A range bound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. Gains for the benchmark indices were currently small. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 72.82 points or 0.26% at 27,877.19.
FMCG shares edged higher after a good start for the monsoon season. Telecom stocks edged lower. Coal India edged higher, with the stock hitting 52-week high in intraday trade.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks in the morning trade as these two indices extended intraday gains after seeing initial volatility.
Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) released by the RBI yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire tomorrow, 25 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 374.97 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.20 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian markets were mixed. US stocks ended a choppy trading session slightly higher yesterday, 23 June 2015, though modest gains were enough to push the Nasdaq Composite and Russell 2000 to record closing levels.
At 11:15 IST, the S&P BSE Sensex was up 72.82 points or 0.26% at 27,877.19. The index gained 116.23 points at the day's high of 27,920.60 in morning trade, its highest level since 1 June 2015. The index fell 19.93 points at the day's low of 27,784.44 in early trade.
The CNX Nifty was up 21.25 points or 0.25% at 8,402.80. The index hit a high of 8,414.30 in intraday trade, its highest level since 2 June 2015. The index hit a low of 8,376.10 in intraday trade.
The BSE Mid-Cap index was up 21.27 points or 0.2% at 10,673.19, underperforming the Sensex. The BSE Small-Cap index was up 28.96 points or 0.26% at 11,173.93, matching the Sensex's gains in percentage terms.
The market breadth indicating the overall health of the market was positive. On BSE, 1,198 shares rose and 898 shares fell. A total of 86 shares were unchanged.
FMCG shares edged higher after a good start for the monsoon season. Hindustan Unilever (up 2.24%), Colgate-Palmolive (India) (up 1.91%), Godrej Consumer Products (up 0.36%), Bajaj Corp (up 0.36%), Jyothy Laboratories (up 0.91%), Tata Global Beverages (up 0.3%), Dabur India (up 0.78%) and Marico (up 0.18%) edged higher. GlaxoSmithkline Consumer Healthcare (down 0.45%), Procter & Gamble Hygiene and Health Care (down 0.7%), Britannia Industries (down 0.62%) and Nestle India (down 1.17%) edged lower. FMCG firms derive substantial revenue from rural India.
Telecom stocks edged lower. Mahanagar Telephone Nigam (down 1.18%), Reliance Communications (down 1%), Tata Teleservices (Maharashtra) (down 1.03%) and Bharti Airtel (down 0.33%) edged lower. Idea Cellular (up 1.26%) edged higher.
Coal India edged higher, with the stock hitting 52-week high in intraday trade. The stock was up 1% at Rs 419.30. The stock hit a high of Rs 421.35 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 416.40 so far during the day.
Meanwhile, concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the June-September southwest monsoon season. For the country as a whole, the cumulative rainfall during this year's monsoon season was 21% above the Long Period Average (LPA) until 22 June 2015. Region wise, the southwest monsoon was 45% above the LPA in Central India, 35% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 22 June 2015.
The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 23 June 2015, that the southwest monsoon has further advanced into some more parts of north Arabian Sea, Gujarat state, Madhya Pradesh and Bihar and remaining parts of Chhattisgarh and Jharkhand and some parts of East Uttar Pradesh. Conditions are favourable for further advance of southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Madhya Pradesh and Bihar, entire Uttarakhand, Himachal Pradesh, Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 2-3 days, the IMD said. The Southwest monsoon was vigorous over West Madhya Pradesh and active over Nagaland, Manipur, Mizoram & Tripura, Odisha, Jharkhand, East Madhya Pradesh, Madhya Maharashtra, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST, the IMD said.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) released by the RBI yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015. Four members advocated a cut in repo rate by 25 basis points; two members suggested a 50 basis points reduction and one member proposed a reduction by 75 basis points. One of these members also recommended that the SLR should also be reduced by 50 basis points. It may be recalled that the RBI cut its benchmark lending rate viz. the repo rate by 25 basis points after the 2 June 2015 policy review.
In overseas stock markets, Asian markets were mixed today, 24 June 2015. Key indices in Japan, China, Singapore and Indonesia were up 0.28% to 0.52%. Key indices in Hong Kong, Taiwan and South Korea were off 0.04% to 0.07%.
Members of the Bank of Japan's monetary policy board are satisfied with the rate of the country's economic recovery and the recovery is expected to continue, minutes from the board's meeting on May 21 and 22 showed yesterday, 23 June 2015.
US stocks closed mildly higher yesterday, 23 June 2015, as investors remained optimistic on the Greece debt talks and eyed continued signs of moderate economic growth. Data on sales of new single-family homes showed that new homes in May were sold at an annual rate of 546,000, hitting the fastest pace since February 2008. The figures showed growth in two out of four regions, while April numbers were also raised. The home-sales data came after of a report showed that orders for durable US goods fell a seasonally adjusted 1.8% in May, mostly due to weaker demand for commercial aircraft.
Meanwhile, the Markit US manufacturing PMI fell to 53.4 in June from 54 in May, data released yesterday, 23 June 2015 showed.
Federal Reserve Governor Jerome Powell was quoted as saying yesterday, 23 June 2015, that there could be two interest-rate hikes this year. He also said that the US stock market isn't showing signs of being in a bubble.
In Europe, Greece remains the focal point for global markets as the Eurogroup of finance ministers hold a meeting today, 24 June 2015, to discuss the latest set of proposals put forward by Greece early this week. Greek economy minister George Stathakis reportedly said in an interview to a TV channel today, 24 June 2015, that two or three items remained to settle with international lenders on a package of proposals put forward by Greece to break a deadlock in negotiations a cash-for-reforms deal. A European Union summit is scheduled tomorrow, 25 June 2015. Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.
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