Market hits fresh intraday high

A bout of volatility was witnessed in afternoon trade as key benchmark indices regained strength and hit fresh intraday high after trimming intraday gains. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 87.39 points or 0.32% at 27,783.55. The Nifty 50 index was currently up 28.35 points or 0.33% at 8,535.05. Media reports suggesting that the Goods and Services Tax (GST) constitutional amendment bill has been listed for discussion in the Rajya Sabha next week boosted sentiment. The Sensex rose 103.28 points, or 0.37% at the day's high of 27,813.80 in afternoon trade. The index fell 64.31 points, or 0.23% at the day's low of 27,646.21 in mid-morning trade, its lowest level since 19 July 2016. The Nifty rose 33.75 points, or 0.39% at the day's high of 8,543.85 in afternoon trade. The index fell 20.30 points, or 0.24% at the day's low of 8,489.80 in early trade, its lowest level since 19 July 2016.

The market breadth indicating the overall health of the market was positive. On BSE, 1,435 shares rose and 989 shares fell. A total of 182 shares were unchanged. The BSE Mid-Cap index was currently up 0.76%. The BSE Small-Cap index was currently up 0.72%. Both these indices outperformed the Sensex.

As per latest media reports, the Goods and Services Tax (GST) constitutional amendment bill has been listed for discussion in the Rajya Sabha next week. 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.

In overseas stocks markets, European stocks edged lower after European Central Bank (ECB) held rates unchanged after a monetary policy review yesterday, 21 July 2016. 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.

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.

Cement stocks were mixed. ACC (down 0.76%), Ambuja Cements (down 0.56%), and UltraTech Cement (down 0.36%) declined. Shree Cement rose 0.25%.

Grasim Industries rose 0.63%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.57%), Havells India (up 3.04%), ABB India (up 2.28%), L&T (up 1.01%), and Siemens (up 1.57%) gained. Bharat Electronics (down 0.39%) and Thermax (down 0.41%) declined.

Power Grid Corporation of India rose 2.98% after the company's board of directors in a meeting held on 20 July 2016 accorded approval for eleven investment proposals aggregating Rs 2734.94 crore. The announcement was made after market hours yesterday, 21 July 2016.

IFB Industries rose 1.76% after net profit rose 41.5% to Rs 14.91 crore on 19.1% growth in net sales to Rs 412.86 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 21 July 2016.

Bharat Financial Inclusion jumped 8.99% after net profit surged 285.75% to Rs 235.91 crore on 46.51% rise in total income to Rs 414.11 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 22 July 2016. Bharat Financial Inclusion announced that its gross loan portfolio excluding the states of Andhra Pradesh and Telangana registered a 10% sequential and a 76% yearly growth to Rs 8463 crore in Q1 June 2016. The company has an un-availed deferred tax benefit of Rs 308 crore which will be available to offset tax on future taxable income.

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