Benchmark indices eke out tiny gains
Gains for index heavyweights ITC, HDFC and HDFC Bank outweighed losses for IT stocks, with the two key benchmark indices registering minuscule to small gains. The barometer index, the S&P BSE Sensex, rose 34.62 points or 0.13% to settle at 27,201.49. The Nifty 50 index rose 1.95 points or 0.02% to settle at 8,337.90. IT stocks declined on concerns arising from the recent steep losses for the British pound against the dollar in the wake of the UK's vote last month to leave the European Union (EU) known as Brexit.
Pharma major Lupin jumped after the company announced that it has received notification that the inspection carried out by the United States Food & Drug Administration (USFDA) in July 2015 at its Goa facility has been completed and that the agency has issued Establishment Inspection Reports (EIR). Axis Bank eked out small gains after the Union Cabinet approved increase in the ceiling on foreign investment in the private sector bank to 74% of equity capital on a fully fungible basis from 62% earlier.
In overseas stock markets, European stocks edged higher after a rally on Wall Street overnight following some better US data and a bounce in oil prices helped quell the latest bout of worries triggered by the UK's vote last month to leave the European Union (EU) known as Brexit. Asian stocks witnessed a mixed trend. Japanese stocks fell as the yen strengthened against the dollar. The Nikkei 225 Average ended 0.67% lower. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks rose yesterday, 6 July 2016, after a stronger-than-expected report on nonmanufacturing activity in June 2016 and after the minutes from the Federal Reserve's June policy meeting confirmed dovish stance from the US central bank.
The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June 2016 to its highest reading since November 2015. Meanwhile, the minutes from the Federal Reserve's June meeting showed that the majority of policy makers were in favor of keeping rates on hold. The two-day Fed meeting on 14-15 June 2016 was held just a few days before the Brexit. The minutes showed that Fed officials saw risks to the US economy and global markets from the UK's then-upcoming vote on EU membership. Fed officials also had concerns about a possible slowdown in the US labour market.
The Sensex rose 34.62 points or 0.13% to settle at 27,201.49, its highest closing level since 4 July 2016. The index rose 121.35 points or 0.44% at the day's high of 27,288.22. The index lost 19.92 points or 0.07% at the day's low of 27,146.95.
The Nifty rose 1.95 points or 0.02% to settle at 8,337.90, its highest closing level since 4 July 2016. The index rose 26 points or 0.31% at the day's high of 8,361.95. The index lost 18.25 points or 0.21% at the day's low of 8,317.70.
The BSE Mid-Cap index lost 0.41%. The BSE Small-Cap index rose 0.04%. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,546 shares rose and 1,207 shares fell. A total of 148 shares were unchanged.
The total turnover on BSE amounted to Rs 2867 crore, lower than turnover of Rs 3163.71 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE FMCG index (up 0.92%), the BSE Healthcare index (up 1.14%), the BSE Bankex index (up 0.24%) and the BSE Power index (up 0.3%) outperformed the Sensex. The BSE Industrials index (down 0.77%), the BSE IT index (down 1.63%) and the BSE Metal index (down 0.66%) underperformed the Sensex.
Stocks of public sector banks edged lower. IDBI Bank (down 2.93%), Bank of India (down 0.86%), Bank of Baroda (down 0.91%), State Bank of India (down 1.12%) and Union Bank of India (down 1.23%) declined. Punjab National Bank (up 2.68%) and Canara Bank (up 0.52%) gained.
Stocks of private sector banks edged higher. Kotak Mahindra Bank (up 0.55%) and IndusInd Bank (up 0.36%) gained. Yes Bank (down 1.19%) and ICICI Bank (down 0.35%) edged lower.
Index heavyweight HDFC Bank was up 1.6% at Rs 1,183.70. The stock hit a high of Rs 1,188.80 and a low of Rs 1,161 in intraday trade.
The government has finalized interest subvention scheme for farmers for the year 2016-17. The government will provide interest subvention of 5% per annum to all farmers for short term crop loan upto one year for loan upto Rs 3 lakh borrowed by them during the year 2016-17. In case farmers do not repay the short term crop loan in time, they would be eligible for lower interest subvention of 2% as against 5%. The government has approved interest subvention of 2% to farmers for loans upto 6 months for the post harvest storage of farm produce. To provide relief to the farmers affected by natural calamities, interest subvention of 2% will be provided to banks for the first year on the restructured amount. The announcement hit the market after trading hours on Tuesday, 5 July 2016.
Axis Bank rose 0.53% at Rs 542.45 after the Union Cabinet approved increase in the ceiling on foreign investment in the private sector bank to 74% of equity capital on a fully fungible basis from 62% earlier. With the hike in foreign investment ceiling, foreign direct investment to the tune of Rs 12973.14 crore will be received in the country with an estimated creation of 6,000 to 7,000 jobs over the next three years, according to a government statement.
Foreign institutional investors held 40.86% stake in Axis Bank as on 31 March 2016. The holding through Global Depository Receipts (GDR) in the bank stood at 3.36% as on 31 March 2016.
Meanwhile, shares of Axis Bank turned ex-dividend today, 7 July 2016, for dividend of Rs 5 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.91% based on its closing price of Rs 543.90 on the BSE on Tuesday, 5 July 2016. The stock market was closed yesterday, 6 July 2016, for a holiday.
IT stocks declined on concerns arising from the recent steep losses for the British pound against the dollar in the wake of the UK's vote last month to leave the European Union (EU) known as Brexit. HCL Technologies (down 2.82%), TCS (down 2.16%), Tech Mahindra (down 1.93%) and Wipro (down 0.2%) edged lower.
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 a significant portion of revenue from the UK and Europe.
Index heavyweight and software major Infosys was down 1.55% at Rs 1,157.20. The stock hit a high of Rs 1,175.45 and a low of Rs 1,155 in intraday trade. The company is scheduled to announce its Q1 June 2016 results on 15 July 2016.
Metal and mining stocks witnessed a mixed trend. Hindustan Copper (up 5.8%), Vedanta (up 4.52%), Hindalco Industries (up 3.36%), National Aluminium Company (up 1.03%), Hindustan Zinc (up 0.86%) and NMDC (up 0.26%) edged higher. Tata Steel (down 4.92%), Jindal Steel & Power (down 2.54%), JSW Steel (down 0.95%) and Steel Authority of India (down 0.84%) edged lower.
Copper prices edged lower in global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.21% at $2.149 per pound on the COMEX.
Meanwhile, Piyush Goyal was given additional charge of the mines ministry (Independent Charge). The reshuffle of the portfolios has seen Chaudhary Birender Singh getting the steel ministry. Narendra Singh Tomar was earlier holding both mines and steel ministry portfolios. After inducting 19 new Ministers of State, the Modi government on Tuesday, 5 July 2016, also announced a reshuffle of portfolios among the members of the Union Council of Ministers in a late night surprise announcement.
Pharma major Lupin jumped after the company announced that it has received notification that the inspection carried out by the United States Food & Drug Administration (USFDA) in July 2015 at its Goa facility has been completed and that the agency has issued Establishment Inspection Reports (EIR). The stock jumped 6.25% at Rs 1,657.30. Lupin also announced that the responses from the March 2016 USFDA inspection and updates thereafter are still under review by the USFDA. The announcement was made at the fag end of market hours today, 7 July 2016.
Index heavyweight and housing finance major HDFC rose 2.51% at Rs 1,290.95. The stock hit a high of Rs 1,294.35 and a low of Rs 1,252.50 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.36% at Rs 246.50. The stock hit a high of Rs 248.20 and a low of Rs 243.90 in intraday trade.
The Sensex has risen 201.77 points or 0.74% in this month so far (till 7 July 2016). The Sensex has risen 1,083.95 points or 4.15% in calendar year 2016 so far (till 7 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,706.88 points or 20.92%. The Sensex is off 1,376.84 points or 4.81% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,823.25 points or 9.4% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, Prime Minister Narendra Modi after expanding the Council of Ministers with 19 new members also reshuffled some portfolios in his Cabinet on Tuesday, 5 July 2016. Prakash Javadekar, who was earlier promoted to Cabinet rank, was given the HRD Ministry. He had been the Minister of State (Independent charge) for Environment and Forests. Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Other than that, Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given additional charge of I&B. The government has appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. The Council of Ministers now has 77 members. The previous strength of the government was 63. Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in the earlier batch. The total strength of the Union Council of Ministers has been capped at 82.
Pharma major Lupin jumped after the company announced that it has received notification that the inspection carried out by the United States Food & Drug Administration (USFDA) in July 2015 at its Goa facility has been completed and that the agency has issued Establishment Inspection Reports (EIR). Axis Bank eked out small gains after the Union Cabinet approved increase in the ceiling on foreign investment in the private sector bank to 74% of equity capital on a fully fungible basis from 62% earlier.
In overseas stock markets, European stocks edged higher after a rally on Wall Street overnight following some better US data and a bounce in oil prices helped quell the latest bout of worries triggered by the UK's vote last month to leave the European Union (EU) known as Brexit. Asian stocks witnessed a mixed trend. Japanese stocks fell as the yen strengthened against the dollar. The Nikkei 225 Average ended 0.67% lower. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks rose yesterday, 6 July 2016, after a stronger-than-expected report on nonmanufacturing activity in June 2016 and after the minutes from the Federal Reserve's June policy meeting confirmed dovish stance from the US central bank.
The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June 2016 to its highest reading since November 2015. Meanwhile, the minutes from the Federal Reserve's June meeting showed that the majority of policy makers were in favor of keeping rates on hold. The two-day Fed meeting on 14-15 June 2016 was held just a few days before the Brexit. The minutes showed that Fed officials saw risks to the US economy and global markets from the UK's then-upcoming vote on EU membership. Fed officials also had concerns about a possible slowdown in the US labour market.
The Sensex rose 34.62 points or 0.13% to settle at 27,201.49, its highest closing level since 4 July 2016. The index rose 121.35 points or 0.44% at the day's high of 27,288.22. The index lost 19.92 points or 0.07% at the day's low of 27,146.95.
The Nifty rose 1.95 points or 0.02% to settle at 8,337.90, its highest closing level since 4 July 2016. The index rose 26 points or 0.31% at the day's high of 8,361.95. The index lost 18.25 points or 0.21% at the day's low of 8,317.70.
The BSE Mid-Cap index lost 0.41%. The BSE Small-Cap index rose 0.04%. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,546 shares rose and 1,207 shares fell. A total of 148 shares were unchanged.
The total turnover on BSE amounted to Rs 2867 crore, lower than turnover of Rs 3163.71 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE FMCG index (up 0.92%), the BSE Healthcare index (up 1.14%), the BSE Bankex index (up 0.24%) and the BSE Power index (up 0.3%) outperformed the Sensex. The BSE Industrials index (down 0.77%), the BSE IT index (down 1.63%) and the BSE Metal index (down 0.66%) underperformed the Sensex.
Stocks of public sector banks edged lower. IDBI Bank (down 2.93%), Bank of India (down 0.86%), Bank of Baroda (down 0.91%), State Bank of India (down 1.12%) and Union Bank of India (down 1.23%) declined. Punjab National Bank (up 2.68%) and Canara Bank (up 0.52%) gained.
Stocks of private sector banks edged higher. Kotak Mahindra Bank (up 0.55%) and IndusInd Bank (up 0.36%) gained. Yes Bank (down 1.19%) and ICICI Bank (down 0.35%) edged lower.
Index heavyweight HDFC Bank was up 1.6% at Rs 1,183.70. The stock hit a high of Rs 1,188.80 and a low of Rs 1,161 in intraday trade.
The government has finalized interest subvention scheme for farmers for the year 2016-17. The government will provide interest subvention of 5% per annum to all farmers for short term crop loan upto one year for loan upto Rs 3 lakh borrowed by them during the year 2016-17. In case farmers do not repay the short term crop loan in time, they would be eligible for lower interest subvention of 2% as against 5%. The government has approved interest subvention of 2% to farmers for loans upto 6 months for the post harvest storage of farm produce. To provide relief to the farmers affected by natural calamities, interest subvention of 2% will be provided to banks for the first year on the restructured amount. The announcement hit the market after trading hours on Tuesday, 5 July 2016.
Axis Bank rose 0.53% at Rs 542.45 after the Union Cabinet approved increase in the ceiling on foreign investment in the private sector bank to 74% of equity capital on a fully fungible basis from 62% earlier. With the hike in foreign investment ceiling, foreign direct investment to the tune of Rs 12973.14 crore will be received in the country with an estimated creation of 6,000 to 7,000 jobs over the next three years, according to a government statement.
Foreign institutional investors held 40.86% stake in Axis Bank as on 31 March 2016. The holding through Global Depository Receipts (GDR) in the bank stood at 3.36% as on 31 March 2016.
Meanwhile, shares of Axis Bank turned ex-dividend today, 7 July 2016, for dividend of Rs 5 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.91% based on its closing price of Rs 543.90 on the BSE on Tuesday, 5 July 2016. The stock market was closed yesterday, 6 July 2016, for a holiday.
IT stocks declined on concerns arising from the recent steep losses for the British pound against the dollar in the wake of the UK's vote last month to leave the European Union (EU) known as Brexit. HCL Technologies (down 2.82%), TCS (down 2.16%), Tech Mahindra (down 1.93%) and Wipro (down 0.2%) edged lower.
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 a significant portion of revenue from the UK and Europe.
Index heavyweight and software major Infosys was down 1.55% at Rs 1,157.20. The stock hit a high of Rs 1,175.45 and a low of Rs 1,155 in intraday trade. The company is scheduled to announce its Q1 June 2016 results on 15 July 2016.
Metal and mining stocks witnessed a mixed trend. Hindustan Copper (up 5.8%), Vedanta (up 4.52%), Hindalco Industries (up 3.36%), National Aluminium Company (up 1.03%), Hindustan Zinc (up 0.86%) and NMDC (up 0.26%) edged higher. Tata Steel (down 4.92%), Jindal Steel & Power (down 2.54%), JSW Steel (down 0.95%) and Steel Authority of India (down 0.84%) edged lower.
Copper prices edged lower in global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.21% at $2.149 per pound on the COMEX.
Meanwhile, Piyush Goyal was given additional charge of the mines ministry (Independent Charge). The reshuffle of the portfolios has seen Chaudhary Birender Singh getting the steel ministry. Narendra Singh Tomar was earlier holding both mines and steel ministry portfolios. After inducting 19 new Ministers of State, the Modi government on Tuesday, 5 July 2016, also announced a reshuffle of portfolios among the members of the Union Council of Ministers in a late night surprise announcement.
Pharma major Lupin jumped after the company announced that it has received notification that the inspection carried out by the United States Food & Drug Administration (USFDA) in July 2015 at its Goa facility has been completed and that the agency has issued Establishment Inspection Reports (EIR). The stock jumped 6.25% at Rs 1,657.30. Lupin also announced that the responses from the March 2016 USFDA inspection and updates thereafter are still under review by the USFDA. The announcement was made at the fag end of market hours today, 7 July 2016.
Index heavyweight and housing finance major HDFC rose 2.51% at Rs 1,290.95. The stock hit a high of Rs 1,294.35 and a low of Rs 1,252.50 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.36% at Rs 246.50. The stock hit a high of Rs 248.20 and a low of Rs 243.90 in intraday trade.
The Sensex has risen 201.77 points or 0.74% in this month so far (till 7 July 2016). The Sensex has risen 1,083.95 points or 4.15% in calendar year 2016 so far (till 7 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,706.88 points or 20.92%. The Sensex is off 1,376.84 points or 4.81% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,823.25 points or 9.4% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, Prime Minister Narendra Modi after expanding the Council of Ministers with 19 new members also reshuffled some portfolios in his Cabinet on Tuesday, 5 July 2016. Prakash Javadekar, who was earlier promoted to Cabinet rank, was given the HRD Ministry. He had been the Minister of State (Independent charge) for Environment and Forests. Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Other than that, Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given additional charge of I&B. The government has appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. The Council of Ministers now has 77 members. The previous strength of the government was 63. Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in the earlier batch. The total strength of the Union Council of Ministers has been capped at 82.
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