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Sensex gains for fourth day in a row

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Last Updated : Apr 08 2015 | 5:47 PM IST

Key benchmark indices settled higher after trading in the positive terrain throughout the session after opening higher. The barometer index, the S&P BSE Sensex, hit fresh highest level in almost three weeks in late trade. The barometer index, the S&P BSE Sensex was provisionally up 178.78 points or 0.63% at 28,695.37. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index rose 1.69%, outperforming the Sensex.

Index heavyweight Reliance Industries rose. Realty stocks gained after the Union Cabinet chaired by the Prime Minister, Narendra Modi, yesterday, 7 April 2015, gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013. Coal India (CIL) surged after reports the coal ministry allowed the company to revert to the old system, removing the cap on e-auction volumes with effect from April 2015. PSU OMCs gained.

The Sensex gained for the fourth day in a row today, 8 April 2015.

Meanwhile, ICICI Bank announced before market hours reduction in base rate by 0.25% to 9.75% per annum with effect from 10 April 2015. SBI, Axis Bank and HDFC Bank have also cut lending rates as per media reports.

Meanwhile, strong response to Rural Electrification Corporation (REC)'s offer for sale on stock exchanges today, 8 April 2015 also boosted sentiment. REC's OFS was subscribed 5.11 times. Bids were received for a total of 25.24 crore shares till 15:25 IST compared with an offer for sale of 4.93 crore shares by the government of India in REC, as per the live bidding data from NSE.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 143.98 crore yesterday, 7 April 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 326.06 crore yesterday, 7 April 2015, as per provisional data.

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In the foreign exchange market, the rupee edged lower against the dollar.

Brent crude oil futures edged lower as industry data showed a larger-than-expected weekly build in US stockpiles and as Saudi Arabia reported record output in March 2015.

In overseas markets, European markets edged higher. Asian markets were mixed. US stocks ended slightly lower yesterday, 7 April 2015, reversing course late in the session as strength in the dollar offset optimism about deal news.

As per provisional figures, the S&P BSE Sensex was up 178.78 points or 0.63% at 28,695.37. The index gained 231.73 points at the day's high of 28,748.32 in late trade, its highest level since 19 March 2015. The index rose 50.02 points at the day's low of 28,566.61 in mid-morning trade.

The CNX Nifty was up 54.10 points or 0.62% at 8,714.40, as per provisional figures. The index hit a high of 8,730.50 in intraday trade, its highest level since 19 March 2015. The index hit a low of 8,679.80 in intraday trade.

The BSE Mid-Cap index was up 86.79 points or 0.79% at 11,037.33. The BSE Small-Cap index was up 192.77 points or 1.69% at 11,623.85. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 3612 crore, higher than turnover of Rs 3303.88 crore registered during the previous trading session.

The market breadth indicating the overall health of the market was strong. On BSE, 1,801 shares gained and 996 shares fell. A total of 119 shares were unchanged.

Index heavyweight Reliance Industries rose 3.51%.

Coal India (CIL) surged 6% after reports the coal ministry allowed the company to revert to the old system, removing the cap on e-auction volumes with effect from April 2015. This means Coal India will now be able to increase its e-auction volumes to 10% of total sales, which was the standard practice, report added.

Realty stocks gained after the Union Cabinet chaired by the Prime Minister, Narendra Modi, yesterday, 7 April 2015, gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. Sobha (up 3.5%), Indiabulls Real Estate (up 1.92%), Unitech (up 2.63%), Housing Development & Infrastructure (HDIL) (up 3.31%), Oberoi Realty (up 2.33%), Phoenix Mills (up 0.52%), and Anant Raj (up 4.55%) edged higher. DLF fell 0.58%.

The Bill provides for a uniform regulatory environment, to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. The Bill contains provisions of registration of real estate projects and registration of real estate agents with the Real Estate Regulatory Authority; functions and duties of promoters and allottees; establishment of Real Estate Regulatory Authority; establishment of fast track dispute resolution mechanism through adjudication; establishment of a Real Estate Appellate Tribunal; offences and penalties etc.

These measures are expected to boost domestic and foreign investment in the sector and help achieve the objective of the Government of India to provide 'Housing for All by 2022', through enhanced private participation.

Meanwhile, ICICI Bank announced before market hours reduction in base rate by 0.25% to 9.75% per annum with effect from 10 April 2015.

SBI, Axis Bank and HDFC Bank have also cut lending rates as per media reports. Fall in lending rates could spur demand for properties, which is mainly driven by finance.

PSU OMCs gained. BPCL (up 2.86%), HPCL (up 5%) and Indian Oil Corporation (up 1.54%) gained.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.2625, compared with its close of 62.2525 during the previous trading session.

Brent crude oil futures edged lower as industry data showed a larger-than-expected weekly build in US stockpiles and as Saudi Arabia reported record output in March 2015. Brent for May settlement was down 75 cents at $58.35 a barrel. Brent for May settlement was up 98 cents or 1.68% at $59.10 a barrel yesterday, 7 April 2015.

Data from the American Petroleum Institute (API) showed US crude stocks surged 12.2 million barrels last week against expectations for a increase of 3.4 million barrels.

Adding to that supply, Saudi oil minister Ali al-Naimi reportedly said late yesterday, 7 April 2015, that Saudi output would likely remain around 10 million barrels per day (bpd) after posting a record high of 10.3 million bpd in March.

In overseas markets, European markets edged higher today, 8 April 2015. Key indices in France and UK were up 0.13% to 0.45%. In Germany, the DAX was off 0.32%.

Retail sales in the eurozone fell in February after four successive monthly increases, an indication that the boost to the spending power of households from lower oil prices may be waning. The European Union's statistics agency Wednesday today, 8 April 2015, said retail sales fell 0.2% from January, but were nevertheless 3.0% higher than in the same month of 2014 after strong rises since September.

German manufacturing orders fell in February, as a lack of foreign and bulk orders hurt the index, figures from the country's economy ministry showed today, 8 April 2015. In adjusted terms, industrial orders were down 0.9% in February from the previous month. The ministry, however, significantly raised the data for January, now saying that orders decreased by only 2.6%, compared with a 3.9% dip originally reported.

France's trade deficit narrowed in February from January as exports of aeronautical and satellite equipment rose and energy and oil imports declined, the customs office said today, 8 April 2015. The eurozone's second largest economy recorded a EUR3.4 billion ($3.7 billion) trade deficit in February after EUR3.7 billion in January.

Asian markets were mixed today, 8 April 2015. Key indices in Indonesia, Singapore, and Taiwan fell by 0.14% to 0.73%. Key indices in China, Hong Kong, Japan, and South Korea rose by 0.6% to 3.8%.

The Bank of Japan kept monetary policy steady today, 8 April 2015, suggesting that policymakers remain unfazed by slowing inflation and recent signs of weakness in the economy. As widely expected, the BOJ left unchanged its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 80 trillion yen ($666 billion) through purchases of government bonds and risky assets.

Japan posted its biggest current account surplus in almost three and a half years in February, the finance ministry said today, 8 April 2015, helped by the higher value in yen terms of income from overseas investments and a smaller trade deficit. The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, stood at Y1.44 trillion in February before seasonal adjustment, the data showed, the highest since September 2011.

Trading in US index futures indicates that the Dow Jones industrial average could gain 43 points at the opening bell today, 8 April 2015. US stocks ended slightly lower yesterday, 7 April 2015, reversing course late in the session as strength in the dollar offset optimism about deal news.

The Federal Reserve should be extraordinarily patient and hold off on raising interest rates until the second half of 2016, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota reportedly said yesterday, 7 April 2015. Kocherlakota reportedly said that it would be 'appropriate' for the Fed to "defer the initial interest-rate increase until the second half of 2016," and then raise the benchmark federal funds rate to roughly 2% by the end of 2017.

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First Published: Apr 08 2015 | 3:37 PM IST

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