A range bound movement was witnessed as key benchmark indices languished in red in mid-morning trade. The losses for the benchmark indices were small. The barometer index, the S&P BSE Sensex, was currently off 71.43 points or 0.25% at 28,813.78. The market breadth indicating the overall health of the market was strong. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 2% to about 18% for quite a few stocks.
Telecom stocks gained. Auto stocks also edged higher. Index heavyweight and cigarette maker ITC declined.
Meanwhile, global credit rating agency Fitch Ratings yesterday, 9 April 2015, affirmed India's sovereign credit rating at 'BBB-' with a stable outlook. The government's broad-based structural reform agenda has brought dynamism back to the Indian economy after a couple of years of limited progress on the structural front, the rating agency said adding that India's sovereign ratings are constrained by limited improvement in India's fiscal position, which is a long standing key weakness.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 193.81 crore yesterday, 9 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 492.79 crore yesterday, 9 April 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher, supported by strong economic data from Germany that lifted the oil demand outlook and as worries about a quick return of Iranian supplies eased.
In overseas markets, Asian markets rose after news that Greece had made a 450 million euro loan payment to the International Monetary Fund. US stocks edged higher yesterday, 9 April 2015, helped by a rally in energy and health-care sectors.
At 11:22 IST, the S&P BSE Sensex was down 71.43 points or 0.25% at 28,813.78. The index fell 73.02 points at the day's low of 28,812.19 in mid-morning trade. The index gained 13.98 points at the day's high of 28,899.19 in morning trade.
The CNX Nifty was down 13.60 points or 0.15% at 8,764.70. The index hit a low of 8,758.40 in intraday trade. The index hit a high of 8,781.40 in intraday trade.
The BSE Mid-Cap index was up 65.37 points or 0.59% at 11,115.62. The BSE Small-Cap index was up 84.60 points or 0.72% at 11,802.08. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,440 shares gained and 869 shares fell. A total of 86 shares were unchanged.
Index heavyweight and cigarette maker ITC declined 1.04% to Rs 342.60. The stock hit high of Rs 347.20 and low of Rs 342.55 so far during the day.
Dr Reddy's Laboratories dropped 0.09%. Dr Reddy's India business head Alok Sonig was quoted as saying that he expects the company's domestic sales to grow nearly 20% in the year ending 31 March 2016 (FY 2016), helped by the launch of nearly two dozen new drugs. India is Dr Reddy's second-biggest market after the United States, according to reports. The Indian market reportedly contributed 15% to the company's total sales during the year ended 31 March 2015 (FY 2015).
Telecom stocks gained. Bharti Airtel (up 0.04%), Tata Teleservices (Maharashtra) (up 0.5%), Reliance Communications (up 1.42%) and Idea Cellular (up 2.13%) gained. Meanwhile, Telecom Regulatory Authority of India (TRAI) yesterday, 9 April 2015, reduced ceiling tariffs for national roaming calls and SMS and has mandated telecom service providers (TSPs) to offer a special roaming tariff plan. These changes will come into effect from the 1 May 2015. Through this amendment order, TRAI has removed the existing mandate to the TSPs for providing RTP and RTP-FR and has mandated the TSPs to offer a Special Roaming Tariff Plan to its pre-paid and post-paid subscribers. In Special Roaming Tariff Plan, incoming voice calls while on national roaming shall be free, on payment of fixed charge, if any. All subscribers will benefit from the reduced ceilings.
Auto stocks gained. Mahindra & Mahindra (M&M) (up 0.87%), Ashok Leyland (up 0.27%), Maruti Suzuki India (up 0.17%), Eicher Motors (up 0.34%), Hero MotoCorp (up 0.02%), Bajaj Auto (up 0.09%) and TVS Motor Company (up 1.42%) gained. Tata Motors dropped 0.31%.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.3625, compared with closing of 62.245 during the previous trading session.
Brent crude oil futures edged higher, supported by strong economic data from Germany that lifted the oil demand outlook and as worries about a quick return of Iranian supplies eased. Brent for May settlement was up 18 cents at $56.75 a barrel. The contract had risen $1.02 a barrel or 1.93% to settle at $56.57 a barrel during previous trading session.
Macroeconomic data to be released starting today, 10 April 2015, is likely to show a pick up in industrial production growth in February 2015 and consumer price inflation remaining stable in March 2015. Growth in industrial production is seen rising to 3.3% in February 2015 from 2.6% expansion registered in January 2015, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on industrial production for February 2015 after trading hours today, 10 April 2015.
Inflation based on the consumer price index (CPI) is expected to remain steady at 5.4% in March 2015, as per the median estimate of a poll of economists carried out by Capital Market. CPI inflation stood at 5.4% in February 2015. The government will unveil data on CPI for March 2015 after trading hours on Monday, 13 April 2015.
Inflation based on the wholesale price index (WPI) is expected to remain in negative zone in March 2015. WPI inflation is expected at negative 2.2% for March 2015, as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation was negative 2.1% in February 2015. The government will unveil data on WPI for March 2015 at 12:10 noon on 14 April 2015.
Meanwhile, global credit rating agency Fitch Ratings yesterday, 9 April 2015, affirmed India's sovereign credit rating at 'BBB-' with a stable outlook. The government's broad-based structural reform agenda has brought dynamism back to the Indian economy after a couple of years of limited progress on the structural front, the rating agency said adding that India's sovereign ratings are constrained by limited improvement in India's fiscal position, which is a long standing key weakness. Implementation of the government's structural reform agenda and structurally lower inflation would improve the sovereign credit profile, as both would improve the investment climate and benefit real GDP growth, Fitch said in a statement.
The announcement from Fitch came hours after another global credit rating agency Moody's Investors Service raised India's credit rating outlook to positive from stable. The driver for the upgrade in rating outlook is Moody's view that India's growth will continue to outperform that of its peers over the medium-term. Moody's affirmed the Government of India's Baa3 issuer and senior unsecured ratings.
Meanwhile, Paris-based think tank Organisation for Economic Cooperation and Development (OECD) said yesterday, 9 April 2015, that India's economic expansion continues to firm up even as growth is easing in the neighboring China. The think tank's assessment is based on its Composite Leading Indicators (CLIs) that are designed to anticipate turning points in economic activity relative to trend.
In overseas markets, Asian markets rose today, 10 April 2015, after news that Greece had made a 450 million euro loan payment to the International Monetary Fund. Key indices in China, South Korea, Taiwan, Singapore, Japan and Hong Kong rose by 0.27% to 1.38%. Indonesia's Jakarta Composite declined 0.06%.
China's consumer inflation stayed flat at 1.4% in March, while producer prices fell slightly less than projected, official data showed today, 10 April 2015, keeping pressure on profit margins at Chinese companies as Beijing struggles to stimulate growth. The producer price index (PPI) declined 4.6%, the National Bureau of Statistics (NBS) said today, 10 April 2015, extending a long-running factory deflation cycle that began in March 2012 to three years.
Trading in US index futures indicates a flat opening of US stocks today, 10 April 2015. US stocks rose yesterday, 9 April 2015, helped by a rally in energy and health-care sectors. On economic front, the US Labor Department said workers filing for first-time jobless benefits totalled 281,000 last week, fewer than what had forecast, and bringing the four-week average of claims to its lowest since 2000.
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