Firmness continued on the bourses as key benchmark indices traded with strong gains in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was up 440.78 points or 1.75% at 25,586.37. The Nifty 50 index was currently up 133.40 points or 1.73% at 7,842.35. A confluence of positive factors viz. forecast of good rains during the June-September 2016 southwest season, further easing of consumer price inflation raising hopes of further rate cut from the Reserve Bank of India, rebound in industrial production and gains in global stocks aided the latest rally on the domestic bourses.
The Sensex jumped 447.92 points or 1.78% at the day's high of 25,593.51 in afternoon trade, its highest level since 6 January 2016. The barometer index gained 212.83 points or 0.84% at the day's low of 25,358.42 in early trade. The Nifty rose 134.05 points or 1.73% at the day's high of 7,843 in afternoon trade, its highest level since 4 January 2016. The index rose 63.25 points or 0.82% at the day's low of 7,772.20 in early trade.
In overseas stock markets, Asian and European stocks edged higher after the latest data showed stronger-than-expected growth in China's exports. China is the world's second biggest economy after the United States. In mainland China, the Shanghai Composite settled 1.42% higher. In Hong Kong, the Hang Seng index was currently up 2.87%. China's exports rose 11.5% in March year-over-year in dollar terms. Imports declined 7.6%, compared with February's 13.8% drop. Japanese stocks rose as the yen weakened against the dollar. The Nikkei 225 Average settled 2.84% higher. The yen has weakened after hitting 17-month high against the dollar early this week. Strength in the local currency hurts the competitiveness of Japanese exporters.
US stocks gained yesterday, 12 April 2016, led by energy companies after news reports said Saudi Arabia and Russia were working toward an agreement to cut oil production. The world's major crude oil producers led by Russia and Saudi Arabia have convened a meeting on Sunday, 17 April 2016, in Doha, Qatar to discuss measures to stabilise prices, including a proposal to freeze output. Iran has ruled out freezing output until its production recovers to pre-sanction levels.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,699 shares rose and 778 shares fell. A total of 128 shares were unchanged. The BSE Mid-Cap index was currently up 1.37%. The BSE Small-Cap index was currently up 1.4%. Both these indices underperformed the Sensex.
Metal and mining stocks edged higher after better than expected March trade data from China. Hindalco Industries (up 5.82%), Jindal Steel & Power (up 5.5%), Vedanta (up 4.53%), Hindustan Zinc (up 3.6%), Tata Steel (up 3.19%), Steel Authority of India (up 2.89%), Hindustan Copper (up 2.54%), National Aluminium Company (up 1.53%), JSW Steel (up 1.05%) and NMDC (up 1.19%) rose. China is the world's largest consumer of steel, copper and aluminum.
Also Read
Chinese exports expanded in March for the first time in nine months, the latest data showed. Exports rose 11.5% in March year-over-year in dollar terms. Imports declined 7.6%, compared with February's 13.8% drop.
Meanwhile, High Grade Copper for May 2016 delivery was currently up 0.33% at $2.154 per pound on the COMEX.
IT stocks edged higher as rupee weakened against the dollar. Oracle Financial Services Software (up 1.03%), Persistent Systems (up 0.54%), Tech Mahindra (up 1.11%), TCS (up 0.66%) and HCL Technologies (up 0.32%) rose. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the partially convertible rupee was hovering at 66.5125, compared with its close of 66.4275 during the previous trading session.
Index heavyweight and IT major Infosys was off 0.81% at Rs 1,172.70. The stock hit a high of Rs 1,195 and a low of Rs 1,172.50 so far during the day. Infosys is scheduled to announce its Q4 March 2016 result on Friday, 15 April 2016, when the stock market is closed for a holiday.
Wipro rose after the company after market hours yesterday, 12 April 2016, announced that the company's board of directors will consider a proposal for buyback of equity shares of the company at its meeting on 20 April 2016. The stock rose 2.29% at Rs 581.20. Wipro is scheduled to announce its Q4 March 2016 results after trading hours on 20 April 2016.
Shares of tractor manufacturer Mahindra & Mahindra (M&M) jumped 6.99% at Rs 1,327.45 after India Meteorological Department (IMD) in its initial forecast for the 2016 southwest monsoon season predicted good rains.
The India Meteorological Department (IMD) said in its initial monsoon forecast that the southwest monsoon is likely to be 106% of the Long Period Average (LPA) during the four-month period from June to September 2016, with an error margin of plus/minus 5%. According to the weather office, there is 34% probability of above normal rains, 30% probability each of excess and normal rains, 5% probability of below normal rains and 1% probability of deficient rains. The IMD's announcement hit the market after trading hours yesterday, 12 April 2016.
As the sea surface temperature conditions over the Pacific and Indian Oceans, particularly the ENSO conditions over the Pacific (El Nino or La Nina) are known to have strong influence on the Indian summer monsoon, IMD is carefully monitoring the sea surface conditions over the Pacific and the Indian oceans. The latest forecast from the Monsoon Mission Coupled Climate Model points to El Nino conditions weakening to moderate to weak levels during the first half of the monsoon season and ENSO neutral conditions likely to get established thereafter, the weather office said in a statement.
The IMD will issue an updated monsoon forecast in June 2016 as a part of the second stage forecast. Along with the updated forecast, the IMD will issue separate forecasts for rainfall in July and August and the distribution of rainfall over the four geographical regions of India.
On the macro front, the latest data showed that inflation based on consumer price index (CPI) dipped to six-month low of 4.83% in March 2016, with the index easing for second straight month. The CPI inflation for February 2016 was revised slightly upward to 5.26% from the provisional figure of 5.18% reported earlier. The core CPI inflation fell to 4.54% in March 2016 from 4.79% in February 2016.
Another data showed that industrial production rose 2% in February 2016 over February 2015, snapping consistent decline for last three straight months. The mining output posted healthy 5% growth, while electricity generation improved 9.6% contributing to the overall growth in industrial output in February 2016. The output of the manufacturing sector improved 0.7% in February 2016. Both the CPI and industrial production data were announced after market hours yesterday, 12 April 2016.
Powered by Capital Market - Live News