Key indices jumped in early trade after the Reserve Bank of India in a surprise unscheduled monetary policy review today, 4 March 2015, reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) from 7.75% to 7.5% with immediate effect. The barometer index, the S&P BSE Sensex crossed the 30,000 level for the first time in its history. Nifty moved past psychological 9,000 level. It had settled below that level yesterday, 3 March 2015. The Sensex, and, the 50-unit CNX Nifty, both, hit their record highs. The Sensex was currently up 299.01 points or 1.01% at 29,892.74. The market breadth indicating the overall health of the market was strong with more than two gainers for every loser on BSE.
The Reserve Bank of India (RBI) in an unscheduled monetary policy review today, 4 March 2015, reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) from 7.75% to 7.5% with immediate effect. RBI decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL). The central bank further decided to continue with daily variable rate repos and reverse repos to smooth liquidity. Consequently, the reverse repo rate under the LAF stands adjusted to 6.5%, and the marginal standing facility (MSF) rate and the Bank Rate to 8.5% with immediate effect.
Asian stock markets were mixed today, 4 March 2015.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 772.92 crore yesterday, 3 March 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 303.88 crore yesterday, 3 March 2015, as per provisional data.
At 9:20 IST, the S&P BSE Sensex was up 299.01 points or 1.01% at 29,892.74. The index gained 431.01 points at the day's high of 30,024.74 in early trade, a record high. The index gained 297.64 points at the day's low of 29,891.37 in early trade.
The CNX Nifty was up 88.70 points or 0.99% at 9,084.95. The index hit a high of 9,119.20 in intraday trade, a record high. The index hit a low of 9,081.40 in intraday trade.
The BSE Mid-Cap index was up 59.29 points or 0.54% at 11,141.12. The BSE Small-Cap index was up 68.17 points or 0.59% at 11,597.06. Both these indices underperformed the Sensex.
Also Read
The market breadth indicating the overall health of the market was strong with more than two gainers for every loser on BSE. On BSE, 957 shares gained and 385 shares fell. A total of 42 shares were unchanged.
Bharti Airtel rose 0.83% at Rs 351.85. With respect to media reports titled Airtel, Ericsson extend services deal, Bharti Airtel after market hours yesterday, 3 March 2015, clarified that it is a routine ordinary course of business transaction wherein the company has renewed its existing agreement with Ericsson. The transaction does not have any material or significant impact on the operations of the company, Bharti Airtel said.
Reliance Industries (RIL) rose 0.48% at Rs 905.95. RIL after market hours yesterday, 3 March 2015 in a clarfication with regard to news item titled "Reliance, BP report eight oil finds in Cambay block" said that RIL has been awarded the block CB-ONN-2003/1 with the Operatorship under NELP-V with 100% Participating Interest (PI). The Production Sharing Contract (PSC) is effective from 5 June 2006. RIL has assigned 30% PI to BP Exploration (Alpha) (BPEAL) during August 2011 and has 70% PI with Operatorship in the block. RIL has made 8 oil discoveries in the block in the period 9 November 2009 to 3 August 2010 during Phase-I exploration period and the same was notified to the DGH / MOPNG. These oil discoveries were named as D-43, D-45, D-46, D-47, D-48, D-49, D-50 and D-51 and were disclosed in RIL's media release at that time. The significant milestone of such discoveries is the approval of development plan which is yet to take place, RIL said.
Grasim Industries fell 0.55% at Rs 3,978.80. Grasim Industries after market hours yesterday, 3 March 2015 said that it has completed the last phase of its Greenfield Viscose Staple Fibre (VSF) plant at Vilayat (Gujarat) for production of specialty fibre, by commissioning the 4th line. The company's VSF capacity at Vilayat thus stands enhanced at 120K TPA, while its overall VSF capacity stands enhanced at 498K TPA, Grasim Industries said.
The Reserve Bank of India (RBI) in an unscheduled monetary policy review today, 4 March 2015, reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) from 7.75% to 7.5% with immediate effect. RBI decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL). The central bank further decided to continue with daily variable rate repos and reverse repos to smooth liquidity. Consequently, the reverse repo rate under the LAF stands adjusted to 6.5%, and the marginal standing facility (MSF) rate and the Bank Rate to 8.5% with immediate effect.
RBI said that the need to act outside the policy review cycle is prompted by two factors viz. first, while the next bi-monthly policy statement will be issued on 7 April 2015 the still weak state of certain sectors of the economy as well as the global trend towards easing suggests that any policy action should be anticipatory once sufficient data support the policy stance, the central bank said. Second, with the release of the agreement on the monetary policy framework, it is appropriate for the Reserve Bank to offer guidance on how it will implement the mandate, RBI said.
Going forward, the RBI will seek to bring the inflation rate to the mid-point of the band of 4 plus or minus 2% provided for in the agreement, i.e., to 4% by the end of a two year period starting fiscal year 2016-17, RBI said.
RBI said that the guidance on policy action given in the fifth-bi-monthly monetary policy statement of December 2014 is largely unchanged. Further monetary actions will be conditioned by incoming data, especially on the easing of supply constraints, improved availability of key inputs such as power, land, minerals and infrastructure, continuing progress on high-quality fiscal consolidation, the pass through of past rate cuts into lending rates, the monsoon outturn and developments in the international environment, RBI said.
Asian stock markets were mixed today, 4 March 2015. Key indices in China, Japan, Hong Kong, South Korea, and Indonesia were off 0.02% to 0.69%. Key indices in Taiwan, and Singapore were up 0.1% to 0.18%.
China's services sector strengthened by a fraction in February, according to HSBC. The monthly purchasing managers' index for the services sector was 52, a slight increase from the six-month low of 51.8 in January, latest data showed today, 4 March 2015. Any level above 50 reflects growth in the survey by HSBC and compiled by Markit.
Japan's services sector shrank last month, halting a three-month trend of meagre growth. Markit's monthly index of the services sector fell from 51.3 in January to 48.5, the lowest reading since April, latest data showed today, 4 March 2015. A score above 50 is needed to indicate growth.
Australia's gross domestic product (GDP) grew at an annual pace of 2.5%, matching estimates, data showed today, 4 March 2015. This is the slowest year-to-year pace in four quarters. Quarterly GDP grew just 0.5%, missing the consensus estimate at 0.6%, though rising from an upwardly revised 0.4% pace in the prior quarter.
US stock markets pulled back from recent highs to close lower yesterday, 3 March 2015, in light volume trade as investors weighed soft auto sales and looked ahead to domestic data.
Federal Reserve Chair Janet Yellen, countering criticism from members of Congress, yesterday, 3 March 2015, said the central bank is trying to avoid being too cozy with the Wall Street firms it supervises and wants to ensure that regulators aren't afraid to confront the financial industry. Yellen, in her speech to the Citizens Budget Commission, also took aim at ethical lapses at large banks supervised by the Fed.
In Europe, a monthly monetary policy review from the European Central Bank is scheduled tomorrow, 5 March 2015.
Powered by Capital Market - Live News