Key benchmark indices jumped as firm global markets boosted investor sentiment. Fall in crude oil prices also supported buying on the bourses. India imports two-third of its crude oil requirement. Lower crude oil prices ease concerns about India's adverse fiscal and current account deficit situation. The barometer index, the S&P BSE Sensex rose 242.32 points or 0.95% at 25,723.16. The market breadth indicating the overall health of the market was strong.
IT stocks led rally on the bourses. HCL Technologies rose after the company said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable). PSU OMCs jumped as crude oil prices declined on Friday, 1 August 2014.
Key indices moved in a narrow band during the session after opening higher and witnessing a sharp rise in mid-morning trade. Key indices spurted once again and hit fresh intraday high in late trade.
The S&P BSE Sensex rose 242.32 points or 0.95% to 25,723.16, its highest closing level since 31 July 2014. The index gained 273.58 points at the day's high of 25,754.42 in late trade. The index rose 50.54 points at the day's low of 25,531.38 in morning trade.
The CNX Nifty rose 81.05 points or 1.07% to 7,683.65, its highest closing level since 31 July 2014. The index hit a high of 7,694.80 in intraday trade. The index hit a low of 7,622.05 in intraday trade.
The market breadth indicating the overall health of the market, was strong. On BSE, 1,810 shares rose and 1,108 shares fell. A total of 106 shares were unchanged.
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The BSE Mid-Cap index was up 82.48 points or 0.9% at 9,196.81, underperforming the Sensex. The BSE Small-Cap index was up 108.78 points or 1.1% at 9,999.75, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2416 crore, lower than Rs 3360.96 crore on Friday, 1 August 2014.
The S&P BSE Consumer Durables index (up 3.20%), the S&P BSE IT index (up 2.08%), the S&P BSE Power index (up 1.73%), the S&P BSE Teck index (up 1.73%), the S&P BSE Capital Goods index (up 1.57%), the S&P BSE Auto index (up 1.49%), the S&P BSE Metal index (up 1.45%), the S&P BSE Oil & Gas index (up 1.22%), the S&P BSE FMCG index (up 1.13%) and the S&P BSE Realty index (up 1.06%), outperformed the Sensex.
The S&P BSE Bankex rose 0.70% and the S&P BSE Healthcare index fell 0.10%, underperforming the Sensex.
Among the 30 Sensex shares, 25 rose and the remaining shares declined.
Banks were in demand. Canara Bank (up 2.87%), Bank of India (up 2.78%), Union Bank of India (up 1.95%), IDBI Bank (up 1.57%), Federal Bank (up 1.48%), Punjab National Bank (up 1.35%), Kotak Mahindra Bank (up 1.30%), Yes Bank (up 1.17%), ICICI Bank (up 1.01%), Axis Bank (up 0.89%), State Bank of India (up 0.88%) and Bank of Baroda (up 0.48%), edged higher. However, HDFC Bank fell 0.26%.
IndusInd Bank rose 0.61% to Rs 553.95. The bank announced during market hours a strategic partnership with Jet Airways to launch a suite of Jet Airways IndusInd Bank credit cards. This co-brand initiative will be managed by Jet Privilege on behalf of Jet Airways.
Separately, Indusind Bank said that the bank has opened two new branches in Chandigarh and one branch in Panchkula. The bank plans to further strengthen its presence and customer reach in Punjab and Haryana with more branches in the coming quarters.
Shares of air carrier Jet Airways (India) gained 1.20% to Rs 249.70.
IT stocks edged higher. Infosys (up 3.66%), Oracle Financial Services Software (up 2.78%), Wipro (up 2.42%), Hexaware Technologies (up 2.06%), Tech Mahindra (up 2.01%), CMC (up 1.83%) and TCS (up 0.42%), edged higher.
HCL Technologies rose 2.52% after the company after market hours on Friday, 1 August 2014 said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable).
Public sector oil marketing companies (PSU OMCs) rose as crude oil prices declined on Friday, 1 August 2014. HPCL (up 5.89%), Indian Oil Corporation (up 4.05%) and BPCL (up 4.02%), edged higher. Lower crude oil prices could decrease under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. It is expected that the gap between administered price and market price of diesel would be eliminated by early FY 2015, the Finance Ministry said in its fiscal policy strategy statement on 10 July 2014. The government has already freed pricing of petrol.
PSU OMCs on 31 July 2014, decided to increase retail diesel price by Rs 0.50 a litre and cut retail petrol prices by Rs 1.09 a litre in Delhi with effect from midnight of 31 July 2014. PSU OMCs, however, reduced the diesel price for bulk consumers by Rs 0.72 a litre at Delhi. Price of non-subsidized LPG cylinder was reduced by Rs 2.50 for a 14.2 kg cylinder and that of commercial LPG cylinder was reduced by Rs 4 for a 19kg cylinder at Delhi. The rates will vary from state to state depending on local taxes and levies.
The under-recovery on High Speed Diesel (HSD) applicable for 1st fortnight of August effective 1 August 2014 will go down to Rs 1.33 per litre. This was Rs 2.49 per litre during 2nd fortnight of July 2014. In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the 1st fortnight of August 2014 will be Rs 32.98 per litre (Rs 33.07 per litre in last fortnight) and Rs 447.87 per cylinder (Rs 449.17 per cylinder in last fortnight) respectively. Oil Marketing Companies (OMCs), effective 1 August 2014, are now incurring combined daily under-recovery of about Rs 226 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 261 crore daily under-recoveries during previous fortnight. The under-recoveries for the financial year 2014-15 are projected to be Rs 91,665 crore while the figure was Rs 1, 39,869 crore in the 2013-14. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas reviewed international prices of crude oil and petroleum products during the 2nd fortnight of July 2014.
Most realty stocks edged higher ahead of the monetary policy review of the Reserve Bank of India (RBI) tomorrow, 5 August 2014. Purchases of both residential and commercial property are largely driven by finance. Unitech (up 3.59%), Phoenix Mills (up 2.21%), Prestige Estates (up 2.04%), D B Realty (up 2.01%), HDIL (up 1.43%), Parsvnath Developers (up 1.32%), Anant Raj (up 1.05%), Indiabulls Real Estate (up 0.78%), Godrej Properties (up 0.73%) and DLF (up 0.35%), edged higher.
Coal India rose 0.11% to Rs 359.85. The company said the company and its subsidiaries' offtake and production was lower than targets in July. The company said during market hours that coal production of the company and its subsidiaries was 92% of targeted production at 33.01 million tonnes in July 2014. Offtake was 94% of targeted offtake at 38.04 million tonnes in July 2014.
Shares of Syndicate Bank, Prakash Industries and Bhushan Steel tumbled on reports the CBI has filed a case against Syndicate Bank Chairman Sudhir Kumar Jain in a bribery case. Prakash Industries was locked at 20% lower circuit at Rs 89, Syndicate Bank (down 7.05%), and Bhushan Steel (down 3.49%), edged lower. As per the reports, the CBI has accused Syndicate Bank Chairman and Managing Director Sudhir Kumar Jain of taking Rs 50 lakh to increase the credit limits of Prakash Industries and Bhushan Steel.
3M India surged 11.70% to Rs 5,398.85 after net profit jumped 102.1% to Rs 25.45 crore on 10.1% rise in net sales to Rs 455.09 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Friday, 1 August 2014.
Bank of Maharashtra lost 1.61% to Rs 45.95 after net profit declined 55.8% to Rs 117.82 crore on 10.5% growth in total income to Rs 3286.12 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Saturday, 2 August 2014. Bank of Maharashtra (BOM)'s provisions and contingencies declined 12.4% to Rs 236.25 crore in Q1 June 2014 over Q1 June 2013.
Tata Steel clocked a highest turnover of Rs 45.07 crore on BSE. State Bank of India (Rs 44.17 crore), Infosys (Rs 43.23 crore), Reliance Capital (Rs 38.44 crore) and L&T (Rs 37.70 crore), were the other turnover toppers on BSE in that order.
Aadhaar Ventures India reported highest volumes of 1.85 crore shares on BSE. Avance Technologies (80.08 lakh shares), Unitech (52.36 lakh shares), Cals Refineries (48.33 lakh shares) and PTC India Financial Services (46.82 lakh shares), were the other volume toppers on BSE in that order.
Indian stocks snapped two-day losing streak today, 4 August 2014. From a recent high of 26,087.42 on 30 July 2014, the Sensex declined 606.58 points or 2.32% in two trading sessions to 25,480.84 on Friday, 1 August 2014. The Sensex has gained 4,552.48 points or 21.50% in calendar year 2014 so far (till 4 August 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,274.45 points or 47.42%. From a record high of 26,300.17 on 25 July 2014, the Sensex has declined 577.01 points or 2.19%.
Brent crude rose to just over $105 a barrel on Monday as it came off a four-month low hit in the previous session, although worries about global oversupply still outweigh concerns about violence in the Middle East and North Africa. Brent crude oil futures for September delivery was almost flat at $104.83 a barrel in electronic trade today, 4 August 2014. The contract fell $1.18 on Friday to $104.84 a barrel, its lowest settlement since 2 April 2014.
Monsoon was 9% below long period average (LPA) in the week from 24 July to 30 July 2014, Indian Meteorological Department (IMD) said on 1 August 2014. The cumulative rainfall during this year's monsoon has so far upto 30 July 2014 was 23% below the LPA.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.05, compared with its close of 61.1875 on Friday, 1 August 2014.
The Reserve Bank of India (RBI) announces monetary policy review tomorrow, 5 August 2014.
European market edged higher today, 4 August 2014 aided by gains in lenders after Portugal bailed out Banco Espirito Santo SA. Key benchmark indices in Germany, UK and France were up by 0.31% to 0.77%.
Portugal's central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro ($6.6 billion) bailout. Banco Espirito Santo has been forced to take government money after regulators uncovered potential losses on loans to other companies tied to Portugal's Espirito Santo family and ordered the lender to raise capital. Bank of Portugal Governor Carlos Costa had sought to find private investors to inject the cash, and said government funds would only be used as a last resort.
Asian stocks rose today, 4 August 2014, as investors weighed a smaller-than-forecast increase in US payrolls and the bailout of a Portuguese bank. Key benchmark indices in Hong Kong, Indonesia, South Korea, China and Taiwan were up 0.28% to 1.74%. Key benchmark indices in Japan and Singapore fell by 0.31% to 0.78%.
The People's Bank of China warned that the country's credit and money supply have increased rapidly and indicated that it will refrain from broader monetary easing to support growth.
A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market. The non-manufacturing Purchasing Managers' Index fell to 54.2 from 55 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A reading above 50 indicates expansion.
Trading in US index futures indicated that the Dow could gain 51 points at the opening bell on Monday, 4 August 2014. US stocks declined on Friday, 1 August 2014, as concern over Argentina and Portugal overshadowed data that signaled the Federal Reserve may have leeway to keep rates low.
US added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997. The 209,000 advance fell short of forecasts. The jobless rate climbed to 6.2% from 6.1% in June as more people entered the labor force. Wages and hours were unchanged from June.
Manufacturing expanded in July at the fastest pace in more than three years, showing US factories will help power the economy after a second-quarter rebound. The Institute for Supply Management's index increased to 57.1, the highest since April 2011, from 55.3 a month earlier, the Tempe, Arizona-based group's report showed. Readings above 50 indicate growth.
Argentina's failure to pay interest on its bonds is a credit event that will trigger settlement of $1 billion of default insurance, according to the International Swaps & Derivatives Association. Argentina is the first nation to trigger default swaps since Greece restructured its debt in 2012.
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