Realty, pharma and FMCG stocks led rally as key benchmark indices surged on the first trading session of the week after a weak US jobs report spurred speculation the US Federal Reserve will keep interest rates low. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 2-1/2-week high as these two key benchmark indices extended gains in late trade. Today's upmove on the domestic bourses was broad based, with nearly two gainers against every loser on BSE.
The Sensex was provisionally up 252.03 points or 0.89% at 28,512.17. The BSE Mid-Cap index rose 1.11%. The BSE Small-Cap index gained 1.37%. Both these indices outperformed the Sensex. 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 13% for quite a few stocks. Housing Development & Infrastructure (HDIL) which is a constituent of the BSE Mid-Cap index jumped a staggering 24.25%.
Bharat Heavy Electricals (Bhel) rose after flash results showed that the company's order inflow rose in the year ended 31 March 2015 when compared to the order inflow for the year ended 31 March 2014. Realty stocks jumped ahead of a monetary policy review from the Reserve Bank of India (RBI) scheduled tomorrow, 7 April 2015.
A weaker-than-expected US jobs data released on Friday, 3 April 2015, has led to investors delaying expectations of an increase in the US Federal Reserve's key interest rate. Low US interest rates could support demand for emerging-market assets.
Meanwhile, the outcome of a survey today, 6 April 2015, showed that growth in India's services sector moderated last month.
The Reserve Bank of India (RBI) is widely expected to keep its benchmark lending rate viz. the repo rate unchanged at first bi-monthly Monetary Policy for 2015-16 scheduled tomorrow, 7 April 2015, as Governor Raghuram Rajan waits to see how RBI's recent rate cuts percolate through the country's financial system.
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The government after trading hours on Wednesday, 1 April 2015, in its five-year Foreign Trade Policy 2015-20 (FTP 2015-20) announced the launch of a new Merchandise Exports from India Scheme (MEIS) for export of specified goods to specified markets. Meanwhile, the outcome of a survey on Thursday, 2 April 2015, showed that manufacturing activity in India witnessed an overall improvement last month.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 209.87 crore during the previous trading session on Wednesday, 1 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 197.25 crore on Wednesday, 1 April 2015, as per provisional data. The stock market was closed on 2 April and 3 April on account of holidays.
In the foreign exchange market, the rupee edged higher against the dollar after a weak US jobs report spurred speculation the US Federal Reserve will keep interest rates unchanged for longer.
Brent crude oil futures edged higher after Saudi Arabia raised prices for crude sales to Asia for a second month, signalling better demand in the region.
In overseas markets, Asian stocks were mixed today, 6 April 2015. US stock index futures fell as disappointing job data for March 2015 which was announced on Friday, 3 April 2015, when the US stock market was closed on account of Good Friday triggered concerns about the coming corporate reporting season.
As per provisional figures, the S&P BSE Sensex was up 252.03 points or 0.89% at 28,512.17. The index jumped 270.67 points at the day's high of 28,530.81 in late trade, its highest level since 19 March 2015. The index fell 38.15 points at the day's low of 28,221.99 in early afternoon trade
The CNX Nifty was up 73.65 points or 0.86% at 8,659.90, as per provisional figures. The index hit a high of 8,667.55 in intraday trade, its highest level since 19 March 2015. The index hit a low of 8,573.75 in intraday trade.
The BSE Mid-Cap index was up 119.40 points or 1.11% at 10,869.82. The BSE Small-Cap index was up 152.58 points or 1.37% at 11,299.30. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2872 crore, higher than turnover of Rs 2703.56 crore registered during the previous trading session.
The market breadth indicating the overall health of the market was strong, with nearly two gainers against every loser on BSE. 1,806 shares gained and 926 shares fell. A total of 111 shares were unchanged.
Bharat Heavy Electricals (Bhel) rose after flash results showed that the company's order inflow rose in the year ended 31 March 2015 (FY 2015) when compared to the order inflow for the year ended 31 March 2014 (FY 2014). The stocks rose 2.11%. As per the flash results announced by the company during market hours, the company's order inflow was Rs 30814 crore in FY 2015 compared with order inflow of Rs 28007 crore in FY 2014. The company's net profit tumbled 62.03% to Rs 1314 crore on 23.63% decline in turnover to Rs 30806 crore in FY 2015 over FY 2014.
Realty stocks jumped ahead of a monetary policy review from the Reserve Bank of India (RBI) scheduled tomorrow, 7 April 2015. Sobha (up 1.69%), DLF (up 4.51%), Indiabulls Real Estate (up 7.33%), Unitech (up 7.69%), Housing Development & Infrastructure (HDIL) (up 24.25%), Godrej Properties (up 4.51%), Phoenix Mills (up 4.26%), Anant Raj (up 6.62%), Oberoi Realty (up 3.67%) and Prestige Estates (up 2.67%) edged higher.
Essar Oil gained 0.41%. The company said during market hours that gas production at its Raniganj Asset in West Bengal has crossed 0.5 million standard cubic metres per day (scmd), thereby making it India's largest coal bed methane gas producer. Gas from the project shall be the feedstock to the priority fertiliser sector with the anchor customer being Matix Fertiliser & Chemicals, having the single steam plant for ammonia and urea located in West Bengal.
In the foreign exchange market, the rupee edged higher against the dollar after a weak US jobs report spurred speculation the US Federal Reserve will keep interest rates unchanged for longer. The partially convertible rupee was hovering at 62.185, compared with its close of 62.49 during the previous trading session on 31 March 2015. The foreign exchange market was closed from 1 April to 3 April 2015.
Brent crude oil futures edged higher after Saudi Arabia raised prices for crude sales to Asia for a second month, signalling better demand in the region. Brent for May settlement was up $1.32 a barrel at $56.27 a barrel. While Saudi Arabia's state-run oil company Saudi Aramco Oil Co. raised price differentials for all its crude grades sold to Asia, it lowered most prices for the US, reflecting weaker Nymex crude prices and an oversupply in the US market.
Closer home, the Reserve Bank of India (RBI) is widely expected to keep its benchmark lending rate viz. the repo rate unchanged at first bi-monthly Monetary Policy for 2015-16 scheduled tomorrow, 7 April 2015, as Governor Raghuram Rajan waits to see how RBI's recent rate cuts percolate through the country's financial system. The RBI had surprised financial markets by announcing reduction in repo rate by 25 basis points to 7.5% in an unscheduled monetary policy review on 4 March 2015. Earlier, the RBI had on 15 January 2015 announced a cut in the repo rate by 25 basis points to 7.75%. Despite a cumulative rate cut of 50 basis points from the RBI, most commercial banks have refrained from cutting their lending rates.
The government after trading hours on Wednesday, 1 April 2015, in its five-year Foreign Trade Policy 2015-20 (FTP 2015-20) announced the launch of a new Merchandise Exports from India Scheme (MEIS) for export of specified goods to specified markets. For grant of rewards under MEIS, the countries have been categorized into 3 groups whereas the rates of rewards under MEIS range from 2% to 5%. MEIS has replaced 5 different schemes of earlier Foreign Trade Policy. Under the FTP 2015-20, Served from India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS) for increasing exports of notified services from India. Under SEIS, the selected services would be rewarded at the rates of 3% and 5%.
Growth in India's services sector moderated last month, the outcome of a survey showed today, 6 April 2015. The seasonally adjusted HSBC India Services Business Activity Index dropped to 53 in March 2015 from 53.9 in February 2015. The latest reading was indicative of a moderate rate of expansion that was slightly weaker than in the prior month. Anecdotal evidence highlighted sustained new business growth. Output rose in four of the six broad areas of the service economy, the exceptions being Financial Intermediation and Hotels & Restaurants. Service providers remain upbeat towards the prospects for business activity over the next 12 months. Over 25% of survey members anticipate output growth over the course of the next year, citing strengthening demand conditions.
Manufacturing activity in India witnessed an overall improvement last month, the outcome of a survey showed on Thursday, 2 April 2015. The headline HSBC India Purchasing Managers' Index (PMI) nudged higher at 52.1 in March 2015 from 51.2 in February 2015. Underpinning the expansion in output was a quicker rise in new order flows. There was a marked increase in input costs for manufacturing companies which has resulted in firms raising their tariffs once again. Markit economist Pollyanna De Lima said that greater cost burdens add to the pressure on margins which could potentially be squeezed by competitive pressures. Faster increases in incoming new work, buying levels and backlogs at manufacturing firms indicate that the subdued labour market is likely to recover in coming months, according to the survey.
Meanwhile, Prime Minister Narendra Modi today, 6 April 2015, said that serious misconceptions and lies are being spread about the Land Acquisition Bill. In his speech while inaugurating the Conference of State Environment and Forest Ministers in New Delhi, Modi said that the provisions of the Land Acquisition Bill do not touch tribal and forest land.
The government reportedly re-promulgated the land acquisition ordinance on Friday, 3 April 2015, after President Pranab Mukherjee gave his assent for the same. The ordinance will now be presented in both houses of parliament again. The ordinance includes nine amendments made when a bill to replace it was passed in the Lok Sabha last month. The second half of the Budget session of the parliaments begins on 20 April 2015 and concludes on 8 May 2015.
In overseas markets, European stock markets were closed today, 6 April 2015, for Easter holiday.
In Greece, Greek Finance Minister Yanis Varoufakis reportedly said yesterday, 5 April 2015, after holding bilateral talks with International Monetary Fund Managing (IMF) Director Christine Lagarde that Greece intends to meet all obligations to all its creditors. His comments come as Greece has to make a roughly 450 million euro loan repayment to the IMF on Thursday, 9 April 2015. Varoufakis held informal talks on the Greek government's reform program with Lagarde. The IMF MD said that due diligence efforts in Athens and talks with teams in Brussels over the terms of Greece's bailout would resume promptly on Monday, 6 April 2015.
Asian markets were mixed today, 6 April 2015. Key indices in Indonesia and South Korea rose by 0.05% to 0.43%. Key indices in Singapore and Japan fell by 0.02% to 0.19%. Chinese stock markets remain closed today, 6 April 2015. Markets in Australia and Hong Kong remain closed for Easter today, 6 April 2015. Hong Kong will also be closed tomorrow, 7 April 2015, for Ching Ming Festival.
In China, data on Friday, 3 April 2015, showed that a gauge of service sector activity, the HSBC China Services Purchasing Managers' Index, came in stronger at 52.3 in March 2015 from 52 in February 2015.
US stock index futures fell after worse-than-expected US jobs data for March 2015 which was announced on Friday, 3 April 2015, when US stock market was closed on account of Good Friday. Trading in US index futures indicates that the Dow Jones industrial average could slide 138 points at the opening bell today, 6 April 2015.
US employers added the fewest number of jobs in more than a year in March, the latest sign of weakness in the economy and one likely to further delay an anticipated interest rate increase by the Federal Reserve nonfarm payrolls rose 126,000 last month, less than half February's pace and the smallest gain since December 2013, the Labor Department said on Friday, 3 April 2015. Average hourly wages rose 0.3% in March, but was offset by a drop in hours worked in the month. Nearly all sectors of the economy saw the pace of hiring slow last month.
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