped 1.72% to Rs 299.60. The stock hit a high of Rs 304 and low of Rs 293.65 in intraday trade. Highlighting a discrepancy between the existing tobacco prices and rising income levels, the health ministry along with the World Health Organisation (WHO) and other public health groups have proposed a hike in taxes of up to 40% for all tobacco products, as per reports.
FMCG stocks edged higher on renewed buying. Hindustan Unilever (up 4.02%), Marico (up 3.59%), Nestle India (up 1.27%), Tata Global Beverages (up 1.87%), Britannia Industries (up 2.77%), GlaxoSmithkline Consumer Healthcare (up 0.85%), Dabur India (up 2.35%), Godrej Consumer Products (up 1.58%) and Bajaj Corp (up 0.2%) rose. Procter & Gamble Hygiene and Health Care (down 0.18%), Jyothy Laboratories (down 1.58%), and Colgate-Palmolive (India) (down 0.01%) fell.
The government could significantly raise food subsidies, and spends on MGNREGA in the Union Budget 2016-17. Any increase in rural spending/infrastructure spending/tax exemption, which can put money in hands of consumers, will indirectly benefit FMCG sector. In the previous Budget, it was announced that there will be a reduction in corporate tax rate over the next four years from 30% to 25% which is a positive for consumer companies paying close to peak tax of income tax.
Maruti Suzuki India (MSIL) fell 1.61% after the company on Saturday, 20 February 2016, announced temporary suspension of manufacture of cars at its facilities in Manesar and Gurgaon due to the ongoing agitation by the Jat community in Haryana for job reservation. Maruti said that due to the agitation in Rohtak and nearby areas, supplies of certain components have been disrupted. MSIL said it is making efforts to arrange the components from other sources. Once the supply of components is restored, normal operations will resume, it added. The combined output from Manesar and Gurgaon is currently about 5,000 vehicles per day, MSIL said.
IT stocks dropped. Tech Mahindra (down 1.76%), TCS (down 0.26%), and Infosys (down 0.4%) edged lower.
HCL Technologies declined 1.21%. HCL Technologies and Symantec today, 22 February 2016, announced their plan to expand their current partnership to help enterprises in areas of cloud security, cyber threats and forensic solutions. HCL and Symantec aim to help enterprises better meet their information and risk management needs by building a cyber-resilient service that safeguards them from targeted attacks and persistent threats. The company made the announcement during market hours today, 22 February 2016.
Wipro declined 0.81%. Wipro announced today, 22 February 2016, a partnership with Verveba Telecom LLC, a premium telecom network engineering company, for advanced mobile radio network optimization solutions. The company made the announcement after market hours today, 22 February 2016.
The Sensex and the Nifty edged higher for the fourth straight trading session. The Sensex has risen 600.82 points or 2.59% in four trading sessions from its close of 23,191.97 on 16 February 2016. The barometer index has fallen 1,080.90 points or 4.34% in this month so far (till 22 February 2016). The Sensex has fallen 2,328.75 points or 8.91% in calendar year 2016 so far (till 22 February 2016). From a 52-week low of 22,600.39 on 12 February 2016, the Sensex has risen 1,191.40 points or 5.27%. The Sensex is off 6,233.95 points or 20.76% from a record high of 30,024.74 hit on 4 March 2015.
All eyes are now on Union Budget 2016-17 to be announced on 29 February 2016. Finance Minister Arum Jaitley may provide a roadmap for rationalisation of the corporate tax exemptions in Budget. Jaitley in his last Budget had announced phased reduction in corporate taxes over four years to 25 per cent from present 30 per cent, and also simultaneous withdrawal of exemptions.
Pharma stocks gained as the rupee edged lower against the dollar. Oriental Bank of Commerce dropped after credit rating agency ICRA revised the ratings on bank's outstanding Tier 1/Tier 2 bonds, citing sharp deterioration in asset quality indicators of the bank. Shares of public sector oil marketing companies (PSU OMCs) rose after a fall in crude oil prices during the previous trading session.
Index heavyweight and cigarette major ITC dropped on reports suggesting that tobacco products may again attract higher taxes in the upcoming Union Budget 2016-17. Maruti Suzuki India edged lower after the company announced temporary suspension of production at its facilities in Manesar and Gurgaon due to the ongoing agitation by the Jat community in Haryana for job reservation.
The Sensex rose 79.64 points or 0.34% to settle at 23,788.79, its highest closing level since 9 February 2016. The index rose 145.89 points or 0.61% at the day's high of 23,855.04. The index fell 34.29 points or 0.14% at the day's low of 23,674.86.
The Nifty gained 23.80 or 0.33% to settle at 7,234.55, its highest closing level since 9 February 2016. The index rose 41.65 points or 0.57% at the day's high of 7,252.40. The index fell 10.05 points or 0.13% at the day's high of 7,200.70.
The market breadth indicating the overall health of the market was positive. On BSE, 1,390 shares gained and 1,158 shares declined. A total of 153 shares were unchanged. The BSE Mid-Cap index rose 0.75%. The BSE Small-Cap index gained 0.46%. Both these indices outperformed the Sensex.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 0.56%), the S&P BSE Capital Goods index (up 0.35%), the S&P BSE Realty index (up 0.71%), the S&P BSE Industrials index (up 0.43%), the S&P BSE Basic Materials index (up 0.88%), the S&P BSE Energy index (up 1.39%), the S&P BSE Auto index (up 0.39%), the S&P BSE Oil & Gas index (up 0.97%), the S&P BSE Bankex (up 0.49%), the S&P BSE Healthcare index (up 1.1%), the S&P BSE FMCG index (up 0.48%), the S&P BSE Telecom index (up 0.88%), and the S&P BSE Consumer Discretionary Goods & Services index (up 0.55%) outperformed the Sensex. The S&P BSE Power index (down 0.33%), the S&P BSE Finance index (up 0.21%), the S&P BSE Utilities index (down 0.65%), the S&P BSE IT index (down 0.27%), the S&P BSE Consumer Durables index (up 0.3%), and the S&P BSE Teck index (down 0.04%) underperformed the Sensex.
In overseas stock markets, European stocks logged strong gains, tracking their Asian counterparts. Trading in US stock index futures indicated gains for US stocks at the opening bell today, 22 February 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could jump 188 points at the opening bell. Earlier during the global day, Chinese stocks led gains in Asian stocks as investors welcomed news over the weekend that the head of the securities regulator was being replaced. In mainland China, the Shanghai Composite index settled 2.35% higher. In Hong Kong, the Hang Seng index ended 0.93% higher.
The total turnover on BSE amounted to Rs 1909 crore, slightly higher than turnover of Rs 1907.05 crore registered during the previous trading session.
Pharma stocks gained as the rupee edged lower against the dollar. Cipla (up 1.71%), Dr Reddy's Laboratories (up 1.36%), Lupin (up 1.74%), Sun Pharmaceutical Industries (up 2.24%), Aurobindo Pharma (up 0.98%), Cadila Healthcare (up 0.86%), Glenmark Pharmaceuticals (up 0.44%), GlaxoSmithKline Pharmaceuticals (up 0.17%) and Wockhardt (up 0.4%) rose. Alkem Laboratories fell 1.82%.
In the foreign exchange market, the partially convertible rupee was currently hovering at 68.5525, compared with its close of 68.456 during the previous trading session. A weak rupee boosts the value of overseas earnings in local terms. Pharma companies derive substantial revenue from exports.
Divi's Laboratories shed 0.49%. The company after market hours on Friday, 19 February 2016, announced that it had a successful inspection by the US Food and Drug Administration (USFDA) for its Unit-2 at Chippada, Bheemunipatnam near Visakhapatnam during February 2016 with no observations.
Realty stocks rose. Godrej Properties (up 2.18%), DLF (up 1.02%), Indiabulls Real Estate (up 1.95%), Parsvnath Developers (up 0.3%), Housing Development and Infrastructure (up 0.24%) and D B Realty (up 3.8%), Unitech (up 1.84%) gained. Sobha (down 0.18%) and Oberoi Realty (down 0.95%) fell.
Shares of private sector banks rose. HDFC Bank (up 0.35%), Kotak Mahindra Bank (up 1.44%), Axis Bank (up 1.17%), and IndusInd Bank (up 0.72%) gained. Yes Bank (down 0.19%) and ICICI Bank (down 0.05%) declined.
Stocks of public sector banks declined. Canara Bank (down 2.04%), Bank of India (down 0.52%), Union Bank of India (down 1.82%), Punjab National Bank (down 0.66%) and Bank of Baroda (down 0.14%) declined. State Bank of India (SBI) rose 0.18%.
Oriental Bank of Commerce lost 1.97% after credit rating agency ICRA revised the ratings on bank's outstanding Tier 1/Tier 2 bonds, citing sharp deterioration in asset quality indicators of the bank.
Shares of public sector oil marketing companies (PSU OMCs) rose after a fall in crude oil prices during the previous trading session. Indian Oil Corporation (up 1.54%) and HPCL (up 1.71%) edged higher. BPCL declined 0.71%. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
Shares of most oil exploration and production companies rose. Reliance Industries (RIL) (up 1.9%), ONGC (up 1.54%), and Cairn India (up 0.5%) gained. Oil India declined 0.64%.
In global commodities markets, Brent for April settlement was currently up 93 cents at $33.94 a barrel. The contract had declined $1,27 a barrel or 3.7% to settle at $33.01 a barrel during previous trading session.
Index heavyweight and cigarette major ITC dropped on reports suggesting that tobacco products may again attract higher taxes in the upcoming Union Budget 2016-17. The stock dropped 1.72% to Rs 299.60. The stock hit a high of Rs 304 and low of Rs 293.65 in intraday trade. Highlighting a discrepancy between the existing tobacco prices and rising income levels, the health ministry along with the World Health Organisation (WHO) and other public health groups have proposed a hike in taxes of up to 40% for all tobacco products, as per reports.
FMCG stocks edged higher on renewed buying. Hindustan Unilever (up 4.02%), Marico (up 3.59%), Nestle India (up 1.27%), Tata Global Beverages (up 1.87%), Britannia Industries (up 2.77%), GlaxoSmithkline Consumer Healthcare (up 0.85%), Dabur India (up 2.35%), Godrej Consumer Products (up 1.58%) and Bajaj Corp (up 0.2%) rose. Procter & Gamble Hygiene and Health Care (down 0.18%), Jyothy Laboratories (down 1.58%), and Colgate-Palmolive (India) (down 0.01%) fell.
The government could significantly raise food subsidies, and spends on MGNREGA in the Union Budget 2016-17. Any increase in rural spending/infrastructure spending/tax exemption, which can put money in hands of consumers, will indirectly benefit FMCG sector. In the previous Budget, it was announced that there will be a reduction in corporate tax rate over the next four years from 30% to 25% which is a positive for consumer companies paying close to peak tax of income tax.
Maruti Suzuki India (MSIL) fell 1.61% after the company on Saturday, 20 February 2016, announced temporary suspension of manufacture of cars at its facilities in Manesar and Gurgaon due to the ongoing agitation by the Jat community in Haryana for job reservation. Maruti said that due to the agitation in Rohtak and nearby areas, supplies of certain components have been disrupted. MSIL said it is making efforts to arrange the components from other sources. Once the supply of components is restored, normal operations will resume, it added. The combined output from Manesar and Gurgaon is currently about 5,000 vehicles per day, MSIL said.
IT stocks dropped. Tech Mahindra (down 1.76%), TCS (down 0.26%), and Infosys (down 0.4%) edged lower.
HCL Technologies declined 1.21%. HCL Technologies and Symantec today, 22 February 2016, announced their plan to expand their current partnership to help enterprises in areas of cloud security, cyber threats and forensic solutions. HCL and Symantec aim to help enterprises better meet their information and risk management needs by building a cyber-resilient service that safeguards them from targeted attacks and persistent threats. The company made the announcement during market hours today, 22 February 2016.
Wipro declined 0.81%. Wipro announced today, 22 February 2016, a partnership with Verveba Telecom LLC, a premium telecom network engineering company, for advanced mobile radio network optimization solutions. The company made the announcement after market hours today, 22 February 2016.
The Sensex and the Nifty edged higher for the fourth straight trading session. The Sensex has risen 600.82 points or 2.59% in four trading sessions from its close of 23,191.97 on 16 February 2016. The barometer index has fallen 1,080.90 points or 4.34% in this month so far (till 22 February 2016). The Sensex has fallen 2,328.75 points or 8.91% in calendar year 2016 so far (till 22 February 2016). From a 52-week low of 22,600.39 on 12 February 2016, the Sensex has risen 1,191.40 points or 5.27%. The Sensex is off 6,233.95 points or 20.76% from a record high of 30,024.74 hit on 4 March 2015.
All eyes are now on Union Budget 2016-17 to be announced on 29 February 2016. Finance Minister Arum Jaitley may provide a roadmap for rationalisation of the corporate tax exemptions in Budget. Jaitley in his last Budget had announced phased reduction in corporate taxes over four years to 25 per cent from present 30 per cent, and also simultaneous withdrawal of exemptions.
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