Banking, telecom and pharma stocks led gains as key benchmark indices surged on the last trading session of the truncated trading week and the first trading session of the new financial year. Indian companies and domestic investors follow the period from 1 April to 31 March as their financial year. A rally in European stocks and lower Brent crude oil prices underpinned sentiment on the domestic bourses. Fall in crude oil prices augur well for India as the country imports 80% of its crude oil requirements. The barometer index, the S&P BSE Sensex, and, the 50-unit CNX Nifty, both, hit their highest level in more than a week as both these key benchmark indices extended intraday gains in late trade. The Sensex moved past the psychological 28,000 level. The Sensex was provisionally up 312.40 points or 1.12% to 28,269.89. The BSE Mid-Cap index was up 1.49%. The BSE Small-Cap index was up 2.39%. Both these indices outperformed the Sensex. In overseas markets, European stocks surged after a solid round of eurozone manufacturing data for March 2015.
Today's rally on the domestic bourses was broad based, with more than two gainers against every loser on BSE. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 3% to 20% for quite a few stocks. Among the gainers from the constituents of the BSE Mid-Cap index, gains ranged from about 2% to about 11.5% for quite a few stocks.
Index heavyweight and cigarette maker ITC edged higher.
On the macro front, the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) recorded 1.4% growth in February 2015 over February 2014, data released by the government after trading hours yesterday, 31 March 2015 showed.
Meanwhile, the Reserve Bank of India has relaxed position limits for foreign portfolio investors (FPIs), domestic participants and importers of goods and services in the exchange traded currency derivatives (ETCD) market.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.07 crore yesterday, 31 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 283.71 crore yesterday, 31 March 2015, as per provisional data.
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Brent crude oil futures edged lower as markets kept a close watch on US-Iran nuclear talks and the build-up in US oil supplies. For India, the decline in global crude oil prices along with deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Meanwhile, Indian Oil Corporation (IOC) today, 1 April 2015, announced a reduction in retail selling price of diesel by Rs 1.21 per litre at Delhi (including state levies) with corresponding decline in price in other states. IOC announced reduction in petrol price by 49 paise per litre.
In overseas markets, European stocks edged higher after a solid round of eurozone manufacturing data for March 2015. Asian stocks were mixed. US stocks registered sizable losses yesterday, 31 March 2015, amid fears that first-quarter earnings will disappoint.
India's stock market remains closed tomorrow, 2 April 2015, on account of Mahavir Jayanti. The stock market remains closed again on Friday, 3 April 2015, on account of Good Friday.
As per provisional closing, the S&P BSE Sensex was up 312.40 points or 1.12% to 28,269.89. The index jumped 340.85 points at the day's high of 28,298.34 at the fag end of the trading session, its highest level since 24 March 2015. The index fell 68.47 points at the day's low of 27,889.02 in early trade.
The CNX Nifty was up 95.25 points or 1.12% at 8,586.25, as per provisional closing. The index hit a high of 8,603.40 in intraday trade, its highest level since 24 March 2015. The index hit a low of 8,464.75 in intraday trade.
The BSE Mid-Cap index was up 158.20 points or 1.49% at 10,750.42. The BSE Small-Cap index was up 259.90 points or 2.39% at 11,150.35. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong, with more than two gainers against every loser on BSE. 2,000 shares gained and 699 shares fell. A total of 101 shares were unchanged.
The total turnover on BSE amounted to Rs 2689 crore, lower than turnover of Rs 2980.16 crore registered during the previous trading session.
Index heavyweight and cigarette maker ITC advanced. The stock was up 1.97% at Rs 331.85.
Bank stocks edged higher on renewed buying. Among PSU banks, Bank of India (up 5.34%), Corporation Bank (up 3.35%), Canara Bank (up 3.47%), Bank of Baroda (up 3.28%), UCO Bank (up 3.13%), Union Bank of India (up 3.7%), Oriental Bank of Commerce (up 2.98%), IDBI Bank (up 2.25%), State Bank of India (up 2.73%), Andhra Bank (up 2.02%), and Dena Bank (up 1.18%) edged higher.
Punjab National Bank (PNB) advanced after the state-run bank announced infusion of capital into the bank by its majority shareholder viz. the Government of India. The stock was up 5.26% at Rs 152. The announcement was made during market hours today, 1 April 2015. PNB today, 1 April 2015, said that capital funds to the tune of Rs 870 crore have been received from the Government of India yesterday, 31 March 2015, following issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share on preferential basis to the Government of India.
Syndicate Bank advanced after the bank said that upon receipt of funds from Government of India, the bank yesterday, 31 March 2015, allotted 3.74 crore equity shares of face value of Rs 10 each for cash at a premium of Rs 112.75 per share on preferential basis to Government of India. The stock was up 1.92% at Rs 103.40. The announcement was made during market hours today, 1 April 2015. The bank has raised Rs 460 crore from issue of shares to to Government of India on preferential basis.
Among private sector banks, IndusInd Bank (up 4.87%), Karnataka Bank (up 2.69%), Yes Bank (up 4.16%), South Indian Bank (up 1.78%), ICICI Bank (up 2.55%), HDFC Bank (up 1.08%), and Federal Bank (up 1.14%) edged higher.
Shares of Kotak Mahindra Bank were up 3.95% at Rs 1,365.10. Shares of ING Vysya Bank were up 4.73% at Rs 978.35. Kotak Mahindra Bank before market hours today, 1 April 2015 said that the Reserve Bank of India (RBI) approved the scheme of amalgamation of ING Vysya Bank with Kotak Mahindra Bank. The Scheme of Amalgamation shall come into effect from 1 April 2015.
It may be recalled that Kotak Mahindra Bank and ING Vysya Bank had on 20 November 2014 announced an all-stock amalgamation of ING Vysya Bank with Kotak Mahindra Bank. As part of the scheme, 725 equity share of Rs 5 each of Kotak Mahindra Bank will be allotted for every 1,000 equity shares of Rs 10 each held in ING Vysya Bank.
Telecom stocks edged higher on renewed buying. Bharti Airtel (up 2.03%), Reliance Communications (up 2.36%), Idea Cellular (up 2.99%), Tata Teleservices (Maharashtra) (up 2.78%) and Mahanagar Telephone Nigam (up 2.75%) edged higher.
Brent crude oil futures edged lower as markets kept a close watch on US-Iran nuclear talks and the build-up in US oil supplies. Brent for May settlement was off 2 cents at $55.09 a barrel. The contract had declined $1.18 a barrel or 2.09% to settle at $55.11 a barrel during previous trading session.
The ongoing nuclear talks between Iran and six world powers missed its deadline on Tuesday, but officials have agreed to continue talks in Switzerland for an extra day, according to media reports. A successful nuclear deal could pave the way for the lifting of sanctions against Iran, and release a large amount of stockpiled oil into an oversupplied global market, pressuring oil prices.
On the macro front, the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) recorded 1.4% growth in February 2015 over February 2014, data released by the government after trading hours yesterday, 31 March 2015 showed. Its cumulative growth during April to February, 2014-15 was 3.8%.
The Reserve Bank of India has relaxed position limits for foreign portfolio investors (FPIs), domestic participants and importers of goods and services in the exchange traded currency derivatives (ETCD) market. The RBI said yesterday, 31 March 2015, that the limit for domestic entities and FPIs to take foreign currency positions in the dollar-rupee pair on ETCD market without having to establish the existence of any underlying exposure has been increased to $15 million per exchange. In addition, there will be an aggregate limit of $ 5 million equivalent per exchange for EUR-INR, GBP-INR and JPY-INR pairs. The limit for domestic importers of goods and services to take hedging positions in ETCD markets has been increased from 50 per cent to 100 per cent of the higher of the average of their last three years' imports turnover and the previous year's turnover. The RBI also said that documentation and other administrative requirements for hedging on the ETCD markets have also been rationalised.
In overseas markets, European stocks edged higher today, 1 April 2015, after a solid round of eurozone manufacturing data for March 2015. Key benchmark indices in UK, Germany, and France were up 1.09% to 1.44%.
Growth of eurozone manufacturing production accelerated to a ten-month high in March, underpinned by the fastest expansion of incoming new business since April of last year, latest data from Markit Economics showed today, 1 April 2015. At 52.2 in March, up from 51 in February, the final seasonally adjusted Eurozone Manufacturing PMI was above its earlier flash estimate of 51.9. The PMI currently stands at its highest level for ten months and has remained in expansion territory since July 2013.
Asian stocks were mixed today, 1 April 2015. Key indices in Japan, Taiwan, South Korea and Indonesia were off 0.62% to 0.94%. Key indices in China and Hong Kong were up 0.73% to 1.66%. In Singapore, Straits Times index ended almost unchanged for the day.
China's official Purchasing Managers Index rose to 50.1 in March from 49.9 in February, although the HSBC China manufacturing PMI fell to a final reading of 49.6 in March from 50.7 in February.
In Japan, the Bank of Japan's tankan corporate sentiment survey showed the main index measuring sentiment among big manufacturers was unchanged at plus 12 from the December poll.
Trading in US index futures indicated that the Dow could gain 10.50 points at the opening bell today, 1 April 2015. US stocks registered sizable losses yesterday, 31 March 2015, amid fears that first-quarter earnings will disappoint.
Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond and a voting member of the Federal Open Market Committee yesterday, 31 March 2015, said he expects solid growth and rising inflation this year, and as a result, would urge the US central bank to start raising interest rates relatively soon.
The influential monthly US nonfarm payroll data is due on Friday, 3 April 2015, when the US stock market is closed on account of Good Friday. The US government will announce the payroll report for March 2015 on 3 April 2015.
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