A divergent trend was witnessed among various index constituents, as key benchmark indices registered modest gains on the last trading session of the week. The barometer index, the S&P BSE Sensex, was provisionally up 101.05 points or 0.37% at 27,307.11. The market breadth indicating the overall health of the market was positive.
Index heavyweight and housing finance major HDFC gained. Index heavyweight and software major Infosys also edged higher. FMCG stocks gained after the India Meteorological Department (IMD) yesterday, 14 May 2015, forecast that the southwest monsoon will hit the Kerala coast around 30 May, a timely arrival for farmers worried about dry weather from an El Nino weather pattern this year.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 73.76 crore yesterday, 14 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 302.57 crore yesterday, 14 May 2015, as per provisional data.
In overseas markets, European stocks edged higher after overnight rally on Wall Street and further signs that stability was returning to bond markets after a recent rout. In Asia, Hong Kong's Hang Seng Index jumped almost 2%, boosted by talk that a stock-connect program between Hong Kong and Shenzhen will be announced as soon as this weekend. US stocks edged higher yesterday, 14 May 2015, with the S&P 500 index ringing up a new closing high, overshadowing a string of small losses on the week.
As per provisional closing, the S&P BSE Sensex was up 101.05 points or 0.37% at 27,307.11. The index jumped 173.51 points at the day's high of 27,379.57 in early trade, its highest level since 12 May 2015. The index fell 46.30 points at the day's low of 27,159.76 in morning trade.
The 50-unit CNX Nifty was up 38.15 points or 0.46% at 8,262.35. The index hit a high of 8,279.20 in intraday trade, its highest level since 12 May 2015. The index hit a low of 8,212.20 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,458 shares gained and 1,233 shares fell. A total of 113 shares were unchanged.
The BSE Mid-Cap index was up 36.98 points or 0.35% at 10,563.92, underperforming the Sensex. The BSE Small-Cap index was up 68.45 points or 0.62% at 11,040.79, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2520 crore, lower than turnover of Rs 2965.41 crore registered during the previous trading session.
Index heavyweight and housing finance major HDFC advanced 1.8% to Rs 1,230. The stock hit high of Rs 1,236.55 and low of Rs 1,206.85.
Index heavyweight and software major Infosys advanced 1.3% to Rs 1,959.75. The stock hit high of Rs 1,965 and low of Rs 1,935. Infosys announced after market hours yesterday, 14 May 2015, that the company has joined the Industrial Internet Consortium (IIC), an open membership group established to improve the integration between the physical and the digital worlds and accelerate the adoption of Internet of Things. The goal of the consortium is to amplify the development and availability of connected, intelligent industrial automation.
Sun Pharmaceutical Industries rose 0.24%. With respect to media reports titled "Ranbaxy accused of gaming FDA rules to thwart rivals", Sun Pharmaceutical Industries in its clarification issued during market hours today, 15 May 2015, said that Meijer, Inc. filed a purported class action complaint on 12 May 2015 against the company and its certain subsidiaries, alleging antitrust and RICO Act violations in connection with Ranbaxy securing market exclusivity as part of the FDA's approval for certain products. The company is reviewing the complaint and has no comments at this time, Sun Pharmaceutical Industries said.
Ranbaxy Laboratories was merged with Sun Pharmaceutical Industries recently.
FMCG stocks gained after the India Meteorological Department (IMD) yesterday, 14 May 2015, forecast that the southwest monsoon will hit the Kerala coast around 30 May, a timely arrival for farmers worried about dry weather from an El Nino weather pattern this year. The IMD's prediction of a timely start to the monsoon bodes well for timely sowing of crops. FMCG firms derive substantial sales from rural India. Tata Global Beverages (up 0.51%), Nestle India (up 3.05%), Marico (up 0.82%), Britannia Industries (up 0.25%), Dabur India (up 0.27%), Colgate Palmolive India (up 1.66%), Jyothy Laboratories (up 1.32%), Godrej Consumer Products (up 3.19%) and Bajaj Corp (up 2.57%) gained. Hindustan Unilever shed 0.12%. Procter & Gamble Hygiene and Health Care ended unchanged at Rs 6,799.95.
The onset of southwest monsoon over Kerala signals the arrival of monsoon over the Indian subcontinent and represents beginning of rainy season over the region. The IMD has forecast below normal rains during the June-September southwest monsoon season this year.
The Australian Bureau of Meteorology and Japan Meteorological Agency both announced the emergence of El Ni conditions this week. El Ni has also been linked to a weaker Indian monsoon. The annual monsoon is critical for the country's agriculture.
Meanwhile, Prime Minister Narendra Modi today, 15 May 2015, said that India and China have signed over 20 agreements, covering diverse areas of cooperation. Modi is currently on a three-day visit to China. According to a joint statement issued by India and China, the two nations have agreed to take necessary measures to remove impediments to bilateral trade and investment, facilitate greater market access to each other's economies and support local governments of the two countries to strengthen trade and investment exchanges, with a view to optimally exploiting the present and potential complementarities in identified sectors in the Five Year Trade and Economic Development Plan signed in September 2014, including Indian pharmaceuticals, Indian IT services, tourism, textiles and agro-products.
The two sides resolved to take joint measures to alleviate the skewed bilateral trade so as to realize its sustainability. Such measures will include cooperation on pharmaceutical supervision including registration, speedier phytosanitary negotiations on agro-products for two-way trade, stronger links between Indian IT companies and Chinese enterprises, and increasing services trade in tourism, films, healthcare, IT and logistics. The leaders of the two countries welcomed the decision to expedite discussion and endeavour to favourably address, in the spirit of mutual cooperation and reciprocity, the issues pertaining to tariff reduction in respect of relevant Indian products under the framework of Asia-Pacific Trade Agreement.
The two sides recognized that enhancing border areas cooperation through border trade, pilgrimage by people of the two countries and other exchanges can effectively promote mutual trust and agreed to further broaden this cooperation so as to transform the border into a bridge of cooperation and exchanges. The two sides agreed to hold negotiation on augmenting the list of traded commodities, and expand border trade at Nathu La, Qiangla/Lipu-Lekh Pass and Shipki La.
In overseas markets, European stocks edged higher today, 15 May 2015, after overnight rally on Wall Street and further signs that stability was returning to bond markets after a recent rout. Key indices in France, Germany and UK were up 0.36% to 0.47%.
Meanwhile, European Central Bank (ECB) President Mario Draghi yesterday, 14 May 2015, said that the ECB's vast stimulus efforts will remain in place as long as needed to achieve a desired level of inflation.
Asian stocks were mixed today, 15 May 2015. Key benchmark indices in China, Indonesia, Taiwan and South Korea were off 0.33% to 1.59%. Key benchmark indices in Singapore and Japan were up 0.21% to 0.83%.
Hong Kong's Hang Seng Index jumped almost 2%, boosted by talk that a stock-connect program between Hong Kong and Shenzhen will be announced as soon as this weekend.
China attracted $9.61 billion of foreign direct investment in April, up 10.5% from a year earlier, the Ministry of Commerce said today, 15 May 2015. The figure was down from March's $12.4 billion, which was 2.2% higher than a year earlier.
The Bank of Korea's monetary policy board today, 15 May 2015 decided to keep nation's benchmark interest rate steady at the record low of 1.75%. The Bank of Korea had earlier trimmed the rate by 25 basis points from 2% in March.
US stocks ended higher yesterday, 14 May 2015, with the S&P 500 index ringing up a new closing high. The rally for stocks came as US economic reports offered no real clarity on when the Federal Reserve may hike rates for the first time since 2006.
A report on weekly jobless claims unexpectedly declined, pointing to stability in the employment picture, while a measure of inflation suggested that headline inflation is falling below the central bank's 2% target- the target the Fed is looking for before it feels comfortable lifting rates.
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