THE END SESSION ( 30 / 06)

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.

NIFTY P /E ( JUNE )

NIFTY & BANK NIFTY DAILY PRICES-- JUNE 2016

THE END SESSION ( 29 / 06 / 2016 )

Sensex, Nifty attain highest closing level in almost a week

A recovery in global stocks from losses triggered by last week's unexpected outcome of the UK referendum for the country to leave the European Union (EU) aided gains on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 215.84 points or 0.81% to settle at 26,740.39. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty 50 index rose 76.15 points or 0.94% to settle at 8,204. With third straight day of gains, the Sensex and the Nifty, both, attained their highest closing level in almost a week. World stocks rose on speculation that central banks in the UK, Japan and the European Central Bank may boost monetary stimulus to counter a potential drag on the global economy from the UK's vote to leave the European Union known as Brexit. With the lone exception of the BSE FMCG index, all the other sectoral indices on BSE ended in positive zone.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,851 shares rose and 751 shares declined. A total of 186 shares were unchanged. A number of stocks forming part of the broad based BSE Small-Cap index registered gains exceeding 3% for the trading session. Almost 76% of the stocks forming part of the BSE Small-Cap index and nearly 77% of the stocks forming part of the BSE Mid-Cap index ended higher. The BSE Small-Cap index rose 1.31%. The BSE Mid-Cap index rose 0.98%. Both these indices outperformed the Sensex.

Realty and auto stocks edged higher on reports the Union Cabinet has approved 7th Pay Commission's proposal to raise salaries and pensions for central government employees. The DLF stock got additional boost from media reports that promoter KP Singh and his family has decided to wipe out the company's debt in a two-step transaction. Bosch surged after the company said that a meeting of its board of directors will be held on 1 July 2016 to consider a proposal for buyback of the company's equity shares.

Metal and mining stocks edged higher on reports that the Union Cabinet has cleared the National Mineral Exploration Policy (NMEP) that would allow private companies to carry out standalone exploration for the first time. IT stocks recovered from recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms.

In overseas stock markets, European stocks extended gains registered during the previous trading session as worries over the impact of the Brexit vote receded. In the UK, the FTSE 100 index was currently up 2.33%. British citizens last week voted for Britain to leave EU in a historic referendum known as Brexit. European Parliament in a resolution after an extraordinary plenary debate yesterday, 28 June 2016, urged the UK government for UK's swift exit from the union by activating Article 50 of the Treaty on European Union so as to end the uncertainty. MEPs also stressed the urgent need for reforms to ensure that the EU lives up to its citizens' expectations.

Japanese stocks led gains in Asian markets following overnight rally on Wall Street as jitters eased after the UK's vote last week to leave the European Union (EU) spurred global sell-off. The Nikkei 225 Average ended 1.59% higher. Japanese Prime Minister Shinzo Abe today, 29 June 2016, told his finance minister and the central bank chief to undertake all necessary measures to support the economy and financial markets, signaling his vigilance over the yen's resurgence following the UK vote.

US stocks registered strong gains yesterday, 28 June 2016, as investors looked for bargains after the Brexit fueled sell-off. Federal Reserve governor Jerome Powell today, 29 June 2016, said that the UK vote to leave the EU has heightened risks to an already fragile global economy and prompted the Federal Reserve to adopt a more patient posture as it considers future interest-rate moves. His remarks suggested that Fed officials are in no hurry to raise US interest rates again.

The Sensex rose 215.84 points or 0.81% to settle at 26,740.39, its highest closing level since 23 June 2016. The index jumped 251.62 points or 0.94% at the day's high of 26,776.17. The barometer index rose 81.76 points or 0.3% at the day's low of 26,606.31.

The Nifty 50 index rose 76.15 points or 0.94% to settle at 8,204, its highest closing level since 23 June 2016. The index rose 84.55 points or 1.04% at the day's high of 8,212.40. The index rose 29.80 points or 0.36% at the day's low of 8,157.65.

The total turnover on BSE amounted to Rs 2687 crore, higher than turnover of Rs 2635.32 crore registered during the previous trading session.

With the lone exception of the BSE FMCG index, all the other sectoral indices on BSE ended in positive zone. The S&P BSE Realty index (up 3.15%), the S&P BSE Utilities index (up 1.86%), the S&P BSE Power index (up 1.66%), the S&P BSE Auto index (up 1.51%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.43%), the S&P BSE IT index (up 1.39%), the S&P BSE Basic Materials index (up 1.34%), the S&P BSE Teck index (up 1.33%), the S&P BSE Consumer Durables index (up 1.29%), the S&P BSE Industrials index (up 1.16%), the S&P BSE Oil & Gas index (up 0.97%), the S&P BSE Metal index (up 0.94%) and the S&P BSE Finance index (up 0.86%), outperformed the Sensex. The S&P BSE Capital Goods index (up 0.78%), the S&P BSE Energy index (up 0.78%), the S&P BSE Bankex (up 0.73%), the S&P BSE Telecom index (up 0.55%), the S&P BSE Healthcare index (up 0.51%) and the S&P BSE FMCG index (down 0.14%), underperformed the Sensex.

Metal and mining stocks edged higher on reports that the Union Cabinet has cleared the National Mineral Exploration Policy (NMEP) that would allow private companies to carry out standalone exploration for the first time. Vedanta (up 3.29%), Hindustan Zinc (up 2.70%), Bhushan Steel (up 2.49%), Hindustan Copper (up 2.07%), National Aluminium Company (up 2.04%), NMDC (up 1.91%), Steel Authority of India (up 1.63%), Hindalco Industries (up 1.61%), JSW Steel (up 1.22%), Tata Steel (up 0.64%) and Jindal Steel & Power (up 0.53%), edged higher.

According to reports, NMEP will allow private companies to carry out stand-alone exploration for the first time and help auction prospective mineral blocks. The blocks that will go on sale are among 100 mineral zones identified by the state-run Geological Survey of India following an aero geophysical assessment, reports suggested.

Meanwhile, copper prices edged lower in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.11% at $2.173 per pound on the COMEX.

Auto stocks edged higher on reports the Union Cabinet has approved 7th Pay Commission's proposal to raise salaries and pensions for central government employees. Hero MotoCorp (up 3.95%), Tata Motors (up 1.53%), Maruti Suzuki (India) (up 1.36%), Escorts (up 0.96%), TVS Motor Company (up 0.88%), Bajaj Auto (up 0.71%) and Mahindra & Mahindra (up 0.62%), edged higher. Ashok Leyland (down 0.05%) and Eicher Motors (down 0.41%), 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. Media reports suggest that the Cabinet has approved minimum pay hike of 20% and a maximum pay hike of 25% for central government employees. The changes will be implemented effective 1 January 2016 and the arrears' payment will be done in tranches, according to reports.

Realty shares surged on 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. Unitech (up 7.85%), Parsvnath Developers (up 3.94%), Mahindra Lifespace Developers (up 3.87%), Sobha (up 3.17%), Housing Development and Infrastructure (HDIL) (up 3.01%), Peninsula Land (up 2.61%), D B Realty (up 2.10%), Anant Raj (up 1.88%), Omaxe (up 1.79%), Indiabulls Real Estate (up 1.48%), Godrej Properties (up 1.16%) and Oberoi Realty (up 1.03%), edged higher. Sunteck Realty (down 0.39%), Phoenix Mills (down 0.44%) and Prestige Estates Projects (down 1.43%), edged lower.

DLF surged 7.83% to Rs 143.95 on media reports that promoter KP Singh and his family have decided to wipe out the company's debt in a two-step transaction. According to reports, the promoters will pump Rs 10000 crore into the company by purchasing shares in a preferential issue with funds raised from the sale of their stake in the company's rental unit. The Singh family plans to sell its 40% stake in DLF Cyber City Developers (DCCDL) for Rs 12000-13000 crore and will use the money to retire the parent company's debt, reports suggested. Separately, DLF will raise about Rs 3000 crore from institutional investors to ensure that the stake of the promoters doesn't breach the 75% threshold with the purchase of the preferential shares, as per reports.

Promoters currently hold 74.96% stake in DLF (as per the shareholding pattern as on 31 March 2016).

Bosch rose 5.26% at Rs 22,656.55 after the company said that a meeting of its board of directors will be held on 1 July 2016 to consider a proposal for buyback of the company's equity shares. The announcement was made after market hours yesterday, 28 June 2016.

Stocks of state-run firms edged higher on renewed buying. Rural Electrification Corporation (up 3.73%), Power Grid Corporation of India (up 2.60%), MMTC (up 2.37%), NTPC (up 2.36%), Bharat Heavy Electricals (up 2.31%), NMDC (up 1.91%), Power Finance Corporation (up 1.77%), Steel Authority of India (up 1.63%), Shipping Corporation of India (up 1.50%), MOIL (up 1.48%) and NHPC (up 0.40%) edged higher.
IT stocks recovered from recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms. Wipro (up 2.21%), HCL Technologies (up 1.77%), TCS (up 1.54%), MindTree (up 1.47%), MphasiS (up 1.11%), Tech Mahindra (up 0.67%) and Oracle Financial Services Software (up 0.65%), edged higher. Persistent Systems (down 0.64%) and Hexaware Technologies (down 1.69%), edged lower. Indian IT companies derive about 25% of their revenue from Europe.

Index heavyweight and software major Infosys rose 1.33% at Rs 1,176.55. The stock hit a high of Rs 1,179.35 and a low of Rs 1,161.25 in intraday trade.

Bank stocks edged higher on renewed buying. Among public sector banks, UCO Bank (up 2.70%), Dena Bank (up 1.79%), IDBI Bank (up 1.54%), Canara Bank (up 1.11%), Punjab & Sind Bank (up 0.63%), Union Bank of India (up 0.55%), Andhra Bank (up 0.45%), Bank of India (up 0.35%), Syndicate Bank (up 0.35%), Bank of Maharashtra (up 0.30%), Punjab National Bank (up 0.24%) and Allahabad Bank (up 0.22%), edged higher. Central Bank of India (down 0.09%), Indian Bank (down 0.25%), Bank of Baroda (down 0.29%), Corporation Bank (down 0.36%), Vijaya Bank (down 0.53%) and United Bank of India (down 1.11%), edged lower.

State Bank of India (SBI) rose 0.42% at Rs 217.20 after the bank said that the Executive Committee of the Central Board of the bank at its meeting held today, 29 June 2016, approved raising up to $1.5 billion in single/multiple tranches through a public offer or private placement of senior unsecured notes in US dollar or any other convertible currency during the current financial year (FY 2017). The announcement was made during market hours today, 29 June 2016.

Among private sector banks, IndusInd Bank (up 2.16%), ICICI Bank (up 1.46%), Kotak Mahindra Bank (up 1.02%), City Union Bank (up 1.01%), Federal Bank (up 0.54%), Axis Bank (up 0.50%) and Yes Bank (up 0.41%) edged higher.

The Reserve Bank of India has said in its biannual publication Financial Stability Report (FSR) June 2016 that its macro stress tests suggest that under the baseline scenario, the gross non-performing advances (GNPAs) ratio of scheduled commercial banks (SCBs) may rise to 8.5% by March 2017 from 7.6% in March 2016. Under the baseline scenario, the GNPA ratio of public sector banks (PSBs) may go up to 10.1% by March 2017 from 9.6% in March 2016. Under the baseline scenario, the GNPA ratio of private sector banks (PVBs) may increase to 3.1% by March 2017 from 2.7% in March 2016, which could further increase to 4.2% under a severe stress scenario i.e. when the macroeconomic scenario deteriorates. Under a severe stress scenario, the GNPA ratio of PSBs may increase to 11% by March 2017 from 9.6% in March 2016. Under such a severe stress scenario, the CRAR (capital to risk-weighted assets ratio) of SCBs may decline to 11.5% by March 2017 from 13.2% as of March 2016.

Index heavyweight HDFC Bank rose 0.1% at Rs 1,169.05. The stock turned ex-dividend today, 29 June 2016, for dividend of Rs 9.50 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.81% based on the closing price of Rs 1,167.85 on BSE yesterday, 28 June 2016.

Index heavyweight and housing finance major HDFC rose 1.48% at Rs 1,247.25. The stock hit a high of Rs 1,250.90 and a low of Rs 1,231.50 in intraday trade.

The Sensex and the Nifty edged higher for the third straight trading session. The Sensex has risen 342.68 points or 1.30% in three trading sessions from its close of 26,397.71 on 24 June 2016. The Sensex has fallen 72.43 points or 0.27% in this month so far (till 29 June 2016). The Sensex has risen 622.85 points or 2.38% in calendar year 2016 so far (till 29 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,245.78 points or 18.87%. The Sensex is off 1,837.94 points or 6.43% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,284.35 points or 10.94% from a record high of 30,024.74 hit on 4 March 2015.

THE END SESSION ( 28 / 06 / 2016 )

Benchmark indices edge higher for second straight session

A recovery in European stocks and gains in US index futures aided the upmove on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 121.59 points or 0.46% to settle at 26,524.55. The Nifty 50 index rose 33.15 points or 0.41% to settle at 8,127.85. The Sensex and the Nifty edged higher for the second straight trading session. Italian banks led gains in European stocks after reports that the Italian government is looking at adding €40 billion ($44 billion) to protect the country's financial system in the wake of the UK's vote to leave the European Union last week. Sixteen out of a total of nineteen sectoral indices on BSE ended higher.

Metal and mining stocks edged higher as copper prices rose in global commodities markets. Idea Cellular moved higher after the company said in an analysts meet presentation submitted to the stock exchanges that the company is gaining both revenue and traffic share in both mobile voice and data segments. IT stocks extended recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms.

The market breadth indicating the overall health of the market was strong. On BSE, 1,596 shares rose and 999 shares declined. A total of 191 shares were unchanged. The BSE Mid-Cap index rose 0.48%. The BSE Small-Cap index rose 0.79%. Both these indices outperformed the Sensex.

In overseas stock markets, Italian banks led gains in European equities after reports that the Italian government is looking at adding €40 billion ($44 billion) to protect the country's financial system in the wake of the UK's vote to leave the European Union last week. European stocks had witnessed heavy losses in the preceding two trading sessions after the UK's vote to exit the European Union in a historic referendum on 23 June 2016. Stocks recovered in the UK tracking a recovery in British pound against the dollar. The FTSE 100 index was currently up 2.34%. The pound had witnessed a massive slide in the preceding two trading sessions in the wake of the UK's vote to leave the European Union.

Meanwhile, global credit rating agency Standard & Poor's Global Ratings yesterday, 27 June 2016, lowered its long-term foreign and local currency sovereign credit ratings on the United Kingdom to 'AA' from 'AAA' after Britain last week voted to leave the European Union in a historic referendum known as Brexit. S&P said that Brexit will weaken the predictability, stability, and effectiveness of policymaking in the UK and affect its economy, GDP growth, and fiscal and external balances. S&P said that the downgrade also reflects the risks of a marked deterioration of external financing conditions in light of the UK's extremely elevated level of gross external financing requirements. The vote for "remain" in Scotland and Northern Ireland also creates wider constitutional issues for the country as a whole. The outlook on the long-term rating is negative. The negative outlook reflects the risk to economic prospects, fiscal and external performance, and the role of sterling as a reserve currency, as well as risks to the constitutional and economic integrity of the UK if there is another referendum on Scottish independence, S&P said in a statement.

Trading in US index futures indicated a recovery for US stocks from a recent selloff triggered by the UK's decision to leave the European Union. Trading in US index futures indicated that the Dow Jones Industrial Average could jump 192.50 points at the opening bell today, 28 June 2016. US stocks registered heavy losses for the second trading session in a row yesterday, 27 June 2016, as investors continued to dump assets perceived as risky in the wake of the UK's vote last week to leave the European Union. Activity in the US services sector remained subdued in June, according to preliminary data released yesterday, 27 June 2016. In a report, market research group Markit said that its flash services purchasing managers' index (PMI) remained unchanged at 51.3 in June.

The Sensex rose 121.59 points or 0.46% to settle at 26,524.55, its highest closing level since 23 June 2016. The index jumped 180.37 points or 0.68% at the day's high of 26,583.33. The index lost 24.50 points or 0.09% at the day's low of 26,378.46.

The Nifty rose 33.15 points or 0.41% to settle at 8,127.85, its highest closing level since 23 June 2016. The index rose 51.65 points or 0.64% at the day's high of 8,146.35. The index fell 7.85 points or 0.09% at the day's low of 8,086.85.

The total turnover on BSE amounted to Rs 2624 crore, lower than turnover of Rs 3279.90 crore registered during the previous trading session.

Sixteen out of a total of nineteen sectoral indices on BSE ended higher. The S&P BSE Telecom index (up 2.26%), the S&P BSE FMCG index (up 1.75%), the S&P BSE Metal index (up 1.01%), the S&P BSE Oil & Gas index (up 0.84%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.73%), the S&P BSE Energy index (up 0.72%), the S&P BSE Healthcare index (up 0.66%), the S&P BSE Realty index (up 0.66%), the S&P BSE Finance index (up 0.55%), the S&P BSE Power index (up 0.55%) and the S&P BSE Basic Materials index (up 0.54%), outperformed the Sensex. The S&P BSE Utilities index (up 0.45%), the S&P BSE Capital Goods index (up 0.37%), the S&P BSE Bankex (up 0.30%), the S&P BSE Auto index (up 0.29%), the S&P BSE Industrials index (up 0.04%), the S&P BSE Consumer Durables index (down 0.08%), the S&P BSE Teck index (down 0.46%) and the S&P BSE IT index (down 0.89%), underperformed the Sensex.

Index heavyweight and cigarette major ITC edged higher for the second straight trading session. The stock rose 2.59% at Rs 368.35. The stock hit a high of Rs 369.50 and a low of Rs 358 in intraday trade.

Dr Reddy's Laboratories rose 0.77% at Rs 3,265.75. The company during market hours today, 28 June 2016, announced the closure of the buyback of equity shares. The company has bought back 50.77 lakh shares at an average price of Rs 3,090.92 per share spending Rs 1569.41 crore.

Drug major Lupin rose 4.39% at Rs 1,543.30. The stock hit a high of Rs 1,548.90 and a low of Rs 1,479 in intraday trade.

Telecom stocks edged higher on renewed buying. Reliance Communications (up 1.26%) and Bharti Airtel (up 1.35%) rose.

Idea Cellular rose 3.94% after the company said in an analysts meet presentation submitted to the stock exchanges that the company is gaining both revenue and traffic share in both mobile voice and data segments. The company further said that it is in the midst of building a wide and deep mobile broadband infrastructure. The company further said that there is a large potential for data penetration in India. The company also said that there is large headroom for new mobile subscriber additions in India.

Shares of telecom towers company Bharti Infratel rose 3.04% after the company said that the proposed buyback of 4.70 crore shares at Rs 425 per share under tender offer route would commence on 12 July 2016 and close on 25 July 2016. The announcement was made before market hours today, 28 June 2016.

Metal and mining stocks edged higher as copper prices rose in global commodities markets. Hindustan Copper (up 4.42%), Jindal Steel & Power (up 3.77%), JSW Steel (up 2.84%), Hindustan Zinc (up 2.32%), Bhushan Steel (up 1.46%), NMDC (up 1.27%), Vedanta (up 0.65%), Steel Authority of India (up 0.59%) and Tata Steel (up 0.35%), edged higher. National Aluminium Company (down 0.24%) and Hindalco Industries (down 1.3%), edged lower.

High Grade Copper for September 2016 delivery was currently up 2.05% at $2.169 per pound on the COMEX.

IT stocks extended recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms. MphasiS (down 3.87%), HCL Technologies (down 2.91%), Hexaware Technologies (down 1.68%), TCS (down 1.34%), Wipro (down 1.22%), Persistent Systems (down 0.84%) and Tech Mahindra (down 0.64%) edged lower. Oracle Financial Services Software (up 0.29%) and MindTree (up 1.28%) edged higher.

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 about 25% of their revenue from Europe.

Index heavyweight and software major Infosys fell 0.45% at Rs 1,161.05. The stock hit a high of Rs 1,173 and a low of Rs 1,156 in intraday trade.

Stocks of public sector banks witnessed mixed trend. Dena Bank (up 4.55%), UCO Bank (up 3.42%), Bank of Baroda (up 1.65%), Allahabad Bank (up 1.56%), Union Bank of India (up 1.56%), Bank of India (up 0.91%), Bank of Maharashtra (up 0.76%), Corporation Bank (up 0.73%), Punjab & Sind Bank (up 0.63%), Indian Bank (up 0.61%), IDBI Bank (up 0.59%) and United Bank of India (up 0.45%), edged higher. Canara Bank (down 0.23%), State Bank of India (down 0.37%), Syndicate Bank (down 0.48%), Vijaya Bank (down 0.66%) and Central Bank of India (down 0.83%) edged lower.

Global credit rating agency Moody's Investors Service has said in a recent report that the Indian government's proposal to consolidate the country's public sector banks (PSBs) creates risks that -- in the current weak economic environment -- could offset the potential long-term benefits. Moody's Vice President and Senior Analyst Alka Anbarasu said that India's banking system has witnessed an increase in stressed assets since 2012 and that not a single PSB currently has the financial strength to assume a consolidator role without risking its own credit standing post-merger. The banks' weakened financial metrics since 2012 and weak performance mean that many have difficulties meeting minimum regulatory requirements without regular capital injections from the government. As a result, few public sector banks have the excess capital required to acquire meaningfully sized peers.

According to the credit rating agency, government support will be a crucial driver of the credit outcome of potential mergers of PSBs, particularly in the form of the equity capital required to shore up capital buffers. Moody's also sees considerable challenges from potential opposition from employee unions, which could hamper merger efforts and drive up costs.

Andhra Bank rose 0.82% after the bank announced that it has raised Rs 1000 crore by way of issue of 8.65%, 10 years (call option after 5 years) unsecured non-convertible redeemable Basel III compliant Tier 2 bonds (Series - C) in the nature of debentures on private placement basis. The issue opened for subscription from 22 June 2016 and closed on 27 June 2016. The announcement was made during market hours today, 28 June 2016.

Stocks of most private sector banks rose. HDFC Bank (up 0.85%), Kotak Mahindra Bank (up 0.64%), IndusInd Bank (up 0.41%), Axis Bank (up 0.11%), ICICI Bank (up 0.11%) and Federal Bank (up 0.09%) edged higher. City Union Bank (down 0.59%) and Yes Bank (down 0.66%) edged lower.

Shares of public sector oil marketing companies edged higher on renewed buying. BPCL (up 1.33%), Indian Oil Corporation (IOCL) (up 3.29 %) and HPCL (up 1.98%) edged higher.

Shares of oil exploration and production companies were mixed. Oil India (down 0.47%) and Cairn India (down 0.11%) edged lower. ONGC (up 0.52%) and Reliance Industries (up 0.22%) edged higher.

Crude oil futures edged higher in an indication that global markets were stabilizing in the wake of the UK's vote last week to leave the European Union. Brent for August 2016 settlement was currently up $1.15 at $48.31 a barrel. The contract had fallen $1.25 a barrel or 2.58% to settle at $47.16 a barrel yesterday, 27 June 2016. The contract had fallen $2.50 a barrel or 4.91% to settle at $48.41 a barrel on 24 June 2016 as investors dumped energy as part of a wider global selloff after the unexpected outcome of the UK referendum on 23 June 2016 for the country to leave the European Union.

The Sensex and the Nifty edged higher for the second straight trading session. The Sensex has risen 126.84 points or 0.48% in two sessions from its close of 26,397.71 on 24 June 2016. The Sensex has fallen 143.41 points or 0.54% in this month so far (till 28 June 2016). The Sensex has risen 407.01 points or 1.56% in calendar year 2016 so far (till 28 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,029.94 points or 17.92%. The Sensex is off 2,053.78 points or 7.19% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,500.19 points or 11.66% from a record high of 30,024.74 hit on 4 March 2015.

THE END SESSION ( 27 / 06 / 2016 )

Benchmark indices eke out minuscule gains

Amid a divergent trend among various index constituents, the two key benchmark indices settled near the flat line. The barometer index, the S&P BSE Sensex, rose 5.25 points or 0.02% to settle at 26,402.96. The Nifty 50 rose 6.10 points or 0.08% to settle at 8,094.70. Volatility was high throughout the session. IT stocks extended losses registered during the previous trading session triggered by the UK voting to leave in the European Union in a historic referendum on 23 June 2016.

Engineering & construction major L&T moved higher after the company's announcement that its construction division has secured orders worth Rs 2416 crore across various business segments in this month so far. Tata Steel extended losses registered during the previous trading session triggered by the UK voting to leave the European Union (EU) in a referendum on 23 June 2016. Stocks of public sector oil marketing companies (PSU OMCs) edged higher on fall in global crude oil prices.
The broad market depicted strength. More than two stocks rose for each stock that fell on BSE. 1,820 shares rose and 788 shares declined. A total of 179 shares were unchanged. A number of stocks forming part of the broad based BSE Small-Cap index registered gains exceeding 3% for the trading session. Nearly 80% of the stocks forming part of the BSE Small-Cap index ended higher. The BSE Small-Cap index rose 1.52%. The BSE Mid-Cap index rose 0.80%. Both these indices outperformed the Sensex.

Meanwhile, global credit rating agency Moody's Investors Service reportedly said in a note that the Indian government's recent decision to relax foreign direct (FDI) investment rules in sectors including defence, aviation, and retail is credit positive for its Baa3 sovereign rating on India because the move demonstrates a continuation of reform momentum and paves the way for private investment and a boost in productivity. The rating agency simultaneously warned that reforms have stalled in passing a revamped goods and services tax and land acquisition rules, according to media reports. Moody's reportedly expects that political division in India will keep the reform process uneven and slow-moving. Moody's currently rates India at Baa3, the lowest investment-grade rating, with a "positive" outlook.

In overseas stock markets, key equity benchmark indices in UK, Germany and France extended steep losses registered during the previous trading session on Friday, 24 June 2016, triggered by the UK voting to leave the European Union (EU) in a referendum on 23 June 2016 dubbed "Brexit". In UK, the FTSE 100 index was currently down 1.20%. Investors fear that Britain's exit from the EU could trigger slowdown in UK and European economies, stoke the anti-establishment mood in Europe and destabilize the trade bloc.

The unexpected referendum result sent shock waves through the UK parliament, leaving the two biggest political parties in turmoil. Soon after the Brexit referendum outcome, British Prime Minister David Cameron said on 24 June 2016 that he will resign as the country's prime minister. Meanwhile, over the weekend the leader of the opposition Labour Party Jeremy Corbyn sacked a key member of his cabinet seen as plotting a coup against him. That dismissal was followed by the resignations of 11 other key party members in a protest against Corbyn's leadership. More resignations followed today, 27 June 2016.

UK's finance minister, George Osborne, said in a statement today, 27 June 2016, that Britain has discussed co-ordinated response with the finance ministers and central bank governors of the G7 after the outcome of the referendum. He further said that he has been in contact with his fellow European finance ministers, central bank governors, the managing director of the IMF, the US Treasury Secretary and the Speaker of Congress, and the CEOs of some of Britain's major financial institutions so as to collectively keep a close eye on the developments. He said that only the UK can trigger Article 50, and that in his judgement the country should only do that when there is a clear view about what new arrangement the UK is seeking with its European neighbours. Osborne said that it is inevitable that Britain's economy will have to adjust to the outcome of the Brexit referendum. It is already evident that as a result of the decision, some firms are continuing to pause their decisions to invest, or to hire people.

The Governor of UK's central bank Bank of England Mark Carney said in a statement on 24 June 2016 that there will be a period of uncertainty and adjustment after people of the UK voted for the UK to leave the European Union. It will take some time for the UK to establish new relationships with Europe and the rest of the world. Some market and economic volatility can be expected as this process unfolds. Carney said that the Bank of England stands ready to provide more than £250b billion of additional funds through its normal facilities to support the functioning of markets. The Bank of England also stands ready to provide substantial liquidity in foreign currency, if required. A few months ago, the Bank of England judged that the risks around the referendum were the most significant, near-term domestic risks to financial stability. To mitigate them, the Bank of England has put in place extensive contingency plans, Carney said.

Meanwhile, Euroskeptic parties on the rise in other member states — such as Denmark, Sweden, Holland and Italy — are now calling for their own referendum, which could see the European Union face more uncertainty in coming years. A statement from the European Commission after a meeting at Brussels, Belgium between Martin Schulz, President of the European Parliament, Donald Tusk, President of the European Council and Mark Rutte, Holder of the Presidency of the Council of the European Union (EU) on 24 June 2016 stated that the union of the remaining 27 member states of the EU will continue after British people voted in favour of United Kingdom leaving the EU. The EU stands ready to launch negotiations swiftly with the UK regarding the terms and conditions of UK's withdrawal from the EU. The statement further mentioned that the EU now expects the UK government to give effect to this decision of the British people as soon as possible. Any delay would unnecessarily prolong uncertainty. The EU hopes that the UK becomes a close partner of the EU in the future.

Earlier during the global day, Asian stocks ended on a mixed note. Japanese stocks edged higher after warnings from Japanese officials that they may intervene in currency markets to stabilize the yen. The Nikkei 225 Average ended 2.39% higher. The safe-haven yen surged against the dollar on 24 June 2016 after the UK voted to leave the European Union in a referendum on 23 June 2016. A stronger yen hurts the competitiveness of Japanese exporters.

US stocks plunged during the previous trading session on Friday, 24 June 2016, after UK citizens voted to end the country's membership in the European Union—a historic rejection of Europe's political order. The US Federal Reserve said in a statement on 24 June 2016 that it is carefully monitoring developments in global financial markets, in cooperation with other central banks, following the results of the UK referendum on membership in the European Union. The Federal Reserve is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the US economy.

The Sensex rose 5.25 points or 0.02% to settle at 26,402.96, its highest closing level since 23 June 2016. The index rose 95.80 points or 0.36% at the day's high of 26,493.51. The index lost 134.99 points or 0.51% at the day's low of 26,262.72.
The Nifty 50 index rose 6.10 points or 0.08% to settle at 8,094.70, its highest closing level since 23 June 2016. The index rose 32.05 points or 0.4% at the day's high of 8,120.65. The index lost 49.25 points or 0.6% at the day's low of 8,039.35.

The total turnover on BSE amounted to Rs 3246 crore, lower than turnover of Rs 3968.19 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.01%), the S&P BSE Basic Materials index (up 1.91%), the S&P BSE Capital Goods index (up 1.62%), the S&P BSE Realty index (up 1.29%), the S&P BSE FMCG index (up 1.25%), the S&P BSE Industrials index (up 1.07%), the S&P BSE Oil & Gas index (up 1.07%), the S&P BSE Consumer Durables index (up 1.03%), the S&P BSE Energy index (up 0.65%), the S&P BSE Bankex (up 0.59%), the S&P BSE Finance index (up 0.53%), the S&P BSE Metal index (up 0.29%), the S&P BSE Utilities index (up 0.29%), the S&P BSE Power index (up 0.09%) and the S&P BSE Consumer Discretionary Goods & Services index (up 0.08%), outperformed the Sensex. The S&P BSE Telecom index (down 0.13%), the S&P BSE Auto index (down 0.25%), the S&P BSE Teck index (down 1.66%) and the S&P BSE IT index (down 1.86%), underperformed the Sensex.

Stocks of public sector banks edged higher. Vijaya Bank (up 6.45%), Indian Bank (up 4.90%), Dena Bank (up 4.78%), United Bank of India (up 4.44%), Bank of India (up 4.16%), Bank of Baroda (up 3.33%), UCO Bank (up 3.27%), Andhra Bank (up 3.20%), Allahabad Bank (up 3.15%), Syndicate Bank (up 2.92%), Bank of Maharashtra (up 2.83%), Punjab & Sind Bank (up 2.83%), State Bank of India (up 2.77%), Union Bank of India (up 2.66%), Canara Bank (up 2.41%), IDBI Bank (up 2.34%), Punjab National Bank (up 2.01%), Central Bank of India (up 0.95%) and Corporation Bank (up 0.86%), edged higher.

Stock of private sector banks were mixed. City Union Bank (up 3.37%), Federal Bank (up 1.45%), Kotak Mahindra Bank (up 0.92%) and ICICI Bank (up 0.78%), edged higher. Yes Bank (down 0.34%) and IndusInd Bank (down 1.75%), edged lower.

Index heavyweight HDFC Bank fell 0.32% at Rs 1,158.05. The stock hit a high of Rs 1,169.90 and a low of Rs 1,152.95 in intraday trade.

Axis Bank rose 0.76% at Rs 514.25 after a large bulk deal of 35.55 lakh shares was executed on the scrip at Rs 509.10 per share in opening trade on the BSE today, 27 June 2016.

Cement stocks edged higher on renewed buying. UltraTech Cement (up 3.07%), ACC (up 2.48%) and Ambuja Cements (up 2.30%) gained.

Grasim Industries rose 2.48%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Index heavyweight and cigarette major ITC rose 1.60% at Rs 359.05. The stock hit a high of Rs 361.05 and a low of Rs 354.60 in intraday trade.

Most capital goods shares edged higher. Jindal Saw (up 4.48%), Lakshmi Machine Works (up 3.69%), ALSTOM India (up 2.10%), Praj Industries (up 1.53%), Suzlon Energy (up 1.49%), Reliance Defence and Engineering (up 1.21%), SKF India (up 1.21%), Punj Lloyd (up 1.13%), BEML (up 0.94%), Crompton Greaves (up 0.70%), Bharat Heavy Electricals (up 0.68%), Havells India (up 0.39%), AIA Engineering (up 0.24%), Bharat Electronics (up 0.17%) and ABB India (up 0.08%), edged higher. Siemens (down 0.12%), Alstom T&D India (down 1.33%) and Thermax (down 1.33%), edgd lower.

Engineering & construction major L&T rose 2.36% at Rs 1,467.50 after the company said its construction division has secured orders worth Rs 2416 crore across various business segments in this month so far. L&T said that the building and factories division won orders worth Rs 1165 crore, power transmission and distribution business bagged orders worth Rs 1120 crore in the domestic and international markets and its smart world and communication business won orders worth Rs 131 crore. The announcement was made during market hours today, 27 June 2016.

Metal and mining stocks edged higher as copper prices rose in global commodities markets. Vedanta (up 3.65%), Jindal Steel & Power (up 2%), Hindalco Industries (up 1.83%), Bhushan Steel (up 1.34%), Steel Authority of India (up 0.71%), JSW Steel (up 0.41%), National Aluminium Company (up 0.24%) and Hindustan Copper (up 0.10%), edged higher. Hindustan Zinc fell 0.91%.

High Grade Copper for September 2016 delivery was currently up 0.4% at $2.1245 per pound on the COMEX.

Tata Steel extended losses registered during the previous trading session triggered by the UK voting to leave the European Union (EU) in a referendum on 23 June 2016. The stock fell 0.69% at Rs 310.35. The stock tumbled 6.37% to settle at Rs 312.50 on Friday, 24 June 2016. Tata Steel is Europe's second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. Tata Steel Europe has initiated the process to sell its UK business viz. Tata Steel UK. Tata Steel Europe has invited seven short listed potential investors to submit binding bids for Tata Steel UK.

IT stocks extended losses registered during the previous trading session triggered by the UK voting to leave in the European Union in a historic referendum on 23 June 2016. TCS (down 2.93%), Infosys (down 2.37%), MindTree (down 0.97%), HCL Technologies (down 0.96%), Persistent Systems (down 0.64%) and Tech Mahindra (down 0.49%), edged lower. Oracle Financial Services Software (up 0.04%), Hexaware Technologies (up 0.56%) and MphasiS (up 8.74%), edged higher.

According to a research note from a domestic brokerage on the impact of Brexit on Indian IT firms, Indian IT companies' revenue in dollar terms will be adversely impacted by the sharp depreciation of the British pound and the euro against the dollar. Indian IT companies derive about 25% of their revenue from Europe. 

According to the calculation by the domestic brokerage, 10% depreciation each of the pound and the euro against the dollar could shave about 1.5-2.5% off IT companies' revenue in dollar terms and adversely impact EBIT margins by 75-100 basis points. The pound has slumped against the dollar and the euro, too, has depreciated against the dollar after Britain voted to leave EU in a referendum on 23 June 2016.

Wipro fell 1.23% at Rs 549.10 after a large bulk deal of 34.01 lakh shares was executed on the scrip at Rs 554.20 per share in opening trade on the BSE today, 27 June 2016.

Most pharmaceutical shares edged higher. Biocon (up 6.61%), Aurobindo Pharma (up 3.23%), Dr Reddy's Laboratories (up 3.04%), Sun Pharmaceutical Industries (up 2.67%), Cipla (up 2.62%), Cadila Healthcare (up 2.48%), IPCA Laboratories (up 2.19%), Glenmark Pharmaceuticals (up 2.07%), Wockhardt (up 1.11%), Lupin (up 1.06%), Strides Shasun (up 0.67%), GlaxoSmithKline Pharmaceuticals (up 0.29%) and Divi's Laboratories (up 0.13%), edgd higher. Alkem Laboratories (down 0.42%) and Piramal Enterprises (down 1.81%), edged lower.

Stocks of public sector oil marketing companies (PSU OMCs) edged higher on fall in global crude oil prices. HPCL (up 4.07%), BPCL (up 2.57%) and Indian Oil Corporation (up 0.63%) gained. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

Stocks of oil exploration and production (E&P) companies also moved higher. ONGC (up 0.21%) and Cairn India (up 0.83%) edged higher. Oil India fell 0.68%.

Index heavyweight Reliance Industries was up 0.48% at Rs 956.10. The stock hit a high of Rs 958.80 and a low of Rs 944 in intraday trade.

In the global commodities markets, Brent for August 2016 settlement was currently down 26 cents at $48.15 a barrel. The contract had declined $2.50 a barrel or 4.91% to settle at $48.41 a barrel during the previous trading session after the UK's vote to leave the European Union in a nationwide referendum triggered a selloff across markets.

The Sensex has fallen 265 points or 0.99% in this month so far (till 27 June 2016). The Sensex has risen 285.42 points or 1.09% in calendar year 2016 so far (till 27 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,908.35 points or 17.37%. The Sensex is off 2,175.37 points or 7.61% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,621.78 points 12.06% from a record high of 30,024.74 hit on 4 March 2015.

THE WEEK AHEAD

Market may remain volatile ahead of near month F&O expiry

Progress of monsoon rains, the outcome of the monthly surveys on India's manufacturing and services sectors, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month June 2016 series to July 2016 series. The near month June 2016 derivatives contracts expire on Thursday, 30 June 2016.

Volatility may also remain high in the near future after an outcome of a British referendum stunned global financial markets on Friday, 24 June 2016 showing that UK had voted to leave the European Union in a historic referendum dubbed "Brexit". Global stocks had risen recently as investors bet that Britons would vote to reject Brexit, or a British exit from the European Union.

Investors will closely watch the progress of monsoon rains. According to the India Meteorological Department (IMD), the country has received overall 92.10 mm of rainfall as compared to normal level of 110.8 mm from 1 June to 23 June 2016, an overall deficiency of 17%. IMD in its second stage forecast on 3 June 2016 had stuck to its preliminary forecast of above normal rains for the 2016 southwest monsoon season (June to September). Quantitatively, monsoon season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of plus/minus 4%, IMD had said.

Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for June 2016 from Friday, 1 July 2016.

Stocks of public sector oil marketing companies (PSU OMCs) will be in focus as a fuel price review is due at the end of the month. PSU OMCs undertake fuel price review twice during the month based on the trend in international oil market. The first price review takes place during the middle of the month and the second on the last day of the month. Aviation stocks will be in focus as a monthly review of jet fuel prices is due at the end of the month. PSU OMCs review jet fuel prices on the last day every month based on the average imported crude oil price for the month. Jet fuel prices are directly linked to crude oil price.

Among domestic macro economic data, Markit Economics will announce the India Manufacturing PMI for June 2016 on Friday, 1 July 2016. The Nikkei India Services PMI will be declared on Tuesday, 5 July 2016.

On the global front, China's official June manufacturing purchasing managers' index will be announced on Friday, 1 July 2016. On the same day, Markit Economics will announce Caixin China General Manufacturing PMI for June 2016. The European Central Bank (ECB) starts its three-day Forum on Central Banking in Sintra, Portugal on Monday, 27 June 2016. Speakers include ECB President Mario Draghi, Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney. Negative interest rates and the aftermath of the UK referendum on the European Union will be among the issues discussed. In US, the Bureau of Economic Analysis will release the third estimate of Gross Domestic Product for first quarter of 2016.

THE WEEK THAT WAS

Market drops as UK votes to leave European Union

Key benchmark indices dropped in the week ended Friday, 24 June 2016 as gains triggered by government's announcement of a further liberalization of foreign direct investment (FDI) rules in some sectors were washed away by the UK voting to leave the European Union in a historic referendum dubbed "Brexit". Key indices edged lower in three out of five trading sessions during the week. The Sensex regained the psychologically important 26,000 level after falling below that level in intraday trade on Friday, 24 June 2016. The Nifty also regained the psychologically important 8,000 mark after falling below that level in intraday trade on Friday, 24 June 2016.

In the week ended Friday, 24 June 2016, the 30-share S&P BSE Sensex fell 228.20 points or 0.86% to settle at 26,397.71. The Nifty 50 index fell 81.60 points or 1% to settle at 8,088.60.

The BSE Mid-Cap index slipped 45.65 points or 0.4% to settle at 11,313.41. The fall in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index declined 156.53 points or 1.37% to settle at 11,278.63. The fall in the index was higher than the Sensex's decline in percentage terms.

Trading for the week started on a strong note. The government's announcement of a further liberalization of foreign direct investment (FDI) rules in some sectors and gains in global stocks aided the upmove on the domestic bourses at the onset of the week on Monday, 20 June 2016. The Sensex rose 241.01 points or 0.91% to settle at 26,866.92, its highest closing level since 8 June 2016.

The two key benchmark indices snapped a two-day winning streak in what was a lacklustre trading session on Tuesday, 21 June 2016. The Sensex fell 54.14 points or 0.2% to settle at 26,812.78, its lowest closing level since 17 June 2016.

Key benchmark indices logged small decline in volatile trading session on Wednesday, 22 June 2016. The Sensex fell 47.13 points or 0.18% to settle at 26,765.65, its lowest closing level since 17 June 2016.

Gains in European stocks triggered by a pair of opinion polls predicting that British voters will vote for Britain to remain in the European Union in a landmark referendum aided the upmove on the domestic bourses on Thursday, 23 June 2016. The Sensex gained 236.57 points or 0.88% to settle at 27,002.22, its highest closing level since 8 June 2016.

Key benchamark indices dropped sharply as global stocks suffered severe setback after a British referendum showed that UK has voted to leave the European Union. The Sensex fell 604.51 points or 2.24% to settle at 26,397.71, its lowest closing level since 14 June 2016.

Among the 30-share Sensex pack, 23 stocks declined and the rest of them gained in the week ended Friday, 24 June 2016.

L&T (down 3.02%), GAIL (India) (down 2.54%) and Adani Ports and Special Economic Zone (down 2.39%) edged lower from the Sensex pack.

Bajaj Auto (up 4.36%), Mahindra & Mahindra (up 2.6%) and Hero MotoCorp (up 1.36%) edged higher from the Sensex pack.

Tata Motors fell 3.07%. Results from the UK's referendum on its European Union membership showed the country had voted to leave the trading bloc. Tata Motors derives majority of its revenue from its British luxury car unit Jaguar Land Rover (JLR). JLR is the largest automotive manufacturer in Britain. It is one of the UK's largest exporters and generates over 80% of its revenue from exports.

Meanwhile, Tata Motors-owned Jaguar Land Rover (JLR) on Thursday, 23 June 2016, reportedly began recalling more than 11,000 vehicles in China due to faulty crankshaft sensors. The recall affects 6,067 imported Land Rover Discovery 4 SUVs manufactured between April 2012 and October 2012. Apart from that, 5,214 imported Range Rover models produced between April 2012 and October 2012; and one New Range Rover car made on 9 May 2012 will be recalled.

Faulty crankshaft position sensors may cause the engine to stall when driving. Some of the cars may even fail to start, reports added. The firm owned by Tata Motors will check all the affected vehicles and replace defective parts free of charge.

Tata Steel fell 3.99%. Results from the UK's referendum on its European Union membership showed the country had voted to leave the trading bloc. Tata Steel is Europe's second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. Tata Steel Europe has initiated the process to sell its UK business viz. Tata Steel UK. Tata Steel Europe has invited seven short listed potential investors to submit binding bids for Tata Steel UK.

Index heavyweight and cigarette major ITC lost 1.33% to Rs 353.40.

Index heavyweight and IT major Infosys rose 1.37% to Rs 1,194.50.

TCS dropped 1.26%. The company announced a partnership to deliver next generation cloud-based derivative post trade processing service on the Calypso platform to Sernova Financial, an innovative provider of turn-key post-trade services. The partnership combines Sernova Financial's capital markets expertise, Calypso platform's capability and TCS' bouquet of capital markets solutions along with IT-Operations synergies as well as Business Process as a Service (BPaaS) models. The announcement was made during market hours on Monday, 20 June 2016.

Bank stocks edged lower. HDFC Bank (down 0.64%), Axis Bank (down 3.1%), ICICI Bank (down 3.06%) and State Bank of India (down 1.01%) fell.

Reserve Bank of India Governor Raghuram Rajan said on Wednesday, 22 June 2016, that the cleaning up of bank balance sheets and the restoration of credit growth are vital and related elements in the growth agenda. The government and the Reserve Bank of India are helping public sector banks in this difficult but critical task, Rajan said at an interactive meet between industry and trade arranged by industry body ASSOCHAM in Bangalore. The government's effort in speeding up the debt recovery process and creating a new Bankruptcy system are two important steps towards improving the resolution process, he said. Rajan also said that improving governance of public sector banks and infusing bank capital will pay large dividends in the short run. Rajan said that banks are getting into the spirit of cleanup and are pursuing reluctant promoters to take the necessary steps to rehabilitate projects. The RBI Governor said that fundamentals of the borrower not being good and the ability of the lender to collect being weak were the two sources of current distress in the banking system.

Pharma stocks saw mixed trend. Dr Reddy's Laboratories gained 4.82%. Cipla fell 1.86%.

Sun Pharmaceutical Industries rose 1.47% to Rs 753.75. The company announced after market hours on Thursday, 23 June 2016, that its board approved buyback of the company's equity shares. The company will buy back up to 75 lakh shares at a price of Rs 900 each through the tender offer route. The company said that the buyback is being undertaken to return surplus funds to the equity shareholders and thereby, enhancing the overall returns to share holders. The record date for the buyback is 15 July 2016. The promoters of the company have indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company will not fall below their current aggregate percentage shareholding. Under Securities and Exchange Board of India (Sebi) guidelines, 15% of the buyback offer is reserved for small investors holding shares worth not more than Rs 2 lakh as on the record date.

Lupin shed 0.11%. The company announced after market hours on Wednesday, 22 June 2016, that it has received final approval from the United States Food and Drug Administration (FDA) to market a generic version of Amneal Pharmaceuticals' Activella Tablets. The drug is indicated in a woman with a uterus for treatment of moderate to severe vasomotor symptoms due to menopause and prevention of postmenopausal osteoporosis. It is also indicated in a woman with a uterus for treatment of moderate to severe symptoms of vulvar and vaginal atrophy due to menopause. Activella had annual US sales of $95.6 million, as per IMS MAT March 2016 data.

Finance Minister Arun Jaitley said in a statement on Friday, 24 June 2016 that the Indian economy is well prepared to deal with the short and medium term consequences of Brexit. India is strongly committed to macro-economic framework with its focus on maintaining stability, Jaitley said. The finance minister said that India's macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline and declining inflation. He further said that India's immediate and medium-term firewalls are solid in the form of a healthy foreign exchange reserves position.

Jaitley said that the Indian government, the Reserve Bank of India and other Indian regulators are well prepared and are working closely together to deal with any short term volatility. He said that the government will steadfastly pursue its ambitious reform agenda—including early passage of the goods and services tax(GST)—that will help India realize its medium term growth potential of 8-9%.

Reserve Bank of India (RBI) Governor Raghuram Rajan said in a statement that the central bank is continuously maintaining a close vigil on the market developments, both domestically and internationally, and will take all necessary steps, including liquidity support (both dollar and INR), to ensure orderly conditions in financial markets. Rajan said India's economy has good fundamentals, low short term external debt and sizeable foreign exchange reserves. These should stand the country in good stead in the days to come.

The Indian government on Monday, 20 June 2016, announced liberalization of foreign direct investment (FDI) rules in aviation, pharmaceutical, defence, trading in food products and single brand retail trading. The government said in a statement that with the latest liberalization of the FDI regime in the country, most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI, it said.

Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan surprised financial markets by announcing on Saturday, 18 June 2016, that he will not seek a second term as the RBI chief and will be returning to academia when his term as RBI Governor ends on 4 September 2016. While announcing his decision in a letter to the RBI staff on Saturday, 18 June 2016, not to seek a second term as RBI Governor, Rajan said he has accomplished all of what was laid out on the first day of his term as agenda for action. He, however, added that two subsequent developments are yet to be completed. Inflation is in the target zone, but the monetary policy committee that will set policy has yet to be formed. Moreover, the bank clean up initiated under the Asset Quality Review, having already brought more credibility to bank balance sheets, is still ongoing.

Rajan also said that India has made adequate preparations for the repayment of Foreign Currency Non-Resident (B) deposits and their outflow, managed properly, should largely be a non-event. Rajan has been credited with stabilizing the rupee against the dollar, bringing down inflation and cleaning the bad-loan mess in the Indian banking system.

The outcome of a British referendum on Friday, 24 June 2016 showed that the UK has voted to leave the European Union (EU) in a historic referendum dubbed "Brexit". UK's Prime Minister David Cameron said he will resign, after Britain voted to leave the European Union in a hotly fought referendum. During a speech after the Brexit results were announced, the prime minister said the break-up negotiations with Europe need to take place under a new leader. The new prime minister will take over in October, he said. UK's central bank Bank of England (BoE) said in a statement that it is monitoring developments closely. The BoE said it has undertaken extensive contingency planning and is working closely with the UK Treasury, other domestic authorities and overseas central banks. The BoE said it will take all necessary steps to meet its responsibilities for monetary and financial stability.