Banking, telecom and pharma stocks led gains as key benchmark indices surged on the last trading session of the truncated trading week and the first trading session of the new financial year. Indian companies and domestic investors follow the period from 1 April to 31 March as their financial year. A rally in European stocks and overnight drop in Brent crude oil prices underpinned sentiment on the domestic bourses. Fall in crude oil prices augur well for India as the country imports 80% of its crude oil requirements. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in almost two weeks. The Sensex and the Nifty rose more than 1% each. The Sensex moved past the psychological 28,000 level. The Sensex advanced 302.65 points or 1.08% to settle at 28,260.14. The BSE Mid-Cap index rose 1.49%. The BSE Small-Cap index advanced 2.35%. Both these indices outperformed the Sensex. In overseas markets, European stocks surged after a solid round of eurozone manufacturing data for March 2015.
Today's rally on the domestic bourses was broad based, with more than two gainers against every loser on BSE. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 3% to 20% for quite a few stocks. Among the gainers from the constituents of the BSE Mid-Cap index, gains ranged from about 2% to about 11.5% for quite a few stocks.
Metal and mining stocks edged higher. IT stocks were mixed. HCL Technologies dropped after the company warned of adverse cross currency impact on the company's revenue and EBIT in Q3 March 2015 in pre-quarter earnings update issued after trading hours yesterday, 31 March 2015. Index heavyweight and cigarette maker ITC edged higher. Shares of natural gas production companies were mixed after the government cut natural gas price.
On the macro front, the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) recorded 1.4% growth in February 2015 over February 2014, data released by the government after trading hours yesterday, 31 March 2015 showed.
Meanwhile, the Reserve Bank of India has relaxed position limits for foreign portfolio investors (FPIs), domestic participants and importers of goods and services in the exchange traded currency derivatives (ETCD) market.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.07 crore yesterday, 31 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 283.71 crore yesterday, 31 March 2015, as per provisional data.
Brent crude oil futures edged higher in volatile trade. For India, the recent decline in global crude oil prices along with deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
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Meanwhile, Indian Oil Corporation (IOC) today, 1 April 2015, announced a reduction in retail selling price of diesel by Rs 1.21 per litre at Delhi (including state levies) with corresponding decline in price in other states. IOC announced reduction in petrol price by 49 paise per litre.
In overseas markets, European stocks edged higher after a solid round of eurozone manufacturing data for March 2015. Asian stocks were mixed. US stocks registered sizable losses yesterday, 31 March 2015, amid fears that first-quarter earnings will disappoint.
India's stock market remains closed tomorrow, 2 April 2015, on account of Mahavir Jayanti. The stock market remains closed again on Friday, 3 April 2015, on account of Good Friday.
The S&P BSE Sensex advanced 302.65 points or 1.08% to settle at 28,260.14, its highest closing level since 20 March 2015. The index jumped 340.85 points at the day's high of 28,298.34 at the fag end of the trading session. The index fell 68.47 points at the day's low of 27,889.02 in early trade.
The CNX Nifty rose 95.25 points or 1.12% to settle at 8,586.25, its highest closing level since 19 March 2015. The index hit a high of 8,603.40 in intraday trade. The index hit a low of 8,464.75 in intraday trade.
The BSE Mid-Cap index rose 158.20 points or 1.49% to settle at 10,750.42. The BSE Small-Cap index rose 256.27 points or 2.35% to settle at 11,146.72. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong, with more than two gainers against every loser on BSE. 2,009 shares gained and 695 shares fell. A total of 96 shares were unchanged.
The total turnover on BSE amounted to Rs 2689 crore, lower than turnover of Rs 2980.16 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex index (up 2.37%), BSE FMCG index (up 1.34%), BSE Healthcare index (up 2.31%), and BSE Realty index (up 1.62%) outperformed the Sensex. The S&P BSE Auto index (up 1.07%), BSE Consumer Durables index (up 0.4%), BSE Capital Goods index (up 0.85%), BSE IT index (down 1.11%), BSE Metal index (up 0.81%), BSE Oil & Gas index (up 0.5%), BSE Power index (up 0.49%), and BSE Teck index (down 0.5%) underperformed the Sensex.
Index heavyweight and cigarette maker ITC advanced. The stock was up 2.1% at Rs 332.30.
Bank stocks edged higher on renewed buying. Among PSU banks, Bank of India (up 5.29%), Corporation Bank (up 3.64%), Canara Bank (up 3.22%), UCO Bank (up 2.98%), Union Bank of India (up 3.51%), Oriental Bank of Commerce (up 2.74%), IDBI Bank (up 2.39%), State Bank of India (up 2.42%), Andhra Bank (up 1.96%), and Dena Bank (up 1.08%) edged higher.
Punjab National Bank (PNB) advanced after the state-run bank announced infusion of capital into the bank by its majority shareholder viz. the Government of India. The stock was up 5.06% at Rs 151.70. The announcement was made during market hours today, 1 April 2015. PNB today, 1 April 2015, said that capital funds to the tune of Rs 870 crore have been received from the Government of India yesterday, 31 March 2015, following issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share on preferential basis to the Government of India.
Bank of Baroda advanced after the bank said that on receipt of funds amounting to Rs. 1260 crore from the Government of India, the bank yesterday, 31 March 2015, issued and allotted 6.44 crore equity shares of Rs 2 each fully paid up at an issue price of Rs 195.59 per equity share amounting to to Government of India on preferential allotment basis. The stock was up 3.52% at Rs 169.05. The announcement was made during market hours today, 1 April 2015.
Syndicate Bank advanced after the bank said that upon receipt of funds from Government of India, the bank yesterday, 31 March 2015, allotted 3.74 crore equity shares of face value of Rs 10 each for cash at a premium of Rs 112.75 per share on preferential basis to Government of India. The stock was up 2.17% at Rs 103.50. The announcement was made during market hours today, 1 April 2015. The bank has raised Rs 460 crore from issue of shares to to Government of India on preferential basis.
Among private sector banks, IndusInd Bank (up 4.86%), Karnataka Bank (up 2.53%), Yes Bank (up 3.73%), South Indian Bank (up 1.98%), ICICI Bank (up 2.41%), HDFC Bank (up 1.08%), and Federal Bank (up 1.06%) edged higher.
Shares of Kotak Mahindra Bank were up 3.64% at Rs 1,361. Shares of ING Vysya Bank were up 4.45% at Rs 977.35. Kotak Mahindra Bank before market hours today, 1 April 2015 said that the Reserve Bank of India (RBI) approved the scheme of amalgamation of ING Vysya Bank with Kotak Mahindra Bank. The Scheme of Amalgamation shall come into effect from 1 April 2015.
It may be recalled that Kotak Mahindra Bank and ING Vysya Bank had on 20 November 2014 announced an all-stock amalgamation of ING Vysya Bank with Kotak Mahindra Bank. As part of the scheme, 725 equity share of Rs 5 each of Kotak Mahindra Bank will be allotted for every 1,000 equity shares of Rs 10 each held in ING Vysya Bank.
Telecom stocks edged higher on renewed buying. Tata Teleservices (Maharashtra) (up 2.91%), Reliance Communications (up 2.36%), Idea Cellular (up 2.86%) and Bharti Airtel (up 1.93%) edged higher.
Pharma stocks advanced. Ranbaxy Laboratories (up 5.63%), Sun Pharmaceutical Industries (up 5.51%), Cadila Healthcare (up 2.91%), Aurobindo Pharma (up 2.25%), Ipca Laboratories (up 0.97%), Divi's Laboratories (up 0.66%), Glenmark Pharmaceuticals (up 0.33%), and Wockhardt (up 0.32%) edged higher. Cipla (down 0.25%) and GlaxoSmithkline Pharmaceuticals (down 1.57%) edge lower.
Dr Reddy's Laboratories (DRL) rose after the company entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, in the territories of India, Nepal, Sri Lanka and Maldives for Rs 800 crore (euro 118 million). The stock was up 1.65% at Rs 3,545. DRL during market hours said that the acquired business is being sold on a slump sale basis. The transaction included approximately 350 employees engaged in operations of the India business. The revenue of the acquired business was approximately Rs 150 crore for the calendar year 2014, DRL said.
Lupin advanced after the company said that its US-subsidiary Lupin Pharmaceuticals Inc. yesterday, 31 March 2015, launched its Amlodipine and Valsartan Tablets, 5 mg/160 mg, 10 mg/160 mg, 5 mg/320 mg and 10 mg/320 mg, which are the AB rated generic equivalent of Novartis Pharmaceuticals Corporation's Exforge tablets 5 mg/160 mg, 10 mg/160 mg, 5 mg/320 mg and 10 mg/320mg strengths. The stock was up 1.56% at Rs 2,038.30. The announcement was made during market hours today, 1 April 2015. Lupin had received final approval from the United States Food and Drug Administration (FDA) for the product yesterday, 31 March 2015, the company said in a statement.
Lupin's Amlodipine and Valsartan tablets are indicated for the treatment of hypertension and to lower blood pressure. Exforge tablets had annual sales of $414.9 million in the United States as per IMS MAT December 2014 data.
IT stocks were mixed. Infosys (down 2%), CMC (down 0.14%), and TCS (down 0.14%), edged lower. Tech Mahindra (up 0.58%), Wipro (up 0.56%), and MphasiS (up 2.03%), MindTree (up 3.63%) and Oracle Financial Services Software (up 0.1%) edged higher.
HCL Technologies dropped after the company in a pre-quarter earnings update issued after market hours yesterday, 31 March 2015, said that the company's revenues and EBIT in Q3 March 2015 to be reported in US dollar would have adverse impact of about 280 basis points (bps) and 80 bps respectively in Q3 March 2015 as dollar continued to strengthen against almost all global currencies during the quarter ended 31 March 2015. The stock was off 4.1% at Rs 939.50. In spite of the adverse impact of exchange rate movement, the company is confident of achieving EBIT in the range of about 21 to 22% in Q3 March 2015, HCL Technologies said.
HCL Technologies expects to post foreign exchange loss of about $5.5 million in Q3 March 2015, covering both cash flow hedges and mark-to-market of the foreign currency assets and liabilities. This foreign exchange gain or loss would continue to be reported below EBIT, HCL Technologies said. The treasury income (net) for the quarter is expected to be around $32 million being the same level as reported in the previous quarter, HCL Technologies said.
The company expects effective tax rate for the year ending 30 June 2015 to be in the previously guided range of 21% to 22%.
Metal stocks advanced. Steel Authority of India (up 3.29%), Hindustan Zinc (up 0.99%), National Aluminium Company (up 0.75%), JSW Steel (up 0.5%), and Sesa Sterlite (up 0.34%) edged higher. Jindal Steel & Power (down 0.64%) and NMDC (down 0.96%) edged lower.
Hindalco Industries edged higher on reports that the Supreme Court has stayed summons issued to former Prime Minister Manmohan Singh, K.M. Birla, former coal secretary P.C. Parakh and two Hindalco Industries executives in relation to the allocation of a coal block in Odisha. The stock was up 2.32% at Rs 132.15. A Supreme Court bench comprising justices Gopala Gowda and C. Nagappan also issued notices to the Union government on a plea by Hindalco challenging constitutional validity of section 13 (1)(d)(iii) of the Prevention of Corruption Act, according to reports. On 11 March, a special court judge Bharat Parashar, hearing the criminal cases arising out of the irregular coal block allocations during 1993-2010, had summoned Singh, Birla, Parakh and Hindalco executives over charges of criminal conspiracy and corruption. The case in the trial court pertains to the allotment of Talabira II and Talabira III coalfields in Odisha to a joint venture between Hindalco, Neyveli Lignite Corporation (NLC) and Mahanadi Coalfields in 2005.
Tata Steel rose 2.26% at Rs 324. Tata Steel before market hours today, 1 April 2015, said that the company has divested its entire stake in Lanka Special Steels (LSSL) to E.B. Creasy & Company (EBCC) for a total consideration of LKR 433 million (around Rs 20.40 crore) in an all cash deal. LSSL is a wholly owned subsidiary of Tata Steel incorporated in Sri Lanka. It is engaged in the business of manufacturing and supplying hot dip galvanized wire and nail wire with an installed capacity of 14,400 metric tonnes per annum. It had an annual turnover of LKR 1,569 million (Rs 74 crore) in fiscal year ended March 2014.
Shares of natural gas production companies were mixed after the government cut natural gas price. ONGC (down 0.11%) and Cairn India (down 0.26%) edged lower. Oil India (up 1.07%) and Reliance Industries (up 1.19%) edged higher.
The Petroleum Planning & Analysis Cell under the Ministry of Petroleum & Natural Gas after trading hours yesterday, 31 March 2015, notified price of domestic natural gas at $4.66 per million metric British thermal unit (MMBTU) on gross calorific value basis for the six months period from 1 April 2015 to 30 September 2015. The gas price is lower by 7.72% from the price of $5.05 per MMBTU for the period from 1 November 2014 to 31 March 2015.
Meanwhile, data released by the government after trading hours yesterday, 31 March 2015, showed that total natural gas production in India declined 8.1% in February 2015 over February 2014 and crude oil production declined 1.9% in February 2015 over February 2014.
Shares of public sector oil marketing firms edged higher as global crude oil prices dropped. HPCL (up 0.45%) and Indian Oil Corporation (up 0.46%) edged higher. BPCL (down 0.7%) edged lower. Decline in crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Meanwhile, PSU OMCs today, 1 April 2015, announced a reduction in retail selling prices of diesel and petrol. Indian Oil Corporation (IOC) today, 1 April 2015, announced a reduction in retail selling price of diesel by Rs 1.21 per litre at Delhi (including state levies) with corresponding decline in price in other states. IOC announced reduction in petrol price by 49 paise per litre.
IOC said that the international prices of both petrol and diesel have declined after last revision in fuel prices by the company on 1 March 2015. However, the rupee has depreciated against the dollar since then. The impact of both these factors warrant decrease in retail selling prices of both petrol and diesel, IOC said in a statement. The movement of prices in international oil market and rupee-dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, IOC said.
Auto stocks were mixed after cut in petrol and diesel price. Tata Motors (up 2.65%), Eicher Motors (up 0.87%), and Bajaj Auto (up 0.06%) edged higher. TVS Motor Company (down 3.26%) edged lower.
Hero MotoCorp advanced 0.49% at Rs 2,655.60. Hero MotoCorp after market hours today, 1 April 2015, said that its total two-wheeler sales rose 1.33% to 5.31 lakh units in March 2015 over March 2014.
Mahindra & Mahindra (M&M) rose 1.22% at Rs 1,201.65. The stock hit a high of Rs 1,205 and a low of Rs 1,179.95. M&M during market hours today, 1 April 2015, said that its total auto sales declined 12% to 45,212 units in March 2015 over March 2014. Sales of passenger vehicles segment (which includes UVs and the Verito) declined 10% to 21,030 units in March 2015 over March 2014. Domestic sales fell 15% to 41,193 units in March 2015 over March 2014. Exports rose 28% to 4,019 units in March 2015 over March 2014.
Separately, M&M during trading hours today, 1 April 2015, said that its total tractor sales declined 31% to 12,254 units in March 2015 over March 2014. Domestic tractor sales fell 37% to 10,392 units in March 2015 over March 2014. Exports surged 69% to 1,862 units in March 2015 over March 2014.
Maruti Suzuki India declined after the company said its total sales fell 1.6% to 1.11 lakh units in March 2015 over March 2014. The stock was off 1.53% at Rs 3,642.55. The announcement was made during market hours today, 1 April 2015. Maruti Suzuki India's total domestic sales rose 1.4% to 1.03 lakh units in March 2015 over March 2014. Exports declined 29.3% to 7,836 units in March 2015 over March 2014.
Ashok Leyland advanced after the company said that its total sales rose 24% to 12,754 units in March 2015 over March 2014. The stock was up 0.82% at Rs 74.15. The announcement was made during market hours today, 1 April 2015. Ashok Leyland said its sales of medium & heavy commercial vehicles (M&HCV) rose 30% to 10,027 units in March 2015 over March 2014. Sales of light commercial vehicles (LCV) rose 6% to 2,727 units in March 2015 over March 2014.
Index heavyweight and engineering & construction major L&T gained after the company announced fresh order wins. The stock was up 0.88% at Rs 1,734.20. L&T during market hours today, 1 April 2015, announced that the company's construction arm won orders worth Rs 3343 crore across various business segments in March 2015. Separately, L&T during market hours today, 1 April 2015, said it has secured a contract worth more than Rs 5580 crore from NTPC for setting up a greenfield ultra supercritical thermal power plant in Khargone district of Madhya Pradesh on EPC basis.
Bharat Heavy Electricals (Bhel) was off 1.34% at Rs 231.80. Bhel during market hours today, 1 April 2015, said it has achieved another milestone with the commissioning of the second 800 megawatts (MW) supercritical boiler at Sri Damodaram Sanjeevaiah Thermal Power Plant (SDSTPP) at Krishnapatnam in Nellore district of Andhra Pradesh.
NTPC was up 0.37% at Rs 147.90. NTPC during market hours today, 1 April 2015, said that the Unit-I of 195 megawatts (MW) of Muzaffarpur Thermal Power Station, Stage-II of Kanti Bijlee Utpadan Nigam which is a subsidiary of the company, was commissioned yesterday, 31 March 2015. With this, the total installed capacity of Muzaffarpur Thermal Power Station has become 415 MW and the total installed capacity of NTPC group has become 44,398 MW.
The Sensex has risen 760.72 points or 2.76% in this calendar year so far (till 1 April 2015). From a 52-week low of 22,197.51 on 7 April 2014, the Sensex has risen 6,062.63 points or 27.31%. The Sensex is off 1,764.60 points or 5.87% from a record high of 30,024.74 hit on 4 March 2015.
Brent crude oil futures edged higher amid volatility. Brent for May settlement was up 7 cents at $55.18 a barrel. The contract had declined $1.18 a barrel or 2.09% to settle at $55.11 a barrel during previous trading session.
The ongoing nuclear talks between Iran and six world powers missed its deadline on Tuesday, but officials have agreed to continue talks in Switzerland for an extra day, according to media reports. A successful nuclear deal could pave the way for the lifting of sanctions against Iran, and release a large amount of stockpiled oil into an oversupplied global market, pressuring oil prices.
On the macro front, the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) recorded 1.4% growth in February 2015 over February 2014, data released by the government after trading hours yesterday, 31 March 2015 showed. Its cumulative growth during April to February, 2014-15 was 3.8%.
The Reserve Bank of India has relaxed position limits for foreign portfolio investors (FPIs), domestic participants and importers of goods and services in the exchange traded currency derivatives (ETCD) market. The RBI said yesterday, 31 March 2015, that the limit for domestic entities and FPIs to take foreign currency positions in the dollar-rupee pair on ETCD market without having to establish the existence of any underlying exposure has been increased to $15 million per exchange. In addition, there will be an aggregate limit of $ 5 million equivalent per exchange for EUR-INR, GBP-INR and JPY-INR pairs. The limit for domestic importers of goods and services to take hedging positions in ETCD markets has been increased from 50 per cent to 100 per cent of the higher of the average of their last three years' imports turnover and the previous year's turnover. The RBI also said that documentation and other administrative requirements for hedging on the ETCD markets have also been rationalised.
In overseas markets, European stocks edged higher today, 1 April 2015, after a solid round of eurozone manufacturing data for March 2015. Key benchmark indices in UK, Germany, and France were up 0.79% to 1.03%.
Growth of eurozone manufacturing production accelerated to a ten-month high in March, underpinned by the fastest expansion of incoming new business since April of last year, latest data from Markit Economics showed today, 1 April 2015. At 52.2 in March, up from 51 in February, the final seasonally adjusted Eurozone Manufacturing PMI was above its earlier flash estimate of 51.9. The PMI currently stands at its highest level for ten months and has remained in expansion territory since July 2013.
Asian stocks were mixed today, 1 April 2015. Key indices in Japan, Taiwan, South Korea and Indonesia were off 0.62% to 0.94%. Key indices in China, Singapore and Hong Kong were up 0.04% to 1.66%.
China's official Purchasing Managers Index rose to 50.1 in March from 49.9 in February, although the HSBC China manufacturing PMI fell to a final reading of 49.6 in March from 50.7 in February.
In Japan, the Bank of Japan's tankan corporate sentiment survey showed the main index measuring sentiment among big manufacturers was unchanged at plus 12 from the December poll.
Trading in US index futures indicated that the Dow could fall 34.50 points at the opening bell today, 1 April 2015. US stocks registered sizable losses yesterday, 31 March 2015, amid fears that first-quarter earnings will disappoint.
Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond and a voting member of the Federal Open Market Committee yesterday, 31 March 2015, said he expects solid growth and rising inflation this year, and as a result, would urge the US central bank to start raising interest rates relatively soon.
The influential monthly US nonfarm payroll data is due on Friday, 3 April 2015, when the US stock market is closed on account of Good Friday. The US government will announce the payroll report for March 2015 on 3 April 2015.
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