Markets Today
- Markets ended lower on Monday, amid weak global cues, after the failure of Greece and international creditors to reach an agreement over debt payments raised fears of Greece's exit from the euro zone. The 30-share Sensex ended down 167 points at 27,645 and the Nifty ended down 63 points at 8,306.
- Six IT stocks closed 0.02% to 3.01% down on BSE on concerns likely Greece exit from the Eurozone and its contagion effect could result into a fall in order inflow from Europe region for the Indian IT companies. HCL Technologies (down 3.01%), TCS (down 0.02%), Infosys (down 1.58%), Oracle Financial Services Software (down 1.45%), MphasiS (down 2.16%) and Wipro (down 1.23%) edged lower.
- Among the 12 BSE sectoral indices, 1 index closed in positive while 11 indices closed in negative. Top Gainers: BSE FMCG up by 0.28%. Top Losers: BSE Realty down by 2.23%, BSE IT by 1.70% and BSE Teck by 1.37%.
Market breadth was negative at ~0.44 as investors sold large cap stocks. On provisional basis, FII's sold Rs 7.11bn worth of Indian equities while DII's bought Rs 9.06bn worth of Indian equities.
Economic and Corporate Developments
- The economic crisis in Greece may trigger capital outflows from India and the government is consulting the RBI to deal with the situation, Finance Secretary Rajiv Mehrishi said today. Stating that the Greece situation has no direct impact on India, he said there may be some indirect effect via Europe on capital inflows and outflows here. “Greece crisis does not have any effect directly on India.
- A new IMF study shows that Indian banks are faster in effecting a lending rate hike, but not so quick in raising deposit rates. The IMF research also showed that banks are slow in effecting a change in interest rates pursuant to the changes announced by RBI in its policy rates. The latest IMP paper said the "extent of pass-through to the deposit rate is larger than that to the lending rate, and the deposit rate adjusts more quickly to changes in the policy rate".
- India and Thailand today signed a number of important agreements, including the double taxation avoidance treaty, and exchanged instruments of ratification on the extradition treaty inked in 2013, which provides for the legal framework for seeking extradition of fugitive offenders. The tax treaty provides for the framework to avoid double taxation and prevention of fiscal evasion with respect to taxes so as to promote bilateral economic cooperation.
- After a gap of two years, India and the European Union will resume negotiations in August on the proposed free trade agreement for boosting two-way commerce and investment. "Both the sides have agreed that negotiators must meet. We have conveyed that. Sometimes in August, the EU chief negotiator will be available for negotiations. They have also conveyed that in August they are available for talks," Commerce Secretary Rajeev Kher told reporters here.
Buzzing Stocks
- Bharti Infratel closed 2.98% up at Rs 449.35 on BSE, with the stock gaining on bargain hunting after sliding 9.15% in prior three trading days.
- JMT Auto closed 9.57% up at Rs 45.80 on BSE, with the stock extending prior two sessions' 43.44% jump.
- Shares of four upstream oil companies closed 0.33% to 3.15% down on BSE as crude oil prices declined. ONGC (down 1.42%), Oil India (down 3.15%), and Cairn India (down 0.33%) declined.
- Shriram EPC closed 6.56% up at Rs 33.30 on BSE after the company's board of directors approved allotment of equity shares of the company to CDR lenders on conversion of funded interest term loan, on preferential basis.
- Tech Mahindra closed 7.19% down at Rs 484.35 on BSE after company said that Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA margin on sequential basis.
- Reliance Industries closed 0.88% down at Rs 990.75 on BSE after the company announced that the SEZ unit of Jamnagar refinery is planning to shut down one crude distillation unit.
- Castex Technologies closed 2.02% up at Rs 225.25 on BSE, with the stock declining on profit booking after surging 28% in prior seven trading days.
- Larsen & Toubro closed 0.44% up at Rs 1,787.80 on BSE, with the stock recovering from intraday low after the company said that its construction division has won orders worth Rs 2035 crore across various business segments in June 2015.
- GAIL (India) closed 0.58% down at Rs 397.50 on BSE, with the stock extending previous sessions' 3.08% losses triggered by the foreign brokerage reportedly maintaining underperform rating on the stock.
- Welspun Corp closed 2.23% down at Rs 102.90 on BSE, with the stock declining on profit booking after surging 37.85% in prior six trading days.
- India Cements closed 2.06% down at Rs 92.50 on BSE, with the stock declining on profit booking after gaining 11.84% in the preceding two trading days.
- Four stocks namely Dabur India (down 0.05%), Havells India (down 1.66%), Goa Carbon (down 5.71%) and Blue Star Infotech (down 2.14%), edged lower on BSE after these stocks turned ex-dividend today, 29 June 2015.
- Axis Bank closed 0.68% down at Rs 561.75 on BSE, after the bank announced a reduction in its base rate by 10 basis points to 9.85% per annum from 9.95% with effect from 30 June 2015.
- Persistent Systems closed 5.27% down on BSE extending its 15% decline in the past three trading sessions on the NSE, after the information technology consulting & software company said that its April-June quarter (Q1) revenues in dollar terms will be marginally lower on a quarter-on-quarter basis.
- Shares of two public sector oil marketing companies closed 0.01% to 1.16% up on BSE as global crude oil prices edged higher. BPCL (up 1.16%) and Indian Oil Corporation (up 0.01%) edged higher. However, HPCL (down 0.33%) edged lower.
Contributed by Keynote Capitals
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