Amid range bound movement, key benchmark indices regained positive zone in early afternoon trade. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 38.22 points or 0.13% at 29,497.36. Brent crude oil prices witnessed a steep slide overnight which augurs well for India.
IT stocks edged higher on renewed buying. NMDC dropped after slashing iron ore prices for the month of March 2015. L&T declined amid volatility after the company said that its construction division secured orders worth Rs 2215 crore across various business segments over the last two months.
Meanwhile, Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 424.79 crore yesterday, 2 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 180.35 crore yesterday, 2 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher after previous trading session's sharp slump. Decline in global crude oil prices and 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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In overseas markets, Asian stock markets were mixed. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attaining record closing high as investors brushed off slightly disappointing economic data.
At 12:18 IST, the S&P BSE Sensex was up 38.22 points or 0.13% at 29,497.36. The index gained 71.55 points at the day's high of 29,530.69 in morning trade. The index slipped 94.27 points at the day's low of 29,364.87 in early trade.
The 50-unit CNX Nifty was up 1.70 points or 0.02% at 8,958.45. The index hit a high of 8,969.80 in intraday trade. The index hit a low of 8,925.55 in intraday trade.
The BSE Mid-Cap index was up 86.72 points or 0.79% at 11,039.65. The BSE Small-Cap index was up 111.87 points or 0.98% at 11,482.67. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,415 shares gained and 1,007 shares fell. A total of 114 shares were unchanged.
IT stocks advanced. TCS (up 2.5%), CMC (up 2.54%), MphasiS (up 0.91%), Wipro (up 1.5%), MindTree (up 1.39%), Tech Mahindra (up 0.77%), HCL Technologies (up 0.51%), and Oracle Financial Services Software (up 0.09%) edged higher. Infosys (down 0.09%) edged lower.
L&T fell 0.35% at Rs 1,837. The stock hit a high of Rs 1,852 and a low of Rs 1,828.10 so far during the day. L&T during market hours today, 3 March 2015, said that its construction division secured orders worth Rs 2215 crore across various business segments over the last two months.
NMDC dropped after slashing iron ore prices for the month of March 2015. The stock was down 0.4% at Rs 137.50. The stock hit a high of Rs 140.40 and a low of Rs 136.35 so far during the day. NMDC during market hours today, 3 March 2015, announced reduction in prices of lump ore to Rs 3,250 per WMT for March 2015 from Rs 3,750 per WMT in February 2015. The price of fines was cut to Rs 2,460 per WMT for March 2015 from Rs 2,760 per WMT in February 2015.
NMDC also announced that the company's iron ore production rose 5.29% to 27.82 million tonnes during the period from April 2014 to February 2015 over the corresponding previous year period. Sales of iron ore rose 0.44% to 27.25 million tonnes during the period from April 2014 to February 2015 over the corresponding previous year period. The production and sales data is on provisional basis.
Reliance Communications (RCom) rose 1.44% at Rs 66.75. RCom during market hours today, 3 March 2015, said that Fitch Ratings (Fitch) has assigned a long-term foreign- and local-currency issuer default ratings (IDR) of 'BB-' (Stable Outlook) to the company. RCom also said that Moody's Investors Services (Moody's) has assigned a corporate family rating (CFR) of Ba3 (Stable Outlook) to the company. This is the first time that Fitch and Moody's have assigned ratings to the company, RCom said in a statement.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.835, compared with its close of 61.87 during the previous trading session.
Brent crude oil futures edged higher after previous trading session's sharp slump. Brent for April settlement was up $1.01 a barrel at $60.55 a barrel. The contract had slumped $3.04 a barrel or 4.85% to settle at $59.54 a barrel during the previous trading session.
Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty. Jaitley used China as the example of what high growth rates can do over a decades-long period.
Meanwhile, data released by the government after trading hours yesterday, 2 March 2015, showed that the index of eight core infrastructure industries rose at moderate pace of 1.8% January 2015, compared with 2.4% growth recorded in December 2014. The cumulative growth stood at 4.1% in April-January.
Asian stock markets were mixed today, 3 March 2015. Key indices in China, Hong Kong, and Japan were off 0.06% to 1.41%. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.05% to 0.58%.
The Reserve Bank of Australia (RBA) today, 3 March 2015, left the official cash rate on hold at 2.25%. Most economists were expecting a cut.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell today, 3 March 2015. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attaining record closing high as investors brushed off slightly disappointing economic data.
Outlays for US construction projects declined 1.1% in January to a seasonally adjusted annual rate $971.4 billion, led by public spending, the US Commerce Department said yesterday, 2 March 2015.
In Europe, Greece is reportedly preparing to tap its final pension reserves at the country's central bank if needed to avert a devastating default to the International Monetary Fund (IMF) and keep the government going over the next two weeks.
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