Benchmark indices edge higher for second straight session
A recovery in European stocks and gains in US index futures aided the upmove on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 121.59 points or 0.46% to settle at 26,524.55. The Nifty 50 index rose 33.15 points or 0.41% to settle at 8,127.85. The Sensex and the Nifty edged higher for the second straight trading session. Italian banks led gains in European stocks after reports that the Italian government is looking at adding €40 billion ($44 billion) to protect the country's financial system in the wake of the UK's vote to leave the European Union last week. Sixteen out of a total of nineteen sectoral indices on BSE ended higher.
Metal and mining stocks edged higher as copper prices rose in global commodities markets. Idea Cellular moved higher after the company said in an analysts meet presentation submitted to the stock exchanges that the company is gaining both revenue and traffic share in both mobile voice and data segments. IT stocks extended recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms.
The market breadth indicating the overall health of the market was strong. On BSE, 1,596 shares rose and 999 shares declined. A total of 191 shares were unchanged. The BSE Mid-Cap index rose 0.48%. The BSE Small-Cap index rose 0.79%. Both these indices outperformed the Sensex.
In overseas stock markets, Italian banks led gains in European equities after reports that the Italian government is looking at adding €40 billion ($44 billion) to protect the country's financial system in the wake of the UK's vote to leave the European Union last week. European stocks had witnessed heavy losses in the preceding two trading sessions after the UK's vote to exit the European Union in a historic referendum on 23 June 2016. Stocks recovered in the UK tracking a recovery in British pound against the dollar. The FTSE 100 index was currently up 2.34%. The pound had witnessed a massive slide in the preceding two trading sessions in the wake of the UK's vote to leave the European Union.
Meanwhile, global credit rating agency Standard & Poor's Global Ratings yesterday, 27 June 2016, lowered its long-term foreign and local currency sovereign credit ratings on the United Kingdom to 'AA' from 'AAA' after Britain last week voted to leave the European Union in a historic referendum known as Brexit. S&P said that Brexit will weaken the predictability, stability, and effectiveness of policymaking in the UK and affect its economy, GDP growth, and fiscal and external balances. S&P said that the downgrade also reflects the risks of a marked deterioration of external financing conditions in light of the UK's extremely elevated level of gross external financing requirements. The vote for "remain" in Scotland and Northern Ireland also creates wider constitutional issues for the country as a whole. The outlook on the long-term rating is negative. The negative outlook reflects the risk to economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence, S&P said in a statement.
Trading in US index futures indicated a recovery for US stocks from a recent selloff triggered by the UK's decision to leave the European Union. Trading in US index futures indicated that the Dow Jones Industrial Average could jump 192.50 points at the opening bell today, 28 June 2016. US stocks registered heavy losses for the second trading session in a row yesterday, 27 June 2016, as investors continued to dump assets perceived as risky in the wake of the UK's vote last week to leave the European Union. Activity in the US services sector remained subdued in June, according to preliminary data released yesterday, 27 June 2016. In a report, market research group Markit said that its flash services purchasing managers' index (PMI) remained unchanged at 51.3 in June.
The Sensex rose 121.59 points or 0.46% to settle at 26,524.55, its highest closing level since 23 June 2016. The index jumped 180.37 points or 0.68% at the day's high of 26,583.33. The index lost 24.50 points or 0.09% at the day's low of 26,378.46.
The Nifty rose 33.15 points or 0.41% to settle at 8,127.85, its highest closing level since 23 June 2016. The index rose 51.65 points or 0.64% at the day's high of 8,146.35. The index fell 7.85 points or 0.09% at the day's low of 8,086.85.
The total turnover on BSE amounted to Rs 2624 crore, lower than turnover of Rs 3279.90 crore registered during the previous trading session.
Sixteen out of a total of nineteen sectoral indices on BSE ended higher. The S&P BSE Telecom index (up 2.26%), the S&P BSE FMCG index (up 1.75%), the S&P BSE Metal index (up 1.01%), the S&P BSE Oil & Gas index (up 0.84%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.73%), the S&P BSE Energy index (up 0.72%), the S&P BSE Healthcare index (up 0.66%), the S&P BSE Realty index (up 0.66%), the S&P BSE Finance index (up 0.55%), the S&P BSE Power index (up 0.55%) and the S&P BSE Basic Materials index (up 0.54%), outperformed the Sensex. The S&P BSE Utilities index (up 0.45%), the S&P BSE Capital Goods index (up 0.37%), the S&P BSE Bankex (up 0.30%), the S&P BSE Auto index (up 0.29%), the S&P BSE Industrials index (up 0.04%), the S&P BSE Consumer Durables index (down 0.08%), the S&P BSE Teck index (down 0.46%) and the S&P BSE IT index (down 0.89%), underperformed the Sensex.
Index heavyweight and cigarette major ITC edged higher for the second straight trading session. The stock rose 2.59% at Rs 368.35. The stock hit a high of Rs 369.50 and a low of Rs 358 in intraday trade.
Dr Reddy's Laboratories rose 0.77% at Rs 3,265.75. The company during market hours today, 28 June 2016, announced the closure of the buyback of equity shares. The company has bought back 50.77 lakh shares at an average price of Rs 3,090.92 per share spending Rs 1569.41 crore.
Drug major Lupin rose 4.39% at Rs 1,543.30. The stock hit a high of Rs 1,548.90 and a low of Rs 1,479 in intraday trade.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 1.26%) and Bharti Airtel (up 1.35%) rose.
Idea Cellular rose 3.94% after the company said in an analysts meet presentation submitted to the stock exchanges that the company is gaining both revenue and traffic share in both mobile voice and data segments. The company further said that it is in the midst of building a wide and deep mobile broadband infrastructure. The company further said that there is a large potential for data penetration in India. The company also said that there is large headroom for new mobile subscriber additions in India.
Shares of telecom towers company Bharti Infratel rose 3.04% after the company said that the proposed buyback of 4.70 crore shares at Rs 425 per share under tender offer route would commence on 12 July 2016 and close on 25 July 2016. The announcement was made before market hours today, 28 June 2016.
Metal and mining stocks edged higher as copper prices rose in global commodities markets. Hindustan Copper (up 4.42%), Jindal Steel & Power (up 3.77%), JSW Steel (up 2.84%), Hindustan Zinc (up 2.32%), Bhushan Steel (up 1.46%), NMDC (up 1.27%), Vedanta (up 0.65%), Steel Authority of India (up 0.59%) and Tata Steel (up 0.35%), edged higher. National Aluminium Company (down 0.24%) and Hindalco Industries (down 1.3%), edged lower.
High Grade Copper for September 2016 delivery was currently up 2.05% at $2.169 per pound on the COMEX.
IT stocks extended recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms. MphasiS (down 3.87%), HCL Technologies (down 2.91%), Hexaware Technologies (down 1.68%), TCS (down 1.34%), Wipro (down 1.22%), Persistent Systems (down 0.84%) and Tech Mahindra (down 0.64%) edged lower. Oracle Financial Services Software (up 0.29%) and MindTree (up 1.28%) edged higher.
According to a research note from a domestic brokerage on the impact of Brexit on Indian IT firms, 10% depreciation each of the pound and the euro against the dollar could shave about 1.5-2.5% off Indian IT companies' revenue in dollar terms and adversely impact EBIT margins by 75-100 basis points. Indian IT companies derive about 25% of their revenue from Europe.
Index heavyweight and software major Infosys fell 0.45% at Rs 1,161.05. The stock hit a high of Rs 1,173 and a low of Rs 1,156 in intraday trade.
Stocks of public sector banks witnessed mixed trend. Dena Bank (up 4.55%), UCO Bank (up 3.42%), Bank of Baroda (up 1.65%), Allahabad Bank (up 1.56%), Union Bank of India (up 1.56%), Bank of India (up 0.91%), Bank of Maharashtra (up 0.76%), Corporation Bank (up 0.73%), Punjab & Sind Bank (up 0.63%), Indian Bank (up 0.61%), IDBI Bank (up 0.59%) and United Bank of India (up 0.45%), edged higher. Canara Bank (down 0.23%), State Bank of India (down 0.37%), Syndicate Bank (down 0.48%), Vijaya Bank (down 0.66%) and Central Bank of India (down 0.83%) edged lower.
Global credit rating agency Moody's Investors Service has said in a recent report that the Indian government's proposal to consolidate the country's public sector banks (PSBs) creates risks that -- in the current weak economic environment -- could offset the potential long-term benefits. Moody's Vice President and Senior Analyst Alka Anbarasu said that India's banking system has witnessed an increase in stressed assets since 2012 and that not a single PSB currently has the financial strength to assume a consolidator role without risking its own credit standing post-merger. The banks' weakened financial metrics since 2012 and weak performance mean that many have difficulties meeting minimum regulatory requirements without regular capital injections from the government. As a result, few public sector banks have the excess capital required to acquire meaningfully sized peers.
According to the credit rating agency, government support will be a crucial driver of the credit outcome of potential mergers of PSBs, particularly in the form of the equity capital required to shore up capital buffers. Moody's also sees considerable challenges from potential opposition from employee unions, which could hamper merger efforts and drive up costs.
Andhra Bank rose 0.82% after the bank announced that it has raised Rs 1000 crore by way of issue of 8.65%, 10 years (call option after 5 years) unsecured non-convertible redeemable Basel III compliant Tier 2 bonds (Series - C) in the nature of debentures on private placement basis. The issue opened for subscription from 22 June 2016 and closed on 27 June 2016. The announcement was made during market hours today, 28 June 2016.
Stocks of most private sector banks rose. HDFC Bank (up 0.85%), Kotak Mahindra Bank (up 0.64%), IndusInd Bank (up 0.41%), Axis Bank (up 0.11%), ICICI Bank (up 0.11%) and Federal Bank (up 0.09%) edged higher. City Union Bank (down 0.59%) and Yes Bank (down 0.66%) edged lower.
Shares of public sector oil marketing companies edged higher on renewed buying. BPCL (up 1.33%), Indian Oil Corporation (IOCL) (up 3.29 %) and HPCL (up 1.98%) edged higher.
Shares of oil exploration and production companies were mixed. Oil India (down 0.47%) and Cairn India (down 0.11%) edged lower. ONGC (up 0.52%) and Reliance Industries (up 0.22%) edged higher.
Crude oil futures edged higher in an indication that global markets were stabilizing in the wake of the UK's vote last week to leave the European Union. Brent for August 2016 settlement was currently up $1.15 at $48.31 a barrel. The contract had fallen $1.25 a barrel or 2.58% to settle at $47.16 a barrel yesterday, 27 June 2016. The contract had fallen $2.50 a barrel or 4.91% to settle at $48.41 a barrel on 24 June 2016 as investors dumped energy as part of a wider global selloff after the unexpected outcome of the UK referendum on 23 June 2016 for the country to leave the European Union.
The Sensex and the Nifty edged higher for the second straight trading session. The Sensex has risen 126.84 points or 0.48% in two sessions from its close of 26,397.71 on 24 June 2016. The Sensex has fallen 143.41 points or 0.54% in this month so far (till 28 June 2016). The Sensex has risen 407.01 points or 1.56% in calendar year 2016 so far (till 28 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,029.94 points or 17.92%. The Sensex is off 2,053.78 points or 7.19% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,500.19 points or 11.66% from a record high of 30,024.74 hit on 4 March 2015.
Metal and mining stocks edged higher as copper prices rose in global commodities markets. Idea Cellular moved higher after the company said in an analysts meet presentation submitted to the stock exchanges that the company is gaining both revenue and traffic share in both mobile voice and data segments. IT stocks extended recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms.
The market breadth indicating the overall health of the market was strong. On BSE, 1,596 shares rose and 999 shares declined. A total of 191 shares were unchanged. The BSE Mid-Cap index rose 0.48%. The BSE Small-Cap index rose 0.79%. Both these indices outperformed the Sensex.
In overseas stock markets, Italian banks led gains in European equities after reports that the Italian government is looking at adding €40 billion ($44 billion) to protect the country's financial system in the wake of the UK's vote to leave the European Union last week. European stocks had witnessed heavy losses in the preceding two trading sessions after the UK's vote to exit the European Union in a historic referendum on 23 June 2016. Stocks recovered in the UK tracking a recovery in British pound against the dollar. The FTSE 100 index was currently up 2.34%. The pound had witnessed a massive slide in the preceding two trading sessions in the wake of the UK's vote to leave the European Union.
Meanwhile, global credit rating agency Standard & Poor's Global Ratings yesterday, 27 June 2016, lowered its long-term foreign and local currency sovereign credit ratings on the United Kingdom to 'AA' from 'AAA' after Britain last week voted to leave the European Union in a historic referendum known as Brexit. S&P said that Brexit will weaken the predictability, stability, and effectiveness of policymaking in the UK and affect its economy, GDP growth, and fiscal and external balances. S&P said that the downgrade also reflects the risks of a marked deterioration of external financing conditions in light of the UK's extremely elevated level of gross external financing requirements. The vote for "remain" in Scotland and Northern Ireland also creates wider constitutional issues for the country as a whole. The outlook on the long-term rating is negative. The negative outlook reflects the risk to economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence, S&P said in a statement.
Trading in US index futures indicated a recovery for US stocks from a recent selloff triggered by the UK's decision to leave the European Union. Trading in US index futures indicated that the Dow Jones Industrial Average could jump 192.50 points at the opening bell today, 28 June 2016. US stocks registered heavy losses for the second trading session in a row yesterday, 27 June 2016, as investors continued to dump assets perceived as risky in the wake of the UK's vote last week to leave the European Union. Activity in the US services sector remained subdued in June, according to preliminary data released yesterday, 27 June 2016. In a report, market research group Markit said that its flash services purchasing managers' index (PMI) remained unchanged at 51.3 in June.
The Sensex rose 121.59 points or 0.46% to settle at 26,524.55, its highest closing level since 23 June 2016. The index jumped 180.37 points or 0.68% at the day's high of 26,583.33. The index lost 24.50 points or 0.09% at the day's low of 26,378.46.
The Nifty rose 33.15 points or 0.41% to settle at 8,127.85, its highest closing level since 23 June 2016. The index rose 51.65 points or 0.64% at the day's high of 8,146.35. The index fell 7.85 points or 0.09% at the day's low of 8,086.85.
The total turnover on BSE amounted to Rs 2624 crore, lower than turnover of Rs 3279.90 crore registered during the previous trading session.
Sixteen out of a total of nineteen sectoral indices on BSE ended higher. The S&P BSE Telecom index (up 2.26%), the S&P BSE FMCG index (up 1.75%), the S&P BSE Metal index (up 1.01%), the S&P BSE Oil & Gas index (up 0.84%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.73%), the S&P BSE Energy index (up 0.72%), the S&P BSE Healthcare index (up 0.66%), the S&P BSE Realty index (up 0.66%), the S&P BSE Finance index (up 0.55%), the S&P BSE Power index (up 0.55%) and the S&P BSE Basic Materials index (up 0.54%), outperformed the Sensex. The S&P BSE Utilities index (up 0.45%), the S&P BSE Capital Goods index (up 0.37%), the S&P BSE Bankex (up 0.30%), the S&P BSE Auto index (up 0.29%), the S&P BSE Industrials index (up 0.04%), the S&P BSE Consumer Durables index (down 0.08%), the S&P BSE Teck index (down 0.46%) and the S&P BSE IT index (down 0.89%), underperformed the Sensex.
Index heavyweight and cigarette major ITC edged higher for the second straight trading session. The stock rose 2.59% at Rs 368.35. The stock hit a high of Rs 369.50 and a low of Rs 358 in intraday trade.
Dr Reddy's Laboratories rose 0.77% at Rs 3,265.75. The company during market hours today, 28 June 2016, announced the closure of the buyback of equity shares. The company has bought back 50.77 lakh shares at an average price of Rs 3,090.92 per share spending Rs 1569.41 crore.
Drug major Lupin rose 4.39% at Rs 1,543.30. The stock hit a high of Rs 1,548.90 and a low of Rs 1,479 in intraday trade.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 1.26%) and Bharti Airtel (up 1.35%) rose.
Idea Cellular rose 3.94% after the company said in an analysts meet presentation submitted to the stock exchanges that the company is gaining both revenue and traffic share in both mobile voice and data segments. The company further said that it is in the midst of building a wide and deep mobile broadband infrastructure. The company further said that there is a large potential for data penetration in India. The company also said that there is large headroom for new mobile subscriber additions in India.
Shares of telecom towers company Bharti Infratel rose 3.04% after the company said that the proposed buyback of 4.70 crore shares at Rs 425 per share under tender offer route would commence on 12 July 2016 and close on 25 July 2016. The announcement was made before market hours today, 28 June 2016.
Metal and mining stocks edged higher as copper prices rose in global commodities markets. Hindustan Copper (up 4.42%), Jindal Steel & Power (up 3.77%), JSW Steel (up 2.84%), Hindustan Zinc (up 2.32%), Bhushan Steel (up 1.46%), NMDC (up 1.27%), Vedanta (up 0.65%), Steel Authority of India (up 0.59%) and Tata Steel (up 0.35%), edged higher. National Aluminium Company (down 0.24%) and Hindalco Industries (down 1.3%), edged lower.
High Grade Copper for September 2016 delivery was currently up 2.05% at $2.169 per pound on the COMEX.
IT stocks extended recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms. MphasiS (down 3.87%), HCL Technologies (down 2.91%), Hexaware Technologies (down 1.68%), TCS (down 1.34%), Wipro (down 1.22%), Persistent Systems (down 0.84%) and Tech Mahindra (down 0.64%) edged lower. Oracle Financial Services Software (up 0.29%) and MindTree (up 1.28%) edged higher.
According to a research note from a domestic brokerage on the impact of Brexit on Indian IT firms, 10% depreciation each of the pound and the euro against the dollar could shave about 1.5-2.5% off Indian IT companies' revenue in dollar terms and adversely impact EBIT margins by 75-100 basis points. Indian IT companies derive about 25% of their revenue from Europe.
Index heavyweight and software major Infosys fell 0.45% at Rs 1,161.05. The stock hit a high of Rs 1,173 and a low of Rs 1,156 in intraday trade.
Stocks of public sector banks witnessed mixed trend. Dena Bank (up 4.55%), UCO Bank (up 3.42%), Bank of Baroda (up 1.65%), Allahabad Bank (up 1.56%), Union Bank of India (up 1.56%), Bank of India (up 0.91%), Bank of Maharashtra (up 0.76%), Corporation Bank (up 0.73%), Punjab & Sind Bank (up 0.63%), Indian Bank (up 0.61%), IDBI Bank (up 0.59%) and United Bank of India (up 0.45%), edged higher. Canara Bank (down 0.23%), State Bank of India (down 0.37%), Syndicate Bank (down 0.48%), Vijaya Bank (down 0.66%) and Central Bank of India (down 0.83%) edged lower.
Global credit rating agency Moody's Investors Service has said in a recent report that the Indian government's proposal to consolidate the country's public sector banks (PSBs) creates risks that -- in the current weak economic environment -- could offset the potential long-term benefits. Moody's Vice President and Senior Analyst Alka Anbarasu said that India's banking system has witnessed an increase in stressed assets since 2012 and that not a single PSB currently has the financial strength to assume a consolidator role without risking its own credit standing post-merger. The banks' weakened financial metrics since 2012 and weak performance mean that many have difficulties meeting minimum regulatory requirements without regular capital injections from the government. As a result, few public sector banks have the excess capital required to acquire meaningfully sized peers.
According to the credit rating agency, government support will be a crucial driver of the credit outcome of potential mergers of PSBs, particularly in the form of the equity capital required to shore up capital buffers. Moody's also sees considerable challenges from potential opposition from employee unions, which could hamper merger efforts and drive up costs.
Andhra Bank rose 0.82% after the bank announced that it has raised Rs 1000 crore by way of issue of 8.65%, 10 years (call option after 5 years) unsecured non-convertible redeemable Basel III compliant Tier 2 bonds (Series - C) in the nature of debentures on private placement basis. The issue opened for subscription from 22 June 2016 and closed on 27 June 2016. The announcement was made during market hours today, 28 June 2016.
Stocks of most private sector banks rose. HDFC Bank (up 0.85%), Kotak Mahindra Bank (up 0.64%), IndusInd Bank (up 0.41%), Axis Bank (up 0.11%), ICICI Bank (up 0.11%) and Federal Bank (up 0.09%) edged higher. City Union Bank (down 0.59%) and Yes Bank (down 0.66%) edged lower.
Shares of public sector oil marketing companies edged higher on renewed buying. BPCL (up 1.33%), Indian Oil Corporation (IOCL) (up 3.29 %) and HPCL (up 1.98%) edged higher.
Shares of oil exploration and production companies were mixed. Oil India (down 0.47%) and Cairn India (down 0.11%) edged lower. ONGC (up 0.52%) and Reliance Industries (up 0.22%) edged higher.
Crude oil futures edged higher in an indication that global markets were stabilizing in the wake of the UK's vote last week to leave the European Union. Brent for August 2016 settlement was currently up $1.15 at $48.31 a barrel. The contract had fallen $1.25 a barrel or 2.58% to settle at $47.16 a barrel yesterday, 27 June 2016. The contract had fallen $2.50 a barrel or 4.91% to settle at $48.41 a barrel on 24 June 2016 as investors dumped energy as part of a wider global selloff after the unexpected outcome of the UK referendum on 23 June 2016 for the country to leave the European Union.
The Sensex and the Nifty edged higher for the second straight trading session. The Sensex has risen 126.84 points or 0.48% in two sessions from its close of 26,397.71 on 24 June 2016. The Sensex has fallen 143.41 points or 0.54% in this month so far (till 28 June 2016). The Sensex has risen 407.01 points or 1.56% in calendar year 2016 so far (till 28 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,029.94 points or 17.92%. The Sensex is off 2,053.78 points or 7.19% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,500.19 points or 11.66% from a record high of 30,024.74 hit on 4 March 2015.
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