After languishing in negative zone in early trade, key benchmark indices staged a strong rebound in morning trade. The broad market depicted strength. There were more than two gainers against every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 133.37 points or 0.47% at 28,315.51.
Pharma shares edged higher on bargain hunting after yesterday's slide.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 226.88 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 146.32 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit one-week low in early trade amid weakness in Asian stocks.
In overseas stock markets, Asian stocks edged lower amid disappointing results from technology and industrial heavyweights in the US. US stocks edged lower yesterday, 21 July 2015, after disappointing quarterly reports from IMB and United Technologies Corp.
At 10:18 IST, the S&P BSE Sensex was up 133.37 points or 0.47% at 28,315.51. The index jumped 165.47 points at the day's high of 28,347.61 in morning trade. The index lost 111.23 points at the day's low of 28,070.91 in early trade, its lowest level since 15 July 2015.
The CNX Nifty was up 37.40 points or 0.44% at 8,566.85. The index hit a high of 8,575.60 in intraday trade. The index hit a low of 8,498.65 in intraday trade, its lowest level since 15 July 2015.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,294 shares gained and 633 shares fell. A total of 78 shares were unchanged.
The BSE Mid-Cap index was up 51.99 points or 0.47% at 11,142.58. The gains for this index in percentage terms were exactly the same as that for the Sensex. The BSE Small-Cap index was up 57.74 points or 0.5% at 11,634.56, outperforming the Sensex.
The total turnover on BSE amounted to Rs 469 crore by 10:15 IST, compared with turnover of Rs 121 crore by 09:30 IST.
Pharma shares edged higher on bargain hunting after yesterday's slide. Cadila Healthcare (up 3.01%), Dr Reddy's Laboratories (up 0.36%), Glenmark Pharmaceuticals (up 0.21%), Lupin (up 1.09%), GlaxoSmithKline Pharmaceuticals (up 0.5%) and Wockhardt (up 1.87%) rose. Aurobindo Pharma fell 0.98%.
Sun Pharmaceutical Industries edged higher on bargain hunting after a steep slide in the stock yesterday, 21 July 2015, triggered by a profit warning. The stock was up 1.73%. The stock had tumbled 14.95% yesterday, 21 July 2015, after the company said in a business update that its various consolidation initiatives globally due to the acquisition of Ranbaxy Laboratories are likely to adversely impact the company's revenue and profits for the current financial year.
Cipla rose 1.88%. Cipla announced after market hours yesterday, 21 July 2015, that the company's board has approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Limited or its affiliates, in its recently launched consumer healthcare business which is under incorporation. The investment is subject to execution of definitive agreements, and regulatory approvals. Through Cipla Consumer Healthcare, the company has entered the rapidly growing over-the-counter (OTC) healthcare market in India. The vision is to improve the lives of Indian consumers, building on Cipla's strengths in bringing good science to good medicine, while also leveraging its market outreach and equity with the Indian healthcare system. The business will focus on opportunities arising from the shift from illness to wellness and self-care.
Meanwhile, the government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament which began yesterday, 21 July 2015. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition. Meanwhile, a Rajya Sabha Select Committee has reportedly adopted a report endorsing majority provisions of the Goods and Services Tax (GST) Bill after the Centre agreed to compensate states for revenue loss for 5 years even as Congress filed a dissent note. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 21 July 2015, that the Southwest Monsoon was active over Andaman & Nicobar Islands, West Madhya Pradesh and Konkan & Goa during past 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 21 July 2015. Region wise, the rainfall was 14% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 8% above the LPA in Northwest India until 21 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. 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, 22 July 2015, amid disappointing results from technology and industrial heavyweights in the US. Key benchmark indices in Singapore, China, Taiwan, Hong Kong, Japan, and South Korea fell by 0.06% to 1.12%. In Indonesia, the Jakarta Composite index rose 0.01%.
Chinese business sentiment fell sharply in July, suggesting that recent dramatic falls in company share prices had severely dented optimism. The MNI China Business Indicator fell 8.8% to 48.8 in July, below the 50 score which marks optimism. The reading matches the April level, which was the lowest since January 2009. The index had jumped 7.6% in June to 53.5. MNI, a part of Deutsche Bse Group, surveys 200 companies listed on the Shanghai and Shenzhen stock exchanges.
Trading in US index futures indicated a weak opening of US stocks later in the global day today, 22 July 2015, after Apple Inc.'s forecast disappointed investors. Trading in US index futures indicated that the Dow could slide 69.50 points at the opening bell. US stocks dropped yesterday, 21 July 2015 on weak earnings from bellwethers International Business Machines Corp. (IBM) and United Technologies Corp.
In Europe, Standard & Poor's yesterday, 21 July 2015, upgraded Greece's sovereign credit rating by two notches and revised its outlook to stable from negative, citing euro zone countries' initial agreement to start negotiations with Athens on a third bailout.
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