Key benchmark indices lost ground in mid-morning trade after the Reserve Bank of India (RBI) kept its benchmark lending rate viz. the repo rate unchanged at 7.5% after first bi-monthly Monetary Policy for 2015-16 announced at 11:00 IST. Earlier, the benchmark indices had moved in a narrow range in positive zone just before the RBI's monetary policy announcement. The barometer index, the S&P BSE Sensex, was currently off 123.10 points or 0.43% at 28,381.36. The market breadth indicating the overall health of the market was positive.
Realty stocks declined after the Reserve Bank of India (RBI) kept its benchmark lending rate viz. the repo rate unchanged at 7.5% after first bi-monthly Monetary Policy for 2015-16 announced at 11:00 IST. Future Retail rose after the company said that its committee of directors approved and allotted secured redeemable non-convertible debentures (NCDs) aggregating to Rs 600 crore on private placement basis.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 April 2015, said that legitimate taxes must be paid and should not be perceived as 'tax terrorism'. Jaitley said at a Confederation of Indian Industry conference in New Delhi that while India does not practice tax terrorism, it is not a tax haven either.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 936.81 crore yesterday, 6 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 170.03 crore yesterday, 6 April 2015, as per provisional data.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit their highest level in almost three weeks in early trade.
In the foreign exchange market, the rupee edged lower against the dollar.
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Brent crude oil futures edged lower after a leading foreign investment bank said prices needed to remain low for months to achieve a slowdown in US crude oil output growth.
In overseas markets, Asian markets edged higher after overnight gains in US stocks. US stocks rose yesterday, 6 April 2015, as the disappointing jobs data announced last week fed expectations that the Federal Reserve could wait longer before raising interest rates.
At 11:19 IST, the S&P BSE Sensex was down 123.10 points or 0.43% at 28,381.36. The index lost 139.46 points at the day's low of 28,365 in mid-morning trade. The index jumped 136.62 points at the day's high of 28,641.08 in early trade, its highest level since 19 March 2015.
The CNX Nifty was down 42.85 points or 0.49% at 8,617.05. The index hit a low of 8,613.40 in intraday trade. The index hit a high of 8,693.60 in intraday trade, its highest level since 19 March 2015.
The BSE Mid-Cap index was down 14.10 points or 0.13% at 10,855.72. The decline in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 13.18 points or 0.12% at 11,312.48, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,148 shares gained and 1,071 shares fell. A total of 87 shares were unchanged.
Realty stocks declined after the Reserve Bank of India (RBI) in its monetary policy today, 7 April 2015, kept key policy rates unchanged. Sobha (down 2.58%), DLF (down 1.49%), Indiabulls Real Estate (down 2.28%), Unitech (down 2.85%), Housing Development & Infrastructure (HDIL) (down 1.71%), Godrej Properties (down 0.77%), Phoenix Mills (down 0.39%), Anant Raj (down 1.41%), Oberoi Realty (down 0.19%) and Prestige Estates (down 1.97%) edged lower. Purchases of both residential and commercial property are largely driven by finance.
Future Retail rose after the company said that its committee of directors approved and allotted 6,000, 10.25% secured redeemable non-convertible debentures (NCDs) of Rs 10 lakh each, aggregating to Rs 600 crore on private placement basis. The stock was up 2%. The announcement was made after market hours yesterday, 6 April 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.345, compared with its close of 62.19 during the previous trading session.
Brent crude oil futures edged lower after a leading foreign investment bank said prices needed to remain low for months to achieve a slowdown in US crude oil output growth. Brent for May settlement was down 62 cents at $57.50 a barrel.
The Reserve Bank of India (RBI) today, 7 April 2015, kept its benchmark lending rate viz. the repo rate unchanged after first bi-monthly Monetary Policy for 2015-16. The RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL). The RBI said that going forward, the accommodative stance of monetary policy will be maintained and monetary policy actions will be conditioned by incoming data. The RBI said it will await the transmission by banks of its front-loaded rate reductions in January and February into their lending rates. The RBI said that developments in sectoral prices, especially those of food, will be monitored, as will the effects of recent weather disturbances and the likely strength of the monsoon, as the central bank stays vigilant to any threats to the disinflation that is underway. The RBI will look to a continuation and even acceleration of policy efforts to unclog the supply response so as to make available key inputs such as power and land. Further progress on repurposing of public spending from poorly targeted subsidies towards public investment and on reducing the pipeline of stalled investment will also be helpful in containing supply constraints and creating room for monetary accommodation, the RBI said. The RBI will also watch for signs of normalisation of the US monetary policy, though it anticipates India is better buffered against likely volatility than in the past.
The RBI said that the central bank will stay focussed on ensuring that the economy disinflates gradually and durably, with CPI inflation targeted at 6% by January 2016 and at 4% by the end of 2017-18. Although the target for end-2017-18 and thereafter is defined in terms of a tolerance band of plus/minus 2% around the mid-point, it will be the RBI's endeavour to keep inflation at or close to this mid-point of 4%. The RBI's intent is to allow the disinflationary momentum to spread through the economy.
Assuming a normal monsoon, continuation of the cyclical upturn in a supportive policy environment, and no major structural change or supply shocks, GDP growth for 2015-16 is projected at 7.8%, higher by 30 bps from 7.5% in 2014-15, but with a downward bias to reflect the still subdued indicators of economic activity.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 April 2015, said that legitimate taxes must be paid and should not be perceived as 'tax terrorism'. Jaitley said at a Confederation of Indian Industry conference in New Delhi that while India does not practice tax terrorism, it is not a tax haven either. Jaitley said that the aim of the government is to create a conducive business environment by addressing the challenges faced, especially with respect to taxation, the Land Acquisition and Rehabilitation and Resettlement bill, and corruption. To facilitate ease of doing business, the government is focusing on tax reforms with the aim of pushing for the implementation of the Goods and Services Tax (GST) and lowering the corporate tax rate.
With respect to the land law, which is commonly perceived as anti-farmer and detrimental to the cause of rural India, Jaitley said the government was cognizant of the large population that would get impacted, but was also aware of the potential of this to unleash productivity and employment. Amendments in the Land Acquisition and Rehabilitation and Resettlement bill are required to support building of rural infrastructure including roads, irrigation and industrial corridors, Jaitley said.
The Finance Minister said that the government will do its share by creating a policy framework that enables economic growth. The time now, he said, is to slog to implement the changes at the ground level. Jaitley sought the industry's support in implementing these changes.
Asian markets rose today, 7 April 2015, following overnight gains in US stocks. Key indices in Indonesia, South Korea, Japan, China, Singapore, and Taiwan rose by 0.01% to 1.79%.
Stock markets in Hong Kong remain closed today, 7 April 2015, for Ching Ming Festival.
Trading in US index futures indicates that the Dow Jones industrial average could fall 1 point at the opening bell today, 7 April 2015. US stocks rose yesterday, 6 April 2015, as the disappointing jobs data announced last week fed expectations that the Federal Reserve could wait longer before raising interest rates.
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