Market gains on GST passage hopes
Key benchmark indices eked out small gains after media reports suggested that the Goods and Services Tax (GST) constitutional amendment bill has been listed for discussion in the Rajya Sabha next week. The barometer index, the S&P BSE Sensex, rose 92.72 points or 0.33% to settle at 27,803.24. The Nifty 50 index rose 31.10 points or 0.37% to settle at 8,541.20. The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The month-long monsoon session of the parliament will conclude on 12 August 2016.
Power Grid Corporation of India moved higher after the company's board of directors accorded approval for eleven investment proposals aggregating Rs 2734.94 crore. Cigarette major ITC edged lower in volatile trade after announcing first quarter results.
In overseas stocks markets, European stocks reversed initial losses after a flash reading on the eurozone composite Purchasing Managers' Index (PMI) for July 2016 beat expectations. The flash composite PMI compiled by Markit Economics came in at 52.9. The flash services PMI came in at 52.7, beating expectations. On the other hand, the flash manufacturing PMI came in at a two-month low of 51.90 and fell short of market expectations.
European stocks ended on a mixed note yesterday, 21 July 2016, after European Central Bank (ECB) held rates unchanged after a monetary policy review. ECB emphasized that it intends to keep rates at current or lower levels for an extended period and that its program of monthly bond buys would run until at least March 2017, and possibly beyond.
Earlier during the global day, Japanese stocks led losses for Asian equities after comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda dashed hopes for so-called helicopter money or ultra-aggressive easing measures from the Japanese central bank. The Nikkei 225 Average settled 1.09% lower. In an interview to a British radio station taped in mid-June and broadcast yesterday, 21 July 2016, Kuroda ruled out the idea of using helicopter money -- or directly underwriting the budget deficit -- to combat deflation. The BOJ is scheduled to review monetary policy at a two-day meeting on 28-29 July 2016.
US stocks edged lower yesterday, 21 July 2016, with the Dow Industrial Average snapping a nine-day string of gains, as a hot equity market cooled ahead of key central-bank meetings across the globe.
The Sensex rose 92.72 points or 0.33% to settle at 27,803.24, its highest closing level since 20 July 2016. The index rose 121.93 points, or 0.44% at the day's high of 27,832.45. The index fell 64.31 points, or 0.23% at the day's low of 27,646.21.
The Nifty rose 31.10 points or 0.37% to settle at 8,541.20, its highest closing level since 20 July 2016. The index rose 38.85 points, or 0.46% at the day's high of 8,548.95. The index fell 20.30 points, or 0.24% at the day's low of 8,489.80.
The market breadth indicating the overall health of the market was positive. On BSE, 1,486 shares rose and 1,179 shares fell. A total of 205 shares were unchanged. The BSE Mid-Cap index rose 0.98%. The BSE Small-Cap index rose 0.81%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3291 crore, lower than turnover of Rs 3388.14 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Power index (up 1.41%), the S&P BSE Utilities index (up 1.37%), the S&P BSE Metal index (up 1.34%), the S&P BSE Industrials index (up 1.29%), the S&P BSE Basic Materials index (up 1.16%), the S&P BSE Capital Goods index (up 1.01%), the S&P BSE Telecom index (up 0.91%), the S&P BSE Realty index (up 0.81%), the S&P BSE Auto index (up 0.78%), the S&P BSE Finance index (up 0.77%), the S&P BSE Energy index (up 0.70%), the S&P BSE Oil & Gas index (up 0.62%) and the S&P BSE Consumer Discretionary Goods & Services index (up 0.38%), outperformed the Sensex. The S&P BSE Consumer Durables index (up 0.31%), the S&P BSE Healthcare index (up 0.31%), the S&P BSE FMCG index (up 0.13%), the S&P BSE Bankex (up 0.10%), the S&P BSE Teck index (up 0.08%) and the S&P BSE IT index (down 0.26%), underperformed the Sensex.
Power Grid Corporation of India rose 2.52% to Rs 166.85 after the company's board of directors accorded approval for eleven investment proposals aggregating Rs 2734.94 crore. The announcement was made after market hours yesterday, 21 July 2016.
Index heavyweight and housing finance major HDFC rose 1.78% to Rs 1,355.65. The stock hit a high of Rs 1,358.50 and a low of Rs 1,327 in intraday trade. The company after market hours yesterday, 21 July 2016, announced that it has completed the issue of rupee denominated bonds aggregating to Rs 3000 crore. HDFC had last week announced successfully raising Rs 3000 crore in first overseas issue of rupee denominated bonds by an Indian company.
Cigarette major ITC edged lower in volatile trade after announcing first quarter results. The stock shed 0.44% at Rs 249.55. The stock hit a high of Rs 256 and a low of Rs 247.20 in intraday trade. The company's net profit rose 10.09% to Rs 2384.67 crore on 8.61% increase in total income to Rs 13673.58 crore in Q1 June 2016 over Q1 June 2015. The result was announced after trading hours yesterday, 21 July 2016.
ITC said it delivered steady performance in Q1 June 2016 despite a challenging operating environment marked by continuing pressure on legal cigarette industry volumes and persistently sluggish demand conditions prevailing in the FMCG industry. Operating conditions in the hotels and paperboards, paper and packaging segment also remained subdued.
ITC said that the performance of the cigarette business during the quarter remained subdued on account of continued pressure on the legal cigarette industry in India. Over the last 4 years, the incidence of excise duty and VAT on cigarettes, at a per unit level, has gone up cumulatively by 118% and 142% respectively thereby exerting severe pressure on legal industry volumes even as illegal trade grows unabated. High incidence of taxation and a discriminatory regulatory regime on cigarettes in India have over the years led to a significant shift in tobacco consumption to lightly taxed or tax-evaded tobacco products like bidi, khaini, chewing tobacco, gutkha and illegal cigarettes which presently constitute over 89% of total tobacco consumption in the country.
Stocks of most public sector banks declined. Canara Bank (down 4.21%), Union Bank of India (down 3.36%), Punjab National Bank (down 2.79%), Punjab and Sind Bank (down 1.95%), Corporation Bank (down 1.77%), Indian Bank (down 1.75%), UCO Bank (down 1.73%), Dena Bank (down 1.14%), Bank of India (down 1.12%), State Bank of India (down 0.95%), Bank of Baroda (down 0.89%), United Bank of India (down 0.86%), Andhra Bank (down 0.69%), Allahabad Bank (down 0.27%) and Syndicate Bank (down 0.2%), edged lower. IDBI Bank (up 0.21%), Central Bank of India (up 0.26%) and Vijaya Bank (up 2.89%), edged higher.
Most private sector banks edged higher. Federal Bank (up 4.67%), ICICI Bank (up 0.63%), City Union Bank (up 0.33%), Yes Bank (up 0.33%), HDFC Bank (up 0.24%) and IndusInd Bank (up 0.04%) edged higher. Kotak Mahindra Bank fell 0.09%.
Axis Bank fell 0.13% to Rs 537.55 ahead of Q1 results today, 22 July 2016.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 2.39%), Idea Cellular (up 1.28%) and Bharti Airtel (up 0.56%), edged higher. MTNL (down 0.46%) and Tata Teleservices (Maharashtra) (down 0.73%), edged lower.
Metal shares also edged higher. Vedanta (up 7.44%), Steel Authority of India (up 2.46%), Jindal Steel & Power (up 2.29%), NMDC (up 2.08%), National Aluminium Company (up 1.78%), Hindalco Industries (up 1.76%), Tata Steel (up 0.83%), JSW Steel (up 0.26%) and Hindustan Zinc (up 0.23%), edged higher. Bhushan Steel fell 0.48%.
Copper price was almost unchanged in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.02% at $2.258 per pound on the COMEX.
The Sensex has risen 803.52 points or 2.98% in this month so far (till 22 July 2016). The Sensex has risen 1,685.70 points or 6.45% in calendar year 2016 so far (till 22 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,308.63 points or 23.60%. The Sensex is off 614.35 points or 2.16% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,221.50 points or 7.40% from a record high of 30,024.74 hit on 4 March 2015.
Power Grid Corporation of India moved higher after the company's board of directors accorded approval for eleven investment proposals aggregating Rs 2734.94 crore. Cigarette major ITC edged lower in volatile trade after announcing first quarter results.
In overseas stocks markets, European stocks reversed initial losses after a flash reading on the eurozone composite Purchasing Managers' Index (PMI) for July 2016 beat expectations. The flash composite PMI compiled by Markit Economics came in at 52.9. The flash services PMI came in at 52.7, beating expectations. On the other hand, the flash manufacturing PMI came in at a two-month low of 51.90 and fell short of market expectations.
European stocks ended on a mixed note yesterday, 21 July 2016, after European Central Bank (ECB) held rates unchanged after a monetary policy review. ECB emphasized that it intends to keep rates at current or lower levels for an extended period and that its program of monthly bond buys would run until at least March 2017, and possibly beyond.
Earlier during the global day, Japanese stocks led losses for Asian equities after comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda dashed hopes for so-called helicopter money or ultra-aggressive easing measures from the Japanese central bank. The Nikkei 225 Average settled 1.09% lower. In an interview to a British radio station taped in mid-June and broadcast yesterday, 21 July 2016, Kuroda ruled out the idea of using helicopter money -- or directly underwriting the budget deficit -- to combat deflation. The BOJ is scheduled to review monetary policy at a two-day meeting on 28-29 July 2016.
US stocks edged lower yesterday, 21 July 2016, with the Dow Industrial Average snapping a nine-day string of gains, as a hot equity market cooled ahead of key central-bank meetings across the globe.
The Sensex rose 92.72 points or 0.33% to settle at 27,803.24, its highest closing level since 20 July 2016. The index rose 121.93 points, or 0.44% at the day's high of 27,832.45. The index fell 64.31 points, or 0.23% at the day's low of 27,646.21.
The Nifty rose 31.10 points or 0.37% to settle at 8,541.20, its highest closing level since 20 July 2016. The index rose 38.85 points, or 0.46% at the day's high of 8,548.95. The index fell 20.30 points, or 0.24% at the day's low of 8,489.80.
The market breadth indicating the overall health of the market was positive. On BSE, 1,486 shares rose and 1,179 shares fell. A total of 205 shares were unchanged. The BSE Mid-Cap index rose 0.98%. The BSE Small-Cap index rose 0.81%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3291 crore, lower than turnover of Rs 3388.14 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Power index (up 1.41%), the S&P BSE Utilities index (up 1.37%), the S&P BSE Metal index (up 1.34%), the S&P BSE Industrials index (up 1.29%), the S&P BSE Basic Materials index (up 1.16%), the S&P BSE Capital Goods index (up 1.01%), the S&P BSE Telecom index (up 0.91%), the S&P BSE Realty index (up 0.81%), the S&P BSE Auto index (up 0.78%), the S&P BSE Finance index (up 0.77%), the S&P BSE Energy index (up 0.70%), the S&P BSE Oil & Gas index (up 0.62%) and the S&P BSE Consumer Discretionary Goods & Services index (up 0.38%), outperformed the Sensex. The S&P BSE Consumer Durables index (up 0.31%), the S&P BSE Healthcare index (up 0.31%), the S&P BSE FMCG index (up 0.13%), the S&P BSE Bankex (up 0.10%), the S&P BSE Teck index (up 0.08%) and the S&P BSE IT index (down 0.26%), underperformed the Sensex.
Power Grid Corporation of India rose 2.52% to Rs 166.85 after the company's board of directors accorded approval for eleven investment proposals aggregating Rs 2734.94 crore. The announcement was made after market hours yesterday, 21 July 2016.
Index heavyweight and housing finance major HDFC rose 1.78% to Rs 1,355.65. The stock hit a high of Rs 1,358.50 and a low of Rs 1,327 in intraday trade. The company after market hours yesterday, 21 July 2016, announced that it has completed the issue of rupee denominated bonds aggregating to Rs 3000 crore. HDFC had last week announced successfully raising Rs 3000 crore in first overseas issue of rupee denominated bonds by an Indian company.
Cigarette major ITC edged lower in volatile trade after announcing first quarter results. The stock shed 0.44% at Rs 249.55. The stock hit a high of Rs 256 and a low of Rs 247.20 in intraday trade. The company's net profit rose 10.09% to Rs 2384.67 crore on 8.61% increase in total income to Rs 13673.58 crore in Q1 June 2016 over Q1 June 2015. The result was announced after trading hours yesterday, 21 July 2016.
ITC said it delivered steady performance in Q1 June 2016 despite a challenging operating environment marked by continuing pressure on legal cigarette industry volumes and persistently sluggish demand conditions prevailing in the FMCG industry. Operating conditions in the hotels and paperboards, paper and packaging segment also remained subdued.
ITC said that the performance of the cigarette business during the quarter remained subdued on account of continued pressure on the legal cigarette industry in India. Over the last 4 years, the incidence of excise duty and VAT on cigarettes, at a per unit level, has gone up cumulatively by 118% and 142% respectively thereby exerting severe pressure on legal industry volumes even as illegal trade grows unabated. High incidence of taxation and a discriminatory regulatory regime on cigarettes in India have over the years led to a significant shift in tobacco consumption to lightly taxed or tax-evaded tobacco products like bidi, khaini, chewing tobacco, gutkha and illegal cigarettes which presently constitute over 89% of total tobacco consumption in the country.
Stocks of most public sector banks declined. Canara Bank (down 4.21%), Union Bank of India (down 3.36%), Punjab National Bank (down 2.79%), Punjab and Sind Bank (down 1.95%), Corporation Bank (down 1.77%), Indian Bank (down 1.75%), UCO Bank (down 1.73%), Dena Bank (down 1.14%), Bank of India (down 1.12%), State Bank of India (down 0.95%), Bank of Baroda (down 0.89%), United Bank of India (down 0.86%), Andhra Bank (down 0.69%), Allahabad Bank (down 0.27%) and Syndicate Bank (down 0.2%), edged lower. IDBI Bank (up 0.21%), Central Bank of India (up 0.26%) and Vijaya Bank (up 2.89%), edged higher.
Most private sector banks edged higher. Federal Bank (up 4.67%), ICICI Bank (up 0.63%), City Union Bank (up 0.33%), Yes Bank (up 0.33%), HDFC Bank (up 0.24%) and IndusInd Bank (up 0.04%) edged higher. Kotak Mahindra Bank fell 0.09%.
Axis Bank fell 0.13% to Rs 537.55 ahead of Q1 results today, 22 July 2016.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 2.39%), Idea Cellular (up 1.28%) and Bharti Airtel (up 0.56%), edged higher. MTNL (down 0.46%) and Tata Teleservices (Maharashtra) (down 0.73%), edged lower.
Metal shares also edged higher. Vedanta (up 7.44%), Steel Authority of India (up 2.46%), Jindal Steel & Power (up 2.29%), NMDC (up 2.08%), National Aluminium Company (up 1.78%), Hindalco Industries (up 1.76%), Tata Steel (up 0.83%), JSW Steel (up 0.26%) and Hindustan Zinc (up 0.23%), edged higher. Bhushan Steel fell 0.48%.
Copper price was almost unchanged in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.02% at $2.258 per pound on the COMEX.
The Sensex has risen 803.52 points or 2.98% in this month so far (till 22 July 2016). The Sensex has risen 1,685.70 points or 6.45% in calendar year 2016 so far (till 22 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,308.63 points or 23.60%. The Sensex is off 614.35 points or 2.16% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,221.50 points or 7.40% from a record high of 30,024.74 hit on 4 March 2015.
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