Sensex hits 27,000 in early trade on positive Asian stocks
Key benchmark indices trimmed gains after a firm opening triggered by positive Asian stocks. The barometer index, the S&P BSE Sensex, fell below the psychological 27,000 mark after hitting an intraday high above that level at onset of the day's trading session. The Sensex was currently up 92.42 points or 0.34% at 26,932.92. The market breadth indicating the overall health of the market was strong.
In the overseas markets, Asian stocks edged higher today, 11 June 2015 following overnight gains in US markets and optimism that Greece may be closer to reaching a deal with creditors. US stocks jumped yesterday, 10 June 2015 helped by gains in technology and financial shares.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 482.11 crore yesterday, 10 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 788.06 crore yesterday, 10 June 2015, as per provisional data.
At 9:28 IST, the S&P BSE Sensex was up 92.42 points or 0.34% at 26,932.92. The index gained 159.64 points at the day's high of 27,000.14 at onset of the day's trading session. The index rose 77.84 points at the day's low of 26,918.34 in early trade.
The CNX Nifty was up 25.20 points or 0.31% at 8,149.65. The index hit a high of 8,163.05 in intraday trade. The index hit a low of 8,143.15 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 888 shares gained and 256 shares fell. A total of 34 shares were unchanged.
The BSE Mid-Cap index was up 77.38 points or 0.75% at 10,348.15. The BSE Small-Cap index was up 76.96 points or 0.71% at 10,856.71. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 150 crore by 09:25 IST.
Sun Pharmaceutical Industries (up 2.01%), ICICI Bank (up 1.39%) and Hindalco Industries (up 0.91%) edged higher from the Sensex pack.
Tata Steel fell 0.81%. Tata Steel said after market hours yesterday, 10 June 2015, that Tata Steel UK, indirect subsidiary of Tata Steel has been now notified by the four unions namely Community Union, Unite, GMB and Ucatt of their plans to take industrial action in dispute over the company's proposals to revise the British Steel Pensions Scheme's contribution and benefits framework.
As per the notice, the Unions in UK propose a UK wide ban on overtime working and work to rule commencing 16 June 2015 and additionally strike action at most of the UK operating units on 22 June 2015.
The company said Tata Steel Europe has strategies and actions to manage disruption of business and minimum customer and financial impact.
Axis Bank rose 0.95%. The Ministry of Urban Development after trading hours yesterday, 10 June 2015, announced that Axis Bank has decided to issue co-branded cards to the users of Kochi Metro for paying the fares. Axis Bank will issue co-branded cards to the users of Kochi Metro for paying the fares as well as using them for all kinds of merchandise including e-commerce, according to a statement from the Ministry of Urban Development. Axis Bank will install the required complex hardware and software for fare collection from passengers and in addition will pay Kochi Metro Rail (KMRL) a sum of Rs 208 crore over the next 10 years besides undertaking the entire maintenance of Automated Fare Collection (AFC) for ten years. KMRL will also be paid 0.2% of Axis Bank's gross revenues from the utlilisation of co-branded pre-paid cards outside Kochi Metro system. Axis Bank has formed a consortium of service providers and will soon start work on installing AFC system. KMRL is undertaking the metro rail project in Kochi, Kerala. Of the project length of 25.612 kms, 18 km is scheduled to be commissioned by June 2016 and the rest by June 2017.
Wipro shed 0.09%. With respect to news article titled "Odisha govt threatens to take back 26 acre Wipro land on work delay", Wipro clarified after market hours yesterday, 10 June 2015, that the company remains committed to its investment and to grow in the city of Bhubhaneshwar.
India's current account deficit (CAD) narrowed sharply to $1.3 billion or 0.2% of GDP in Q4 March 2015 from $8.3 billion or 1.6% of GDP in Q3 December 2014, according to data released by the Reserve Bank of India (RBI) after trading hours yesterday, 10 June 2015. On a year-on-year (y-o-y) basis, the CAD registered a small increase to $1.3 billion in Q4 March 2015 from $1.2 billion in Q4 March 2014. The sharp reduction in CAD in Q4 March 2015 on quarter-on-quarter (q-o-q) basis was primarily on account of lower trade deficit as net earnings through services and primary income (profit, dividend and interest) witnessed a decline on q-o-q basis, the RBI said.
The government is scheduled to unveil industrial production data for April 2015 tomorrow, 12 June 2015. Industrial output growth touched a five-month low of 2.1% in March from a revised 4.9% in February on the back of an across-the-board slowdown in production. On the same day, the government is scheduled to unveil the consumer price index (CPI) data for the month of May 2015. Consumer price index-based retail inflation eased to a four-month low of 4.87% in April from a revised 5.25% in March.
Asian stocks edged higher today, 11 June 2015 following overnight gains in US markets and optimism that Greece may be closer to reaching a deal with creditors. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan and South Korea rose by 0.02% to 1.36%. Key benchmark indices in China and Indonesia fell 0.14% to 0.19%.
South Korea's central bank today, 11 June 2015 cut its benchmark interest rate to a record low of 1.50% to support the economy, which faces a potential fresh blow from a deadly viral outbreak. The Bank of Korea's 0.25 percentage-point cut, the second this year, comes amid concerns that an outbreak of Middle East Respiratory Syndrome (MERS) may knock billions of dollars off economic output as consumers and foreign tourists worried about infection stay home.
US stocks jumped yesterday, 10 June 2015 helped by gains in technology and financial shares.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 June 2015.
In Europe, speculation has reportedly increased that the standoff over Greece will reach a favorable resolution as the European Central Bank raised the level of emergency cash available to the country's banks by 2.3 billion euros ($2.6 billion). German Chancellor Angela Merkel reportedly said yesterday, 10 June 2015 her goal is to keep Greece in the euro area. The chairman of euro zone finance ministers reportedly said a cash-for-reform deal with Athens was still possible in time for their June 18 meeting, with just a few issues remaining to be solved, but Greek counter-proposals were not yet satisfactory. Greece deferred a payment to the International Monetary Fund last week and needs to crack a deal or get another extension before its euro-area bailout package expires on 30 June 2015.
Meanwhile, Standard & Poor's Ratings Services has downgraded Greece's credit rating to triple-C, reflecting its view that the government will likely default on its commercial debt within the next 12 months, without an agreement with its creditors. S&P has a negative outlook for the rating, which was cut one notch. Triple-C is a highly speculative rating on S&P's scale.
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