Key benchmark indices jumped in early trade tracking firmness in Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 222.32 points or 0.8% at 27,936.69. The Nifty 50 index was currently up 70.50 points or 0.82% at 8,621.60. Metal and banking stocks led gains on the bourses.
In overseas stock markets, Asian stocks rose driven by the Bank of England's aggressive stimulus measures, but with traders keeping a wary eye on US jobs data due later in the global trading day. The Bank of England yesterday, 4 August 2016 cut its benchmark interest rate by 25 basis points to 0.25% from 0.5%, the lowest in its 322-year history. It expects to cut the rate further in the months ahead. The central bank also revived a UK government bond-buying program, also known as quantitative easing, that has been on pause since 2012, and said it would begin buying corporate bonds. US stocks ended little changed yesterday, 4 August 2016 as investors kept to the sidelines ahead of US payrolls report for July. The monthly hiring data due later in the global day will help investors gauge the health of the economy and possibly offer insight as to when the Federal Reserve will raise interest rates again.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,175 shares rose and 292 shares fell. A total of 44 shares were unchanged. The BSE Mid-Cap index was currently up 67%. The BSE Small-Cap index was currently up 0.77%. Both these indices underperformed the Sensex.
ICICI Bank (up 2.26%), Axis Bank (up 1.56%) and Tata Steel (up 1.42%) were the major gainers from the Sensex pack.
UltraTech Cement gained 1.37% after the company said that it is planning to issue secured redeemable non-convertible debentures (NCDs) worth Rs 425 crore on private placement basis. The announcement was made after market hours yesterday, 4 August 2016.
Nestle India rose 0.71%. The stock turned ex-dividend today, 5 August 2016, for interim dividend of Rs 12 per share for the year ending 31 December 2016.
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The India Meteorological Department in its weekly update on rainfall said yesterday, 4 August 2016 that during the week from 28 July to 3 August 2016, rainfall was above long period average (LPA) by 6% over the country as a whole. For the country as a whole, cumulative rainfall during this year's monsoon for July 2016 was 7% above LPA. For the country as a whole, cumulative rainfall during this year's monsoon has so far upto 3 August been 1% above LPA.
Revenue Secretary, Ministry of Finance in its presentation on next steps required for the implementation of Goods and Service Tax (GST) constitutional amendment bill after the Rajya Sabha passed the GST bill said yesterday, 4 August 2016 that the target date of GST roll out is 1 April 2017. The passage of the Constitution Amendment Bill by the Parliament shall happen by the first week of August 2016. The bill requires ratification by 50% states after its passage by the Parliament, followed by the Presidential assent of Constitution Amendment and notification in the official Gazette. Cabinet will approve formation of GST Council which will make recommendation of model GST laws. Cabinet will approve the CGST and IGST laws by Centre and SGST laws by all states which have to be passed by the Centre and by all states respectively, which should happen by winter session this year. GST rules will be notified later.
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