Market hits fresh intraday high

Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade. At 12:21 IST, the barometer index, the S&P BSE Sensex, was up 101.76 points or 0.33% at 31,197.46. The Nifty 50 index was up 28.35 points or 0.29% at 9,644.75. Gains were led by HDFC, HDFC Bank and L&T.

Stocks drifted higher in early trade as retail inflation and industrial output data released after market hours yesterday, 12 June 2017 boosted expectations of an interest rate cut by the Reserve Bank of India (RBI) at its next policy meeting in August 2017. Key equity benchmarks traded in positive zone thereafter.

On the macro front, the index of industrial production (IIP) rose by 3.1% in April led by robust growth in electricity generation, data showed yesterday, 12 June 2017. IIP grew by 6.5% in April last year. The CSO also revised upwards the IIP growth figure for March to 3.75% from its provisional estimate of 2.7%. While presenting the March 2017 data, the IIP base year was revised from 2004-05 to 2011-12.

Another data released yesterday, 12 June 2017, showed that retail price inflation, as measured by the consumer price index (CPI), slowed to 2.18% in May from 2.99% in April 2017 as food prices started falling from their year-ago level. Inflation is now well below the Reserve Bank of India's (RBI) medium-term target of 4%, and at the lower end of its CPI projection of 2%-3.5% in the first half of the fiscal year.

The S&P BSE Mid-Cap index was up 0.45%. The S&P BSE Small-Cap index was up 0.85%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,488 shares rose and 920 shares fell. A total of 151 shares were unchanged.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.08%), BEML (up 1.37%), Bharat Electronics (up 0.88%), ABB India (up 0.48%), Praj Industries (up 2.24%), Punj Lloyd (up 2%), L&T (up 0.84%), Punj Lloyd (up 2%), Siemens (up 0.46%) and Thermax (down 0.17%) rose.

Most FMCG stocks gained. Dabur India (up 2.43%), Britannia Industries (up 0.24%), Hindustan Unilever (up 0.4%), Marico (up 0.64%), Nestle India (up 0.18%), Tata Global Beverages (up 0.26%), Procter & Gamble Hygiene and Health Care (up 0.53%), Jyothy Laboratories (up 0.59%), Bajaj Corp (up 0.08%) rose. GlaxoSmithkline Consumer Healthcare (down 0.2%), Colgate-Palmolive (India) (down 0.5%), Godrej Consumer Products (down 0.4%) fell.

Suven Life Sciences rose 1.71% after the company said it secured a product patent in Australia and in USA. The announcement was made during trading hours today, 13 June 2017.

Suven Life Sciences (Suven) announced that it was granted one product patent from Australia and one product patent from USA corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases. These patents are valid through 2032 and 2034 respectively.

Pennar Industries rose 1.51% after the company announced major receipt of orders worth Rs 255 crore across its business units. The announcement was made during trading hours today, 13 June 2017.

Shreyas Shipping & Logistics rose 9.13% after the company said it signed a joint venture agreement with Japan's Suzue Corporation. The announcement was made after market hours yesterday, 12 June 2017.

Shreyas Shipping and Logistics (Shreyas) and Suzue Corporation of Japan signed the joint venture agreement wherein a joint venture company would be formed, which will capitalise on the possibilities in international freight forwarding, customs clearance service, warehousing services, land transport services and other related logistic services with additional focus on land bank development for commercial purposes in Indian Sub-continent and Japan.

The geographies covered by the agreement initially include Indian sub-continent and Japan, with the possibility of extending to South East Asian nations.

Overseas, most Asian stocks were trading higher, defying a weak lead from Wall Street. Major US stock-market benchmarks closed lower yesterday, 12 June 2017 weighed by a second straight session of firm losses in technology shares.

The US Federal Reserve will meet Tuesday and Wednesday, and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.

Meanwhile, the Trump administration yesterday, 12 June 2017 proposed a wide-ranging rethinking of the rules governing the US financial sector in a report that makes scores of recommendations that have been on the banking industry's wish list for years.

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