IT and PSU OMCs led gains as key benchmark indices advanced for the fourth straight session today, 8 April 2015. The barometer index, the S&P BSE Sensex, and, the 50-unit CNX Nifty, both settled at their highest level in more than three weeks. The Sensex rose 191.16 points or 0.67% to settle at 28,707.75. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index rose 1.79%, outperforming the Sensex.
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. Index heavyweight Reliance Industries advanced. Another index heavyweight and cigarette major ITC also edged higher. Housing Finance major HDFC edged lower.
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 BSE.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 234.09 crore from secondary equity market yesterday, 7 April 2015, as per data from Central Depository Services (India). 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 was unchanged 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 lower. 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.
The S&P BSE Sensex rose 191.16 points or 0.67% to settle at 28,707.75, its highest closing level since 17 March 2015. The index gained 246.47 points at the day's high of 28,763.06 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 advanced 54.10 points or 0.62% to settle at 8,714.40, its highest closing level since 17 March 2015. 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 rose 71.63 points or 0.65% to settle at 11,022.17, underperforming the Sensex. The BSE Small-Cap index jumped 204.30 points or 1.79% to settle at 11,635.38, outperforming 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, 1,803 shares gained and 992 shares fell. A total of 121 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.15%), BSE FMCG index (up 1.46%), BSE IT index (up 1.98%), BSE Metal index (up 1.62%), BSE Oil & Gas index (up 1.55%), BSE Realty index (up 1.13%), and BSE Teck index (up 1.74%) outperformed the Sensex. The S&P BSE Bankex index (down 0.31%), BSE Auto index (up 0.55%), BSE Capital Goods index (up 0.54%), BSE Healthcare index (up 0.41%), and BSE Power index (up 0.39%) underperformed the Sensex.
Index heavyweight Reliance Industries rose 3.93% at Rs 865.50.
Another index heavyweight and cigarette major ITC advanced 1.55% at Rs 346.25.
Housing finance major HDFC fell 2.22% at Rs 1,299.15.
IT stocks advanced. MindTree (up 3.19%), CMC (up 3.05%), Tech Mahindra (up 3.02%), HCL Technologies (up 2.5%), TCS (up 2.25%), Infosys (up 1.83%), and Wipro (up 0.31%) edged higher. Oracle Financial Services Software (down 0.57%) and MphasiS (down 0.82%) edged lower.
Rural Electrification Corporation (REC) rose 2.61% at Rs 330.05. The offer for sale (OFS) of shares of REC received overwhelming response with an oversubscription of 5.11 times. Bids were received for a total of 25.24 crore shares of REC till 15:25 IST compared to offer for sale of 4.93 crore shares by the government of India, as per data from BSE. The company after market hours yesterday, 7 April 2015, fixed the floor price for offer for sale (OFS) of shares by its promoter viz. the Government of India (GoI) at Rs 315 per share. The floor price for the OFS is at a discount of 2.06% to the stock's closing price of Rs 321.65 yesterday, 7 April 2015. GoI after market hours on 6 April 2015, issued a notice for offer for sale (OFS) of upto 4.93 crore equity shares of the face value of Rs 10 each, representing 5% of the total paid up equity share capital of REC through a sale on the separate window provided by the stock exchanges. Retail investors will be allocated offer shares at a discount of 5% to the bid price. The OFS started at 9:30 IST today, 8 April 2015 and closes at 15:30 IST. The GoI currently holds 65.64% stake in REC (as per the shareholding pattern as on 31 December 2014).
Bank stocks were mixed. Among public sector banks, UCO Bank (up 2.84%), Indian Overseas Bank (up 0.82%), Syndicate Bank (up 0.44%), Punjab National Bank (up 1.56%), Corporation Bank (up 4.14%), and Allahabad Bank (up 0.45%) edged higher. Bank of Baroda (down 0.62%) and United Bank of India (down 0.51%) edged lower.
State Bank of India (SBI) rose 0.63% at Rs 273.60. SBI has reportedly lowered its base rate by 15 basis points (bps) to 9.85% from 10%.
Among private sector banks, Karnataka Bank (down 0.32%), South Indian Bank (down 0.19%), ING Vysya Bank (down 0.9%), Kotak Mahindra Bank (down 0.87%), Federal Bank (down 0.27%), Yes Bank (down 2.46%), and IndusInd Bank (down 0.67%) edged lower.
HDFC Bank rose 0.19% at Rs 1,035.70. HDFC Bank reportedly lowered its base rate by 15 bps to 9.85%
ICICI Bank fell 0.65% at Rs 315.40. ICICI Bank announced before market hours reduction in base rate by 0.25% to 9.75% per annum with effect from 10 April 2015.
Axis Bank fell 0.48% at Rs 556.20. Axis Bank reportedly cut its base rate by 20 bps to 9.95%
Coal India (CIL) surged 5.73% at Rs 380 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 3.39%), Indiabulls Real Estate (up 1.99%), Unitech (up 2.92%), Housing Development & Infrastructure (HDIL) (up 3.93%), Oberoi Realty (up 1.74%), Phoenix Mills (up 0.52%), and Anant Raj (up 4.67%) edged higher. DLF (down 0.15%) and Godrej Properties (down 0.87%) edged lower.
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.
Shares of public sector oil marketing companies (PSU OMCs) advanced. BPCL (up 2.9%), HPCL (up 4.52%), and Indian Oil Corporation (up 1.25%) edged higher.
The Sensex edged higher for the fourth straight trading session today, 8 April 2015. The Sensex has risen 750.26 points or 2.68% in four trading sessions from a recent low of 27,957.49 on 31 March 2015. The Sensex has risen 750.26 points or 2.68% in this month so far (till 8 April 2015). The Sensex has risen 1,208.33 points or 4.39% in this calendar year so far (till 8 April 2015). From a 52-week low of 22,247.39 on 16 April 2014, the Sensex has risen 6,460.36 points or 29.03%. The Sensex is off 1,316.99 points or 4.38% from a record high of 30,024.74 hit on 4 March 2015.
In the foreign exchange market, the rupee was unchanged against the dollar. The partially convertible rupee was hovering at 62.2525, matching with its closing 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 77 cents at $58.33 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 lower today, 8 April 2015. Key indices in Germany and France were off 0.14% to 0.44%. In UK, the FTSE 100 was up 0.54%.
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 0.16% 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 10.50 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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