After seeing an initial surge, key benchmark indices extended intraday gains in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than two-weeks. The 50-unit CNX Nifty hit one-week high. 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 Sensex was currently up 203.48 points or 0.76% at 27,036.14.
After the conclusion of a two-day monetary policy review yesterday, 17 June 2015, the US Federal Reserve left key interest rates unchanged near zero and signaled a gradual pace of interest rate increases, starting with a first rate hike in the current calendar year.
Capital goods stocks gained. Auto stocks also edged higher.
In overseas stock markets, Asian stocks were mixed. 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 10:16 IST, the S&P BSE Sensex was up 203.48 points or 0.76% at 27,036.14. The index jumped 256.78 points at the day's high of 27,089.44 in 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 48.75 points or 0.6% at 8,140.30. The index hit a high of 8,159.30 in intraday trade, its highest level since 11 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. 1,327 shares rose and 613 shares fell. A total of 88 shares were unchanged.
The BSE Mid-Cap index was up 72 points or 0.7% at 10,416.51, underperforming the Sensex. The BSE Small-Cap index was up 99.20 points or 0.92% at 10.895.75, outperforming the Sensex.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.16%), Havells India (up 2.17%), ABB India (up 0.78%), Bharat Electronics (up 1.07%), L&T (up 1.11%), Thermax (up 0.56%) and Siemens (up 0.57%) gained.
Auto stocks also edged higher. Mahindra & Mahindra (M&M) (up 1.18%), Ashok Leyland (up 1.29%), Hero MotoCorp (up 0.01%), Maruti Suzuki India (up 0.85%), Bajaj Auto (up 0.94%) and TVS Motor Company (up 1.04%) gained.
Eicher Motors was up 1.07%. Eicher Polaris Pvt. Ltd., a 50:50 joint venture between Eicher Motors and Polaris Industries Inc., today, 18 June 2015, announced the launch India's first personal utility vehicle under the name Multix, thereby creating a new category in the automotive segment. Multix is specially designed for independent businessmen, having an estimated population of 5.8 crores in India. Purpose-built, specially designed and powered by a reliable diesel engine, Multix will be available in two variants and four colors, starting at a price of Rs 2.32 lakh (ex-showroom Jaipur).
Eicher Polaris has made an investment of Rs 350 crore towards product development and setting up a worldclass manufacturing facility with state-of-the-art technology at Jaipur, Rajasthan. The plant has an annual capacity of 60,000 units which can be scaled up to 1.2 lakh units. The facility is also equipped with robotic weld lines and in-house paint system.
HDFC Bank gained 1.33%. The bank has reportedly cut its base rate by 15 basis points to 9.7% with effect from 15 June 2015.
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 were mixed today, 18 June 2015. Key benchmark indices in China, Hong Kong, Japan, and Singapore shed by 0.06% to 0.84%. Key benchmark indices in Indonesia, Taiwan and South Korea rose by 0.04% to 0.66%.
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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