A bout of volatility was witnessed as key benchmark indices extended intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 127.47 points or 0.46% at 27,931.84.
Metal and mining stocks edged lower. Capital goods stocks were mixed.
Key benchmark indices edged higher today, 24 June 2015, on speculation that a pick-up in sowing of Kharif crops, above-average monsoon rains during the initial part of the June-September southwest monsoon season and a restrained increase in minimum support prices for Kharif crops announced by the government last week will improve the odds for further monetary policy easing from Reserve Bank of India (RBI). Concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the southwest monsoon season. The RBI cut its main benchmark lending rate viz. the repo rate by 25 basis points after a monetary policy review on 2 June 2015. The central bank at that time said that the monsoon and its impact on food costs will be key to further easing.
Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire tomorrow, 25 June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 374.97 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.20 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, European stocks edged lower, with investors focusing on corporate deal-making as well as on continued negotiations between debt-burdened Greece and its creditors. Asian stocks edged higher amid optimism about a possible solution to Greece's debt woes. US stocks ended a choppy trading session slightly higher yesterday, 23 June 2015, though modest gains were enough to push the Nasdaq Composite and Russell 2000 to record closing levels.
At 14:15 IST, the S&P BSE Sensex was up 127.47 points or 0.46% at 27,931.84. The index jumped 141.15 points at the day's high of 27,945.52 in mid-afternoon trade, its highest level since 1 June 2015. The index fell 19.93 points at the day's low of 27,784.44 in early trade.
The CNX Nifty was up 35.10 points or 0.42% at 8,416.65. The index hit a high of 8,419.20 in intraday trade, its highest level since 2 June 2015. The index hit a low of 8,376.10 in intraday trade.
The BSE Mid-Cap index was up 41.54 points or 0.39% at 10,693.46. The BSE Small-Cap index was up 26.02 points or 0.23% at 11,170.99. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,391 shares rose and 1,148 shares fell. A total of 120 shares were unchanged.
Metal and mining stocks edged lower. Jindal Steel & Power (down 2.55%), Hindalco Industries (down 2.3%), Tata Steel (down 1.55%), JSW Steel (down 1.34%), Hindustan Zinc (down 1.1%), Steel Authority of India (down 0.72%) and NMDC (down 0.29%) edged lower. National Aluminium Company (up 0.59%) and Vedanta (up 0.54%) edged higher.
Capital goods stocks were mixed. Bharat Heavy Electricals (up 5.08%), Bharat Electronics (up 0.49%), Sadbhav Engineering (up 0.15%) and Alstom T&D India (up 2.74%) edged higher. BEML (down 0.44%), ABB India (down 0.01%), Siemens (down 1.33%), Havells India (down 0.84%) and Thermax (down 0.23%) edged lower.
L&T was flat at Rs 1,765. The stock hit a high of Rs 1,773.95 and a low of Rs 1,752.05 so far during the day. L&T during market hours today, 24 June 2015, announced that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has secured an offshore contract worth Rs 2715 crore from ONGC for the Bassein Development Project. The project is a part of ONGC's strategy to enhance the field life and increase recovery of Bassein Field and is scheduled to be completed by December 2017, L&T said.
Crompton Greaves was off 3.09% at Rs 162.85. The stock hit a high of Rs 171.70 and a low of Rs 162.65 so far during the day. Crompton Greaves after market hours yesterday, 23 June 2015, announced that the company has entered into a long term alliance with SOGO, a European player in consumer appliances. The Spanish consumer appliances company is engaged in the marketing and worldwide sales of kitchen and home appliances and personal care products under the brand name of SOGO since 1981. This alliance enables Crompton to offer a new range of high performance kitchen appliances to the Indian consumer, Crompton Greaves said.
Meanwhile, concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the June-September southwest monsoon season. For the country as a whole, the cumulative rainfall during this year's monsoon season was 21% above the Long Period Average (LPA) until 22 June 2015. Region wise, the southwest monsoon was 45% above the LPA in Central India, 35% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 22 June 2015.
The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 23 June 2015, that the southwest monsoon has further advanced into some more parts of north Arabian Sea, Gujarat state, Madhya Pradesh and Bihar and remaining parts of Chhattisgarh and Jharkhand and some parts of East Uttar Pradesh. Conditions are favourable for further advance of southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Madhya Pradesh and Bihar, entire Uttarakhand, Himachal Pradesh, Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 2-3 days, the IMD said. The Southwest monsoon was vigorous over West Madhya Pradesh and active over Nagaland, Manipur, Mizoram & Tripura, Odisha, Jharkhand, East Madhya Pradesh, Madhya Maharashtra, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST, the IMD said.
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.
Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015. Four members advocated a cut in repo rate by 25 basis points; two members suggested a 50 basis points reduction and one member proposed a reduction by 75 basis points. One of these members also recommended that the SLR should also be reduced by 50 basis points. It may be recalled that the RBI cut its benchmark lending rate viz. the repo rate by 25 basis points after the 2 June 2015 policy review.
In overseas markets, European stocks edged lower in volatile trade today, 24 June 2015, with investors focusing on corporate deal-making as well as on continued negotiations between debt-burdened Greece and its creditors. Key benchmark indices in France and Germany were off 0.07% to 0.3%. In UK, the FTSE index was up 0.43%.
Greece remains the focal point for global markets. Greece and its international lenders are racing to hammer out a reform deal this week. Greek Prime Minister Alexis Tsipras will meet European Central Bank President Mario Draghi, the International Monetary Fund chief Christine Lagarde and European Commission President Jean-Claude Juncker in Brussels today, 24 June 2015. They will discuss the reform plans Athens submitted early this week, trying to resolve the remaining issues that are blocking a deal. Later, Eurogroup of finance ministers will hold a meeting today, 24 June 2015, evening, aiming to prepare an agreement that could be signed off by European Union leaders at a summit tomorrow, 25 June 2015.
Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.
In Germany, the widely watched Ifo Business Climate Index fell to a four-month low in June, dampening optimism over the health of the euro zone's largest economy, industry data showed today, 24 June 2015. In a report, the German research institute Ifo said its Business Climate Index fell to a seasonally adjusted 107.4 in June, down from a reading of 108.5 in May.
Asian stocks edged higher today, 24 June 2015, amid optimism about a possible solution to Greece's debt woes. Key indices in China, Hong Kong, Japan, Taiwan, Singapore, South Korea and Indonesia were up 0.07% to 2.48%.
Members of the Bank of Japan's monetary policy board are satisfied with the rate of the country's economic recovery and the recovery is expected to continue, minutes from the board's meeting on May 21 and 22 showed yesterday, 23 June 2015.
US stocks closed mildly higher yesterday, 23 June 2015, as investors remained optimistic on the Greece debt talks and eyed continued signs of moderate economic growth. Data on sales of new single-family homes showed that new homes in May were sold at an annual rate of 546,000, hitting the fastest pace since February 2008. The figures showed growth in two out of four regions, while April numbers were also raised. The home-sales data came after a report showed that orders for durable US goods fell a seasonally adjusted 1.8% in May, mostly due to weaker demand for commercial aircraft.
Meanwhile, the Markit US manufacturing PMI fell to 53.4 in June from 54 in May, data released yesterday, 23 June 2015 showed.
Federal Reserve Governor Jerome Powell was quoted as saying yesterday, 23 June 2015, that there could be two interest-rate hikes this year. He also said that the US stock market isn't showing signs of being in a bubble.
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