BSE Small-Cap, Mid-Cap indices rallies


Pharma, telecom stocks and index heavyweights ITC, Reliance Industries and HDFC led gains for key benchmark indices. Benchmark indices surged towards the fag end of the trading session after moving in a narrow range during most part of the trading session. The upmove for key indices in late trade materialised as European stocks reversed initial losses and trading in US index futures indicated a firm opening of US stocks later in the global day. European stocks reversed initial losses after a Greek newspaper reported that last-minute efforts aimed at bringing Greece and its creditors back to the negotiating table are underway. Negotiations between Greece and its creditors collapsed over the weekend after Greece’s Prime Minister Alexis Tsipras on Friday, 26 June 2015, unexpectedly called for a referendum on whether to accept reform measures demanded by the country’s lenders.

The barometer index, the S&P BSE Sensex, rose 135.68 points or 0.49% to settle at 27,780.83. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index rose 1.33%. The BSE Small-Cap index rose 1.07%. Both these indices outperformed the Sensex.

Shares of public sector banks were mixed. Shares of private sector banks edged higher in volatile trade. FMCG stocks were in demand. Nestle India edged higher after the Bombay High Court allowed the company to continue the export of Maggi Noodles. Pharmaceutical shares edged higher.

Bharti Airtel edged higher after the company said that it has become the third largest mobile operator in the world in terms of subscribers. Tech Mahindra extended a steep slide registered during the previous trading session that was triggered by the company issuing a warning that the company’s Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxation, depreciation and amortization) margin of the company on sequential basis.

Key benchmark indices snapped two-day losing streak today, 30 June 2015.

The Sensex lost 47.61 points or 0.17% in June 2015. The barometer index lost 176.66 points or 0.63% in the quarter ended 30 June 2015. The 50-unit CNX Nifty lost 65.15 points 0.77% in June 2015. The index lost 122.50 points or 1.44% in the quarter ended 30 June 2015.

Meanwhile, CEO of Airbus Defence and Space Mr. Bernhard Gerwert expressed Airbus’s keen interest in becoming a partner in the “Make in India” initiative through a cluster approach with regional partners, according to a statement issued by Indian Prime Minister’s Office today, 30 June 2015. Bernhard held a meeting with Prime Minister Narendra Modi today, 30 June 2015.

Foreign portfolio investors sold shares worth a net Rs 668.08 crore into the secondary equity market yesterday, 29 June 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 906.38 crore yesterday, 29 June 2015, as per provisional data released by the stock exchanges.

The S&P BSE Sensex rose 135.68 points or 0.49% to settle at 27,780.83, its highest closing level since 26 June 2015. The index jumped 169.38 points at the day’s high of 27,814.53 in late trade. The index fell 74.20 points at the day’s low of 27,570.95 in early trade.

The 50-unit CNX Nifty rose 50.10 points or 0.6% to settle at 8,368.50, its highest closing level since 26 June 2015. The index hit a high of 8,378 in intraday trade. The index hit a low of 8,298.95 in intraday trade.

The BSE Mid-Cap index rose 139.86 points or 1.33% to settle at 10,679.99. The BSE Small-Cap index rose 116.79 points or 1.07% to settle at 11,075.35. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 1,730 shares rose and 960 shares fell. A total of 131 shares were unchanged.

The total turnover on BSE amounted to Rs 2706 crore, higher than turnover of Rs 2545.63 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE FMCG index (up 2.02%), BSE Healthcare index (up 2.11%), BSE Auto index (up 0.56%), BSE Consumer Durables index (up 1.9%) and BSE Metal index (up 1.73%) outperformed the Sensex. The S&P BSE IT index (down 0.83%), BSE Bankex index (up 0.32%), BSE Capital Goods index (up 0.23%), BSE Oil & Gas index (up 0.2%), BSE Power index (up 0.32%), BSE Realty index (up 0.37%) and BSE Teck index (down 0.26%) underperformed the Sensex.

Index heavyweight ITC rose 1.58% at Rs 315.05. The stock hit a high of Rs 316 and a low of Rs 310 in intraday trade.

Another index heavyweight and housing finance major HDFC gained 0.71% at Rs 1,296.45. The stock hit a high of Rs 1,302 and a low of Rs 1,279 in intraday trade.

Index heavyweight Reliance Industries (RIL) rose 0.98% at Rs 1,000.45. The stock hit a high of Rs 1,003.50 and a low of Rs 988 in intraday trade.

Shares of public sector banks were mixed. Punjab National Bank (up 1.57%), State Bank of India (up 1.25%), Corporation Bank (up 0.4%), Indian Overseas Bank (up 0.41%), Bank of Baroda (up 0.03%) and IDBI Bank (up 0.25%) edged higher. Canara Bank (down 2.16%), UCO Bank (down 0.75%), Union Bank of India (down 0.61%), Bank of India (down 0.44%), Central Bank of India (down 0.39%), Vijaya Bank (down 0.5%) and Oriental Bank of Commerce (down 0.03%) edged lower.

Andhra Bank edged lower as the stock turned ex-dividend today, 30 June 2015, for dividend of Rs 2 per share for the year ended 31 March 2015. The stock dropped 2.79% at Rs 67.90.

Shares of private sector banks edged higher in volatile trade. IndusInd Bank (up 1.36%), HDFC Bank (up 0.99%) and Yes Bank (up 0.66%) edged higher. ICICI Bank (down 1.08%) and Axis Bank (down 0.55%) edged lower.

Kotak Mahindra Bank (KMBL) edged higher after the bank after market hours yesterday, 29 June 2015 said that it has fixed 9 July 2015 as record date for the purpose of allotment of 1:1 bonus shares to the existing shareholders of the bank. The stock rose 0.4% at Rs 1,378.50. The stock hit a high of Rs 1,402 and a low of Rs 1,373.05 in intraday trade.

FMCG stocks were in demand. Bajaj Corp (up 3.11%), Godrej Consumer Products (up 1.84%), Marico (up 3.68%), Britannia Industries (up 2.38%), GlaxoSmithKline Consumer Healthcare (up 2.17%), Colgate-Palmolive (India) (up 1.93%), Hindustan Unilever (up 1.82%), Procter & Gamble Hygiene & Health Care (up 6.71%), Tata Global Beverages (up 1.96%) and Dabur India (up 1.74%), edged higher. Jyothy Laboratories (down 1.39%) edged lower.

Nestle India edged higher after the Bombay High Court allowed the company to continue the export of Maggi Noodles. The stock rose 4.6% at Rs 6,345.65. The announcement was made during trading hours today, 30 June 2015. Nestle India said that the Bombay High has fixed the matter for further hearing on 14 July 2015. As the matter is sub-judice, the company cannot make any further comment on the case at this stage. The company said it is awaiting the official order from the High Court.

Pharmaceutical shares edged higher. Cipla (up 0.71%), Dr Reddy’s Laboratories (up 0.58%), Lupin (up 2.97%), Glenmark Pharmaceuticals (up 2.12%), Wockhardt (up 2.52%), Strides Arcolab (up 1.1%) and GlaxoSmithKline Pharmaceuticals (up 2.62%) edged higher. Ipca Laboratories (down 0.13) edged lower.

Sun Pharmaceutical Industries rose 2.89% at Rs 874.20. The company after market hours yesterday, 29 June 2015, announced an open offer to the shareholders of Zenotech Laboratories (Zenotech), for acquisition of upto 96.93 lakh shares, representing 28.16% of the fully diluted share capital of Zenotech. The open offer price is Rs 20.87 per share, which includes interest computed at the rate of 10% per annum for the period between 6 April 2014 and the date of the the Detailed Public Statement i.e. 30 March 2015 in terms of Regulation 8(12) of SEBI (SAST) Regulations.

Shares of Zenotech Laboratories were locked at 2% upper circuit at Rs 37.10 on BSE.

Coal India rose 3.11% at Rs 421.05 after a foreign brokerage reportedly maintained its ‘overweight’ outlook on the stock. The stock hit a 52-week high of Rs 422.10 in intraday trade. The foreign brokerage is reportedly convinced about Coal India’s volume growth and pricing power and expects 31% compounded annual growth rate (CAGR) in earnings before interest, depreciation, taxation and amortization (EBITDA) over FY 2015-18.

Telecom shares were in demand. Idea Cellular (up 3.72%), Tata Teleservices (Maharashtra) (up 1.69%), MTNL (up 1.26%) and Reliance Communications (up 0.4%) edged higher.

Bharti Airtel edged higher after the company said that it has become the third largest mobile operator in the world in terms of subscribers. The stock rose 1.55% at Rs 419.90. The announcement was made during market hours today, 30 June 2015. As per the latest data published by WCIS, Airtel with over 303 million mobile subscribers across its operations has moved up one position in the global rankings, the company said.

Commenting on the development, Bharti Airtel’s Chairman Sunil Bharti Mittal said that this is a major landmark in the journey of Airtel and underlines the strength of its business model and its brand that is loved by customers across 20 countries.

Tech Mahindra extended a steep slide registered during the previous trading session that was triggered by the company issuing a warning that the company’s Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxation, depreciation and amortization) margin of the company on sequential basis. The stock fell 1.27% at Rs 478.20.

In its business update, the company announced during trading hours yesterday, 29 June 2015, that a seasonally weak mobility business will be a drag on Q1 revenue and EBITDA of the company. H1 B visa costs will be another drag on margins, the company said. On the other hand, favourable currency movements could help both revenue and margins, the company said.

For the current financial year, the management’s endeavour will be grow enterprise business in line or above industry. Improving EBITDA margin is one of the top priorities of the company for FY 2016, Tech Mahindra said. The company further said that the organic growth of the communications business of the company could remain subdued in FY 2016 due to delayed decision making. The deal pipeline of the communications business remains healthy, the company said.

Key benchmark indices snapped two-day losing streak today, 30 June 2015. The Sensex had lost 250.82 points or 0.89% during the preceding two trading sessions to settle at 27,645.15 yesterday, 29 June 2015, from a recent high of 27,895.97 on 25 June 2015. The Sensex lost 47.61 points or 0.17% in June 2015. The Sensex has risen 281.41 points or 1.02% in this calendar year so far (till 30 June 2015). From a 52-week low of 24,892 on 14 July 2014, the Sensex has risen 2,888.83 points or 11.6%. The Sensex is off 2,243.91 points or 7.47% from a record high of 30,024.74 hit on 4 March 2015.

Meanwhile, CEO of Airbus Defence and Space Mr. Bernhard Gerwert expressed Airbus’s keen interest in becoming a partner in the “Make in India” initiative through a cluster approach with regional partners, according to a statement issued by Indian Prime Minister’s Office today, 30 June 2015. Bernhard held a meeting with Prime Minister Narendra Modi today, 30 June 2015.

Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 29 June 2015, that the Southwest Monsoon was vigorous over East Uttar Pradesh and active over Arunachal Pradesh, Uttarakhand and East Madhya Pradesh during the past 24 hours until 8:30 IST.

For the country as a whole, the cumulative rainfall during this year’s monsoon season was 18% above the Long Period Average (LPA) until 29 June 2015. Region wise, the southwest monsoon was 28% above the LPA in Central India, 24% above the LPA in Northwest India, 22% above the LPA in South Peninsula and 3% above the LPA in East & Northeast India until 29 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.

In overseas markets, European stocks reversed their initial losses today, 30 June 2015, after a Greek newspaper reported that last-minute efforts aimed at bringing Greece and its creditors back to the negotiating table are underway. Key benchmark indices in Germany and France were up 0.07% to 0.08%. In Italy, the FTSE MIB index was currently up 0.37%. In Spain, the IBEX 35 index was currently up 0.32%. In UK, the FTSE 100 index was off 0.35%.

Greece is reportedly reconsidering an offer put forth by European Commission President Jean-Claude Juncker yesterday, 29 June 2015. Greek Prime Minister Alexis Tsipras was urged to reconsider Juncker’s proposal by some members of his government, the report said. The country is under pressure as it faces a Tuesday deadline for a $1.72 billion repayment to the International Monetary Fund and the expiry of its bailout program the same day.

Global rating agency S&P yesterday, 29 June 2015, cut Greece’s credit rating by one level, saying the probability of the country leaving the euro area is now 50%. Greece shut down its banking system, ordering lenders to stay closed for six days starting Monday, 29 June 2015, to avoid a run on the country’s banks and the nation’s central bank moved to impose controls to prevent money from flooding out of the country. Negotiations between Greece and its creditors collapsed over the weekend after Greece’s Prime Minister Alexis Tsipras on Friday, 26 June 2015, unexpectedly called for a referendum on whether to accept reform measures demanded by the country’s lenders.

The European Central Bank on Sunday, 28 June 2015, froze emergency loans to Greek banks at their current level of around euro 89 billion, a move that left Greek authorities with little choice but to keep the country’s banks closed.

Tsipras was quoted as saying yesterday, 29 June 2015, that regional leaders didn’t have the nerve to kick Greece out of the euro and that a “no” vote in the July 5 referendum will strengthen the country’s bargaining position. European Central Bank Executive Board member Benoit Coeure said in a newspaper interview yesterday, 29 June 2015, that a “yes” decision will prompt euro zone members to “find the means, under one form or another, to honor their commitments”.

Tsipras has called a referendum on Sunday, 5 July 2015, on whether the country should accept creditors’ bailout terms. Greeks will be asked to decide whether to accept reform measures demanded by the country’s lenders that would ultimately unlock about euro 15.3 billion in funds. A “no” vote by Greeks could force the country out of the eurozone and push the country into what could be the darkest chapter of its six-year debt crisis.

Asian stocks edged higher today, 30 June 2015, as investors push off concerns about a default in Greece until the outcome of a referendum on Sunday, 5 July 2015. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Japan, Singapore and South Korea were up 0.58% to 1.23%.

China’s Shanghai Composite recovered sharply after an in initial slide and was currently up 5.55%. China said late on Monday, 29 June 2015, it is preparing to allow pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the sagging equity market.

Separately, a China Securities Regulatory Commission (CSRC) spokesperson said in a blog posting yesterday, 29 June 2015, evening that risks from brokerages’ margin financing business are also controllable.

Trading in US index futures indicated that the Dow could rise 67 points at the opening bell today, 30 June 2015.

US stocks tumbled yesterday, 29 June 2015, on fears Greece will leave the eurozone.

Meanwhile, Puerto Rico’s governor Alejandro Garc Padilla yesterday, 29 June 2015, laid out a plan to seek restructuring of the government’s approximately $72 billion in debt, while also vowing to make Puerto Rico more economically competitive. A key point in the proposal is to get permission for Puerto Rico to go through bankruptcy as Detroit did in 2013, something that current law prohibits. Puerto Rico is a United States territory located in the northeastern Caribbean, east of the Dominican Republic, and west of both the United States Virgin Islands and the British Virgin Islands.

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