Key indices provisionally settle with minuscule losses

In what was a lacklustre trading session, key benchmark indices provisionally ended with minuscule losses. The barometer index, the S&P BSE Sensex, fell 11.18 points or 0.04% at 27,796.96, as per the provisional closing data. The Nifty 50 index fell 1.55 points or 0.02% at 8,519.50, as per the provisional closing data. The movement for the two key benchmark indices was confined to a narrow range.

The market breadth indicating the overall health of the market was weak. On BSE, 1,733 shares fell and 1,010 shares rose. A total of 166 shares were unchanged. The BSE Mid-Cap index was provisionally off 0.55%. The BSE Small-Cap index was provisionally off 0.82%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 3931 crore, higher than turnover of Rs 3310.19 crore registered during the previous trading session.

Index heavyweight and software major Infosys advanced 1.46% to Rs 1,193.15. The stock hit high of Rs 1,195 and low of Rs 1,175.10 so far during the day. Infosys is scheduled to announce its Q1 June 2016 results on Friday, 15 July 2016.

Bank stocks fell. Among private bank stocks, HDFC Bank (down 0.38%), Federal Bank (down 2.4%), Axis Bank (down 0.92%), ICICI Bank (down 0.11%), IndusInd Bank (down 2.08%) and Yes Bank (down 0.37%) declined. Kotak Mahindra Bank rose 1.49%.

Among PSU bank stocks, Corporation Bank (down 2.04%), Syndicate Bank (down 2.94%), Punjab National Bank (down 1.03%), Bank of Baroda (down 0.9%), IDBI Bank (down 2.63%), Bank of India (down 1.89%) and Union Bank of India (down 2.5%) dropped. State Bank of India (SBI) (up 0.15%) and Canara Bank (up 0.5%) rose.

Andhra Bank fell 2.8% to Rs 60.75 as the stock turned ex-dividend today, 13 July 2016 for dividend of Rs 0.50 per share for the year ended 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 0.8% based on its closing price of Rs 62.50 on the BSE yesterday, 12 July 2016.

On the macro front, data released by government after market hours yesterday, 12 July 2016, showed that India's industrial production increased 1.2% in May 2016 over May 2015, while snapping 1.35% dip recorded in the previous month. The manufacturing sector production rebounded 0.7%, after two months of decline, contributing to the rise in industrial output in May 2016.

Another data released by government after market hours yesterday, 12 July 2016, showed that inflation based on the consumer price index (CPI) accelerated to 5.77% in June 2016 from 5.76% in May 2016. Increase in food prices was responsible for the acceleration in consumer price inflation. The consumer food price index rose to 7.79% in June 2016 from 7.47% in May 2016. The core CPI inflation fell to 4.39% in June 2016 from 4.49% in May 2016.

In overseas stock markets, European stocks edged higher as Brexit worries receded. In the UK, the FTSE 100 index was currently up 0.26%. Britain's interior minister Theresa May is set to take over as the country's prime minister today, 13 July 2016, evening avoiding months of uncertainty in the wake of the Brexit vote.

Earlier during the global day, Asian stocks rose, adding to the gains in the past few sessions amid improved risk appetite following the positive lead overnight from Wall Street. Japanese shares extended strong gains registered early this week after Japan's Chief Cabinet Secretary Yoshihide Suga said that the government is planning to introduce a comprehensive and bold economic stimulus. The Nikkei 225 Average ended 0.84% higher. The Nikkei surged early this week after Prime Minister Shinzo Abe's ruling-coalition victory in the upper-house election stoked speculation of more fiscal stimulus. Meanwhile, Suga today, 13 July 2016, denied a local media report that said aides to Prime Minister Abe are considering the so-called helicopter money that involves a central bank directly buying government bonds to finance government spending or tax cuts as a possible policy measure.

US stocks edged higher yesterday, 12 July 2016, with Dow Jones Industrial Average and the S&P 500 index, both, finishing at record high, reflecting hopes about stimulus from Japan and China along with optimism that the Bank of England will lower rates to help the UK economy sidestep the pitfalls of the so-called Brexit.

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