Market may extend recent gains…

images (1)Key benchmark indices may extend recent gains tracking firmness in Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 40.70 points at the opening bell.

In overseas stock markets, Asian stocks edged higher after recouping early losses led by gains in Chinese stocks. In mainland China, the Shanghai Composite was currently up 1.5%. In Hong Kong, the Hang Seng index was currently up 1.75%. US stocks rose for a fourth day on Friday, 1 July 2016, with the S&P 500 Index posting its best week since November, amid optimism on American growth and as central banks continued to signal support in staving off fallout from Britain’s decision to leave the European Union. US market will remain shut today, 4 July 2016, on account of Independence Day. Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 187.51 crore on Friday, 1 July 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 907.05 crore on Friday, 1 July 2016, as per provisional data.

Among corporate news, Hero MotoCorp said its motorcycle sales rose 1.32% to 5.49 lakh units in June 2016 over June 2015. The company said it reported sales growth of 6.07% to 17.45 lakh units in Q1 June 2016 over Q1 June 2015 in spite of subdued rural demand.

The company said it will soon introduce Splendor iSmart 110 motorcycle in the market – the first motorcycle to have been completely developed by the in-house research and development (R&D) team at Hero MotoCorp.

The company further added that with the implementation of the 7th Pay Commission and the forecast of the above-average monsoon, it is optimistic about a pick-up in sales momentum. The announcement was made after market hours on Friday, 1 July 2016.

Tata Motors said that its total passenger and commercial (including exports) rose 8% to 44,276 vehicles in June 2016 over June 2015. Domestic sales of Tata commercial and passenger vehicles rose 8% to 38,673 units in June 2016 over June 2015. Passenger vehicles sales in the domestic market grew 22% to 12,509 units in June 2016 over June 2015. Sales of passenger cars rose by 37% to 11,705 units in June 2016 over June 2015, as Tata Motors hatchback sales grew by over a 100% at 7,126 units in June 2016, due to strong demand for the recently launched Tiago.

Sales of Tata Motors Light Commercial Vehicles (LCVs) rose 14% to 16,017 units in June 2016 over June 2015. Medium & Heavy Commercial Vehicles (M&HCV) sales fell 11% to 10,147 units in June 2016 over June 2015. The overall commercial vehicles sales in the domestic market rose 2% to 26,164 units in June 2016 over June 2015.

The company’s sales from exports rose 11% to 5,603 units in June 2016 over June 2015. The announcement was made after market hours on Friday, 1 July 2016.

Coal India and its subsidiaries achieved 99% of targeted production at 42.72 million tonnes in June 2016. The company achieved 95% of targeted offtake at 44.96 million tonnes in June 2016. The announcement was made after market hours on Friday, 1 July 2016.

Shares of State Bank of India (SBI) and Reliance Industries (RIL) will be watched. SBI and RIL signed shareholders’ agreement on 30 June 2016 for setting up payments bank. the subscription and shareholders’ agreement was signed by RIL as promoter with a 70% equity contribution and SBI as joint venture partner with 30% equity contribution on 30 June 2016. All requisite regulatory and statutory approvals will now be sought for operationalizing the payments bank. The announcement was made after market hours on Friday, 1 July 2016.

Adani Ports and Special Economic Zone (APSEZ) announced on Saturday, 2 July 2016, that its board has accorded an in-principle approval for exploring the acquisition of TM Harbour Services. TM Harbour Services is engaged solely in providing tug services to The Dhamra Port Company (DPCL), a wholly owned subsidiary of APSEZ. The acquisition will help the company provide effective and efficient marine services to DPCL. The acquisition is subject to due diligence, final negotiations between the parties and obtaining of requisite regulatory approvals.

UltraTech Cement turns ex-dividend today, 4 July 2016 for dividend of Rs 9.50 per share for the year ended 31 March 2016 (FY 2016).

Stocks of public sector companies and index heavyweight ITC led the latest upmove for the two key benchmark indices, with the barometer index, the S&P BSE, piercing the psychologically important 27,000 level on Friday, 1 July 2016. The Sensex rose 145.19 points or 0.54% to settle at 27,144.91, its highest closing level since 27 October 2015.

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