Key benchmark indices edged higher in early trade tracking gains in Asian markets and overnight rally on Wall Street. At 9:16 IST, the barometer index, the S&P Sensex, was up 259.90 points or 0.99% at 26,414.73. The 50-unit CNX Nifty crossed the psychological 8,000 level. The Nifty was up 51.65 points or 0.65% at 8,000.55.
In overseas stock markets, Asian stocks edged higher today, 1 October 2015, taking heart from an overnight rally on Wall Street. Latest readings of China's mammoth manufacturing sector painted a deteriorating picture in the world's second-biggest economy that suggests the need for further stimulus. The Bank of Japan's quarterly tankan survey, released before the market open in Tokyo, showed Japan's large manufacturers less optimistic than expected. US stocks closed sharply higher yesterday, 30 September 2015, as investors sought bargains among beaten-down stocks.
Closer home, broad market depicted strength. On BSE, 739 shares rose and 156 shares declined. A total of 21 shares were unchanged. The BSE Mid-Cap index was up 0.54%. The BSE Small-Cap index was up 0.45%. Both these indices underperformed the Sensex.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after the state-run fuel retailers increased diesel price by 50 paise per litre effective today, 1 October 2015. BPCL (up 0.89%), HPCL (up 0.53%) and Indian Oil Corporation (up 0.65%) gained. The price of petrol was left unchanged. After the latest increase, diesel would now cost Rs 44.95 a litre in Delhi, up from Rs 44.45. The current level of international prices and the rupee-dollar exchange rate warrant a price increase, which is being passed on to consumers with this price revision, Indian Oil Corporation (IOCL ) said in a statement. The movement of prices in the international oil market and rupee-dollar exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, IOCL said.
HCL Technologies tumbled 12.05% at Rs 863.80 after the company after market hours yesterday, 30 September 2015, in a pre-earnings update said that in Q1 September 2015, its revenue growth is likely to be tepid on account of adverse currency impact, a client specific issue and skewness in revenue growth due to transition timelines for complex engagements particularly in infrastructure services. HCL Technologies said it will unveil Q1 September 2015 results in the fourth week of October 2015. During this quarter, revenues to be reported in US dollar would have an adverse impact of 80 basis points (bps) on account of sharp depreciation of multiple currencies against the US dollar, the company added.
Also, in one of the multi-million multi-year custom application development project being executed for one of the customers in the Public Services vertical by HCL Technologies, certain differences have arisen with reference to the program objectives. While the discussions are on with the customer and the firm is in the process of disengagement, as a matter of prudence the company is considering reserving up to $20 million this quarter, the company said.
Bank of Baroda (BoB) rose 0.71% at Rs 184.60. The bank announced after market hours yesterday, 30 September 2015 that it has decided to reduce Base Rate by 25 basis points from 9.90% per annum (p.a.) to 9.65% p.a. and also to reduce Benchmark Prime Lending Rate (BPLR) by 25 basis points from 14.15% p.a. to 13.9% p.a. The reduction in both rates will be effective from 5 October 2015.
Among macro economic data, latest data showed that the eight core industries, comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP), has shown an output growth of 2.6% in August 2015 over August 2014. Its cumulative output growth during April to August 2015-16 was 2.2% compared with 5.6% growth in the corresponding period of last year.
Another data showed that India's external debt at end-June 2015 witnessed an increase of 1.8% over its level at end-March 2015, primarily on account of a rise in outstanding NRI deposits and commercial borrowings. Furthermore, the increase in the magnitude of external debt was partly offset by the valuation gains resulting from the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies. The external debt/GDP ratio stood at 24% at end-June 2015, recording an increase over its level of 23.7% at end-March 2015.
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