Nifty attains highest closing level in more than 8 months
Stocks of power sector firms, telecom companies and private sector banks led gains for the two key benchmark indices. The barometer index, the S&P BSE Sensex, rose 259.33 points or 0.97% to settle at 26,999.72. The Nifty 50 index rose 83.75 points or 1.02% to settle at 8,287.75. After opening with an upward gap, the two key benchmarks hovered in positive territory throughout the trading session. The Sensex settled a tad below the psychologically important 27,000 level after surpassing that mark in intraday trade. The Sensex and the Nifty edged higher for the fourth straight trading session. The Sensex attained one-week closing high. The Nifty hit its highest level in more than 8 months. All the nineteen sectoral indices on BSE ended in green.
A likely boost to consumption demand from increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations aided the upmove on the bourses. The Union Cabinet yesterday, 29 June 2016, approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners. There will be payment of arrears as the implementation of the 7th Pay Commission recommendations will take effect from 1 January 2016. The arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the subsequent financial year.
Gains in global markets also aided the upmove on the domestic bourses. World stocks rose as worries subsided about the fallout from the UK's decision to leave the European Union known as Brexit. Stocks rose in the UK ahead of a press conference from Bank of England (BOE) Governor Mark Carney later in the day. The FTSE 100 index was currently up 0.52%. US stocks surged for the second day in a row yesterday, 29 June 2016, on speculation that the US Federal Reserve will delay interest rate increases in the wake of the Brexit.
Auto stocks edged higher for the second day in a row after the Union Cabinet approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. Realty shares also extended gains registered during the previous trading session triggered by expectations that demand for new homes will rise as a result of the increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations.
Metal and mining stocks edged higher after the Union Cabinet yesterday, 29 June 2016, approved the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation of the private sector. Engineering & construction major L&T moved higher after the company announced fixing the price band for divestment of a part of its stake in its subsidiary Larsen & Toubro Infotech (L&T Infotech) via initial public offer (IPO) of L&T Infotech.
The Sensex rose 259.33 points or 0.97% to settle at 26,999.72, its highest closing level since 23 June 2016. The index jumped 328.84 points or 1.22% at the day's high of 27,069.23. The index rose 132.20 points or 0.49% at the day's low of 26,872.59.
The Nifty rose 83.75 points or 1.02% to settle at 8,287.75, its highest closing level since 23 October 2015. The index rose 104.05 points or 1.26% at the day's high of 8,308.05. The index rose 38.10 points or 0.46% at the day's low of 8,242.10.
The market breadth indicating the overall health of the market was strong. On BSE, 1,598 shares rose and 1,011 shares declined. A total of 221 shares were unchanged. The BSE Mid-Cap index rose 1.26%, outperforming the Sensex. The BSE Small-Cap index rose 0.94%, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3094 crore, higher than turnover of Rs 2699.45 crore registered during the previous trading session.
All the nineteen sectoral indices on BSE ended in green. The S&P BSE Realty index (up 2.39%), the S&P BSE Power index (up 2.19%), the S&P BSE Telecom index (up 2.08%), the S&P BSE Utilities index (up 1.79%), the S&P BSE Metal index (up 1.74%), the S&P BSE Bankex (up 1.46%), the S&P BSE Consumer Durables index (up 1.44%), the S&P BSE Auto index (up 1.39%), the S&P BSE Industrials index (up 1.34%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.31%), the S&P BSE Finance index (up 1.26%), the S&P BSE Capital Goods index (up 1.21%) and the S&P BSE Basic Materials index (up 0.97%), outperformed the Sensex. The S&P BSE FMCG index (up 0.89%), the S&P BSE Teck index (up 0.76%), the S&P BSE Oil & Gas index (up 0.70%), the S&P BSE Energy index (up 0.59%), the S&P BSE Healthcare index (up 0.57%) and the S&P BSE IT index (up 0.44%) underperformed the Sensex.
Auto stocks edged higher for the second day in a row after the Union Cabinet approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. TVS Motor Company (up 3.34%), Tata Motors (up 2.72%), Bajaj Auto (up 1.57%), Maruti Suzuki (India) (up 1.35%), Mahindra & Mahindra (up 0.84%) and Hero MotoCorp (up 0.48%), edged higher. Eicher Motors (down 0.05%), Ashok Leyland (down 0.35%) and Escorts (down 1.1%), edged lower.
Investors are betting that increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations will boost consumer spending and lift demand for two-wheelers and passenger vehicles.
Realty shares also extended gains registered during the previous trading session triggered by expectations that demand for new homes will rise as a result of the increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations. Sunteck Realty (up 7.22%), D B Realty (up 5.56%), Indiabulls Real Estate (up 4.72%), DLF (up 4.20%), Housing Development and Infrastructure (HDIL) (up 3.98%), Sobha (up 2.53%), Peninsula Land (up 2.04%), Unitech (up 1.42%), Omaxe (up 0.82%), Godrej Properties (up 0.63%), Oberoi Realty (up 0.55%), Phoenix Mills (up 0.17%), Prestige Estates Projects (up 0.11%) and Mahindra Lifespace Developers (up 0.01%), edged higher.
Anant Raj (down 0.1%) and Parsvnath Developers (down 1.01%) edged lower.
Metal and mining stocks edged higher after the Union Cabinet yesterday, 29 June 2016, approved the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation of the private sector. Vedanta (up 3.74%), Bhushan Steel (up 3.58%), Steel Authority of India (up 3.44%), Tata Steel (up 2.70%), Hindalco Industries (up 2.33%), Jindal Steel & Power (up 1.96%), Hindustan Zinc (up 1.75%), JSW Steel (up 1.40%), National Aluminium Company (up 0.94%) and NMDC (up 0.21%) edged higher. Hindustan Copper declined 1.75%.
NMEP emphasizes on making available baseline geoscientific data of world standards in the public domain, quality research in a public-private partnership, special initiatives for search of deep-seated and concealed deposits, quick aerogeophysical surveys of the country, and creation of a dedicated geoscience database. The pre-competitive baseline geoscientific data will be created as a public good and will be fully available for open dissemination free of charge. This is expected to benefit public and private exploration agencies, according to a government statement. The government will launch a special initiative to probe deep-seated/concealed mineral deposits in the country. Characterizing India's geological cover, investigating India's lithospheric architecture, resolving 4D geodynamic and metallogenic evolution, and detecting and characterizing the distal footprints of ore deposits, would be the main components of this initiative. The central government will engage private agencies for carrying out exploration in identified blocks/areas with the right to certain share in the revenue accruing to the concerned state government through auction.
Coal India rose 0.61% at Rs 313.35 after the company announced signing two agreements with Solar Energy Corporation of India for implementation of solar power project in Madhya Pradesh. Coal India and Solar Energy Corporation of India (SECI) signed two agreements yesterday, 28 June 2016, for implementation of 200 megawatts (MW) solar power projects in Madhya Pradesh for the beneficial utilisation of solar power by Northern Coalfields (NCL) and South Eastern Coalfields (SECL) at an estimated cost of Rs 650 crore. NCL and SECL are subsidiaries of Coal India. The announcement was made after market hours yesterday, 29 June 2016.
Most power sector stocks edged higher. GMR Infrastructure (up 5.11%), Jaiprakash Power Ventures (up 4.63%), NTPC (up 3.17%), Reliance Infrastructure (up 2.63%), Reliance Power (up 2.19%), CESC (up 2.06%), Tata Power (up 1.10%) and NHPC (up 0.60%), edged higher. Adani Power (down 0.16%), Torrent Power (down 0.23%) and JSW Energy (down 0.71%), edged lower.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 4.73%), Bharti Airtel (up 2.34%) and Idea Cellular (up 1.57%) rose.
Bharti Infratel was up 0.15%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Stocks of private sector banks rose. City Union Bank (up 5.26%), Axis Bank (up 3.11%), Yes Bank (up 3.07%), Federal Bank (up 2.31%), ICICI Bank (up 1.56%), Kotak Mahindra Bank (up 1.43%) and IndusInd Bank (up 0.79%), edged higher.
Stocks of private sector banks witnessed a mixed trend. UCO Bank (up 3.82%), Andhra Bank (up 1.62%), Punjab National Bank (up 1.29%), Allahabad Bank (up 1.10%), Bank of India (up 1%), IDBI Bank (up 0.94%), State Bank of India (up 0.67%), Syndicate Bank (up 0.55%), Canara Bank (up 0.32%), Union Bank of India (up 0.27%), Punjab & Sind Bank (up 0.10%) and Bank of Baroda (up 0.06%), edged higher. Indian Bank (down 0.04%), Central Bank of India (down 0.23%), Vijaya Bank (down 0.53%), Corporation Bank (down 0.61%), United Bank of India (down 0.67%), Dena Bank (down 1.13%) and Bank of Maharashtra (down 1.65%) edged lower.
Index heavyweight HDFC Bank rose 0.69% at Rs 1,175.90 . The stock hit a high of Rs 1,179 and a low of Rs 1,162.30 in intraday trade.
Engineering & construction major L&T rose 0.97% at Rs 1,496.20 after the company announced fixing the price band for divestment of a part of its stake in its subsidiary Larsen & Toubro Infotech (L&T Infotech) via initial public offer (IPO) of L&T Infotech. The price band has been fixed at Rs 705 to Rs 710 per share. A discount of Rs 10 per equity share will be offered to retail individual bidders. L&T is selling up to 1.75 crore shares of L&T Infotech via IPO of L&T Infotech. The offer will open for subscription on 11 July 2016 and close on 13 July 2016.
Shares of Tata Group companies rose almost across the board. Tata Metaliks (up 3.34%), Tata Motors (up 2.72%), Tata Investment Corporation (up 2.09%), Tata Communications (up 1.67%), Tata Chemicals (up 1.40%), Tata Global Beverages (up 0.85%), Tata Sponge Iron (up 0.64%), Tinplate Company of India (up 0.55%), Rallis India (up 0.36%) and Tata Coffee (up 0.14%), edged higher. Tata Teleservices (Maharashtra) declined 1.70%.
The Sensex and the Nifty edged higher for the fourth straight trading session. The Sensex has risen 602.01 points or 2.28% in four trading sessions from its close of 26,397.71 on 24 June 2016. The Sensex registered gains of 331.76 points or 1.24% for June 2016. The Sensex has risen 882.18 points or 3.38% in calendar year 2016 so far (till 30 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,505.11 points or 20.03%. The Sensex is off 1,578.61 points or 5.52% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,025.02 points or 10.08% from a record high of 30,024.74 hit on 4 March 2015.
A likely boost to consumption demand from increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations aided the upmove on the bourses. The Union Cabinet yesterday, 29 June 2016, approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners. There will be payment of arrears as the implementation of the 7th Pay Commission recommendations will take effect from 1 January 2016. The arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the subsequent financial year.
Gains in global markets also aided the upmove on the domestic bourses. World stocks rose as worries subsided about the fallout from the UK's decision to leave the European Union known as Brexit. Stocks rose in the UK ahead of a press conference from Bank of England (BOE) Governor Mark Carney later in the day. The FTSE 100 index was currently up 0.52%. US stocks surged for the second day in a row yesterday, 29 June 2016, on speculation that the US Federal Reserve will delay interest rate increases in the wake of the Brexit.
Auto stocks edged higher for the second day in a row after the Union Cabinet approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. Realty shares also extended gains registered during the previous trading session triggered by expectations that demand for new homes will rise as a result of the increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations.
Metal and mining stocks edged higher after the Union Cabinet yesterday, 29 June 2016, approved the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation of the private sector. Engineering & construction major L&T moved higher after the company announced fixing the price band for divestment of a part of its stake in its subsidiary Larsen & Toubro Infotech (L&T Infotech) via initial public offer (IPO) of L&T Infotech.
The Sensex rose 259.33 points or 0.97% to settle at 26,999.72, its highest closing level since 23 June 2016. The index jumped 328.84 points or 1.22% at the day's high of 27,069.23. The index rose 132.20 points or 0.49% at the day's low of 26,872.59.
The Nifty rose 83.75 points or 1.02% to settle at 8,287.75, its highest closing level since 23 October 2015. The index rose 104.05 points or 1.26% at the day's high of 8,308.05. The index rose 38.10 points or 0.46% at the day's low of 8,242.10.
The market breadth indicating the overall health of the market was strong. On BSE, 1,598 shares rose and 1,011 shares declined. A total of 221 shares were unchanged. The BSE Mid-Cap index rose 1.26%, outperforming the Sensex. The BSE Small-Cap index rose 0.94%, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3094 crore, higher than turnover of Rs 2699.45 crore registered during the previous trading session.
All the nineteen sectoral indices on BSE ended in green. The S&P BSE Realty index (up 2.39%), the S&P BSE Power index (up 2.19%), the S&P BSE Telecom index (up 2.08%), the S&P BSE Utilities index (up 1.79%), the S&P BSE Metal index (up 1.74%), the S&P BSE Bankex (up 1.46%), the S&P BSE Consumer Durables index (up 1.44%), the S&P BSE Auto index (up 1.39%), the S&P BSE Industrials index (up 1.34%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.31%), the S&P BSE Finance index (up 1.26%), the S&P BSE Capital Goods index (up 1.21%) and the S&P BSE Basic Materials index (up 0.97%), outperformed the Sensex. The S&P BSE FMCG index (up 0.89%), the S&P BSE Teck index (up 0.76%), the S&P BSE Oil & Gas index (up 0.70%), the S&P BSE Energy index (up 0.59%), the S&P BSE Healthcare index (up 0.57%) and the S&P BSE IT index (up 0.44%) underperformed the Sensex.
Auto stocks edged higher for the second day in a row after the Union Cabinet approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. TVS Motor Company (up 3.34%), Tata Motors (up 2.72%), Bajaj Auto (up 1.57%), Maruti Suzuki (India) (up 1.35%), Mahindra & Mahindra (up 0.84%) and Hero MotoCorp (up 0.48%), edged higher. Eicher Motors (down 0.05%), Ashok Leyland (down 0.35%) and Escorts (down 1.1%), edged lower.
Investors are betting that increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations will boost consumer spending and lift demand for two-wheelers and passenger vehicles.
Realty shares also extended gains registered during the previous trading session triggered by expectations that demand for new homes will rise as a result of the increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations. Sunteck Realty (up 7.22%), D B Realty (up 5.56%), Indiabulls Real Estate (up 4.72%), DLF (up 4.20%), Housing Development and Infrastructure (HDIL) (up 3.98%), Sobha (up 2.53%), Peninsula Land (up 2.04%), Unitech (up 1.42%), Omaxe (up 0.82%), Godrej Properties (up 0.63%), Oberoi Realty (up 0.55%), Phoenix Mills (up 0.17%), Prestige Estates Projects (up 0.11%) and Mahindra Lifespace Developers (up 0.01%), edged higher.
Anant Raj (down 0.1%) and Parsvnath Developers (down 1.01%) edged lower.
Metal and mining stocks edged higher after the Union Cabinet yesterday, 29 June 2016, approved the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation of the private sector. Vedanta (up 3.74%), Bhushan Steel (up 3.58%), Steel Authority of India (up 3.44%), Tata Steel (up 2.70%), Hindalco Industries (up 2.33%), Jindal Steel & Power (up 1.96%), Hindustan Zinc (up 1.75%), JSW Steel (up 1.40%), National Aluminium Company (up 0.94%) and NMDC (up 0.21%) edged higher. Hindustan Copper declined 1.75%.
NMEP emphasizes on making available baseline geoscientific data of world standards in the public domain, quality research in a public-private partnership, special initiatives for search of deep-seated and concealed deposits, quick aerogeophysical surveys of the country, and creation of a dedicated geoscience database. The pre-competitive baseline geoscientific data will be created as a public good and will be fully available for open dissemination free of charge. This is expected to benefit public and private exploration agencies, according to a government statement. The government will launch a special initiative to probe deep-seated/concealed mineral deposits in the country. Characterizing India's geological cover, investigating India's lithospheric architecture, resolving 4D geodynamic and metallogenic evolution, and detecting and characterizing the distal footprints of ore deposits, would be the main components of this initiative. The central government will engage private agencies for carrying out exploration in identified blocks/areas with the right to certain share in the revenue accruing to the concerned state government through auction.
Coal India rose 0.61% at Rs 313.35 after the company announced signing two agreements with Solar Energy Corporation of India for implementation of solar power project in Madhya Pradesh. Coal India and Solar Energy Corporation of India (SECI) signed two agreements yesterday, 28 June 2016, for implementation of 200 megawatts (MW) solar power projects in Madhya Pradesh for the beneficial utilisation of solar power by Northern Coalfields (NCL) and South Eastern Coalfields (SECL) at an estimated cost of Rs 650 crore. NCL and SECL are subsidiaries of Coal India. The announcement was made after market hours yesterday, 29 June 2016.
Most power sector stocks edged higher. GMR Infrastructure (up 5.11%), Jaiprakash Power Ventures (up 4.63%), NTPC (up 3.17%), Reliance Infrastructure (up 2.63%), Reliance Power (up 2.19%), CESC (up 2.06%), Tata Power (up 1.10%) and NHPC (up 0.60%), edged higher. Adani Power (down 0.16%), Torrent Power (down 0.23%) and JSW Energy (down 0.71%), edged lower.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 4.73%), Bharti Airtel (up 2.34%) and Idea Cellular (up 1.57%) rose.
Bharti Infratel was up 0.15%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Stocks of private sector banks rose. City Union Bank (up 5.26%), Axis Bank (up 3.11%), Yes Bank (up 3.07%), Federal Bank (up 2.31%), ICICI Bank (up 1.56%), Kotak Mahindra Bank (up 1.43%) and IndusInd Bank (up 0.79%), edged higher.
Stocks of private sector banks witnessed a mixed trend. UCO Bank (up 3.82%), Andhra Bank (up 1.62%), Punjab National Bank (up 1.29%), Allahabad Bank (up 1.10%), Bank of India (up 1%), IDBI Bank (up 0.94%), State Bank of India (up 0.67%), Syndicate Bank (up 0.55%), Canara Bank (up 0.32%), Union Bank of India (up 0.27%), Punjab & Sind Bank (up 0.10%) and Bank of Baroda (up 0.06%), edged higher. Indian Bank (down 0.04%), Central Bank of India (down 0.23%), Vijaya Bank (down 0.53%), Corporation Bank (down 0.61%), United Bank of India (down 0.67%), Dena Bank (down 1.13%) and Bank of Maharashtra (down 1.65%) edged lower.
Index heavyweight HDFC Bank rose 0.69% at Rs 1,175.90 . The stock hit a high of Rs 1,179 and a low of Rs 1,162.30 in intraday trade.
Engineering & construction major L&T rose 0.97% at Rs 1,496.20 after the company announced fixing the price band for divestment of a part of its stake in its subsidiary Larsen & Toubro Infotech (L&T Infotech) via initial public offer (IPO) of L&T Infotech. The price band has been fixed at Rs 705 to Rs 710 per share. A discount of Rs 10 per equity share will be offered to retail individual bidders. L&T is selling up to 1.75 crore shares of L&T Infotech via IPO of L&T Infotech. The offer will open for subscription on 11 July 2016 and close on 13 July 2016.
Shares of Tata Group companies rose almost across the board. Tata Metaliks (up 3.34%), Tata Motors (up 2.72%), Tata Investment Corporation (up 2.09%), Tata Communications (up 1.67%), Tata Chemicals (up 1.40%), Tata Global Beverages (up 0.85%), Tata Sponge Iron (up 0.64%), Tinplate Company of India (up 0.55%), Rallis India (up 0.36%) and Tata Coffee (up 0.14%), edged higher. Tata Teleservices (Maharashtra) declined 1.70%.
The Sensex and the Nifty edged higher for the fourth straight trading session. The Sensex has risen 602.01 points or 2.28% in four trading sessions from its close of 26,397.71 on 24 June 2016. The Sensex registered gains of 331.76 points or 1.24% for June 2016. The Sensex has risen 882.18 points or 3.38% in calendar year 2016 so far (till 30 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,505.11 points or 20.03%. The Sensex is off 1,578.61 points or 5.52% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,025.02 points or 10.08% from a record high of 30,024.74 hit on 4 March 2015.
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