Sensex, Nifty hit almost 11-month closing high
Banking, auto sector stocks and index heavyweights HDFC, ITC and Infosys led rally for the two key benchmark indices triggered by firm global stocks. The Sensex jumped 499.79 points or 1.84% to settle at 27,626.69. The gains for the Nifty 50 index were lower than those for the Sensex in percentage terms. The Nifty gained 144.70 points or 1.74% to settle at 8,467.90. The Sensex and the Nifty, both, struck their highest closing level in almost 11 months. The Sensex and the Nifty hovered in positive zone throughout the trading session after opening with upward gap. All the nineteen sectoral indices on BSE registered gains.
World stocks edged higher as stronger-than-expected US jobs report suggested that the US economic recovery was back on track. Global markets were also boosted by the election in Japan over the weekend. With continued uncertainty over the fallout of the UK's Brexit vote and low inflation in the United States, the solid US employment data for June 2016, however, isn't seen prompting hike in interest rates from the US Federal Reserve any time soon. The Fed funds futures market data showed that investors are not pricing in a rate increase from the US Federal Reserve in calendar year 2016 despite the strong jobs report for June 2016. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. A delay in interest rate increases from the Fed would slow capital flight from emerging markets.
Japanese stocks surged as investors saw weekend poll results for Japan's upper house as signaling new rounds of economic and political reforms by the coalition government led by Prime Minister Shinzo Abe. The Nikkei 225 Average closed 3.98% higher. In the upper house elections held yesterday, 10 July 2016, Abe's ruling coalition led by his Liberal Democratic Party won a landslide victory, making it far easier for Abe to push through his economic agenda dubbed Abenomics.
The Sensex jumped 499.79 points or 1.84% to settle at 27,626.69, its highest closing level since 19 August 2015. The index jumped 520.58 points or 1.92% at the day's high of 27,647.48. The index rose 231.33 points or 0.85% at the day's low of 27,358.23.
The Nifty gained 144.70 points or 1.74% to settle at 8,467.90, its highest closing level since 19 August 2015. The index jumped 152.05 points or 1.83% at the day's high of 8,475.25. The index rose 83.85 points or 1.01% at the day's low of 8,407.05.
All the nineteen sectoral indices on BSE registered gains. The S&P BSE Realty index (up 2.05%), the S&P BSE Metal index (up 2.46%), the S&P BSE Bankex (up 2.07%), the S&P BSE Auto index (up 2.19%), and the S&P BSE Finance index (up 2.25%) outperformed the Sensex. The S&P BSE Industrials index (up 1.72%), the S&P BSE Capital Goods index (up 1.45%), the S&P BSE Energy index (up 1.43%), the S&P BSE IT index (up 1.12%), the S&P BSE Telecom index (up 1.45%), the S&P BSE Teck index (up 1.45%), the S&P BSE Basic Materials index (up 1.34%), the S&P BSE Oil & Gas index (up 1.29%), the S&P BSE FMCG index (up 1%), the S&P BSE Power index (up 1.55%), the S&P BSE Consumer Durables index (up 0.45%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.27%), the S&P BSE Utilities index (up 1.27%) and the S&P BSE Healthcare index (up 1.38%), underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,721 shares gained and 1,039 shares fell. A total of 185 shares were unchanged. The BSE Mid-Cap index rose 1.49%. The BSE Small-Cap index gained 0.79%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3270 crore, higher than turnover of Rs 3131.31 crore registered during the previous trading session.
Bank stocks edged higher on renewed buying. Among private bank stocks, Kotak Mahindra Bank (up 2.29%), and ICICI Bank (up 3.44%) rose.
Index heavyweight HDFC Bank gained 2.23% to Rs 1,198.30. The stock hit a high of Rs 1,201.30 in intraday trade so far which is record high for the counter. The stock hit a low of Rs 1,184.10 in intraday trade.
Yes Bank rose 2.11% to Rs 1,142.70 after hitting record high of Rs 1,148.60 in intraday trade.
Axis Bank fell 0.38%. Media reports suggested that the central government has finally made up its mind to sell minority stakes in many listed and unlisted companies held through the Specified Undertaking of the Unit Trust of India (SUUTI), in a bid to meet its asset-sale target. The government has invited bids from bankers for the mandate to manage the stake-sale process. SUUTI currently holds 11.53% stake in Axis Bank (as per the shareholding pattern as on 31 March 2016).
IndusInd Bank slipped in volatile trade after announcing Q1 June 2016 results. The stock fell 0.11% to Rs 1,125.50. The stock hit high of Rs 1,147.50 in intraday trade which is a record high for the counter. The stock hit low of Rs 1,115.50 in intraday trade. The bank's net profit rose 25.96% to Rs 661.38 crore on 22.36% growth in total income to Rs 4264.66 crore in Q1 June 2016 over Q1 June 2015.
IndusInd Bank's gross non-performing assets (NPA) stood at Rs 860.64 crore as on 30 June 2016 compared with Rs 776.82 crore as on 31 March 2016 and Rs 570.12 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 0.91% as on 30 June 2016 compared with 0.87% as on 31 March 2016 and 0.79% as on 30 June 2015. The ratio of net NPA to net advances stood at 0.38% as on 30 June 2016 as against 0.36% as on 31 March 2016 and 0.31% as on 30 June 2015.
The bank's provisions and contingencies rose 86.87% to Rs 230.47 crore in Q1 June 2016 over Q1 June 2015.
Among PSU bank stocks, State Bank of India (SBI) (up 2.84%), Bank of Baroda (up 4.78%), Canara Bank (up 4.48%), IDBI Bank (up 2.08%), Bank of India (up 5.23%) and Union Bank of India (up 4.2%) gained.
Punjab National Bank jumped 9.27% after the Reserve Bank of India (RBI) after trading hours on Friday, 8 July 2016, notified that the aggregate foreign shareholding in the state-run bank has gone below the prescribed threshold caution limit stipulated under the extant foreign direct investment (FDI) policy. Hence, the restrictions placed on the purchase of shares of PNB are withdrawn with immediate effect.
State-run coal-mining giant Coal India rose 2.84% ahead of the board meeting today, 11 July 2016 to consider the proposal for buyback of equity shares.
Index heavyweight and housing finance major HDFC rose 2.35%. The company announced after market hours today, 11 July 2016 that it will issue its first unrated synthetic rupee denominated Notes aggregating Rs 2000 crore with an option to retain oversubscription of upto Rs 1000 crore. The bonds will bear a fixed coupon and will have a tenor of 3 years and 1 month. The company proposes to list the Notes on the London Stock Exchange. Pricing will take place on or before 15 July 2016, subject to market conditions. The settlement shall be in the next week.
Index heavyweight Reliance Industries (RIL) rose 1.09%.
Index heavyweight and cigarette maker ITC gained 1.44%. The company will announce Q1 results on 21 July 2016.
Index heavyweight and IT major Infosys advanced 1.39%. Infosys is scheduled to announce its Q1 June 2016 results on Friday, 15 July 2016.
Auto stocks gained. Maruti Suzuki India (up 2.84%), Mahindra & Mahindra (M&M) (up 1.43%), Eicher Motors (up 0.5%), Bajaj Auto (up 1.64%), Hero MotoCorp (up 2.52%) and TVS Motor Company (up 0.61%) rose. Ashok Leyland fell 0.59%.
Tata Motors surged 3.93% after the company reported a 21% rise in its global wholesales at 92,551 units in June 2016 over June 2015. The company announced the sales volume data after market hours on Friday, 8 July 2016. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range rose 5% to 32,720 units in June 2016 over June 2015. Global wholesales of all passenger vehicles surged 31% to 59,831 units in June 2016 over June 2015.
Pharma stocks also moved higher. Cipla (up 0.31%), Dr Reddy's Laboratories (up 1.7%), Glenmark Pharmaceuticals (up 0.9%), Lupin (up 1.93%), Alkem Laboratories (up 2.2%), GlaxoSmithKline Pharmaceuticals (up 0.89%), Aurobindo Pharma (up 1.11%) and Wockhardt (up 2.5%) gained.
Sun Pharmaceutical Industries rose 1.41% after the company announced the launch of Gemcitabine InfuSMART Ready-To-Administer in oncology therapy in Europe. InfuSMART is a technology in which oncology products are developed in a Ready-To-Administer (RTA) bag. With the roll-out of Gemcitabine InfuSMART, Sun Pharma becomes world's first pharmaceutical company to manufacture and launch a licensed RTA oncology product. This innovatively differentiated product will have a shelf life of two years. Over the next few months, Sun Pharmaceutical Industries will launch Gemcitabine lnfuSMART across Netherlands, UK, Spain, Germany, Italy and France.
Sun Pharma said it will introduce additional InfuSMART oncology products in the future.
Cadila Healthcare rose 3.2% after the company said it received final approval from the US drug regulator for an oral anti-diabetic drug. The company made the announcement during trading hours today, 11 July 2016. The company has received the final approval from the US Food and Drug Administration (USFDA) to market Nateglinide Tablets USP in strengths of 60 milligram (mg) and 120 mg. The drug is an oral anti-diabetic agent used in the management of Type 2 diabetes mellitus. It will be produced at the group's formulations manufacturing facility at the pharma special economic zone (SEZ) in Ahmedabad.
Dishman Pharmaceuticals and Chemicals rose 2.98% after the company announced on Saturday, 9 July 2016, that renewal of US Food and Drug Administration (USFDA) inspection of the company's Bavla facility in Ahmedabad, Gujarat was successfully completed on 8 July 2016.
Tata Steel rose after the company said it entered into discussions with strategic players in the steel industry for its European businesses. The stock rose 2.72%. The announcement was made after trading hours on Friday, 8 July 2016. Tata Steel announced that it has entered into discussions with strategic players in the steel industry, including Thyssenkrupp AG for a strategic collaboration for its European businesses. The decision has been taken as an alternative to the ongoing process for the divestment of loss making Tata Steel UK. Tata Steel said that the discussions for strategic collaboration are currently at preliminary stage and there is no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders. Tata Steel also said it would begin separate processes for the sale of its South Yorkshire specialty steels business and the Hartlepool pipe mills, excluding the 20-inch tube mill, in the UK. Tata Steel has already received interest from several bidders for these two businesses and the formal process for the sale of the businesses will commence shortly.
The Sensex has risen 626.97 points or 2.32% in this month so far (till 11 July 2016). The Sensex has risen 1,509.15 points or 5.77% in calendar year 2016 so far (till 11 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,132.08 points or 22.81%. The Sensex is off 951.64 points or 3.32% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,398.05 points or 7.98% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, as per the monthly data released by the Association of Mutual Funds in India (AMFI), equity mutual fund schemes including tax saving equity schemes known as Equity Linked Saving Schemes (ELSS) received net inflow of Rs 320 crore in June 2016. The inflow would have been much higher if one excludes large redemption of arbitrage funds. Media reports suggest that there was redemption of Rs 3500 crore from arbitrage funds in June 2016. AMFI does not give separate data on arbitrage funds. It clubs arbitrage funds under the equity fund category.
Meanwhile, balanced funds received net inflow of Rs 2402 crore in June 2016. Balanced funds typically have 65-70% of their portfolio invested in equities and 30-35% in debt.
In overseas stock markets, US stocks edged higher during the previous trading session on Friday, 8 July 2016, as strong June employment report bolstered investor sentiment on the strength of the economy. US employers in June added a seasonally adjusted 287,000 jobs, the strongest month of hiring since last October, according to the Labor Department report. That was a sharp rebound from May, when hiring sagged to 11,000, the weakest reading since the economy stopped shedding jobs in 2010. The unemployment rate rose to 4.9% from 4.7%, suggesting that more people entered the labor force, given the better-than-expected headline number.
World stocks edged higher as stronger-than-expected US jobs report suggested that the US economic recovery was back on track. Global markets were also boosted by the election in Japan over the weekend. With continued uncertainty over the fallout of the UK's Brexit vote and low inflation in the United States, the solid US employment data for June 2016, however, isn't seen prompting hike in interest rates from the US Federal Reserve any time soon. The Fed funds futures market data showed that investors are not pricing in a rate increase from the US Federal Reserve in calendar year 2016 despite the strong jobs report for June 2016. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. A delay in interest rate increases from the Fed would slow capital flight from emerging markets.
Japanese stocks surged as investors saw weekend poll results for Japan's upper house as signaling new rounds of economic and political reforms by the coalition government led by Prime Minister Shinzo Abe. The Nikkei 225 Average closed 3.98% higher. In the upper house elections held yesterday, 10 July 2016, Abe's ruling coalition led by his Liberal Democratic Party won a landslide victory, making it far easier for Abe to push through his economic agenda dubbed Abenomics.
The Sensex jumped 499.79 points or 1.84% to settle at 27,626.69, its highest closing level since 19 August 2015. The index jumped 520.58 points or 1.92% at the day's high of 27,647.48. The index rose 231.33 points or 0.85% at the day's low of 27,358.23.
The Nifty gained 144.70 points or 1.74% to settle at 8,467.90, its highest closing level since 19 August 2015. The index jumped 152.05 points or 1.83% at the day's high of 8,475.25. The index rose 83.85 points or 1.01% at the day's low of 8,407.05.
All the nineteen sectoral indices on BSE registered gains. The S&P BSE Realty index (up 2.05%), the S&P BSE Metal index (up 2.46%), the S&P BSE Bankex (up 2.07%), the S&P BSE Auto index (up 2.19%), and the S&P BSE Finance index (up 2.25%) outperformed the Sensex. The S&P BSE Industrials index (up 1.72%), the S&P BSE Capital Goods index (up 1.45%), the S&P BSE Energy index (up 1.43%), the S&P BSE IT index (up 1.12%), the S&P BSE Telecom index (up 1.45%), the S&P BSE Teck index (up 1.45%), the S&P BSE Basic Materials index (up 1.34%), the S&P BSE Oil & Gas index (up 1.29%), the S&P BSE FMCG index (up 1%), the S&P BSE Power index (up 1.55%), the S&P BSE Consumer Durables index (up 0.45%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.27%), the S&P BSE Utilities index (up 1.27%) and the S&P BSE Healthcare index (up 1.38%), underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,721 shares gained and 1,039 shares fell. A total of 185 shares were unchanged. The BSE Mid-Cap index rose 1.49%. The BSE Small-Cap index gained 0.79%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3270 crore, higher than turnover of Rs 3131.31 crore registered during the previous trading session.
Bank stocks edged higher on renewed buying. Among private bank stocks, Kotak Mahindra Bank (up 2.29%), and ICICI Bank (up 3.44%) rose.
Index heavyweight HDFC Bank gained 2.23% to Rs 1,198.30. The stock hit a high of Rs 1,201.30 in intraday trade so far which is record high for the counter. The stock hit a low of Rs 1,184.10 in intraday trade.
Yes Bank rose 2.11% to Rs 1,142.70 after hitting record high of Rs 1,148.60 in intraday trade.
Axis Bank fell 0.38%. Media reports suggested that the central government has finally made up its mind to sell minority stakes in many listed and unlisted companies held through the Specified Undertaking of the Unit Trust of India (SUUTI), in a bid to meet its asset-sale target. The government has invited bids from bankers for the mandate to manage the stake-sale process. SUUTI currently holds 11.53% stake in Axis Bank (as per the shareholding pattern as on 31 March 2016).
IndusInd Bank slipped in volatile trade after announcing Q1 June 2016 results. The stock fell 0.11% to Rs 1,125.50. The stock hit high of Rs 1,147.50 in intraday trade which is a record high for the counter. The stock hit low of Rs 1,115.50 in intraday trade. The bank's net profit rose 25.96% to Rs 661.38 crore on 22.36% growth in total income to Rs 4264.66 crore in Q1 June 2016 over Q1 June 2015.
IndusInd Bank's gross non-performing assets (NPA) stood at Rs 860.64 crore as on 30 June 2016 compared with Rs 776.82 crore as on 31 March 2016 and Rs 570.12 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 0.91% as on 30 June 2016 compared with 0.87% as on 31 March 2016 and 0.79% as on 30 June 2015. The ratio of net NPA to net advances stood at 0.38% as on 30 June 2016 as against 0.36% as on 31 March 2016 and 0.31% as on 30 June 2015.
The bank's provisions and contingencies rose 86.87% to Rs 230.47 crore in Q1 June 2016 over Q1 June 2015.
Among PSU bank stocks, State Bank of India (SBI) (up 2.84%), Bank of Baroda (up 4.78%), Canara Bank (up 4.48%), IDBI Bank (up 2.08%), Bank of India (up 5.23%) and Union Bank of India (up 4.2%) gained.
Punjab National Bank jumped 9.27% after the Reserve Bank of India (RBI) after trading hours on Friday, 8 July 2016, notified that the aggregate foreign shareholding in the state-run bank has gone below the prescribed threshold caution limit stipulated under the extant foreign direct investment (FDI) policy. Hence, the restrictions placed on the purchase of shares of PNB are withdrawn with immediate effect.
State-run coal-mining giant Coal India rose 2.84% ahead of the board meeting today, 11 July 2016 to consider the proposal for buyback of equity shares.
Index heavyweight and housing finance major HDFC rose 2.35%. The company announced after market hours today, 11 July 2016 that it will issue its first unrated synthetic rupee denominated Notes aggregating Rs 2000 crore with an option to retain oversubscription of upto Rs 1000 crore. The bonds will bear a fixed coupon and will have a tenor of 3 years and 1 month. The company proposes to list the Notes on the London Stock Exchange. Pricing will take place on or before 15 July 2016, subject to market conditions. The settlement shall be in the next week.
Index heavyweight Reliance Industries (RIL) rose 1.09%.
Index heavyweight and cigarette maker ITC gained 1.44%. The company will announce Q1 results on 21 July 2016.
Index heavyweight and IT major Infosys advanced 1.39%. Infosys is scheduled to announce its Q1 June 2016 results on Friday, 15 July 2016.
Auto stocks gained. Maruti Suzuki India (up 2.84%), Mahindra & Mahindra (M&M) (up 1.43%), Eicher Motors (up 0.5%), Bajaj Auto (up 1.64%), Hero MotoCorp (up 2.52%) and TVS Motor Company (up 0.61%) rose. Ashok Leyland fell 0.59%.
Tata Motors surged 3.93% after the company reported a 21% rise in its global wholesales at 92,551 units in June 2016 over June 2015. The company announced the sales volume data after market hours on Friday, 8 July 2016. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range rose 5% to 32,720 units in June 2016 over June 2015. Global wholesales of all passenger vehicles surged 31% to 59,831 units in June 2016 over June 2015.
Pharma stocks also moved higher. Cipla (up 0.31%), Dr Reddy's Laboratories (up 1.7%), Glenmark Pharmaceuticals (up 0.9%), Lupin (up 1.93%), Alkem Laboratories (up 2.2%), GlaxoSmithKline Pharmaceuticals (up 0.89%), Aurobindo Pharma (up 1.11%) and Wockhardt (up 2.5%) gained.
Sun Pharmaceutical Industries rose 1.41% after the company announced the launch of Gemcitabine InfuSMART Ready-To-Administer in oncology therapy in Europe. InfuSMART is a technology in which oncology products are developed in a Ready-To-Administer (RTA) bag. With the roll-out of Gemcitabine InfuSMART, Sun Pharma becomes world's first pharmaceutical company to manufacture and launch a licensed RTA oncology product. This innovatively differentiated product will have a shelf life of two years. Over the next few months, Sun Pharmaceutical Industries will launch Gemcitabine lnfuSMART across Netherlands, UK, Spain, Germany, Italy and France.
Sun Pharma said it will introduce additional InfuSMART oncology products in the future.
Cadila Healthcare rose 3.2% after the company said it received final approval from the US drug regulator for an oral anti-diabetic drug. The company made the announcement during trading hours today, 11 July 2016. The company has received the final approval from the US Food and Drug Administration (USFDA) to market Nateglinide Tablets USP in strengths of 60 milligram (mg) and 120 mg. The drug is an oral anti-diabetic agent used in the management of Type 2 diabetes mellitus. It will be produced at the group's formulations manufacturing facility at the pharma special economic zone (SEZ) in Ahmedabad.
Dishman Pharmaceuticals and Chemicals rose 2.98% after the company announced on Saturday, 9 July 2016, that renewal of US Food and Drug Administration (USFDA) inspection of the company's Bavla facility in Ahmedabad, Gujarat was successfully completed on 8 July 2016.
Tata Steel rose after the company said it entered into discussions with strategic players in the steel industry for its European businesses. The stock rose 2.72%. The announcement was made after trading hours on Friday, 8 July 2016. Tata Steel announced that it has entered into discussions with strategic players in the steel industry, including Thyssenkrupp AG for a strategic collaboration for its European businesses. The decision has been taken as an alternative to the ongoing process for the divestment of loss making Tata Steel UK. Tata Steel said that the discussions for strategic collaboration are currently at preliminary stage and there is no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders. Tata Steel also said it would begin separate processes for the sale of its South Yorkshire specialty steels business and the Hartlepool pipe mills, excluding the 20-inch tube mill, in the UK. Tata Steel has already received interest from several bidders for these two businesses and the formal process for the sale of the businesses will commence shortly.
The Sensex has risen 626.97 points or 2.32% in this month so far (till 11 July 2016). The Sensex has risen 1,509.15 points or 5.77% in calendar year 2016 so far (till 11 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,132.08 points or 22.81%. The Sensex is off 951.64 points or 3.32% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,398.05 points or 7.98% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, as per the monthly data released by the Association of Mutual Funds in India (AMFI), equity mutual fund schemes including tax saving equity schemes known as Equity Linked Saving Schemes (ELSS) received net inflow of Rs 320 crore in June 2016. The inflow would have been much higher if one excludes large redemption of arbitrage funds. Media reports suggest that there was redemption of Rs 3500 crore from arbitrage funds in June 2016. AMFI does not give separate data on arbitrage funds. It clubs arbitrage funds under the equity fund category.
Meanwhile, balanced funds received net inflow of Rs 2402 crore in June 2016. Balanced funds typically have 65-70% of their portfolio invested in equities and 30-35% in debt.
In overseas stock markets, US stocks edged higher during the previous trading session on Friday, 8 July 2016, as strong June employment report bolstered investor sentiment on the strength of the economy. US employers in June added a seasonally adjusted 287,000 jobs, the strongest month of hiring since last October, according to the Labor Department report. That was a sharp rebound from May, when hiring sagged to 11,000, the weakest reading since the economy stopped shedding jobs in 2010. The unemployment rate rose to 4.9% from 4.7%, suggesting that more people entered the labor force, given the better-than-expected headline number.
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