Market drifts higher on positive global cues
After suffering sharp losses on the previous trading session, the key benchmark indices logged modest gains on last trading session of the week on positive global stocks. The barometer index, the S&P BSE Sensex rose 100.45 points or 0.38% to settle at 26,625.91. The Nifty 50 index gained 29.45 points or 0.36% to settle at 8,170.20. After hitting intraday high at onset of the day's trading session, key indices saw volatile swings throughout the day. The Sensex hit an intraday low in late trade, a tad above the positive zone, while the Nifty hit an intraday low, a tad below the flat line.
The barometer index, the S&P BSE Sensex rose 100.45 points or 0.38% to settle at 26,625.91, its highest closing level since 16 June 2016. The Sensex gained 205.09 points or 0.77% at the day's high of 26,730.55. The index rose 13.05 points or 0.04% at the day's low of 26,538.51.
The Nifty 50 index gained 29.45 points or 0.36% to settle at 8,170.20, its highest closing level since 16 June 2016. The Nifty gained 54.50 points or 0.66% at the day's high of 8,195.25. The index fell 4.95 points or 0.06% at the day's low of 8,135.80.
In overseas markets, European stocks edged higher, tracking gains in the US and Asia and underpinned by higher oil prices as worries about Brexit receded, at least for now. Meanwhile, the Bank of England yesterday, 16 June 2016 kept its key interest rate at a record low of 0.5% and made no changes to its 375-billion-pound ($530 billion) asset-purchase program. All nine rate-setting policy makers voted to hold rate unchanged. The decision marked the last before the 23 June 2016 referendum in the UK on whether the country should stay or exit the European Union (EU). A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy, the BOE said in a statement. The interest rate decision was announced after close of Indian market hours yesterday, 16 June 2016.
Most Asian stocks edged higher after a rebound on Wall Street overnight ahead of the UK's upcoming 23 June 2016 referendum vote on its future within the European Union. Meanwhile, Japan's government kept its assessment of the economy unchanged this month but warned that consumer prices are rising at a slower pace, casting more doubt on policymakers' three-year effort to shake off deflation. The assessment comes a day after the Bank of Japan cut its view on consumer inflation and refrained from offering additional monetary stimulus despite a weak global economy and anaemic inflation. US stocks closed modestly higher yesterday, 16 June 2016 ending a five-day streak of losses with telecoms leading sector advancers.
Closer home, the market breadth, indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,308 shares declined and 1,268 shares advanced. A total of 192 shares were unchanged. The BSE Mid-Cap index shed 0.05%. The BSE Small-Cap index rose 0.29%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2850.89 crore, lower than turnover of Rs 2948.02 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Finance index (up 0.45%), the S&P BSE Auto index (up 0.56%), the S&P BSE Consumer Durables index (up 0.59%), the S&P BSE FMCG index (up 0.73%), the S&P BSE Telecom index (up 1.13%) and the S&P BSE Realty index (up 3.51%), outperformed the Sensex. The S&P BSE Healthcare index (down 0.78%), the S&P BSE Capital Goods index (down 0.44%), the S&P BSE Oil & Gas index (down 0.1%), the S&P BSE Bankex (up 0.01%), the S&P BSE Basic Materials index (up 0.07%), the S&P BSE Energy index (up 0.07%), the S&P BSE Industrials index (up 0.19%), the S&P BSE IT index (up 0.21%), the S&P BSE Power index (up 0.21%), the S&P BSE Metal index (up 0.24%), the S&P BSE Utilities index (up 0.27%), the S&P BSE Teck index (up 0.34%) and the S&P BSE Consumer Discretionary Goods & Services index (up 0.35%), underperformed the Sensex.
Index heavyweight and cigarette major ITC gained 0.96% to Rs 358.15. The stock hit a high of Rs 360 and low of Rs 355.10 in intraday trade.
Bank stocks saw mixed trend. Among private bank stocks, ICICI Bank (down 0.52%), IndusInd Bank (down 0.11%), Federal Bank (down 0.26%) and Kotak Mahindra Bank (down 0.27%) fell. HDFC Bank (up 0.59%), Axis Bank (up 0.58%) and Yes Bank (up 0.93%) gained.
Among PSU bank stocks, Central Bank of India (up 12.73%), Vijaya Bank (up 7.48%), Corporation Bank (up 2.7%), Bank of Maharashtra (up 8.13%), Punjab National Bank (up 2.05%), Canara Bank (up 0.12%), IDBI Bank (up 0.63%) gained. Bank of India (up 0.7%), Bank of Baroda (down 1.19%), State Bank of India (SBI) (down 1.07%) and Union Bank of India (up 0.24%) fell.
HCL Technologies rose 0.29% after the company announced that it has signed a strategic IT partnership contract with LeasePlan, a global fleet management and driver mobility company of Dutch origin. Under the terms of agreement, HCL will create Group Competency in collaboration with LeasePlan Information Services to provide IT solutions in various domains such as core leasing platforms, business intelligence and data warehousing solutions, enterprise IT solutions, and application development & maintenance services. The announcement was made during market hours today, 17 June 2016.
HCL will manage and enhance some of the existing application suites, including core leasing platforms, development and roll-out of global IT programs and operations for LeasePlan. The program is a part of broader ICT strategic initiative by LeasePlan to consolidate, harmonize and standardize IT elements such as Infrastructure, Applications and Data. The scope of the contract will enable HCL to provide services to LeasePlan across 32 countries globally.
FMCG stocks saw mixed trend. Marico (up 0.18%), Procter & Gamble Hygiene and Health Care (up 0.1%), GlaxoSmithkline Consumer Healthcare (up 0.46%), Dabur India (up 0.27%), Godrej Consumer Products (up 2.79%), Jyothy Laboratories (up 0.95%) and Bajaj Corp (up 0.38%) rose. Nestle India (down 0.5%), Tata Global Beverages (down 0.24%), Britannia Industries (down 1.69%), Colgate-Palmolive (India) (down 1.06%), Hindustan Unilever (down 0.31%) fell.
Index heavyweight and housing finance major HDFC rose 2.21% after the company announced that the board of directors of HDFC Standard Life Insurance Company (HDFC Life), a material non listed subsidiary of the company, at its meeting held today, 17 June 2016, has approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a proposal for a potential combination through a merger of Max Life Insurance Company and Max Financial Services with HDFC Life by way of a scheme of arrangement. The announcement was made during market hours today, 17 June 2016.
Max Financial Services surged 10.29% after the company announced that the board of directors of the company at its meeting held today, 17 June 2016, approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company Limited and Max Financial Services into HDFC Standard Life Insurance Company by way of a scheme of arrangement. The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction. The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts / NCLT, and other third party approvals, as may be applicable, Max Financial Services said. The announcement was made during market hours today, 17 June 2016.
Max Life is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in insurance. Max Financial Services holds 68.01% equity in Max Life, while MSI holds 26%.
HDFC Standard Life Insurance Company (HDFC Life) is a partnership between HDFC, India's leading housing finance institution and Standard Life, a global long term investment savings player. Currently HDFC holds 61.63% and Standard Life (Mauritius Holdings) 2006 holds 35% of equity in HDFC Life, while the rest is held by others.
Index heavyweight and engineering and construction major L&T shed 0.91% to Rs 1,478.20. The stock hit high of Rs 1,504.15 and low of Rs 1,472.80 in intraday trade. L&T during market hours today, 17 June 2016 announced that its wholly owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has won orders worth Rs 1170 crore across its various business segments.
Coal India rose 2% on expectations of pick up in coal demand after coal secretary Anil Swarup appealed to state-owned power generation firms to immediately stop imports of the fuel and instead buy coal from Coal India. Swarup said during the inauguration of a two-day conference on power sector in Goa yesterday, 16 June 2016, that from a shortage situation sometime back, there are not many takers now for the 550 MT coal stock. He further said that Coal India has set up processes for auction of coal to public and private entities and a dispute resolution mechanism has also been set up by the government wherein disputes between states can also be resolved. Swarup also said that the dues to be paid to Coal India have gone up significantly which might result into pushing the company into red. State-run Coal India is India's biggest coal miner. The Coal India stock price had lost 0.75% to settle at Rs 307.20 yesterday, 16 June 2016, when the Sensex fell 200.88 points or 0.75% to settle at 26,525.46.
Realty stocks gained on hopes that market regulator will relax rules for investment in real estate investment trust. DLF (up 2.71%), Indiabulls Real Estate (up 3.05%), Housing Development and Infrastructure (up 7.31%), D B Realty (up 3.33%), Unitech (up 16.36%), Sobha (up 4.22%), Godrej Properties (up 2.14%) and Oberoi Realty (up 5.73%) rose.
The Securities and Exchange Board of India (Sebi) reportedly holds a board meeting today, 17 June 2016. According to reports, the Sebi board is likely to examine a proposal to make Real Estate Investment Trusts (REITs) more attractive to investors by allowing them to invest a large portion of funds in under-construction assets. Besides, REITs may be allowed to have a larger number of sponsors. Further, regulations regarding the minimum public offer size and related party transactions would also be considered, reports added.
GOCL Corporation rose 8.54% after the company said that its wholly-owned subsidiary IDL Explosives (IDLEL) has bagged an order worth Rs 127.71 crore for supplying of bulk explosives, cartridge explosives, nonel and detonators for blasting at all the open cast projects and underground coal mines of the Singareni Collieries Company for 2 years. The order will be catered by IDLEL and GOCL Corporation. The announcement was made during trading hours today, 17 June 2016.
Kajaria Ceramics gained 1.21% after the company announced a 2-for-1 stock split. Each equity share of Rs 2 fully paid up will be divided into 2 equity shares of Rs 1 fully paid up. The primary motive of the stock-split proposal is to improve the liquidity in company's shares in the secondary equity market and to make the shares more affordable to small investors.
MEP Infrastructure Developers rose 1.9% after the company in joint venture with Sanjose India Infrastructure & Construction has been declared as the successful bidder (L1) by National Highways Authority of India (NHAI) for a road project. The announcement was made during trading hours today, 17 June 2016. The project involves four laning of Mahuva to Kagavadar of National Highway (NH)-8E in Gujarat on hybrid annuity mode. Construction period is 2.5 years from the appointed date. Concession period is 15 years (excluding the 2.5-year construction period). The net present value (NPV) of bid project cost and operation & maintenance (O&M) bid is of Rs 586.96 crore. The company will receive bi-annual annuity from NHAI post commercial operation date. MEP Infrastructure Developers - Sanjose India Infrastructure & Construction — joint venture, (hybrid annuity) order book stands at Rs 3836.99 crore to be executed over the next 2-1/2 years (from the appointed date).
V-Guard Industries jumped 5.33% after the company announced a 10-for-1 stock split. Each equity share of face value of Rs 10 each will be split into ten equity shares of face value of Rs 1 each. The stock-split proposal is aimed at improving the liquidity of the stock in the secondary equity market and also to make the stock affordable to small investors.
On the macro front, India's current account deficit (CAD) narrowed sharply to $0.3 billion (0.1% of GDP) in Q4 of 2015-16, significantly lower than $7.1 billion (1.3% of GDP) in Q3 of 2015-16 and marginally lower than $0.7 billion (0.1% of GDP) in Q4 of 2014-15. The contraction in CAD was primarily on account of a lower trade deficit ($24.8 billion) than in Q4 of last year ($31.6 billion) and $34 billion in the preceding quarter. The government announced the economic data after market hours yesterday, 16 June 2016.
The barometer index, the S&P BSE Sensex rose 100.45 points or 0.38% to settle at 26,625.91, its highest closing level since 16 June 2016. The Sensex gained 205.09 points or 0.77% at the day's high of 26,730.55. The index rose 13.05 points or 0.04% at the day's low of 26,538.51.
The Nifty 50 index gained 29.45 points or 0.36% to settle at 8,170.20, its highest closing level since 16 June 2016. The Nifty gained 54.50 points or 0.66% at the day's high of 8,195.25. The index fell 4.95 points or 0.06% at the day's low of 8,135.80.
In overseas markets, European stocks edged higher, tracking gains in the US and Asia and underpinned by higher oil prices as worries about Brexit receded, at least for now. Meanwhile, the Bank of England yesterday, 16 June 2016 kept its key interest rate at a record low of 0.5% and made no changes to its 375-billion-pound ($530 billion) asset-purchase program. All nine rate-setting policy makers voted to hold rate unchanged. The decision marked the last before the 23 June 2016 referendum in the UK on whether the country should stay or exit the European Union (EU). A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy, the BOE said in a statement. The interest rate decision was announced after close of Indian market hours yesterday, 16 June 2016.
Most Asian stocks edged higher after a rebound on Wall Street overnight ahead of the UK's upcoming 23 June 2016 referendum vote on its future within the European Union. Meanwhile, Japan's government kept its assessment of the economy unchanged this month but warned that consumer prices are rising at a slower pace, casting more doubt on policymakers' three-year effort to shake off deflation. The assessment comes a day after the Bank of Japan cut its view on consumer inflation and refrained from offering additional monetary stimulus despite a weak global economy and anaemic inflation. US stocks closed modestly higher yesterday, 16 June 2016 ending a five-day streak of losses with telecoms leading sector advancers.
Closer home, the market breadth, indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,308 shares declined and 1,268 shares advanced. A total of 192 shares were unchanged. The BSE Mid-Cap index shed 0.05%. The BSE Small-Cap index rose 0.29%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2850.89 crore, lower than turnover of Rs 2948.02 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Finance index (up 0.45%), the S&P BSE Auto index (up 0.56%), the S&P BSE Consumer Durables index (up 0.59%), the S&P BSE FMCG index (up 0.73%), the S&P BSE Telecom index (up 1.13%) and the S&P BSE Realty index (up 3.51%), outperformed the Sensex. The S&P BSE Healthcare index (down 0.78%), the S&P BSE Capital Goods index (down 0.44%), the S&P BSE Oil & Gas index (down 0.1%), the S&P BSE Bankex (up 0.01%), the S&P BSE Basic Materials index (up 0.07%), the S&P BSE Energy index (up 0.07%), the S&P BSE Industrials index (up 0.19%), the S&P BSE IT index (up 0.21%), the S&P BSE Power index (up 0.21%), the S&P BSE Metal index (up 0.24%), the S&P BSE Utilities index (up 0.27%), the S&P BSE Teck index (up 0.34%) and the S&P BSE Consumer Discretionary Goods & Services index (up 0.35%), underperformed the Sensex.
Index heavyweight and cigarette major ITC gained 0.96% to Rs 358.15. The stock hit a high of Rs 360 and low of Rs 355.10 in intraday trade.
Bank stocks saw mixed trend. Among private bank stocks, ICICI Bank (down 0.52%), IndusInd Bank (down 0.11%), Federal Bank (down 0.26%) and Kotak Mahindra Bank (down 0.27%) fell. HDFC Bank (up 0.59%), Axis Bank (up 0.58%) and Yes Bank (up 0.93%) gained.
Among PSU bank stocks, Central Bank of India (up 12.73%), Vijaya Bank (up 7.48%), Corporation Bank (up 2.7%), Bank of Maharashtra (up 8.13%), Punjab National Bank (up 2.05%), Canara Bank (up 0.12%), IDBI Bank (up 0.63%) gained. Bank of India (up 0.7%), Bank of Baroda (down 1.19%), State Bank of India (SBI) (down 1.07%) and Union Bank of India (up 0.24%) fell.
HCL Technologies rose 0.29% after the company announced that it has signed a strategic IT partnership contract with LeasePlan, a global fleet management and driver mobility company of Dutch origin. Under the terms of agreement, HCL will create Group Competency in collaboration with LeasePlan Information Services to provide IT solutions in various domains such as core leasing platforms, business intelligence and data warehousing solutions, enterprise IT solutions, and application development & maintenance services. The announcement was made during market hours today, 17 June 2016.
HCL will manage and enhance some of the existing application suites, including core leasing platforms, development and roll-out of global IT programs and operations for LeasePlan. The program is a part of broader ICT strategic initiative by LeasePlan to consolidate, harmonize and standardize IT elements such as Infrastructure, Applications and Data. The scope of the contract will enable HCL to provide services to LeasePlan across 32 countries globally.
FMCG stocks saw mixed trend. Marico (up 0.18%), Procter & Gamble Hygiene and Health Care (up 0.1%), GlaxoSmithkline Consumer Healthcare (up 0.46%), Dabur India (up 0.27%), Godrej Consumer Products (up 2.79%), Jyothy Laboratories (up 0.95%) and Bajaj Corp (up 0.38%) rose. Nestle India (down 0.5%), Tata Global Beverages (down 0.24%), Britannia Industries (down 1.69%), Colgate-Palmolive (India) (down 1.06%), Hindustan Unilever (down 0.31%) fell.
Index heavyweight and housing finance major HDFC rose 2.21% after the company announced that the board of directors of HDFC Standard Life Insurance Company (HDFC Life), a material non listed subsidiary of the company, at its meeting held today, 17 June 2016, has approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a proposal for a potential combination through a merger of Max Life Insurance Company and Max Financial Services with HDFC Life by way of a scheme of arrangement. The announcement was made during market hours today, 17 June 2016.
Max Financial Services surged 10.29% after the company announced that the board of directors of the company at its meeting held today, 17 June 2016, approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company Limited and Max Financial Services into HDFC Standard Life Insurance Company by way of a scheme of arrangement. The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction. The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts / NCLT, and other third party approvals, as may be applicable, Max Financial Services said. The announcement was made during market hours today, 17 June 2016.
Max Life is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in insurance. Max Financial Services holds 68.01% equity in Max Life, while MSI holds 26%.
HDFC Standard Life Insurance Company (HDFC Life) is a partnership between HDFC, India's leading housing finance institution and Standard Life, a global long term investment savings player. Currently HDFC holds 61.63% and Standard Life (Mauritius Holdings) 2006 holds 35% of equity in HDFC Life, while the rest is held by others.
Index heavyweight and engineering and construction major L&T shed 0.91% to Rs 1,478.20. The stock hit high of Rs 1,504.15 and low of Rs 1,472.80 in intraday trade. L&T during market hours today, 17 June 2016 announced that its wholly owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has won orders worth Rs 1170 crore across its various business segments.
Coal India rose 2% on expectations of pick up in coal demand after coal secretary Anil Swarup appealed to state-owned power generation firms to immediately stop imports of the fuel and instead buy coal from Coal India. Swarup said during the inauguration of a two-day conference on power sector in Goa yesterday, 16 June 2016, that from a shortage situation sometime back, there are not many takers now for the 550 MT coal stock. He further said that Coal India has set up processes for auction of coal to public and private entities and a dispute resolution mechanism has also been set up by the government wherein disputes between states can also be resolved. Swarup also said that the dues to be paid to Coal India have gone up significantly which might result into pushing the company into red. State-run Coal India is India's biggest coal miner. The Coal India stock price had lost 0.75% to settle at Rs 307.20 yesterday, 16 June 2016, when the Sensex fell 200.88 points or 0.75% to settle at 26,525.46.
Realty stocks gained on hopes that market regulator will relax rules for investment in real estate investment trust. DLF (up 2.71%), Indiabulls Real Estate (up 3.05%), Housing Development and Infrastructure (up 7.31%), D B Realty (up 3.33%), Unitech (up 16.36%), Sobha (up 4.22%), Godrej Properties (up 2.14%) and Oberoi Realty (up 5.73%) rose.
The Securities and Exchange Board of India (Sebi) reportedly holds a board meeting today, 17 June 2016. According to reports, the Sebi board is likely to examine a proposal to make Real Estate Investment Trusts (REITs) more attractive to investors by allowing them to invest a large portion of funds in under-construction assets. Besides, REITs may be allowed to have a larger number of sponsors. Further, regulations regarding the minimum public offer size and related party transactions would also be considered, reports added.
GOCL Corporation rose 8.54% after the company said that its wholly-owned subsidiary IDL Explosives (IDLEL) has bagged an order worth Rs 127.71 crore for supplying of bulk explosives, cartridge explosives, nonel and detonators for blasting at all the open cast projects and underground coal mines of the Singareni Collieries Company for 2 years. The order will be catered by IDLEL and GOCL Corporation. The announcement was made during trading hours today, 17 June 2016.
Kajaria Ceramics gained 1.21% after the company announced a 2-for-1 stock split. Each equity share of Rs 2 fully paid up will be divided into 2 equity shares of Rs 1 fully paid up. The primary motive of the stock-split proposal is to improve the liquidity in company's shares in the secondary equity market and to make the shares more affordable to small investors.
MEP Infrastructure Developers rose 1.9% after the company in joint venture with Sanjose India Infrastructure & Construction has been declared as the successful bidder (L1) by National Highways Authority of India (NHAI) for a road project. The announcement was made during trading hours today, 17 June 2016. The project involves four laning of Mahuva to Kagavadar of National Highway (NH)-8E in Gujarat on hybrid annuity mode. Construction period is 2.5 years from the appointed date. Concession period is 15 years (excluding the 2.5-year construction period). The net present value (NPV) of bid project cost and operation & maintenance (O&M) bid is of Rs 586.96 crore. The company will receive bi-annual annuity from NHAI post commercial operation date. MEP Infrastructure Developers - Sanjose India Infrastructure & Construction — joint venture, (hybrid annuity) order book stands at Rs 3836.99 crore to be executed over the next 2-1/2 years (from the appointed date).
V-Guard Industries jumped 5.33% after the company announced a 10-for-1 stock split. Each equity share of face value of Rs 10 each will be split into ten equity shares of face value of Rs 1 each. The stock-split proposal is aimed at improving the liquidity of the stock in the secondary equity market and also to make the stock affordable to small investors.
On the macro front, India's current account deficit (CAD) narrowed sharply to $0.3 billion (0.1% of GDP) in Q4 of 2015-16, significantly lower than $7.1 billion (1.3% of GDP) in Q3 of 2015-16 and marginally lower than $0.7 billion (0.1% of GDP) in Q4 of 2014-15. The contraction in CAD was primarily on account of a lower trade deficit ($24.8 billion) than in Q4 of last year ($31.6 billion) and $34 billion in the preceding quarter. The government announced the economic data after market hours yesterday, 16 June 2016.
No comments:
Post a Comment