A bout of volatility was witnessed in afternoon trade as key benchmark indices trimmed gains after hitting fresh intraday high triggered by firm opening of European stocks. At 13:20 IST, the barometer index, the S&P BSE Sensex was up 134.05 points or 0.51% at 26,529.76. The Nifty 50 index was currently up 37 points or 0.46% at 8,145.85.
The Sensex rose 162.45 points or 0.61% at the day's high of 26,558.16 in afternoon trade, its highest level since 10 June 2016. The index rose 50.88 points or 0.19% at the day's low of 26,446.59 in early trade. The Nifty gained 46.35 points or 0.57% at the day's high of 8,155.20 in afternoon trade, its highest level since 10 June 2016. The index rose 14.30 points or 0.18% at the day's high of 8,123.15 in early trade.
In overseas markets, European stocks edged higher in early trade, snapping a five-day losing streak, as miners and retailers advanced, while traders awaited outcome of the Federal Reserve's latest policy review. Chinese mainland markets rose, shrugging off a decision by stock index provider MSCI saying yesterday, 14 June 2016 to delay inclusion of mainland-traded Chinese A shares in its key emerging market index. In mainland China, the Shanghai Composite index closed 1.58% higher. In Hong Kong, the Hang Seng index was currently up 0.7%. In Japan, the Nikkei 225 index settled 0.38% higher. Other Asian stocks were trading mixed as investors awaited outcome of the central bank meetings in the US and Japan. The US Federal Open Market Committee concludes its two-day meeting today, 15 June 2016 while the Bank of Japan will start its two-day meeting today, 15 June 2016. The Federal Reserve is expected to keep interest rates unchanged and signal if it still plans to raise rates twice in 2016 amid concerns about a US hiring slowdown and Britain's possible exit from the European Union.
US stocks declined yesterday, 14 June 2016 as investors grappled with mixed signals from lower oil prices, stronger-than-expected retail sales and geopolitical uncertainty roiling European markets.
Closer home, the broad market depicted strength. There were almost two gainers for every loser on BSE. 1,582 shares gained and 823 shares declined. A total of 153 shares were unchanged. The BSE Mid-Cap index was currently up 0.42% underperforming the Sensex. The BSE Small-Cap index was currently up 0.84%, outperforming the Sensex.
Airline stocks rose as crude oil prices declined. SpiceJet (up 4.75%), Jet Airways (India) (up 1.99%) and InterGlobe Aviation (up 3.05%) gained. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices.
Brent for August 2016 settlement was currently off 51 cents at $49.32 a barrel. The Brent August contract lost 52 cents or 1.03% to settle at $49.83 a barrel yesterday, 14 June 2016.
Meanwhile, Union Cabinet today, 15 June 2016 reportedly approved the proposed aviation policy, which has suggested a slew of passenger-friendly measures including capping of airfares at Rs 2,500 for an hour-long flight. As per reports, the 5/20 rule will be replaced by 0/20 rule which implies that airlines will be allowed to fly abroad only if they have 20 aircraft, but there would be no restriction on the number of years of operation. Earlier, airlines had to wait for 5 years at least to have international flying permit. The Cabinet also approved cap of Rs 1,200 airfare for 30 minutes flight.
Realty stocks were mixed. DLF (down 0.3%), NBCC (down 0.76%), Indiabulls Real Estate (down 0.47%), and Unitech (down 4.86%) declined. D B Realty (up 0.42%), Sobha (up 0.07%), Godrej Properties (up 2.7%), Housing Development & Infrastructure (HDIL) (up 1.16%), and Phoenix Mills (up 2.48%) edged higher.
Cadila Healthcare rose 0.41% after the company signed a strategic collaboration agreement to market biotech products in the Turkish market. The agreement involves the import of biosimilars which are currently unavailable in the country especially for the treatment of cancer and also paves the way for a long term strategic collaboration to produce and launch new products in the market. The announcement was made during trading hours today, 15 June 2016.
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