Key benchmark indices surged in early trade. The barometer index, the S&P BSE Sensex regained psychological 27,000 mark. The Sensex was currently up 198.93 points or 0.74% at 27,027.42. The market breadth indicating the overall health of the market was strong. Federal Reserve's Chairwoman Janet Yellen's comments following the end of the Federal Reserve's two-day policy meeting yesterday, 17 June 2015, that she wanted more decisive evidence that labour markets were healing, and that wages would increase beyond their current subdued pace, boosted sentiment. Concerns about near term hike in interest rates in US have eased. It is anticipated that investors may dump risky assets in emerging markets if interest rates are hiked in the US.
Bharti Airtel declined after the company said that the agreements for sale of tower assets in Tanzania and Tchad between the respective subsidiaries of Bharti Airtel and Helios Towers Africa have lapsed and therefore stands terminated. Shares of Kotak Mahindra Bank dropped after the stock turned ex-dividend today, 18 June 2015 for dividend of Rs 0.90 per share for the year ended 31 March 2015.
In overseas markets, Asian stocks were mixed today, 18 June 2015. US stocks inched higher in a choppy session yesterday, 17 June 2015, following the Federal Reserve's policy statements.
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.
At 9:25 IST, the S&P BSE Sensex was up 198.93 points or 0.74% at 27,027.42. The index gained 230.72 points at the day's high of 27,063.38 in early trade. The index rose 77.60 points at the day's low of 26,910.26 in early trade.
The CNX Nifty was up 49.90 points or 0.62% at 8,141.45. The index hit a high of 8,141.65 in intraday trade. The index hit a low of 8,101.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 965 shares rose and 236 shares fell. A total of 42 shares were unchanged.
The BSE Mid-Cap index was up 70.17 points or 0.68% at 10,414.68, underperforming the Sensex. The BSE Small-Cap index was up 84.29 points or 0.78% at 10,880.84, outperforming the Sensex.
NTPC rose after the company said that the company has signed an agreement on 15 June 2015 with Jammu and Kashmir State Power Development Corporation (JKSPDCL) for promoting a Joint Venture Company with 67:33 equity participation for undertaking exploration, development and operation of jointly allocated Kudanali-Luburi Coal Block at Odisha by Ministry of Coal. The stock rose 0.29%. The company said after market hours yesterday, 17 June 2015.
Bharti Airtel declined after the company said that the agreements for sale of tower assets in Tanzania and Tchad between the respective subsidiaries of Bharti Airtel and Helios Towers Africa have lapsed and therefore stands terminated. The stock declined 1.37%. The company said after market hours yesterday, 17 June 2015. On 9 July 2014 Bharti had said Airtel divested telecoms tower assets to Helios Towers Africa.
Shares of Kotak Mahindra Bank dropped 0.31% as the stock turned ex-dividend today, 18 June 2015 for dividend of Rs 0.90 per share for the year ended 31 March 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 0.04% to 0.6%. Key benchmark indices in Indonesia, Taiwan and South Korea rose by 0.09% to 0.62%.
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 inched higher in a choppy session yesterday, 17 June 2015, following the Federal Reserve's policy statements.
In a press conference following the end 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." Fed Chair Janet Yellen, however, emphasized that the rate decision was still up in the air and rested squarely on further improvement in the labour market - renewing her focus on a longstanding concern.
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 reportedly 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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