Key benchmark indices held firm in mid-morning trade. The broad market depicted strength. There were more than two gainers against every loser on BSE. The Sensex was currently up 200.93 points or 0.72% at 28,272.86. The BSE Mid-Cap index was up 1.23%. The BSE Small-Cap index was up 1.38%. Both these indices outperformed the Sensex. Gains were supported by a survey showing that business activity in India has returned to growth in July.
IT stocks gained, FMCG stocks edged higher.
Earlier, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks in morning trade.
Meanwhile, Taiwanese electronics giant Foxconn said yesterday, 4 August 2015, that the company is considering setting up manufacturing facilities in India.
In overseas markets, Asian stocks edged higher after China's services sector grew in July at its fastest pace, to its highest level in almost a year, as new business volumes picked up. US stocks edged lower yesterday, 4 August 2015, after Federal Reserve Bank of Atlanta President Dennis Lockhart indicated that a September interest-rate hike is likely unless there is a significant deterioration in the economy.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 118.70 crore yesterday, 4 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 112.55 crore yesterday, 4 August 2015, as per provisional data released by the stock exchanges
At 11:24 IST, the S&P BSE Sensex was up 200.93 points or 0.72% at 28,272.86. The index jumped 236.57 points at the day's high of 28,308.50 in morning trade, its highest level since 24 July 2015. The index rose 63.75 points at the day's low of 28,135.68 in early trade.
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The CNX Nifty was up 58.45 points or 0.69% at 8,575.35. The index hit a high of 8,587.45 in intraday trade, its highest level since 24 July 2015. The index hit a low of 8,545.85 in intraday trade.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,812 shares gained and 696 shares fell. A total of 82 shares were unchanged.
The BSE Mid-Cap index was up 140.70 points or 1.23% at 11,597.93. The BSE Small-Cap index was up 165.68 points or 1.38% at 12,186.82. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1674 crore by 11:15 IST compared with Rs 1092 crore by 10:15 IST.
IT stocks were in demand on renewed buying. TCS (up 0.96%), Infosys (up 1.76%), Wipro (up 1.71%), HCL Technologies (up 0.35%), Oracle Financial Services Software (up 0.31%), Tech Mahindra (up 0.53%) gained.
FMCG stocks gained. Godrej Consumer Products (up 4.62%), Hindustan Unilever (up 0.13%), Marico (up 2.94%), Nestle India (up 6.19%), Britannia Industries (up 0.58%), GlaxoSmithkline Consumer Healthcare (up 1.51%), Colgate-Palmolive (India) (up 0.28%), Dabur India (up 2.36%), Tata Global Beverages (up 0.17%), Procter & Gamble Hygiene and Health Care (up 1.27%), Jyothy Laboratories (up 2.49%) and Bajaj Corp (up 2.73%) rose.
After having fallen in the previous month, output across the combined manufacturing and service sectors in India rose during July, data released today, 5 August 2015 showed. The seasonally adjusted Nikkei India Composite PMI Output Index climbed to 52 in July from 49.2 in June to signal a modest increase in activity. Growth has now been recorded in 14 of the past 15 months.
The seasonally adjusted Nikkei Services Business Activity Index rose to 50.8 in July from 47.7 in June.
Meanwhile, Taiwanese electronics giant Foxconn said yesterday, 4 August 2015, that the company is considering setting up manufacturing facilities in India. Foxconn Chairman Terry Gou reportedly said at a news conference in New Delhi yesterday, 4 August 2015, that Foxconn intends to set up manufacturing facilities for producing televisions, routers, switches, storage equipment and batteries among other devices in India. Foxconn is the world's largest contract electronics manufacturer by revenue.
Meanwhile, the Reserve Bank of India (RBI) Governor Dr. Raghuram G. Rajan indicated in his written monetary policy statement yesterday, 4 August 2015, that monetary policy could be eased if there is greater transmission of monetary policy by way of cut in base rate by commercial banks. The RBI kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy yesterday, 4 August 2015, while retaining the accommodative stance of monetary policy.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 4 August 2015, that the Southwest Monsoon was active over Madhya Pradesh, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 4 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, 6% below the LPA in Central India and 6% above the LPA in Northwest India until 4 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, Asian stocks edged higher today, 5 August 2015, after China's services sector grew in July at its fastest pace, to its highest level in almost a year, as new business volumes picked up. Key benchmark indices in Taiwan, South Korea Hong Kong, Japan and Indonesia rose by 0.08% to 0.65%. In Singapore, the Straits Times index was unchanged.
In China, the Shanghai Composite fell 1.53%, shrugging off a vow by the central bank yesterday, 4 August 2015, to stabilise market expectations and a private survey which showed activity in the services sector activity accelerated last month.
Activity in China's services sector expanded at its fastest pace in 11 months in July, thanks to stronger new business, a private survey showed today, 5 August 2015. The services Purchasing Managers' Index (PMI) compiled by Caixin/Markit rose to 53.8 in July from June's 51.8. The July level is the highest since August 2014 and marks a 12th straight month of expansion. A reading above 50 points indicates growth on a monthly basis, while one below that points to a contraction.
US stocks edged lower yesterday, 4 August 2015, after Federal Reserve Bank of Atlanta President Dennis Lockhart indicated that a September interest-rate hike is likely unless there is a significant deterioration in the economy. The influential monthly US nonfarm payroll report for July 2015 is due on Friday, 7 August 2015. The report will be scrutinized for clues to the strength of the labor-market recovery. The Federal Reserve has said it is watching economic indicatorswages and employment numbers in particularas it assesses when to hike interest rates for the first time in a decade. The ADP employment report, considered a precursor to the nonfarm data, is due later in the global day today, 5 August 2015.
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