After trimming gains in afternoon trade, key benchmark indices recovered from lower level in mid-afternoon trade. The barometer index, the S&P BSE Sensex, retained the psychological 28,000 mark after surpassing that mark in early trade. The Sensex was currently up 264.29 points or 0.95% at 28,197.19. The gains for the Sensex in percentage terms were higher than those for the 50-unit CNX Nifty. The Nifty was currently up 66.25 points or 0.78% at 8,520.35. The market breadth indicating the overall health of the market was positive.
Key equity benchmark indices in India edged higher today, 15 July 2015, as a fall in US retail sales fueled bets the Federal Reserve will delay raising interest rates. There had been concerns that higher interest rates in the United States will boost returns on US debt and bank deposits, drawing money back from riskier markets.
Telecom stocks gained. Shares of power generation and power distribution companies also edged higher.
Meanwhile, Prime Minister Narendra Modi today, 15 July 2015, said that the political deadlock over land acquisition is seriously impacting rural development, including the creation of schools, hospitals, roads and irrigation projects.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than a week in early afternoon trade as these two key benchmark indices extended intraday gains.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 269.90 crore yesterday, 14 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 130.90 crore yesterday, 14 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks reversed their initial losses on expectations Greece's Parliament will approve a rescue deal for the country. Asian stocks were mixed. US stocks edged higher yesterday, 14 July 2015, as investors took stock of disappointing June retail sales numbers and how the data factor into the Federal Reserve's plans for a rate hike.
At 14:16 IST, the S&P BSE Sensex was up 264.29 points or 0.95% at 28,197.19. The index jumped 285.47 points at the day's high of 28,218.37 in early afternoon trade, its highest level since 7 July 2015. The index rose 53.58 points at the day's low of 27,986.48 in early trade.
The CNX Nifty was up 66.25 points or 0.78% at 8,520.35. The index hit a high of 8,531.40 in intraday trade, its highest level since 7 July 2015. The index hit a low of 8,462.95 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,550 shares gained and 1,150 shares fell. A total of 130 shares were unchanged.
The BSE Mid-Cap index was up 20.67 points or 0.19% at 11,063.14. The BSE Small-Cap index was up 70.89 points or 0.62% at 11,592.81. Both these indices underperformed the Sensex.
Telecom stocks gained. Bharti Airtel (up 0.13%), Tata Teleservices (Maharashtra) (up 0.42%) Reliance Communications (up 3.8%) and Idea Cellular (up 0.63%) gained.
Shares of power generation and power distribution companies gained. Torrent Power (up 0.28%), NTPC (up 0.23%), NHPC (up 0.23%), Tata Power Company (up 0.82%), JSW Energy (up 1.41%), Power Grid Corporation of India (up 0.07%), Reliance Infrastructure (up 0.12%) and Reliance Power (up 0.56%) gained.
Meanwhile, Prime Minister Narendra Modi today, 15 July 2015, said that the political deadlock over land acquisition is seriously impacting rural development, including the creation of schools, hospitals, roads and irrigation projects. The Prime Minister chaired the Second Meeting of the Governing Council of NITI Aayog in New Delhi. The Council held consultations on the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. In his opening remarks at the Second Meeting of the Governing Council of NITI Aayog, Modi reiterated that as far as paying enhanced compensation is concerned, there are no differences in the stands of the Centre and States.
The Prime Minister said that after formation of his government at the Centre, several state governments had raised concerns with regard to the implementation of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. He said many state governments had felt that development work was suffering due to the provisions of the 2013 Act; and some Chief Ministers had requested for changes in the Act, and sent letters to this effect. The Prime Minister said that the Ordinance was brought about in response to these development concerns of the states and also to ensure that farmers continue to receive their legitimate due. The Prime Minister appealed to everyone that political considerations should not come in the way of a solution that would facilitate development of the rural areas, and greater prosperity for the farmers. He said the matter is now before the Parliamentary Standing Committee, and therefore, ahead of the upcoming Parliament session, it was appropriate that the suggestions of state governments be listened to, once again.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 14 July 2015, that the Southwest Monsoon was active over Andaman & Nicobar Island during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 5% below the Long Period Average (LPA) until 14 July 2015. Region wise, the southwest monsoon was 20% above the LPA in Northwest India, 8% below the LPA in East & Northeast India, 11% below the LPA in Central India and 14% below the LPA in South Peninsula and until 14 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.
In overseas markets, European stocks reversed their initial losses today, 15 July 2015, on expectations Greece's Parliament will approve a rescue deal for the country. Key indices in UK, Germany and France were up 0.02% to 0.19%. In Spain, the IBEX 35 index was up 0.45%. In Italy, the FTSE MIB index was up 0.76%.
Greece is back in focus as Greece's parliament faces a deadline today, 15 July 2015, to approve creditors' austerity measures or risk losing much-needed bailout aid. Early this week, eurozone leaders agreed on a three-year bailout for the debt-laden country. The measures call for more severe spending cuts, market reforms and tax increases than those rejected by Greek voters in a referendum on 5 July 2015. Accepting the measures is necessary to begin negotiations on a desperately needed bailout. Rejecting them could possibly lead to a Greek exit from the eurozone and more intense economic pain in the short term.
The International Monetary Fund (IMF) criticized Greece's bail out deal in a report published yesterday, 14 July 2015, questioning Greece's ability to implement the tough fiscal measures involved. It warned the eurozone must commit to debt restructuring in order for the bailout program to work. If the currency union fails to assure the IMF it will reduce Greece's debt burden to sustainable levels, the fund signaled it may consider withdrawing from the program.
Greece also faces an immediate cash crisis. The country's banks have been shut since 29 June 2015.
Meanwhile, in France, the latest data showed that the consumer price index declined 0.1% in June from May. On year, the index was 0.3% higher.
Asian stocks were mixed today, 15 July 2015. Key benchmark indices in Taiwan, Singapore, Japan, and South Korea were up 0.14% to 0.66%. Indonesia's Jakarta Composite fell 0.83%.
Stocks fell sharply in mainland China as surprisingly strong GDP growth data diminished hopes for more stimulus. The Shanghai Composite lost 3.03%. In Hong Kong, the Hang Seng index lost 0.26%. The continued slide among Chinese stocks reflects deepening doubts that Beijing can turn things around, despite heavy intervention in recent days. China's economy grew an annual 7% in the second quarter, data released by the National Bureau of Statistics today, 15 July 2015, showed. Other statistics released by the National Bureau of Statistics showed little sign of turnaround in a quarter that started against the backdrop of a broad stock rally and ended under the shadow of that rally's collapse. Value-added industrial production grew 6.3% year-over-year in the first half, down from the 6.4% growth in the first quarter, while growth in fixed-asset investment fell to 11.4% from 13.5%, and retail-sales gains slowed to 10.4% from 10.6%, the statistics bureau said.
In Japan, the Bank of Japan trimmed its forecasts for inflation and economic growth, but kept the scope of its monetary easing unchanged as widely expected after a monetary policy review today, 15 July 2015. The central bank said the current fiscal year, ending in March 2016, would see the core consumer price index rise 0.7%, down from its April forecast for a gain of 0.8%. Likewise, it said the economy would grow by 1.7%, down from a previous projection of 2%. The Bank of Japan also cut its core CPI forecasts for fiscal 2016 and 2017, but kept its growth estimates for those years unchanged.
US stocks rose yesterday, 14 July 2015, as investors took stock of disappointing June retail sales numbers and how the data factor into the Federal Reserve's plans for a rate hike. US retail sales unexpectedly fell 0.3% in June from the prior month, the Commerce Department said. Figures for the prior two months were also revised down. Weaker economic growth may delay the first rate hikes as the Federal Reserve tries to find a balance between normalizing rates and accommodating an uneven recovery.
Federal Reserve Chairwoman Janet Yellen's address to lawmakers this week may give clues on the timing of an interest-rate increase in the United States. Yellen is scheduled to speak about the central bank's economic outlook to the House Financial Services committee today, 15 July 2015. Yellen will address the Senate Banking Committee tomorrow, 16 July 2015.
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