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NSE Intra-day chart (14 June 2016)
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Market Commentary 15 June 2016
Markets to make a cautious start of trade


It was a lackadaisical show from the benchmark indices on Tuesday, as they failed to snap the session in the green territory and settled marginally below the neutral line. The session was characterized by extreme volatility as the frontline indices went through a rollercoaster ride amid lack of direction and a pandemonium across global equity markets. On the domestic front, sentiments got undermined after Consumer Price Index (CPI) for May 2016 rose to 5.76%, for a second straight month, compared with 5.39% in April, weakening prospects of a rate hike by RBI in August 2016.  The central bank closely watches the CPI figures to set the interest rate policy. In its June monetary policy review, RBI had said the possibility of another rate cut later this year would arise if monsoon rains dampen upward pressure on food prices. However, investors got some confidence with Union Finance Minister Arun Jaitely's statement that the Goods and Services Tax (GST), which aims to bring the country under a unified tax regime and has been stalled by a stalemate for years, has finally earned the support of virtually all states except Tamil Nadu. The union minister met finance ministers of 22 states and representatives from seven others in Kolkata in hopes of fostering a consensus on the contentious Bill. Post his meeting, Jaitley said that he is hoping to roll out GST by April 1, 2017. The news came as a string of hope for Indian market, which helped the indices to recover from day's low. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 212.24 crore on June 13, 2016. Globally, Asian marked ended mostly in red, while the European stock markets got off to a gap down beginning. Earlier on Dalal Street, the benchmark got off to a flat start with a positive bias shrugging weak cues from the Asian markets, where sentiments largely remained influenced by Wall Street which fell for a third straight session. However, the frontline gauges managed to pare the losses and rise above the neutral line in the dying hours of trade and settled in close proximity with previous closing levels. Finally, the BSE Sensex ended lower by 1.06 points to 26395.71, while the CNX Nifty dropped 1.75 points or 0.02% to 8,108.85.


The US markets closed lower for a fourth session in a row on Tuesday, marking the S&P 500 and the Dow Jones Industrial Average's longest losing streak since the market's low in February. Investors grappled with mixed signals from lower oil prices, stronger-than-expected retail sales and geopolitical uncertainty roiling European markets. A spike in the CBOE Volatility Index over the past few sessions suggests that investors continue to harbor anxieties about the Fed's two-day policy meeting, which started Tuesday, and about the Brexit. On the economy front, sales at US retailers rose a solid 0.5% in May after an even larger gain in the prior month, suggesting consumers still feel confident enough in the economy to stick to their usual spending patterns despite a slowdown in hiring. The sales gains were widespread, Auto dealers, Internet retailers, clothing outlets, gas stations, sporting-goods stores and restaurants all saw a healthy uptick in sales. The Dow Jones Industrial Average was down by 57.66 points or 0.33 percent to 17,674.82, Nasdaq lost 4.89 points or 0.10 percent to 4,843.55, while S&P 500 dropped 3.74 points or 0.18 percent to 2,075.32.


Crude oil futures extending the fall for the fourth straight session fell to near three weeks low on Tuesday on rising Brexit fears. Traders continued to closely monitor poll results in the UK, which increasingly show a British public shifting their support to the "Leave," campaign, ahead of next week's referendum. A number of major oil companies have also issued stark warnings of the ramifications that could ensue from a U.K. departure from the EU. Meanwhile, traders were eyeing the release of the American Petroleum Institute's weekly inventory report, for further indications of the supply-demand imbalance in domestic energy markets. Benchmark crude oil futures for July delivery declined by $0.39 or 0.82 percent to $48.49 a barrel after trading in a range of $48.02 and $48.69 a barrel on the New York Mercantile Exchange. In London, Brent crude for August delivery closed at $49.78, down $0.57 or 1.13 percent on the ICE.


Indian rupee ended weaker on Tuesday, extending its losing streak for the fourth straight session against dollar amid cautiousness ahead of the Fed policy outcome later in the day. Besides, sustained demand for the American currency from importers and banks and weak trade in local equity market too dampened the rupee sentiment. On the economic front, India's Consumer Price Index (CPI) for May 2016 rose to 5.76%, compared with 5.39% in April and Wholesale Price Index (WPI) for May increased to 0.79% compared to 0.34% in the previous month, weakening prospects of a rate hike by RBI in August 2016. On the global front, yen gained moderately against the dollar and other currency peers on Tuesday, given the highly uncertain outcome for the U.K. referendum next week. Finally, the rupee ended at 67.27, 13 paise weaker from its previous close at 67.14 on Monday.


The FIIs as per Tuesday's data were net buyers in equity and debt segments both. In equity, the gross buying was of Rs 3984.46 crore against gross selling of Rs 3626.64 crore, while in the debt segment, the gross purchase was of Rs 529.84 crore with gross sales of Rs 373.66 crore.             


The US markets continuing their southbound journey fell again in last session, as traders expressed some trepidation ahead of the Federal Reserve's monetary policy announcement on Wednesday; however the major averages came off the worst levels of the day by the end. The Asian markets have made a mixed start with some indices still trading in red on anxiety over Britain's potential exit from the European Union. Chinese markets have recovered after falling in early trade after MSCI Inc. kept its securities out of its benchmark indexes. The Indian markets recovered from the lows of the day and ended flat in last session ahead of key central bank meetings later in the week. There was some concern with delayed monsoon and rise in WPI inflation. Today, the start is likely to be cautious on mixed global cues, but some recovery can be expected. Traders will be getting some support with Finance Minister Arun Jaitley's statement   after a meeting of Empowered Committee of state FMs on the long awaited indirect tax reform that every state has either supported or accepted the idea of the pan-India Goods and Services Tax (GST) except Tamil Nadu. GST Empowered Committee Chairman Amit Mitra too has said that there was "general consensus" on the issue of dual control over taxation structure between the Centre and states. However, there will be some concern in the markets too, with the World Bank report that India recorded a 10-year low in investments in public-private sector in the year 2015, adding to contraction that pulled down the global investment to below its five-year average of $ 124.1 billion. There will be some buzz in the PSU oil marketing companies, as the global crude prices have fallen to their three weeks low.


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Tata Motors





Idea Cellular






  • Bharti Airtel has tied up with Singapore Telecommunications to deliver high-speed, secure data network coverage to Asia-Pacific, West Asia, Africa, Europe and the US.
  • Continuing its project commissioning momentum, Bharat Heavy Electricals has successfully commissioned another 195 MW thermal unit in Bihar.
  • Tata Steel has inaugurated 100-bed, super-specialty eyecare hospital at Samarjhola village of Ganjam district in Odisha.
  • Aurobindo Pharma is aiming to achieve $3 billion in revenues in next two years and in this regard, the company will increase number of launches in the US market.
  • For the first time, NTPC has traded in Un-requisitioned Surplus power from four of its prominent thermal generating stations: Vidhyanchal, Unchahar, Rihand and Dadri Power at Indian Energy Exchange.
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