Firmness continued for key benchmark indices in morning trade as the Reserve Bank of India (RBI) surprised financial markets by announcing a cut in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review just before trading hours today, 4 March 2015. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 30,000 level after crossing that level for the first time in its history at the onset of the trading session. The 50-unit, CNX Nifty, was trading above the psychological 9,000 level after crossing that mark at the onset of the trading session. The Nifty had settled just a tad below the psychological 9,000 level yesterday 3 March 2015.
The Sensex was currently up 307.43 points or 1.04% at 29,901.16. The market breadth indicating the overall health of the market was strong.
Bank stocks edged higher after the Reserve Bank of India (RBI) announced a cut in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review just before trading hours. Shares of Power Finance Corporation dropped on turning ex-dividend today, 4 March 2015.
Earlier, the Sensex and the Nifty, both, surged at the onset of the trading session as the Reserve Bank of India (RBI) surprised financial markets by announcing a cut in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review just before trading hours. Both these key benchmark indices struck record high.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 772.92 crore yesterday, 3 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 303.88 crore yesterday, 3 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar after the Reserve Bank of India (RBI) surprised financial markets by announcing a cut in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review today, 4 March 2015.
Brent crude oil futures edged lower after previous trading session's gains.
In overseas markets, Asian stocks edged lower. US stocks declined yesterday, 3 March 2015, as data showing weaker-than-expected growth in monthly car sales dampened spirits.
At 10:15 IST, the S&P BSE Sensex was up 307.43 points or 1.04% at 29,901.16. The index jumped 431.01 points at the day's high of 30,024.74 at the onset of the trading session, a lifetime high for the index. The index gained 246.60 points at the day's low of 29,840.33 in early trade.
The CNX Nifty was up 77.80 points or 0.86% at 9,074.05. The index hit a high of 9,119.20 in intraday trade, a lifetime high for the index. The index hit a low of 9,059.65 in intraday trade.
The BSE Mid-Cap index was up 63.99 points or 0.58% at 11,145.82. The BSE Small-Cap index was up 63.49 points or 0.55% at 11,592.38. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,267 shares gained and 686 shares fell. A total of 74 shares were unchanged.
Bank stocks edged higher after the Reserve Bank of India (RBI) announced a cut in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review just before trading hours. Among public sector banks, Punjab National Bank (up 2.42%), Bank of Baroda (up 2.26%), Union Bank of India (up 2.38%), Bank of Maharashtra (up 2.24%), State Bank of India (up 1.77%), Allahabad Bank (up 1.85%), Canara Bank (up 2.17%), Bank of India (up 1.67%), Vijaya Bank (up 1.02%), Dena Bank (up 1.87%), Andhra Bank (up 1.32%), Punjab and Sind Bank (up 1.81%), United Bank of India (up 1.36%), Syndicate Bank (up 0.49%), Corporation Bank (up 1.43%), UCO Bank (up 0.67%), and Central Bank of India (up 1.09%) edged higher.
Among private sector banks, Kotak Mahindra Bank (up 2.43%), ING Vysya Bank (up 2.4%), Axis Bank (up 1.43%), ICICI Bank (up 2.31%), Yes Bank (up 1.42%), HDFC Bank (up 1.16%), IndusInd Bank (up 1.31%) and Federal Bank (up 0.33%), edged higher.
Idea Cellular rose 1.31% at Rs 155.25. Idea Cellular after market hours yesterday, 3 March 2015, said in a clarification with regard to news item titled "Idea in 3 year pact with Ericsson", said that the news item is relating to purchase of telecom equipments in the regular course of business and is not anything extra-ordinary that would trigger any reporting requirement.
Cairn India rose 1.15% at Rs 255.90. In a clarification with regard to media reports on "Corporate Espionage", Cairn India during market hours today, 4 March 2015, said that the matter is under investigation and it would be inappropriate for the company to make any comments at this stage. Cairn India further said that company will continue to extend all necessary cooperation to the authorities. The operations of the company remain unaffected by these developments, Cairn India said.
Shares of Power Finance Corporation fell 1.42% at Rs 301.50 as the stock ex-dividend today, 4 March 2015 for an interim dividend of Rs 8.50 per share for the year ending 31 March 2015.
In the foreign exchange market, the rupee edged higher against the dollar after the Reserve Bank of India (RBI) surprised financial markets by announcing a cut in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review today, 4 March 2015. The partially convertible rupee was hovering at 61.85, compared with its close of 61.92 during the previous trading session.
Brent crude oil futures edged lower after previous trading session's gains. Brent for April settlement was off 28 cents at $60.74 a barrel. The contract had advanced $1.48 a barrel or 2.48% to settle at $61.02 a barrel during the previous trading session.
The Reserve Bank of India (RBI) surprised financial markets today, 4 March 2015, by announcing a reduction in its benchmark lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review. The repo rate has been cut to 7.5% from 7.75%, with immediate effect. RBI Governor Raghuram Rajan cited relatively benign inflation and structural reforms embedded in Union Budget 2015-16 for the decision to cut the repo rate.
The RBI said that 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.
In overseas markets, Asian stock markets edged lower today, 4 March 2015. Key indices in China, Japan, Hong Kong, South Korea, and Indonesia were off 0.13% to 0.49%. Key indices in Taiwan and Singapore were up 0.08% to 0.13%.
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.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell today, 4 March 2015. 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.
In Europe, a monthly monetary policy review from the European Central Bank is scheduled tomorrow, 5 March 2015.
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