Market may open higher

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 12 points at the opening bell. The market will react to index of industrial production data for May and consumer price index inflation data for June released by government after market hours 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 (IIP) increased 1.2% in May 2016 over May 2015, while snapping 1.4% 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. The mining output rose 1.3% in May 2016, but the electricity generation growth eased to five-month low of 4.7%. The IIP growth in April 2016 has been revised downwards to (-) 1.4% in the first revision compared with (-) 0.8% reported provisionally. Meanwhile, the growth in February 2016 has also been revised downwards to 1.9% at the final revision from 2% at first revision as well as reported provisionally.

Another data released by government after market hours yesterday, 12 July 2016 showed that the all-India general consumer price index (CPI) inflation was flat at 5.77% in June 2016 (new base 2012=100), compared with similar reading of 5.76% in May 2016. The corresponding provisional inflation rate for rural area was 6.20% and urban area 5.26% in June 2016 as against 6.45% and 4.89% in May 2016. The core CPI inflation fell to 4.39% in June 2016 from 4.49% in May 2016.

In overseas stock markets, Asian markets extended their rally, opening higher after major US indices reached new record levels. US stocks closed higher yesterday, 12 July 2016 as fears eased over Brexit and Japan signalled more economic stimulus.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 212.92 crore yesterday, 12 July 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 119.27 crore yesterday, 12 July 2016, as per provisional data.

Shares of BPCL turn ex-bonus today, 13 July 2016 for 1:1 bonus issue.

Shares of Ashok Leyland turn ex-dividend today, 13 July 2016 for dividend of Rs 0.95 per share for the year ended 31 March 2016 (FY 2016).

Positive cues from global markets aided the latest upmove on the domestic bourses yesterday, 12 July 2016. The Sensex rose 181.45 points or 0.66% to settle at 27,808.14, its highest closing level since 19 August 2015.

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