On 20th July 2016 NSE’s benchmark index NIFTY hits the biggest closing level in more than 11 months. The pharmaceutical companies and the public sector firms led to the gains for key benchmark indices. Also gains in the European stocks were instrumental in the uptick on the domestic front.
Both the Sensex and Nifty rose for the second straight trading session.
Banking Sector
The public sector banks showed a mixed sentiment- Punjab National Bank (down 1.52 per cent), Bank of India (down 1.48 per cent), Union Bank of India (down 0.62 per cent) and Bank of Baroda (down 0.47 per cent) edged lower.
Stocks of private sector banks showed a positive movement owing to the reports that the government is reconsidering a proposal to allow up to 100 per cent foreign direct investment (FDI) in private sector banks. The government currently permits 74 per cent FDI in private banks, with up to 49 per cent allowed under the automatic route. IndusInd Bank (up 1.37 per cent), Yes Bank (up 0.68 per cent) and Kotak Mahindra Bank (up 0.5 per cent) edged higher. ICICI Bank (down 0.58 per cent) and Axis Bank (down 0.98 per cent) edged lower.
Pharmaceutical Sector
The shares of the Pharmaceutical sector were in heavy demand. Wockhardt was up by 12.69 per cent, Cadila Healthcare was up by 4.45 per cent, Alkem Laboratories was up by 4.59 per cent, Strides Shasun was up by 3.88 per cent, IPCA Laboratories was up by 3.23 per cent, Divi’s Laboratories was up by 2.64 per cent, Dr Reddy’s Laboratories was up by 2.74 per cent, Cipla was up by 2.39 per cent and Lupin was up by 1.37 per cent. On the other hand GlaxoSmithKline Pharmaceuticals fell by 0.5 per cent.
The Heavyweights of the Index
HDFC Bank was up 1.15 per cent at Rs 1,232.10. The share price made a high of Rs 1,237.25 and a low of Rs 1,226 in intraday trade. Reliance Industries (RIL) was up 0.7 per cent at Rs 1,022.55. The share price made an intraday high and intraday low was Rs 1,028.10 and Rs 1,017 respectively.
PSU Companies
Shares of the PSU companies moved upward. Coal India was up by 3.23 per cent, GAIL (India) was up by 2.48 per cent, Shipping Corporation of India was up by 2.31 per cent, Rural Electrification Corporation was up by 2 per cent, Power Finance Corporation was up by 1.68 per cent, Container Corporation of India was up by 1.48 per cent and Power Grid Corporation of India was up by 0.93 per cent. Steel Authority of India slipped 1.24 per cent and National Aluminium Company went down by 2.05 per cent.
The European Buzz
European stocks were on the higher side of the market as investors struck a cautious but optimistic tone ahead of the European Central Bank’s (ECB) policy meeting dated 21st July 2016. The ECB is expected to keep monetary policy unchanged but market participants are looking forward to the Central Bank’s President Mario Draghi’s news conference for hints on future policy moves. Earlier in the day, Asian stocks ended on a mixed note. In the United States the S&P 500 index retreated from record highs yesterday, 19 July 2016, while the Dow Jones Industrials Average moved up for an eighth straight sessions of gains, as investors pondered mixed earnings reports. Data released yesterday, 19 July 2016, showed that housing starts rose 4.8 per cent in June, a sign of steady improvement in the market for newly constructed homes.
In today’s trading session Nifty share price is currently trading at 8512.25 down 0.65 per cent or 53.60 points.