A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 29,000 mark, having alternately moved above and below that level earlier during the trading session. The Sensex had reclaimed the psychological 29,000 mark after registering decent gains during the previous trading session on Monday, 13 April 2015. The Sensex was currently off 61.71 points or 0.21% at 28,982.73. The market breadth indicating the overall health of the market was positive.
IT stocks declined after lower-than-expected US retail sales in March.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 417.01 crore during the previous trading session on Monday, 13 April 2015, as per provisional data as per provisional data released by the stock exchanges. The stock market was closed yesterday, 14 April 2015, for a holiday. Domestic institutional investors (DIIs) bought shares worth a net Rs 46.42 crore during the previous trading session on Monday, 13 April 2015, as per provisional data.
On the macro front, data released by government today, 15 April 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone last month. The WPI data comes after data released by the government after trading hours on Monday, 13 April 2015, showed easing of consumer price inflation last month. Meanwhile, Prime Minister Narendra Modi early this week said that India is trying to introduce an element of transparency and predictability in its taxation system.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher. The recent rise in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. However, gains in rupee against the dollar will mitigate the negative impact of higher crude oil price. Gains in local currency will reduce the cost of imports. India imports about 80% of its crude oil requirements.
In overseas markets, Asian stocks were mixed. Most US stocks edged higher yesterday, 14 April 2015, as crude oil prices rose.
At 12:15 IST, the S&P BSE Sensex was down 61.71 points or 0.21% at 28,982.73. The index fell 125.70 points at the day's low of 28,918.74 in early afternoon trade. The index gained 50.17 points at the day's high of 29,094.61 at onset of the trading session, its highest level since 13 March 2015.
The CNX Nifty was down 21 points or 0.24% at 8,813. The index hit a low of 8,795.05 in intraday trade. The index hit a high of 8,844.80 in intraday trade, its highest level since 13 March 2015
The market breadth indicating the overall health of the market was positive. On BSE, 1,441 shares gained and 1,115 shares fell. A total of 113 shares were unchanged.
The BSE Mid-Cap index was up 39.21 points or 0.35% at 11,166.63. The BSE Small-Cap index was up 66.14 points or 0.55% at 12,008.17. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2458 crore by 12:15 IST, compared with turnover of Rs 2033 crore by 11:15 IST.
IT stocks declined after lower-than-expected US retail sales in March. The United States is the biggest outsourcing market for Indian IT firms. Infosys (down 1.62%), Wipro (down 1.04%), HCL Technologies (down 1.76%) declined. Tech Mahindra rose 0.73%.
IT major TCS lost 1.06%. TCS announces its Q4 March 2015 and full year ended 31 March 2015 results tomorrow, 16 April 2015.
Shares of state-run gas transmission and distribution major GAIL (India) were up 1.57% to Rs 401. The stock hit high of Rs 402.65 and low of Rs 394 so far during the day.
Gujarat Gas Company (GGCL) jumped 13.63%. Gujarat Gas Company after trading hours on Monday, 13 April 2015, said that the company has accepted the authorisation in Schedule D of the Petroleum and Natural Gas Regulatory Board (PNGRB) vide a confirmation letter to PNGRB, on 13 April 2015. This was pursuant to the letter dated 1 April 2015 from Petroleum and Natural Gas Regulatory Board (PNGRB), received by the company on 10 April 2015, granting it an authorisation to lay, build, operate, or expand city or local natural gas distribution network (CGD network) for the geographical area of Thane (excluding areas already authorized).
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.40, compared with closing of 62.5225 during the previous trading session on Monday, 13 April 2015. The foreign exchange market was closed yesterday, 14 April 2015, on the occasion of Dr. Baba Saheb Ambedkar Jayanti.
Brent crude oil futures edged higher. Brent for May settlement which expires today, 15 April 2015, was up 54 cents at $58.97 a barrel. The contract had risen 50 cents or 0.86% to settle at $58.43 a barrel during previous trading session. Brent for June settlement was up 40 cents to $60.21 a barrel.
On the macro front, data released by government today, 15 April 2015, showed that inflation based on the wholesale price index (WPI) stood at negative 2.33% in March 2015 compared with a reading of negative 2.06% in February 2015. Meanwhile, WPI inflation for January 2015 was revised downwards. WPI inflation for January 2015 showed a negative reading of 0.95% compared with a negative reading of 0.39% reported earlier. Build up inflation rate in the financial year so far was negative 2.33%, compared to a build up rate of 6% in the corresponding period of the previous year.
Earlier, data released by the government after market on Monday, 13 April 2015, showed that the all-India general CPI inflation slowed down to three-month low of 5.2% in March 2015 from 5.4% in February 2015. Food items were major contributors to the CPI inflation decline in March 2015.
India and Germany have decided to utilize the momentum generated by India's participation in the Hannover Messe in Germany to foster stronger ties between business and industry in both the countries in order to support India's 'Make in India' initiative, according to a joint statement issued by India and Germany yesterday, 14 April 2015, after Prime Minister Narendra Modi held bilateral talks with German Chancellor Angela Merkel in Berlin. India and Germany have also decided to take steps whereby Germany will support development of urban planning and infrastructure in India, including the development of smart cities in India, setting up peer-to-peer network of municipalities for direct collaboration and assistance in the area of affordable housing. Germany will also support modernization of the railway infrastructure in India, including setting up of semi high-speed and high-speed railways and training and skill development of personnel in the rail sector starting with signalling and telecommunications and a high-speed rail system. Germany will also support India's proposed objective of 175 Giga Watts (GW) of renewable energy by 2022 through technical and financial support for developing comprehensive solar rooftop and green energy corridor projects in India.
India and Germany also agreed to strengthen their efforts towards carrying on negotiations for an ambitious EU India Free Trade Agreement with a view to its early conclusion.
Modi on Monday, 13 April 2015, said India is trying to introduce an element of transparency and predictability in taxation system. In his speech at the inauguration of the Indo-German Business Summit in Hannover, Germany, Modi said that the government has fast tracked approvals in industry and infrastructure. This includes environmental clearances, extending the industrial licences, delicencing of defence items and simplification of cross-border trade. Meanwhile, Modi said in his remarks at the Community Reception in Berlin yesterday, 14 April 2015, that the time is right for India to emerge as a global manufacturing hub. The Prime Minister called for balanced growth in the Indian economy, with equal emphasis on agriculture, manufacturing and services.
Asian stocks were mixed today, 15 April 2015. Key benchmark indices in China, Hong Kong, Singapore and South Korea rose by 0.34% to 0.52%. Key benchmark indices in Taiwan, Japan and Indonesia fell by 0.2% to 1.06%.
China's economy expanded at its slowest pace in six years in the first quarter, weighed down by a slumping property market, industrial overcapacity and sluggish overseas demand, data released today, 15 April 2015 showed. China's gross domestic product rose 7% from a year earlier in the first quarter, slowing from 7.3% recorded in the fourth quarter of 2014 and 7.4% for all of last year.
Value-added industrial output in China rose 5.6% in March from a year earlier, slowing from 6.8% growth in the combined January-February period, data from the National Bureau of Statistics showed today, 15 April 2015. Month-on-month, industrial output increased 0.25% in March from February, when output rose 0.45% from January.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell today, 15 April 2015. US stocks ended yesterday, 14 April 2015 mostly higher, helped by energy stocks and quarterly earnings reports that topped modest expectations following worries about a strong dollar.
In US economic data, sales at US retailers rose in March by the largest amount in a year, rebounding after three straight monthly declines. However, the rebound was weaker than expected. US producer prices rose a seasonally adjusted 0.2% in March after four straight monthly declines, the Labor Department said yesterday, 14 April 2015.
In Europe, investors are awaiting the European Central Bank (ECB) rate decision to be declared later in the global day today, 15 April 2015.
The International Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) that global growth prospects are uneven across major economies. In advanced economies, growth is projected to strengthen in 2015 relative to 2014, but in emerging market and developing economies it is expected to be weaker, the IMF said. Overall, global growth is forecast at 3.5% in 2015 and 3.8% in 2016. IMF said that risks to global growth are now more balanced relative to six months ago, but remain tilted to the downside. Macroeconomic risks have slightly decreased (e.g., recession and deflation in euro area), but financial and geopolitical risks have increased, the IMF said. On the upside, the decline in oil prices could provide a greater boost to global growth than anticipated.
IMF Economic Counselor and Director of Research Olivier Blanchard said that a number of complex forces are shaping the prospects around the world. Legacies of both the financial and the euro area crisesweak banks and high levels of public, corporate, and household debtare still weighing on spending and growth in some countries. Low growth in turn makes deleveraging a slow process. Global growth in 2015 will be driven by a rebound in advanced economiesforecast to increase from 1.8% last year to 2.4% this yearsupported by the decline in oil prices, the WEO notes. Growth forecasts for most emerging and developing economies (with the important exception of India) are slightly worse.
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