Firmness continued on the bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 255.06 points or 0.95% at 27,087.72. Gains in the Sensex in percentage terms were higher than those for the 50-unit CNX Nifty. The Nifty was currently up 62.20 points or 0.77% at 8,153.75. The Sensex was currently trading above the psychological 27,000 mark, after surpassing that mark in early trade. The broad market depicted strength. There were more than two gainers against every loser on BSE. The BSE Small-Cap index was up 1.13%, outperforming the Sensex
Shares of realty firms were mixed after the Union Cabinet yesterday, 17 June 2015, gave its approval for the National Mission for Urban Housing. IT stocks edged higher on renewed buying.
Indian stocks edged higher today, 18 June 2015, after the US Federal Reserve said after the conclusion of a two-day monetary policy review yesterday, 17 June 2015, that its monetary-policy tightening would be gradual, easing concerns that fund flows to emerging markets will taper. There have been concerns that higher US interest rates will reduce the attraction of riskier emerging-markets assets. Higher interest rates will boost returns on US debt and bank deposits, drawing money back from riskier markets.
The US Federal Reserve left key interest rates unchanged near zero after the conclusion of a two-day monetary policy review yesterday, 17 June 2015 and signaled a gradual pace of interest rate increases, starting with a first rate hike in the current calendar year.
Earlier, the Sensex hit its highest level in more than two weeks and the Nifty hit its highest level in almost two week as these two key benchmark indices extended intraday gains in mid-morning trade.
In overseas stock markets, Asian stocks edged lower. US stocks eked out small gains yesterday, 17 June 2015, after the Federal Reserve left key interest rates unchanged and as Fed Chairwoman Janet Yellen reiterated policy makers' commitment to watch economic data.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 940.91 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1447.07 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges.
At 11:17 IST, the S&P BSE Sensex was up 255.06 points or 0.95% at 27,087.72. The index jumped 291.10 points at the day's high of 27,123.76 in mid-morning trade, its highest level since 3 June 2015. The index rose 77.60 points at the day's low of 26,910.26 in early trade.
The Nifty was up 62.20 points or 0.77% at 8,153.75. The index hit a high of 8,166.35 in intraday trade, its highest level since 5 June 2015. The index hit a low of 8,101.80 in intraday trade.
The market breadth indicating the overall health of the market quite strong. There were more than two gainers against every loser on BSE. 1,499 shares rose and 724 shares fell. A total of 85 shares were unchanged.
The BSE Mid-Cap index was up 74.89 points or 0.72% at 10,419.40, underperforming the Sensex. The BSE Small-Cap index was up 122.84 points or 1.13% at 10,918.195, outperforming the Sensex.
Shares of realty firms were mixed after the Union Cabinet yesterday, 17 June 2015, gave its approval for the National Mission for Urban Housing. A central grant of Rs 1 lakh per house, on an average, will be available under the slum rehabilitation programme. A state government would have flexibility in deploying this slum rehabilitation grant to any slum rehabilitation project taken for development using land as a resource for providing houses to slum dwellers. The slum rehabilitation projects can be undertaken with participation of private developers using land as a resource.
Godrej Properties (up 1.7%), Anant Raj (up 1.84%), Peninsula Land (up 1.52%), Housing Development and Infrastructure (HDIL) (up 1.39%), Prestige Estates Projects (up 0.89%), Phoenix Mills (up 0.73%), and Sunteck Realty (up 0.17%), edged higher. Unitech (down 0.13%), Sobha (down 0.36%), DLF (down 0.92%) and Oberoi Realty (down 0.18%), edged lower.
Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5% on housing loans availed upto a tenure of 15 years will be provided to EWS/LIG categories, wherein the subsidy pay-out on NPV basis would be about Rs 2.3 lakh per house for both the categories. Central assistance at the rate of Rs 1.5 lakh per house for EWS category will be provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. State governments or their para statals like housing boards can take up project of affordable housing to avail the central government grant.
IT stocks edged higher on renewed buying. HCL Technologies (up 0.46%), TCS (up 0.92%), Infosys (up 0.72%), and Wipro (up 1.08%), Oracle Financial Services Software (up 0.45%) and MphasiS (up 0.75%) edged higher. Tech Mahindra declined 1.05%.
Meanwhile, finance Minister Arun Jaitley has approved the formation of two separate committees for facilitating implementation of a nationwide Goods and Services Tax (GST) from 1 April 2016. The finance ministry said in a statement issued after trading hours yesterday, 17 June 2015, that progress is underway to finalise various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules. A Steering Committee been formed under the co-chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This committee will monitor the progress of IT preparedness of Goods and Services Tax Network (GSTN)/CBEC/tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The committee will also monitor the progress on consultations with various stakeholders like trade and industry and training of officers.
Another committee has been formed under the chairmanship of the Chief Economic Advisor, Ministry of Finance to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Central Government and the state governments. While making recommendations, this committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST, the finance ministry said in a statement. This committee would also analyse the sector-wise and state-wise impact of GST on the economy. The committee is expected to give its report within two months.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 17 June 2015, that the Southwest Monsoon was active over Marathwada, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. Conditions are favourable for further advance of southwest monsoon into some more parts of Chhattisgarh, Odisha and West Bengal, remaining parts of Coastal Andhra Pradesh and Bay of Bengal during next 2-3 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 12% above the Long Period Average (LPA) until 16 June 2015. Region wise, the southwest monsoon was 19% above the LPA in East & Northeast India, 17% above the LPA in Central India, 1% above the LPA in South Peninsula and 5% below the LPA in Northwest India until 16 June 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.
Asian stocks edged lower today, 18 June 2015. Key benchmark indices in Indonesia, China, Japan, and Singapore shed by 0.01% to 1%. Key benchmark indices in Taiwan and South Korea rose by 0.54% to 0.62%. Hong Kong's Hang Seng was flat.
China attracted $9.33 billion worth of foreign direct investment in May, up 7.8% from a year earlier, the Ministry of Commerce said today, 18 June 2015. The figure was down from April's $9.61 billion, which was 10.5% higher from a year earlier.
US stocks eked out small gains yesterday, 17 June 2015, after the Federal Reserve left key interest rates unchanged and as Fed Chairwoman Janet Yellen reiterated policy makers' commitment to watch economic data. In a press conference following the conclusion of the Federal Reserve's two-day policy meeting yesterday, 17 June 2015, Fed Chairwoman Janet Yellen said she wanted "more decisive evidence" that labour markets were healing, and that wages would increase beyond their current "subdued pace."
The US economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, but concerns remain over the recovery of the labour market, US Federal Reserve officials said. With the economy still on track to grow as much as 2% for the year, the central bank's latest policy statement keeps it on track for at least one and perhaps a second rate increase later this year.
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