Key equity benchmarks ended with modest gains on positive global stocks. Gains were capped by profit booking at higher levels. The Sensex and the Nifty, both, closed below their psychological 40,000 and 12,000 levels after hitting day's high above that levels in intraday trade. Shares from IT, banking and metal sectors were in demand.
Indices opened marginally higher and remained range bound before hitting a fresh intraday high in afternoon session. Benchmarks started regressing from the day's high in afternoon trade as profit booking emerged at higher level. Barometers regained composure in mid-afternoon trade and managed to end with decent gains.
The barometer index, the S&P BSE Sensex, rose 165.94 points or 0.42% to 39,950.46. The index hit high an intraday high of 40,066.31 and an intraday low of 39,760.02.
The Nifty 50 index rose 42.90 points or 0.36% to 11,965.60. The index hit high of 12,000.35 and low of 11,904.35 in intraday trade.
The market breadth was negative. On BSE, 1147 shares rose and 1403 shares fell while 160 shares were unchanged.
Broader market underperformed the Sensex. The BSE Mid-Cap index rose 0.79%. The BSE Small-Cap index fell 0.24%.
Among the sectoral indices on the BSE, the S&P BSE Metal Index (up 1.33%), the S&P BSE Oil and Gas Index (up 0.91%) and the S&P BSE Bankex Index (up 0.87%), outperformed the S&P BSE Sensex. The S&P BSE Fast Moving Consumer Goods Index (down 0.05%), the S&P BSE Capital Goods Index (down 0.05%) and the S&P BSE Realty Index (up 0.02%) underperformed the S&P BSE Sensex.
Reliance Industries (RIL) rose 0.74%. RIL is planning to shut down one of the crude distillation units and coker unit of its DTA refinery at Jamnagar for routine maintenance and inspection activities, for about three to four weeks starting from 20 June 2019. The other crude distillation and secondary processing units are expected to operate normally during this period. The announcement was made after market hours yesterday, 10 June 2019.
Private sector banks were in demand. Yes Bank (up 2.50%), IndusInd Bank (up 2.39%), Federal Bank (up 2.14%), ICICI Bank (up 1.33%), RBL Bank (up 0.53%), HDFC Bank (up 0.28%), Kotak Mahindra Bank (up 0.19%) and Axis Bank (0.09%), edged higher.
Public sector banks also rose. Canara Bank (up 3.99%), Allahabad Bank (up 3.20%), Bank of Baroda (up 2.88%) and Punjab National Bank (up 1.42%), Bank of India (up 1.37%) and State Bank of India (up 1.03%), edged higher.
IT Stocks rose. Persistent Systems (up 3.73%), NIIT Technologies (up 2.17%), TCS (up 0.97%), MindTree (up 0.28%), Infosys (up 0.17%) and Oracle Financial Services Software (up 0.17%) increased. Hexaware Technologies (down 1.34%) and Tech Mahindra (down 0.72%) declined.
HCL Technologies rose 1.43%. HCL Technologies and PTC, announced an Internet of Things (IoT) solution of Realtime Manufacturing Insights (RMI) for the discrete manufacturing industry.
Wipro rose 0.24%. The company has announced the roll-out of Total Operations System (TOPS) CREW, a fully-integrated IT product suite for global airlines. It has been developed jointly by Wipro and Qatar Airways in a co-investment model which helps in increasing the safety awareness, efficiency and profitability of airline operations. TOPS CREW, a recent addition in TOPS, helps maximize productivity by managing crew operations, optimize costs and reducing operational delays. The stock also hit its 52-week high of Rs 299.50. The announcement was made after market hours yesterday, 10 June 2019.
Metal shares advanced. Jindal Steel & Power (up 3.55%), NMDC (up 3.46%), Steel Authority of India (up 2.69%), Vedanta (up 2.42%), JSW Steel (up 2.36%), National Aluminium Company (up 1.43%), Tata Steel (up 1.25%) and Hindalco Industries (up 0.61%), edged higher. Hindustan Zinc was down 0.31%
Bharti Airtel rose 0.18%. The company has upgraded 4G network in Delhi NCR and deployed LTE 900 technology to boost indoor coverage and enhance indoor network experience for smartphone customers. Bharati Airtel has also set up latest network technologies such as Pre-5G, Volte, Massive MIMO and Carrier Aggregation to serve the massive surge in data. The announcement was made after market hours yesterday, 10 June 2019.
Shares of Indiabulls Group companies dropped after media reports alleged Indiabulls Housing Finance (IHFL) for misappropriating Rs 98,000 crore of public money. Indiabulls Real Estate fell 4.74%, Indiabulls Housing Finance fell 7.97% and Indiabulls Ventures fell 3.04%.
Jet Airways (India) fell 10.58% on reports that Hinduja Group has decided to halt negotiations to buy a stake in Jet Airways, while Etihad Airways of Abu Dhabi has put on hold a plan to add more investments in the Mumbai-based airline.
Bharat Heavy Electricals (BHEL) rose 2.64% after the company announced that it had received an order from the Nuclear Power Corporation of India Limited (NPCIL) for erection of Kudankulam Units 3&4.
Vodafone Idea rose 3.21%. Care Rating has revised its rating on long term bank facilities of Vodafone Idea to CARE A+ from CARE AA-. Outlook continues to be negative.
Sterlite Technologies rose by 10.81%. Sterlite Technologies announced that the promoters of the company have removed 100% of entire pledge on shares of Sterlite Technologies (STL) with immediate effect.
Shares of Bharat Dynamics rose 2.38% after the company announced that it has signed a contract worth Rs.1187.82 crore for supply of heavy weight torpedoes. The contract has to be executed in next 42 months.
Meanwhile, the Securities and Exchange Board of India (Sebi) on Monday, 10 June 2019, proposed an informant mechanism to blow the whistle on insider trading cases, wherein genuine whistleblowers could get monetary reward of Rs 1 crore as well as amnesty from regulatory action. Proposing a mechanism that provides near absolute confidentiality along with appropriate safeguards, Sebi said it would help strengthen the mechanism for early detection of insider trading cases.
The Reserve Bank of India (RBI) on Monday, 10 June 2019, relaxed norms for Basic Savings Bank Deposit (BSBD) account. Banks are now advised to offer ATM card or ATM-cum-Debit card and allow minimum of four withdrawals in a month, including ATM withdrawals. There shall be no limit on number and value of deposits that can be made in a month. The BSBD account holders should be allowed to deposit cash at bank branch as well as ATMs/CDMs. Receipt/ credit of money should be allowed through any electronic channel or by means of deposit /collection of cheques drawn by Central/State Government agencies and departments. The rules will come into force from 1 July.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 69.445, compared with its close of 69.65 during the previous trading session.
In the commodities market, Brent crude for August 2019 settlement was down 7 cents at $62.22 a barrel. The contract fell by $1 a barrel or 1.58% to settle at $62.29 a barrel during the previous trading session.
Overseas, Asian stock markets closed significantly higher on Tuesday. European markets were trading at a higher level on backdrop of this news.
In the US market, stocks advanced as investors cheered the agreement struck between the US and Mexico to avoid tariffs being implemented. Meanwhile, on the US-China trade front, President Donald Trump reportedly said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit. US president reportedly expects to meet Xi at the June 28-29 summit in Osaka, Japan.