Key benchmark indices moved in a narrow range in positive terrain in mid-afternoon trade. Further fall in global crude oil prices aided gains on domestic bourses. India imports 80% of its crude oil requirements and fall in crude oil prices augurs well for the economy. The barometer index, the S&P BSE Sensex was currently up 104.75 points or 0.37% at 28,341.14. The market breadth indicating the overall health of the market was positive.
Capital goods majors gained. Auto stocks were mixed. Tata Motors declined after announcing weak Q1 results.
Earlier, the barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in 2-1/2 weeks in morning trade.
In the global commodities markets, Brent crude oil futures edged lower touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world's second-largest economy.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 93.74 crore on Friday, 7 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 34.08 crore on Friday, 7 August 2015, as per provisional data.
In overseas markets, European stocks edged lower. Asian stocks were mixed. US stocks edged lower on Friday, 7 August 2015, as a solid US jobs report for July raised chances for an increase in interest rates by the Federal Reserve as soon as September.
At 14:18 IST, the S&P BSE Sensex was up 104.75 points or 0.37% at 28,341.14. The index gained 181.20 points at the day's high of 28,417.59 in morning trade, its highest level since 23 July 2015. The index fell 8.12 points at the day's low of 28,228.27 in early trade.
The CNX Nifty was up 30 points or 0.35% at 8,594.60. The index hit a high of 8,621.55 in intraday trade, its highest level since 23 July 2015. The index hit a low of 8,564.45 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,622 shares gained and 1,196 shares fell. A total of 122 shares were unchanged.
The BSE Mid-Cap index was up 70.87 points or 0.61% at 11,628.39, outperforming the Sensex. The BSE Small-Cap index was up 40.50 points or 0.33% at 12,144.97, underperforming the Sensex.
Capital goods majors gained. Bharat Heavy Electricals (Bhel) (up 2.3%) and L&T (up 0.04%) rose.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 1.98%), Eicher Motors (down 0.18%) and TVS Motor Company (down 1.92%) declined. Ashok Leyland (up 1.38%), Maruti Suzuki India (up 0.78%), Hero MotoCorp (up 1.74%), and Bajaj Auto (up 0.89%) gained.
Tata Motors declined after announcing weak Q1 results. The stock fell 0.51% to Rs 390.55. The stock hit high of Rs 395.60 and low of Rs 383.75 so far during the day. On a consolidated basis, Tata Motors reported 48.7% fall in net profit to Rs 2768.91 crore on 5.5% fall in total income to Rs 61326.75 crore in Q1 June 2015 over Q1 June 2014. The company announced the result after market hours on Friday, 7 August 2015.
Tata Motors said that its consolidated revenue (net of excise) fell 5.66% to Rs 61020 crore in Q1 June 2015 over Q1 June 2014. Tata Motors attributed the decline in revenue to lower sales and weaker geographic mix at its British luxury car unit Jaguar Land Rover (JLR). As per International Financial Reporting Standards (IFRS), JLR's net profit dropped 29% to GBP 492 million on 6.55% decline in revenue to GBP 5,002 million in Q1 June 2015 over Q1 June 2014. JLR's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 24.47% to GBP 821 million in Q1 June 2015 over Q1 June 2014.
Tata Motors' revenue (net of excise) on standalone basis jumped 20.66% to Rs 9297 crore in Q1 June 2015 over Q1 June 2014. Tata Motors' standalone business mainly comprises of its commercial vehicles and passenger vehicles business in India.
In the global commodities markets, Brent crude oil futures edged lower touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world's second-largest economy. Brent for September settlement was currently off 5 cents at $48.56 a barrel. The contract had declined 91 cents or 1.84% to settle at $48.61 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a daily report issued on 9 August 2015 that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 9 August 2015. Region wise, the rainfall was 22% below the LPA in South Peninsula, 11% below the LPA in East & Northeast India, 8% below the LPA in Central India and 3% above the LPA in Northwest India until 9 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
The weekly data released by the Ministry of Agriculture after trading hours on Friday, 7 August 2015, showed a pick up in the sowing of Kharif crops. The total sown area for Kharif crops as on 7 August 2015 stood at 847.40 lakh hectares compared with 808.40 lakh hectares at this time last year.
Meanwhile, the Ministry of Water Resources announced in its weekly report issued after trading hours on Friday, 7 August 2015, that the Water storage available in 91 important reservoirs of the country as on 6 August 2015 was 78.366 BCM which is 50% of total storage capacity of these reservoirs. This storage is 93% of the storage of corresponding period of last year and 99% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years. tates having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Rajasthan, Jharkhand, West Bengal, Tripura, Uttar Pradesh, Uttarakhand, Madhya Pradesh, and Tamil Nadu. States having lesser storage than last year for corresponding period are Odisha, Gujarat, Maharashtra, Chhattisgarh, (Two combined project in both states), Andhra Pradesh, Telangana, Karnataka, Kerala.
Among key macro economic announcements, the government is scheduled to unveil the consumer price index (CPI) data for the month of July 2015 and industrial production data for June 2015 at 17:30 IST on Wednesday, 12 July 2015. The CPI inflation accelerated to 5.4% in June 2015 from 5.01% in May 2015. Industrial production rose 2.7% in May 2015, compared with a revised growth of 3.4% in April 2015.
The government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon on Friday, 14 August 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. The WPI inflation stood at negative 2.4% in June 2015, unchanged from the level in May 2015.
European stocks edged lower today, 10 August 2015. Key benchmark indices in France, UK and Germany were down by 0.07% to 0.78%.
Negotiations to secure a third bailout deal in time to prevent Greece from defaulting this month on bonds owned by the European Central Bank appeared to advance after weekend-long meetings between officials from Athens and the country's creditors. Greek officials reportedly said they discussed the economic overhauls and budget cuts the government needs to complete to clinch a third loan package of up to 86 billion ($94 billion), and secure the first tranche of aid from the bailout.
Asian stocks were mixed today, 10 August 2015. Key benchmark indices in Taiwan and Japan rose by 0.29% to 0.41%. Key indices in Indonesia, South Korea, and Hong Kong fell by 0.13% to 0.76%. Markets in Singapore are closed for a holiday.
China's Shanghai Composite jumped 4.92%. China's exports in July slid 8.3% from a year earlier, reversing a gain of 2.8% in June, customs data released Saturday, 8 August 2015 showed. Imports fell for the ninth month in a row, dropping 8.1%, after a decline of 6.1% in June. And on Sunday, 9 August 2015, the government announced factory prices in July extended more than three years of declines, with the producer-price index taking its biggest year-over-year tumble in nearly six years. China's producer price deflation deepened to 5.4% in July, sending wholesale prices to their lowest since late 2009.
Japan posted 12 straight monthly balance of payments gains in June, taking the half-year surplus to its highest in five years as overseas income and tourism receipts prospered. June's current account surplus was 558.6 billion yen ($4.5 billion) Ministry of Finance data showed today, 10 August 2015.
US stocks edged lower on Friday, 7 August 2015, as a solid US jobs report for July raised chances for an increase in interest rates by the Federal Reserve as soon as September.
The US Department of Labor said on Friday, 7 August 2015, employers added 215,000 jobs in July, slightly above market expectations. The unemployment rate held at a seven-year low of 5.3% and there were signs that wages were beginning to pick up.
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