A range bound movement was witnessed as the barometer index, the S&P BSE Sensex, alternately swung between positive and negative zone near the flat line in mid-afternoon trade. The 50-unit Nifty 50 index continued to trade in positive zone. At 14:19 IST, the Sensex, was up 15.12 points or 0.06% at 26,160.79. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was up 17.95 points or 0.23% to 7,953.20. The market breadth indicating the overall health of the market was positive. On BSE, 1,529 shares rose and 1,143 shares fell. A total of 136 shares were unchanged. The BSE Mid-Cap index was up 0.56%. The BSE Small-Cap index was up 0.32%. Both these indices outperformed the Sensex.
The Reserve Bank of India (RBI) kept its benchmark interest rate viz. the repo rate unchanged at 6.75% after a monetary policy review today, 1 December 2015. The central bank also kept the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL). The decision was announced at 11:00 IST. Retaining the easing stance of monetary policy, the RBI said that it will use the space for further accommodation when available. The RBI said that switching to the marginal cost of funds methodology for determining the base rate and linking small savings interest rates to market interest rates will allow increased transmission of policy rates into lending rates.
In overseas stock markets, European stocks edged higher amid speculation that the European Central Bank will announce a round of fresh measures to boost the eurozone economy at its regular monetary policy review scheduled later this week. Shares in Hong Kong led a rally in Asian markets on expectations for more stimulus for the Chinese economy after the latest data showed China's manufacturing sector remains plagued by overcapacity, falling prices and weak demand.
Oil sector stocks rose. Among oil exploration and production companies, ONGC (up 1%), Oil India (up 2.07%), Reliance Industries (RIL) (up 0.03%) and Cairn India (up 0.82%) gained.
Among public sector oil marketing companies (PSU OMCs), BPCL (up 2.31%), HPCL (up 0.29%) and Indian Oil Corporation (IOCL) (up 2.78%) gained. PSU OMCs reduced petrol price by Rs 0.58 per litre and diesel by Rs 0.25 per litre in Delhi with corresponding price revision in other states. The new prices are effective from 1 December 2015.
In the global commodities markets, Brent for January settlement was currently up 31 cents at $44.92 a barrel. The contract had fallen 25 cents or 0.55% to settle at $44.61 a barrel during the previous trading session.
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Auto stocks declined after the RBI kept the repo rate unchanged after a monetary policy review. Hero MotoCorp (down 0.8%), Tata Motors (down 1.26%), Bajaj Auto (down 0.39%) and TVS Motor Company (down 1.27%) declined. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Maruti Suzuki India fell 0.32% to Rs 4,565. The stock was volatile. The stock hit high of Rs 4,620.and low of Rs 4,532 so far during the day. The company's total sales rose 9.7% to 1.2 lakh vehicles in November 2015 over November 2014. Domestic sales rose 10.6% to 1.1 lakh vehicles in November 2015 over November 2014. Exports rose 1% to 10,225 vehicles in November 2015 over November 2014.
Mahindra & Mahindra (M&M) rose 0.07%. The company said during market hours that total auto sales rose 21% to 41,590 units in November 2015 over November 2014. Domestic sales rose 23% to 39,383 units in November 2015 over November 2014. Exports rose 1% to 2,207 units in November 2015 over November 2014.
IVRCL gained 2.04% after the company said that at the company's joint lenders forum (JLF) meeting held on 26 November 2015, the lenders have invoked strategic debt restructuring in the company and adopted the reference date for the purpose as 26 November 2015. It was also decided that a senior lenders meeting will be held to decide the way forward in the same, IVRCL said. The announcement was made during market hours today, 1 December 2015.
On macro front, India's gross domestic product (GDP) rose 7.4% in Q2 September 2015 over Q2 September 2014, with growth mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in Q2. The GDP growth has shown a pick up from 7% growth recorded in Q1 June 2015. Meanwhile, the GDP growth remained below 8.4% rise recorded in the corresponding quarter of the last year. The Q2 GDP data was announced after market hours yesterday, 30 November 2015. The finance ministry is expecting the economy to grow in the vicinity of 7.5% in the year ending 31 March 2016 (FY 2016).
Meanwhile, the outcome of a monthly survey showed tepid growth in India's manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a 25-month low of 50.3 in November 2015.
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