Auto stocks and index heavyweights ITC and Infosys led gains for benchmark indices on the last trading session of the week today, 17 July 2015. Benchmark indices registered minuscule gains. The intraday movement for the benchmark indices was within a narrow range. The barometer index, the S&P BSE Sensex, was provisionally up 28.09 points or 0.1% at 28,474.21. The market breadth indicating the overall health of the market was positive. In overseas markets, Chinese shares recovered further after a series of government support measures to halt their recent crash.
IT stocks advanced. MindTree rose after reporting decent Q1 results.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit 13-week high amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 745.81 crore yesterday, 16 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 98.51 crore yesterday, 16 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower ahead of a debate and voting by lawmakers in Germany today, 17 July 2015, on the plan for a third bailout for Greece. Earlier during the global day, Chinese stocks led gains for Asian equities. US stocks edged higher yesterday, 16 July 2015, with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress.
As per provisional figures, the S&P BSE Sensex was up 28.09 points or 0.1% at 28,474.21. The index jumped 130.20 points at the day's high of 28,576.32 in early trade, its highest level since 17 April 2015. The index fell 28.66 points at the day's low of 28,417.46 in morning trade.
The Nifty was up 5.50 points or 0.06% at 8,613.55, as per provisional figures. The index hit a high of 8,642.95 in intraday trade, its highest level since 17 April 2015. The index hit a low of 8,593.15 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,433 shares gained and 1,402 shares fell. A total of 134 shares were unchanged.
The BSE Mid-Cap index was up 21.94 points or 0.2% at 11,220.18. The BSE Small-Cap index was up 50.94 points or 0.44% at 11,716.37. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2932 crore, higher than turnover of Rs 2777.43 crore registered during the previous trading session.
IT stocks edged higher on renewed buying. Tech Mahindra (up 2.48%), TCS (up 0.86%), Oracle Financial Services Software (up 0.68%), MphasiS (up 0.91%) and Infosys (up 1.53%), edged higher. Wipro (down 0.57%) and HCL Technologies (down 0.16%) declined.
MindTree rose 3.36% after consolidated net profit rose 7.4% to Rs 138.20 crore on 6.9% growth in revenue to Rs 981.60 crore in Q1 June 2015 over Q4 March 2015. The Q1 result was announced after market hours yesterday, 16 July 2015.
MindTree said that the Board of Directors of the company has approved the acquisition of 100% equity interest in Bluefin Solutions ('Bluefin'), a leading UK based IT solutions provider specializing in SAP HANA solutions, in an all cash transaction for GBP 42.3 million, and the definitive agreements have also been signed on 16 July 2015. The consideration includes an upfront payment of GBP 34 million and earn out of GBP 8.3 million payable over the next three years.
MindTree's Board of Directors also approved the acquisition of 100% of the equity interest in Relational Solutions, Inc a US based IT solutions provider specializing in technology services to the consumer goods industry, in an all cash transaction for $10 million, and the definitive agreements have also been signed on 16 July 2015. The consideration includes an upfront payment of $7 million and earn out of $3 million payable over the next two years. This acquisition is subject to customary closing conditions and regulatory approvals, if any, MindTree said.
Meanwhile, the India's weather office, the India Meteorological Department (IMD), said in a weekly monsoon report issued yesterday, 16 July 2015, that rainfall was below normal by 14% over the country as a whole during the period from 9 to 15 July 2015. Region wise, the rainfall was 39% below the Long Period Average (LPA) in South Peninsula, 32% below the LPA in Central India and 15% below the LPA in East & Northeast India during the period from 9 to 15 July 2015. Northwest India received above normal rainfall activity during the week with heavy to very heavy rainfall. The rainfall was 28% above the LPA in Northwest India during the period from 9 to 15 July 2015.
For the country as a whole, cumulative rainfall during the period from 1 to 15 July 2015 was 32% below Long Period Average (LPA). Region wise, the rainfall was 60% below the LPA in South Peninsula, 54% below the LPA in Central India, 15% below the LPA in East & Northeast India and 4% above the LPA in Northwest India during the period from 1 to 15 July 2015. The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops.
In a separate daily monsoon update issued yesterday, 16 July 2015, the IMD said that the Southwest Monsoon was vigorous over Jharkhand and was active over Nagaland, Manipur, Mizoram & Tripura, Gangetic West Bengal, Odisha, Bihar, East Uttar Pradesh and Himachal Pradesh during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 16 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 13% below the LPA in South Peninsula, 4% below the LPA in East & Northeast India and 12% above the LPA in Northwest India until 16 July 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, European stocks fell today, 17 July 2015, European stocks edged lower ahead of a debate and voting by lawmakers in Germany today, 17 July 2015, on the plan for a third bailout for Greece. Key indices in France, UK and Germany were off 0.01% to 0.37%. In Spain, the IBEX 35 index was off 0.14%. In Italy, the FTSE MIB index was off 0.19%.
German lawmakers will today, 17 July 2015, debate and vote on whether to approve the plan for a third bailout for Greece. The parliamentary approval is the next hurdle the financial-aid deal must pass before formal talks can begin. The agreement, sealed early this week between Greece and its eurozone partners, must also get legislative approval from a handful of other eurozone member nations to proceed.
The European Central Bank (ECB) yesterday, 16 July 2015, increased emergency funding for Greek lenders, although capital controls will have to remain in place to avoid a run on the banks when they reopen on Monday, 20 July 2015. European Union finance ministers also approved 7 billion euros ($7.6 billion) in bridge loans to Greece, allowing it to make a bond payment to the ECB on Monday, 20 July 2015, and clear its arrears with the International Monetary Fund. Greece's parliament yesterday, 16 July 2015, approved tough austerity measures needed for the country to receive financial aid.
Meanwhile, the European Central Bank left interest rates unchanged at record low after monetary policy review yesterday, 16 July 2015.
In UK, Bank of England Governor Mark Carney yesterday, 16 July 2015, said in a speech that the Bank of England's decision on when to start raising interest rates in the UK is likely to become clearer around the turn of the year. Carney also said that when the rate starts rising, the increases are likely to be gradual and limited to a level below past averages. Carney's comments suggest central bank officials may be prepared to tighten monetary policy earlier than expected. The central bank has kept its benchmark rate at a record low 0.5% since early 2009.
Chinese stocks led gains for Asian equities today, 17 July 2015. Key benchmark indices in Taiwan and Japan were up 0.04% to 0.25%. South Korea's Kospi was off 0.53%. Chinese shares recovered further after a series of government support measures to halt their recent crash. In mainland China, the Shanghai Composite index jumped 3.51%. In Hong Kong, the Hang Seng index rose 1%.
US stocks edged higher yesterday, 16 July 2015, with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress. Stocks rose steadily as Yellen told the Senate Banking Committee yesterday, 16 July 2015, that she doesn't want to see inflation linger below 2% and that risks lie on tightening too early or too late. On Wednesday, 15 July 2015, Yellen repeated her intent to raise rates sometime this year because the US economy is looking better.
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