Key benchmark indices rallied to hit fresh intraday high in late trade. The barometer index, the S&P BSE and the 50-unit CNX Nifty, both, scaled fresh record high. The Sensex was provisionally up 298.55 points or 1.1% at 27,325.25. The market breadth indicating the overall health of the market was strong with over two gainers for every loser. The BSE Mid-Cap index rose 1.29%. The BSE Small-Cap index gained 2.11%. Both these indices outperformed the Sensex. State-run upstream oil & gas firms and PSU OMCs gained as crude oil prices slumped on Friday, 5 September 2014. Indian stocks rallied today, 8 September 2014, as the recent steep slide in crude oil prices boosted sentiment. The market sentiment was also boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session.
Earlier, key indices extended gains to scale record high after opening on a firm note.
As per provisional closing, the S&P BSE Sensex was up 298.55 points or 1.1% at 27,325.25. The index gained 328.29 points at the day's high of 27,354.99 in late trade, a record high for the barometer index. The index rose 117.86 points at the day's low of 27,144.56 in early trade.
The CNX Nifty was up 81.05 points or 1% at 8,167.90. The index hit a high of 8,180.20 in intraday trade, a record high for the index. The index hit a low of 8,126.15 in intraday trade.
The market breadth indicating the overall health of the market was strong with over two gainers for every loser. On BSE, 1,999 shares gained and 903 shares fell. A total of 90 shares were unchanged.
The BSE Mid-Cap index rose 124.91 points or 1.29% to 9,793.67. The BSE Small-Cap index rose 224.76 points or 2.11% to 10,851.83. Both these indices outperformed the Sensex.
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Among the 30-share Sensex pack, 26 stocks gained and rest of them declined.
Hindalco Industries (up 3.43%), State Bank of India (up 2.17%) and Hindustan Unilever (up 2.04%) edged higher from the Sensex pack.
State-run upstream oil & gas companies gained as crude oil prices slumped on Friday, 5 September 2014.
ONGC (up 2.82%), GAIL (India) (up 0.32%) and Oil India (up 2.44%) gained.
State run upstream companies share a part of the under recoveries of PSU OMCs by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Shares of PSU OMCs also gained as crude oil prices slumped on Friday, 5 September 2014.
HPCL (up 5.26%), Indian Oil Corporation (up 3.55%) and BPCL (up 1.97%) edged higher.
Crude oil futures dropped on Friday, 5 September 2014, after downbeat US jobs data fuelled demand concerns and a ceasefire in Ukraine cooled geopolitical tensions. Brent October contract finished $1.01, or 1%, lower at $100.82 a barrel on Friday. US crude October contract finished $1.16, or 1.2%, lower at $93.29 a barrel on Friday.
Lower crude oil prices will decrease under recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas reviewed international prices of crude oil and petroleum products during the second fortnight of August 2014. The under-recovery on High Speed Diesel (HSD) applicable for first fortnight of September 2014, effective from 1 September 2014, will go down to Rs 0.08 per litre, from Rs 1.78 per litre during second fortnight of August 2014. In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the first fortnight of September 2014 was Rs 32.67 per litre (Rs 32.98 per litre in second fortnight of August 2014) and Rs 427.82 per cylinder (Rs 447.87 per cylinder in second fortnight of August 2014) respectively. Effective from 1 September 2014, PSU OMCs are incurring combined daily under-recovery of about Rs 195 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 230 crore daily under-recoveries during second fortnight of August 2014. The under-recoveries for the financial year 2014-15 are projected to be Rs 91665 crore while the figure was Rs 1.39 lakh crore in 2013-14.
Mahindra & Mahindra (M&M) shed 0.83%. M&M during market hours said that that ICRA has upgraded long-term rating for Non-Convertible Debenture programme and bank facilities of the company to [ICRA]AAA (stable) (pronounced ICRA triple A).The rating indicates highest degree of safety regarding timely servicing of financial obligations, M&M said.
Cipla rose 1.04%. Cipla during market hours announced the commercial collaboration with S&D Pharma in the Czech Republic and Slovakia. This collaboration will enable Cipla to focus on its core therapy areas, while S&D Pharma will be the key partner for generics, the company said.
Under the collaboration, Cipla will be driving its respiratory product portfolio in both Czech Republic and Slovakia through a Cipla owned sales force team, managed by Cipla commercial head. S&D Pharma will physically distribute all products, including respiratory products, and this portfolio will increase over the next few years, Cipla said.
In a separate announcement, Cipla said that its wholly owned subsidiary Medispray Laboratories at its board meeting held on 5 September 2014 approved the acquisition of two manufacturing undertakings. The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore respectively. The first manufacturing facility located at Goa is owned by Okasa and the second manufacturing facility located at Satara (Maharashtra) is owned by Okasa Pharma. Entities controlled by relatives of the promoters hold majority interest in the companies which own the aforesaid undertakings, Cipla said.
A significant portion of the capacities of the two undertakings are dedicated for the manufacture of Cipla's products. Acquisition of the aforesaid undertakings is expected to yield operational synergies, Cipla said.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 310.51 crore on Friday, 5 September 2014, as per provisional data from the stock exchanges.
Brent crude oil futures edged lower today, 8 September 2014. Brent for October settlement was down 97 cents at $99.85 a barrel. The contract fell $1.01, or 1%, at $100.82 a barrel on Friday, 5 September 2014, after downbeat US jobs data fuelled demand concerns and a ceasefire in Ukraine cooled geopolitical tensions.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
In the foreign exchange market, the rupee edged higher against the dollar on increased selling of the American unit by exporters and banks amid sustained foreign fund inflows. The partially convertible rupee was hovering at 60.28, compared with its close of 60.4050 on Friday, 5 September 2014.
India and Australia signed a civil nuclear deal on Friday, 5 September 2014, providing a boost to India's energy sector. Prime Minister Narendra Modi and visiting Australian Prime Minister Tony Abbott signed the agreement in New Delhi on cooperation in the peaceful uses of nuclear energy. The two leaders also agreed to work towards the long-term, sustainable and reliable supply of Australian resources based on India's energy needs, including increasing sales of conventional fuels such as coal and natural gas to India.
European stocks declined today, 8 September 2014, on profit booking after recent rally. Key benchmark indices in Germany, France and UK fell 0.09% to 0.81%.
Data published today, 8 September 2014 showed that Germany's exports increased by 4.7% in July in adjusted terms, following June's 0.9% increase. Imports fell 1.8% in July, after June's robust 4.5% rise.
Asian stocks were trading mixed today, 8 September 2014. Key benchmark indices in Hong Kong and Singapore were off 0.2% each. Key benchmark indices in Japan and Indonesia rose 0.23% to 0.56%. Markets in China, South Korea and Taiwan are closed for a holiday.
According to a government report today, 8 September 2014, China's exports rose 9.4% in August from a year earlier, down from a 14.5% rise in July. Imports slid 2.4% in August from a year earlier, after a 1.6% drop in July. China's trade surplus with the rest of the world widened to a record of $49.8 billion in August, from $47.3 billion in July.
Japan's economy shrank an annualised 7.1% in April-June from the previous quarter, revised down from a preliminary 6.8% contraction due to weaker-than-expected capital spending, the Cabinet Office said today, 8 September 2014 in Tokyo.
Trading in US index futures indicated that the Dow could fall 24 points at the opening bell on Monday, 8 September 2014. US stocks rose modestly on Friday, 5 September 2014, with the S&P 500 attaining fresh record closing high as a softer-than-expected US jobs report for August 2014 triggered speculation that the Federal Reserve will maintain a cautious approach toward any interest-rate increases. The S&P 500 rose 10.06, or 0.5%, to settle at 2,007.71, its 33rd record close of the year. The Dow Jones Industrial Average gained 67.78, or 0.4%, to settle at 17,137.36, just shy of its July 16 record. The Nasdaq Composite Index added 20.61, or 0.5%, to 4,582.90.
Data released by the US Labor Department on Friday, 5 September 2014, showed that the US economy added 142,000 new jobs in August 2014, the smallest gain since December 2013 and well below expectations of increase of more than 200,000. The jobless rate declined to 6.1% in August, from 6.2% in July.
Investors expect the Fed to wind down its bond-buying program before the end of this year and raise interest rates in mid 2015 as the economy continues to improve at a steady pace. The Fed has kept its benchmark interest rate near zero since December 2008.
The European Union (EU) reportedly said on Friday, 5 September 2014 it had agreed on a tough new package of economic sanctions against Russia, despite a ceasefire between government forces and pro-Kremlin rebels in Ukraine. The sanctions tighten existing measures imposed in July, targeting more individuals with travel bans and asset freezes, as well as tightening access to capital markets for Russian oil and defence companies. The new EU sanctions will be formally approved on Monday, 8 September 2014 although the full details of the people and organisations targeted will not be released for another day.
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