Market slides on weak global cues
Auto stocks and index heavyweight Infosys led losses for key benchmark indices triggered by weak global cues. The barometer index, the S&P BSE Sensex, lost 111.89 points or 0.41% to settle at 27,166.87. The Nifty 50 index shed 34.75 points or 0.42% to settle at 8,335.95. Data showing deceleration in growth in India's services sector in June 2016 also weighed on sentiment, with the Sensex and the Nifty snapping a six-day winning streak.
Jaiprakash Associates rose a staggering 27.97% in a single trading session after the company's announcement that it has sold its cement plants spread across five states to UltraTech Cement for enterprise value of Rs 16189 crore. Engineering and construction major L&T eked out small gains after the company's announcement that its joint venture companies L&T-MHPS Boilers Private and L&T-MHPS Turbine Generators Private Limited have won export orders worth a combined $71.30 million. Shares of state-run coal mining giant Coal India gained after the company announced that a meeting of the board of directors of the company will be held on 11 July 2016 to consider a proposal of buyback of equity shares. Shares of IDBI Bank shrugged off reduction in lending rates based on marginal cost of funds. Ashok Leyland fell after a domestic brokerage reportedly downgraded the stock to 'sell', citing signs of demand moderation in commercial vehicles segment.
The outcome of a monthly survey showed that growth in India's services sector decelerated in June 2016 due to a softer expansion in new work. The Nikkei India Services Business Activity Index dropped to 50.3 in June 2016 from 51 in May 2016.
Anecdotal evidence suggested that strong competitive pressures restricted new business gains. A faster increase in input costs contrasted with a slowdown in charge inflation. According to respondents, activity growth over the coming year is set to be supported by aggressive marketing campaigns. Some panellists expressed concerns regarding competitive pressures.
In overseas stock markets, European stocks fell as fears about the fallout from Britain's vote in a referendum held on 23 June 2016 to exit the European Union known as Brexit gripped the market. Asian stocks edged lower as investors became cautious ahead of the release the influential monthly US nonfarm payroll report. The US government will announce nonfarm payroll report for June 2016 on Friday, 8 July 2016. Shares in mainland China bucked the weak trend in Asia after the latest data showed acceleration in growth in China's services sector in June 2016. The Shanghai Composite index ended 0.6% higher. In Hong Kong, the Hang Seng settled 1.46% lower. The Caixin China services purchasing managers' index (PMI) rose to an 11-month high of 52.7 in June 2016 from 51.2 in May 2016. Readings above 50 indicate an expansion on a monthly basis, while readings below signal contraction.
The Sensex lost 111.89 points or 0.41% to settle at 27,166.87, its lowest closing level since 1 July 2016. The index rose 69.90 points or 0.25% at the day's high of 27,348.66. The index lost 151.46 points or 0.55% at the day's low of 27,127.30.
The Nifty shed 34.75 points or 0.42% to settle at 8,335.95, its lowest closing level since 1 July 2016. The index rose 10.75 points or 0.12% at the day's high of 8,381.45. The index lost 50.75 points or 0.6% at the day's low of 8,319.95.
The BSE Mid-Cap index fell 0.08%. The BSE Small-Cap index lost 0.11%. The losses for both these indices were lower than those for the Sensex in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,476 shares declined and 1,277 shares rose. A total of 140 shares were unchanged.
The total turnover on BSE amounted to Rs 3152 crore, higher than turnover of Rs 3012.16 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Utilities index (down 1.14%), the BSE Auto index (down 1.09%), the BSE Power index (down 0.71%) and the BSE Realty index (down 0.63%) underperformed the Sensex. The S&P BSE Capital Goods index (up 0.35%) and the BSE Metal index (up 0.4%) outperformed the Sensex.
Stocks of public sector banks extended gains registered during the previous trading session. Syndicate Bank (up 2.51%), Corporation Bank (up 3.7%), Punjab National Bank (up 1.02%), Bank of India (up 0.96%), Canara Bank (up 1.28%) and State Bank of India (up 0.07%) edged higher. Union Bank of India (down 0.22%) and Bank of Baroda (down 0.19%) edged lower.
IDBI Bank rose 1.99% at Rs 76.75. The state-run bank has announced reduction in lending rates based on marginal cost of funds for different loan tenures effective from 1 July 2016. IDBI Bank's Marginal Cost of Funds based Lending Rate (MCLR) effective from 1 July 2016 for overnight loans will be 8.60%. For one month, the rate will be 9% and for three months it will be 9.15%. The MCLR on 6-month loans will be 9.25% and for one-year loans the rate would be 9.30%. MCLR for two-year loans would be at 9.55% and loans with three-year maturity would carry an MCLR of 9.70%.
All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.
Stocks of private sector banks declined. Axis Bank (down 0.79%), Kotak Mahindra Bank (down 0.58%) and ICICI Bank (down 0.91%) edged lower. Yes Bank (up 0.56%) and IndusInd Bank (up 0.12%) edged higher.
Index heavyweight HDFC Bank was down 0.14% at Rs 1,169.90. The stock hit a high of Rs 1,172 and a low of Rs 1,162 in intraday trade.
Auto stocks declined. TVS Motor Company (down 2.27%), Tata Motors (down 1.78%), Hero MotoCorp (down 1.76%), Bajaj Auto (down 1.28%), Mahindra & Mahindra (down 0.59%), Eicher Motors (down 0.46%) and Maruti Suzuki India (down 0.01%) edged lower.
Ashok Leyland fell 5.62% at Rs 92.30 after a domestic brokerage reportedly downgraded the stock to 'sell', citing signs of demand moderation in commercial vehicles segment. According to reports, the brokerage has reduced its target price on Ashok Leyland stock to Rs 85 from Rs 110 earlier. The brokerage has reportedly said in a research note that freight demand in the economy is weak while replacement demand for medium & heavy commercial vehicles is also moderating. Slowdown in the below 25 ton segment is even more steep while truck freight rates are not increasing, the brokerage has said according to media reports.
Meanwhile, the Supreme Court yesterday, 4 July 2016, reportedly reserved its order on the petition seeking modification in its order banning registration of diesel vehicles of 2000 cc and above in the NCR. During the hearing, the centre told the apex court it is ready to conduct a multipronged study on diesel vehicles' effect on environment and possibility of imposition of green cess. Asserting that it favoured removal of ban on registration of diesel vehicles above 2000 cc, the centre sought six weeks time for study and said that any cess should be decided by them. According to reports, the apex court on Friday, 1 July 2016, said that it might consider lifting the ban if a one-time environment compensation cess is introduced. The Supreme Court had on 16 December 2015 put a ban on diesel cars with cylinder displacement over 2000cc in Delhi NCR in a bid to curb pollution in the region. The major automobile manufacturers had moved the court to modify the order.
Jaiprakash Associates (JAL) surged on heavy volumes after the company's announcement that it has sold its cement plants spread across five states to UltraTech Cement for enterprise value of Rs 16189 crore. The stock spurted 27.97% at Rs 11.62. On BSE, 6.28 crore shares were traded in the counter as against average daily volume of 53.35 lakh shares in the past one quarter. The board of directors of JAL approved an amendment to the definitive agreement dated 31 March 2016 and also the draft scheme of arrangement with UltraTech Cement (UTCL) for sale of cement business of JAL and its wholly-owned subsidiary Jaypee Cement Corporation (JCCL). JAL and JCCL will together sell identified operating cement plants with an aggregate capacity of 17.20 million tonnes per annum (MTPA) spread over the states of Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh and a cement grinding unit of 4 MTPA capacity which is currently under implementation in Uttar Pradesh. An additional amount of Rs 470 crore will be paid by UTCL to JAL for completion of the grinding unit under implementation.
The transaction is subject to various regulatory approvals including the approval of stock exchanges, Competition Commission of India, financial institutions and banks, shareholders and creditors and sanction of the scheme of arrangement by High Courts at Mumbai and Allahabad. The consummation of the transaction is expected to take 9 to 12 months. The announcement was made after market hours yesterday, 4 July 2016.
Commenting on the divestment, Manoj Gaur, executive chairman, Jaypee Group said that the Jaypee Group is determined to reduce its overall debt through its proactive divestment initiatives to help the Group tide these current turbulent times caused by economic slowdown in the country. He added that post this deal, Jaypee Group will retain an aggregate cement manufacturing capacity of 10.60 MTPA with plants spread in the states of Madhya Pradesh, Uttar Pradesh, Andhra Pradesh and Karnataka. The Group would continue to leverage expertise in the fields of engineering & construction, real estate and project execution in a committed manner.
Shares of UTCL fell 1.16% at Rs 3,371.20. After the consummation, UTCL's cement capacity will stand augmented to 91.1 MTPA, including its overseas operations.
Engineering and construction major L&T eked out small gains after the company's announcement that its joint venture companies L&T-MHPS Boilers Private and L&T-MHPS Turbine Generators Private Limited have won export orders worth a combined $71.30 million from Mitsubishi Hitachi Power Systems (MHPS). The stock rose 0.6% at Rs 1,574.65.
Separately, L&T announced that the company along with its joint venture partner STEC of China has commenced work on the Rs 5273 crore Mumbai Metro Line 3 project. The scope of the project includes design and construction of underground stations and associated tunnels for Package 1 and Package 7 in Line 3 of Mumbai metro project. The prestigious EPC project includes underground stations at Cuffe Parade, Vidhan Bhavan, Church Gate, Hutatma Chowk with associated tunnels from Cuffe Parade to CST for Package 1 and underground stations at Marol Naka, MIDC and SEEPZ with associated tunnels from International Airport to SEEPZ for Package 7. The project is scheduled to be completed in 48 months. The announcement was made during market hours today, 5 July 2016.
Shares of state-run coal mining giant Coal India gained 1.35% at Rs 321.75 after the company announced that a meeting of the board of directors of the company will be held on 11 July 2016 to consider the proposal of buyback of equity shares. The announcement was made during market hours today, 5 July 2016.
TCS shed 0.49% at Rs 2,482.70. The company during market hours today, 5 July 2016, announced that it is working with the Royal College of Physicians of Ireland (RCPI) to deploy iON Cloud solutions to transform how doctors interact with each other. The partnership will enable the postgraduate medical training college to create an online community which helps doctors share expertise and access online courses throughout their careers.
Index heavyweight and software major Infosys was down 0.74% at Rs 1,175.45. The stock hit a high of Rs 1,185.50 and a low of Rs 1,171.55 in intraday trade.
The Sensex and the Nifty snapped a six-day winning streak. The Sensex had risen 881.05 points or 3.33% in the preceding six trading sessions to settle at 27,278.76 yesterday, 4 July 2016, from its close of 26,397.71 on 24 June 2016. The Sensex has risen 167.15 points or 0.61% during the first three trading sessions this month (till 5 July 2016). The Sensex has risen 1,049.33 points or 4.01% in calendar year 2016 so far (till 5 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,672.26 points or 20.77%. The Sensex is off 1,411.46 points or 4.93% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,857.87 points or 9.51% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, global credit rating agency Moody's Investors Service said in a quarterly publication that India's GDP growth over the next two years will be challenged by lackluster global demand and high leverage of some large corporates. Impaired assets in the banking system will negatively affect credit supply, said Moody's Senior Vice President and Manager Marie Diron. The report states that India's medium-term growth potential will be supported by the gradual implementation of further targeted policy reforms, thereby improving the business environment, state of infrastructure and productivity growth. According to the rating agency, the United Kingdom's majority vote to leave the European Union will have limited impact on India because exports to the UK account for just 0.4% India's GDP. Exports to the rest of the European Union account for 1.7% of India's GDP. According to the rating agency, India is not significantly exposed to a potential sharp fall in capital flows to emerging markets arising from Britain's vote to leave the UK.
Meanwhile, Prime Minister Narendra Modi today, 5 July 2016, carried out a major expansion of his Council of Ministers, inducting 19 new faces, including several dalit and OBC leaders from poll-bound states like Uttar Pradesh. Environment minister Prakash Javadekar has been promoted to Cabinet rank. Five ministers in Council of Ministers were dropped to make way for the new entrants since constitutionally the council can have only 82 ministers. The five ministers dropped from the Cabinet are Minister of State (Mos) for Water Resources River Development and Ganga Rejuvenation Sanwar Lal Jat, MoS Agriculture and Farmers Welfare Mohanbhai Kalyanjibhai Kundariya, MoS Panchayati Raj Nihal Chand, MoS Tribal Affairs Mansukhbhai Dhanjibhai Vasava and MoS Human Resource Development Ram Shankar Katheria.
India's stock market remains shut tomorrow, 6 July 2016, on account of Id-Ul-Fitr (Ramzan Id).
Jaiprakash Associates rose a staggering 27.97% in a single trading session after the company's announcement that it has sold its cement plants spread across five states to UltraTech Cement for enterprise value of Rs 16189 crore. Engineering and construction major L&T eked out small gains after the company's announcement that its joint venture companies L&T-MHPS Boilers Private and L&T-MHPS Turbine Generators Private Limited have won export orders worth a combined $71.30 million. Shares of state-run coal mining giant Coal India gained after the company announced that a meeting of the board of directors of the company will be held on 11 July 2016 to consider a proposal of buyback of equity shares. Shares of IDBI Bank shrugged off reduction in lending rates based on marginal cost of funds. Ashok Leyland fell after a domestic brokerage reportedly downgraded the stock to 'sell', citing signs of demand moderation in commercial vehicles segment.
The outcome of a monthly survey showed that growth in India's services sector decelerated in June 2016 due to a softer expansion in new work. The Nikkei India Services Business Activity Index dropped to 50.3 in June 2016 from 51 in May 2016.
Anecdotal evidence suggested that strong competitive pressures restricted new business gains. A faster increase in input costs contrasted with a slowdown in charge inflation. According to respondents, activity growth over the coming year is set to be supported by aggressive marketing campaigns. Some panellists expressed concerns regarding competitive pressures.
In overseas stock markets, European stocks fell as fears about the fallout from Britain's vote in a referendum held on 23 June 2016 to exit the European Union known as Brexit gripped the market. Asian stocks edged lower as investors became cautious ahead of the release the influential monthly US nonfarm payroll report. The US government will announce nonfarm payroll report for June 2016 on Friday, 8 July 2016. Shares in mainland China bucked the weak trend in Asia after the latest data showed acceleration in growth in China's services sector in June 2016. The Shanghai Composite index ended 0.6% higher. In Hong Kong, the Hang Seng settled 1.46% lower. The Caixin China services purchasing managers' index (PMI) rose to an 11-month high of 52.7 in June 2016 from 51.2 in May 2016. Readings above 50 indicate an expansion on a monthly basis, while readings below signal contraction.
The Sensex lost 111.89 points or 0.41% to settle at 27,166.87, its lowest closing level since 1 July 2016. The index rose 69.90 points or 0.25% at the day's high of 27,348.66. The index lost 151.46 points or 0.55% at the day's low of 27,127.30.
The Nifty shed 34.75 points or 0.42% to settle at 8,335.95, its lowest closing level since 1 July 2016. The index rose 10.75 points or 0.12% at the day's high of 8,381.45. The index lost 50.75 points or 0.6% at the day's low of 8,319.95.
The BSE Mid-Cap index fell 0.08%. The BSE Small-Cap index lost 0.11%. The losses for both these indices were lower than those for the Sensex in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,476 shares declined and 1,277 shares rose. A total of 140 shares were unchanged.
The total turnover on BSE amounted to Rs 3152 crore, higher than turnover of Rs 3012.16 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Utilities index (down 1.14%), the BSE Auto index (down 1.09%), the BSE Power index (down 0.71%) and the BSE Realty index (down 0.63%) underperformed the Sensex. The S&P BSE Capital Goods index (up 0.35%) and the BSE Metal index (up 0.4%) outperformed the Sensex.
Stocks of public sector banks extended gains registered during the previous trading session. Syndicate Bank (up 2.51%), Corporation Bank (up 3.7%), Punjab National Bank (up 1.02%), Bank of India (up 0.96%), Canara Bank (up 1.28%) and State Bank of India (up 0.07%) edged higher. Union Bank of India (down 0.22%) and Bank of Baroda (down 0.19%) edged lower.
IDBI Bank rose 1.99% at Rs 76.75. The state-run bank has announced reduction in lending rates based on marginal cost of funds for different loan tenures effective from 1 July 2016. IDBI Bank's Marginal Cost of Funds based Lending Rate (MCLR) effective from 1 July 2016 for overnight loans will be 8.60%. For one month, the rate will be 9% and for three months it will be 9.15%. The MCLR on 6-month loans will be 9.25% and for one-year loans the rate would be 9.30%. MCLR for two-year loans would be at 9.55% and loans with three-year maturity would carry an MCLR of 9.70%.
All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.
Stocks of private sector banks declined. Axis Bank (down 0.79%), Kotak Mahindra Bank (down 0.58%) and ICICI Bank (down 0.91%) edged lower. Yes Bank (up 0.56%) and IndusInd Bank (up 0.12%) edged higher.
Index heavyweight HDFC Bank was down 0.14% at Rs 1,169.90. The stock hit a high of Rs 1,172 and a low of Rs 1,162 in intraday trade.
Auto stocks declined. TVS Motor Company (down 2.27%), Tata Motors (down 1.78%), Hero MotoCorp (down 1.76%), Bajaj Auto (down 1.28%), Mahindra & Mahindra (down 0.59%), Eicher Motors (down 0.46%) and Maruti Suzuki India (down 0.01%) edged lower.
Ashok Leyland fell 5.62% at Rs 92.30 after a domestic brokerage reportedly downgraded the stock to 'sell', citing signs of demand moderation in commercial vehicles segment. According to reports, the brokerage has reduced its target price on Ashok Leyland stock to Rs 85 from Rs 110 earlier. The brokerage has reportedly said in a research note that freight demand in the economy is weak while replacement demand for medium & heavy commercial vehicles is also moderating. Slowdown in the below 25 ton segment is even more steep while truck freight rates are not increasing, the brokerage has said according to media reports.
Meanwhile, the Supreme Court yesterday, 4 July 2016, reportedly reserved its order on the petition seeking modification in its order banning registration of diesel vehicles of 2000 cc and above in the NCR. During the hearing, the centre told the apex court it is ready to conduct a multipronged study on diesel vehicles' effect on environment and possibility of imposition of green cess. Asserting that it favoured removal of ban on registration of diesel vehicles above 2000 cc, the centre sought six weeks time for study and said that any cess should be decided by them. According to reports, the apex court on Friday, 1 July 2016, said that it might consider lifting the ban if a one-time environment compensation cess is introduced. The Supreme Court had on 16 December 2015 put a ban on diesel cars with cylinder displacement over 2000cc in Delhi NCR in a bid to curb pollution in the region. The major automobile manufacturers had moved the court to modify the order.
Jaiprakash Associates (JAL) surged on heavy volumes after the company's announcement that it has sold its cement plants spread across five states to UltraTech Cement for enterprise value of Rs 16189 crore. The stock spurted 27.97% at Rs 11.62. On BSE, 6.28 crore shares were traded in the counter as against average daily volume of 53.35 lakh shares in the past one quarter. The board of directors of JAL approved an amendment to the definitive agreement dated 31 March 2016 and also the draft scheme of arrangement with UltraTech Cement (UTCL) for sale of cement business of JAL and its wholly-owned subsidiary Jaypee Cement Corporation (JCCL). JAL and JCCL will together sell identified operating cement plants with an aggregate capacity of 17.20 million tonnes per annum (MTPA) spread over the states of Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh and a cement grinding unit of 4 MTPA capacity which is currently under implementation in Uttar Pradesh. An additional amount of Rs 470 crore will be paid by UTCL to JAL for completion of the grinding unit under implementation.
The transaction is subject to various regulatory approvals including the approval of stock exchanges, Competition Commission of India, financial institutions and banks, shareholders and creditors and sanction of the scheme of arrangement by High Courts at Mumbai and Allahabad. The consummation of the transaction is expected to take 9 to 12 months. The announcement was made after market hours yesterday, 4 July 2016.
Commenting on the divestment, Manoj Gaur, executive chairman, Jaypee Group said that the Jaypee Group is determined to reduce its overall debt through its proactive divestment initiatives to help the Group tide these current turbulent times caused by economic slowdown in the country. He added that post this deal, Jaypee Group will retain an aggregate cement manufacturing capacity of 10.60 MTPA with plants spread in the states of Madhya Pradesh, Uttar Pradesh, Andhra Pradesh and Karnataka. The Group would continue to leverage expertise in the fields of engineering & construction, real estate and project execution in a committed manner.
Shares of UTCL fell 1.16% at Rs 3,371.20. After the consummation, UTCL's cement capacity will stand augmented to 91.1 MTPA, including its overseas operations.
Engineering and construction major L&T eked out small gains after the company's announcement that its joint venture companies L&T-MHPS Boilers Private and L&T-MHPS Turbine Generators Private Limited have won export orders worth a combined $71.30 million from Mitsubishi Hitachi Power Systems (MHPS). The stock rose 0.6% at Rs 1,574.65.
Separately, L&T announced that the company along with its joint venture partner STEC of China has commenced work on the Rs 5273 crore Mumbai Metro Line 3 project. The scope of the project includes design and construction of underground stations and associated tunnels for Package 1 and Package 7 in Line 3 of Mumbai metro project. The prestigious EPC project includes underground stations at Cuffe Parade, Vidhan Bhavan, Church Gate, Hutatma Chowk with associated tunnels from Cuffe Parade to CST for Package 1 and underground stations at Marol Naka, MIDC and SEEPZ with associated tunnels from International Airport to SEEPZ for Package 7. The project is scheduled to be completed in 48 months. The announcement was made during market hours today, 5 July 2016.
Shares of state-run coal mining giant Coal India gained 1.35% at Rs 321.75 after the company announced that a meeting of the board of directors of the company will be held on 11 July 2016 to consider the proposal of buyback of equity shares. The announcement was made during market hours today, 5 July 2016.
TCS shed 0.49% at Rs 2,482.70. The company during market hours today, 5 July 2016, announced that it is working with the Royal College of Physicians of Ireland (RCPI) to deploy iON Cloud solutions to transform how doctors interact with each other. The partnership will enable the postgraduate medical training college to create an online community which helps doctors share expertise and access online courses throughout their careers.
Index heavyweight and software major Infosys was down 0.74% at Rs 1,175.45. The stock hit a high of Rs 1,185.50 and a low of Rs 1,171.55 in intraday trade.
The Sensex and the Nifty snapped a six-day winning streak. The Sensex had risen 881.05 points or 3.33% in the preceding six trading sessions to settle at 27,278.76 yesterday, 4 July 2016, from its close of 26,397.71 on 24 June 2016. The Sensex has risen 167.15 points or 0.61% during the first three trading sessions this month (till 5 July 2016). The Sensex has risen 1,049.33 points or 4.01% in calendar year 2016 so far (till 5 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,672.26 points or 20.77%. The Sensex is off 1,411.46 points or 4.93% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,857.87 points or 9.51% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, global credit rating agency Moody's Investors Service said in a quarterly publication that India's GDP growth over the next two years will be challenged by lackluster global demand and high leverage of some large corporates. Impaired assets in the banking system will negatively affect credit supply, said Moody's Senior Vice President and Manager Marie Diron. The report states that India's medium-term growth potential will be supported by the gradual implementation of further targeted policy reforms, thereby improving the business environment, state of infrastructure and productivity growth. According to the rating agency, the United Kingdom's majority vote to leave the European Union will have limited impact on India because exports to the UK account for just 0.4% India's GDP. Exports to the rest of the European Union account for 1.7% of India's GDP. According to the rating agency, India is not significantly exposed to a potential sharp fall in capital flows to emerging markets arising from Britain's vote to leave the UK.
Meanwhile, Prime Minister Narendra Modi today, 5 July 2016, carried out a major expansion of his Council of Ministers, inducting 19 new faces, including several dalit and OBC leaders from poll-bound states like Uttar Pradesh. Environment minister Prakash Javadekar has been promoted to Cabinet rank. Five ministers in Council of Ministers were dropped to make way for the new entrants since constitutionally the council can have only 82 ministers. The five ministers dropped from the Cabinet are Minister of State (Mos) for Water Resources River Development and Ganga Rejuvenation Sanwar Lal Jat, MoS Agriculture and Farmers Welfare Mohanbhai Kalyanjibhai Kundariya, MoS Panchayati Raj Nihal Chand, MoS Tribal Affairs Mansukhbhai Dhanjibhai Vasava and MoS Human Resource Development Ram Shankar Katheria.
India's stock market remains shut tomorrow, 6 July 2016, on account of Id-Ul-Fitr (Ramzan Id).
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