Key benchmark indices extended gains and hit fresh record high in the early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 113.11 points or 0.42% at 26,980.66. The market breadth indicating the overall health of the market was strong. BSE Mid-Cap and Small-Cap indices were up more than 1% each. The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian stocks during the previous trading session. IT stocks advanced. PSU OMCs edged lower.
On the macro front, the current account deficit (CAD) narrowed on year-on-year basis but rose on sequential basis in Q1 June 2014. Meanwhile, Japan has promised 3.5 trillion yen of public and private investment and financing, including Overseas Development Assistance (ODA) over five years for India's development.
Key indices have remained in green so far during the day after opening a tad higher.
Asian markets were mixed. Japanse stocks surged as the yen weakened against the dollar before Prime Minister Shinzo Abe announces a new cabinet tomorrow, 3 September 2014.
At 12:18 IST, the S&P BSE Sensex was up 113.11 points or 0.42% at 26,980.66. The index jumped 132.42 points at the day's high of 26,982.63 in early afternoon trade, a record high for the index. The index rose 18.67 points at the day's low of 26,886.22 in early trade.
The CNX Nifty was up 40.95 points or 0.51% at 8,068.65. The index hit a high of 8,072.20 in early afternoon trade, a record high for the index. The index hit a low of 8,036.55 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,651 shares gained and 981 shares fell. A total of 106 shares were unchanged.
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The BSE Mid-Cap index was up 96.84 points or 1.03% at 9,541.43. The BSE Small-Cap index was up 117.70 points or 1.13% at 10,515.29. Both these indices outperformed the Sensex.
Among 30-share Sensex pack, 17 stocks rose and remaining declined.
PSU OMCs declined. BPCL (down 0.48%) and HPCL (down 0.8%) fell. Indian Oil Corporation (up 1.38%) gained.
The under-recovery for PSU OMCs on diesel sales has been almost wiped out. Effective from 1 September 2014, PSU OMCs are incurring combined daily under-recovery of about Rs 195 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 230 crore daily under-recoveries during second fortnight of August 2014. The under-recoveries for the financial year 2014-15 are projected to be Rs 91665 crore while the figure was Rs 1.39 lakh crore in 2013-14.
IT stocks advanced. MindTree (up 1.09%), HCL Technologies (up 0.73%), Tech Mahindra (up 0.57%), and MphasiS (up 0.35%) gained. Infosys (down 0.59%) and Wipro (down 0.87%) dropped.
TCS rose 0.36%. The company during market hours said that it has today, 2 September 2014, initiated a new learning program for its trainee graduates in Japan. TCS Japan will initially house more than 4,000 employees in Japan and a dedicated centre located in Pune.
The sentiment on the bourses was boosted by provisional data showing that foreign funds were net buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 554.14 crore yesterday, 1 September 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.61, compared with its close of 60.525 during the previous trading session.
Japanese Prime Minister Shinzo Abe yesterday, 1 September 2014, expressed his intention to realize 3.5 trillion yen of public and private investment and financing from Japan, including Overseas Development Assistance (ODA) to India in five years, to finance appropriate public and private projects of mutual interest including in the areas of next generation infrastructure, connectivity, transport systems, Smart Cities, rejuvenation of Ganga and other rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain, and rural development. This was stated in a joint statement issued yesterday, 1 September 2014, after a meeting between Prime Minister Narendra Modi and Abe. Modi is currently on a five-day visit to Japan. The Prime Ministers of the two countries have decided to set a target of doubling Japan's foreign direct investment and the number of Japanese companies in India within five years as an objective to be jointly achieved.
In macroeconomic data, the output of eight core sector industries rose 2.7% in July 2014, showing moderation from a growth of 7.3% in June 2014. However, the cumulative growth has remained steady at 4.1% in April-July 2014 over April-July 2013. The data was announced after market hours on Monday, 1 September 2014.
India's current account deficit (CAD) narrowed sharply to $7.8 billion or 1.7% of GDP in Q1 June 2014, from $21.8 billion or 4.8% of GDP in Q1 June 2013. The lower CAD was primarily on account of a contraction in the trade deficit contributed by a rise in exports and a decline in imports. On sequential basis, the CAD rose from $1.2 billion or 0.2% of GDP in Q4 March 2014.
The preliminary data on India's balance of payments (BoP) also showed that foreign direct investment (FDI) in India rose to $8.2 billion in Q1 June 2014, from $6.5 billion in Q1 June 2013. The data was announced after market hours on Monday, 1 September 2014.
Asian stocks were mixed today, 2 September 2014. Key benchmark indices in Hong Kong, Singapore, Japan, Indonesia, and China were up 0.25% to 1.24%. Key benchmark indices in Taiwan and South Korea were off 0.79% to 1.19%.
Trading in US index futures indicated that the Dow could gain 34 points at the opening bell on Tuesday, 2 September 2014. US stock markets were closed on Monday, 1 September 2014 for Labor Day holiday.
According to reports, the Russian officials pressed Ukraine on Monday, 1 September 2014, to declare a cease-fire with separatists, but Ukrainians say they are locked in a war not just against the rebels but also against Russia on behalf of Europe. Ukraine and its Western allies have surmised that Russian forces are significantly aiding pro-Russian separatists.
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