Key benchmark indices provisionally closed with small gains after what was a volatile session of trade as firmness in European stocks supported gains on the domestic bourses. The barometer index, the S&P BSE Sensex was up 53.46 points or 0.2% at 27,220.33, as per the provisional closing data. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was up 5.35 points or 0.06% at 8,341.30, as per the provisional closing data.
Earlier, key indices saw a divergent trend with movement of indices restricting within a narrow range near the flat line. The Sensex rose 121.35 points or 0.44% at the day's high of 27,288.22 in mid-afternoon trade. The barometer index lost 19.92 points or 0.07% at the day's low of 27,146.95 in late trade. The Nifty rose 26 points or 0.31% at the day's high of 8,361.95 in mid-afternoon trade. The index lost 18.25 points or 0.21% at the day's low of 8,317.70 in early afternoon trade, its lowest level since 1 July 2016.
In overseas stock markets, European stocks edged higher after a rally on Wall Street overnight following some better US data and a bounce in oil helped quell the latest bout of worries triggered by the UK's vote last month to leave the European Union (EU) known as Brexit. Asian stocks witnessed a mixed trend. Japanese stocks fell as the yen strengthened against the dollar. The Nikkei 225 Average ended 0.67% lower. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks rose yesterday, 6 July 2016, after a stronger-than-expected report on nonmanufacturing activity in June 2016 and after the minutes from the Federal Reserve's June policy meeting confirmed dovish stance from the US central bank. The Institute for Supply Management's nonmanufacturing purchasing managers index rose in June to its highest reading since November 2015. Meanwhile, the minutes from the Federal Reserve's June meeting showed that the majority of policy makers were in favor of keeping rates on hold. The two-day Fed meeting on 14-15 June 2016 was held just a few days before the Brexit. The minutes showed that Fed officials saw risks to the US economy and global markets from the UK's then-upcoming vote on EU membership. Fed officials also had concerns about a possible slowdown in the US labour market.
Closer home, the market breadth indicating strength of the market was positive. On BSE, 1,550 shares rose and 1,203 shares fell. A total of 148 shares were unchanged The BSE Mid-Cap index provisionally fell 0.41%. The BSE Small-Cap index provisionally rose 0.04%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2867 crore, lower than turnover of Rs 3163.71 crore registered during the previous trading session.
Lupin jumped after the company announced that it has received notification that the inspection carried out by the United States Food & Drug Administration (USFDA) in July 2015 at its Goa facility is now closed and the agency has issued Establishment Inspection Reports (EIR). The stock jumped 7.8% to Rs 1,681.95. However, the responses from the March 2016 USFDA inspection and updates thereafter are still under review by the USFDA. The announcement was made during market hours today, 7 July 2016.
Claris Lifesciences surged 8.59% after the company received approval from the US Food and Drug Administration to market Tobramycin injection in the US. Claris Lifesciences said that the approval is for Tobramycin injection USP, 80mg/2mL and 1,200mg/30mL multiple dose vials. Tobramycin injection is an anti-infective used to treat certain serious infections that are caused by bacteria such as meningitis and other infections of the blood, abdomen (stomach area), lungs, skin, bones, joints and urinary tract. The estimated market size of the drug in the US is $6 million and the product is currently in shortage list of US Food and Drug Administration (USFDA).
IT stocks declined after the government split the Communications and Electronics & Information Technology ministry portfolio after the Cabinet reshuffle. HCL Technologies (down 2.64%), TCS (down 2.04%), Infosys (down 1.31%), Tech Mahindra (down 2.1%) and Wipro (down 0.2%) edged lower.
The Narendra Modi government at the centre appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology.
The BSE IT index had underperformed the market over the past month till 5 July 2016, falling 4.4% compared with Sensex's 1.21% rise. The index also underperformed the market in past one quarter, declining 1.51% as against Sensex's 9.18% gain.
BGR Energy Systems jumped 7.28% after the company said that it received a contract worth Rs 2299.87 crore from Andhra Pradesh Power Generation Corporation. The announcement was made during trading hours today, 7 July 2016. The company said it has received a Letter of Intent (LoI) from Andhra Pradesh Power Generation Corporation (APGENCO) for execution of balance of plant equipment/systems including civil works for 1x800 megawatts (MW) Dr. Narla Tata Rao Thermal Power Station in Andhra Pradesh on engineering-procurement-construction (EPC) basis. The total lump sum price of the contract is Rs 2299.87 crore. The contract completion period is 36 months from the date of award.
Insecticides (India) rose 1.63% after the company announced that it entered into an agreement with US based Momentive Performance Materials Inc. for distribution of the latter's product AGROSPRED MAX on exclusive basis in India. The announcement was made after trading hours on Tuesday, 5 July 2016.
Meanwhile, Prime Minister Narendra Modi after expanding the Council of Ministers with 19 new members also reshuffled some portfolios in his Cabinet on Tuesday, 5 July 2016. Prakash Javadekar, who was earlier promoted to Cabinet rank, was given the HRD Ministry. He had been the Minister of State (Independent charge) for Environment and Forests. Smriti Irani has been shifted from HRD Ministry to Textiles Ministry. Other than that, Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given additional charge of I&B. The government has appointed Manoj Sinha as new Minister of Communications with independent charge in place of Ravi Shankar Prasad after splitting the Communications and Electronics & Information Technology ministry. Prasad continues to remain the minister of Electronics & Information Technology. The Council of Ministers now has 77 members. The previous strength of the government was 63. Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in the earlier batch. The total strength of the Union Council of Ministers has been capped at 82.
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