A divergent trend was witnessed among key benchmark indices on the last trading session of the week. The barometer index, the S&P BSE Sensex, registered minuscule losses whereas the 50-unit CNX Nifty settled slightly higher. The Sensex fell 5.83 points or 0.02% to settle at 28,879.38. The 50-unit CNX Nifty rose 2.05 points or 0.02% to settle at 8,780.35. With minuscule gains, the Nifty attained its highest closing level in more than five weeks. The market breadth indicating the overall health of the market was positive. Small-cap stocks were in demand. The BSE Mid-Cap index rose 1.1%, outperforming the Sensex. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 2% to 20% for quite a few stocks.
Shares of private sector banks dropped. Shares of public sector banks were in demand. Index heavyweight and housing finance major HDFC edged lower. Metal stocks were mixed. Capital goods stocks dropped. Reliance Anil Dhirubhai Ambani (ADA) Group shares were in demand. Telecom stocks gained.
Meanwhile, a committee headed by M S Sahoo, a former member of the Securities and Exchange Board of India (Sebi), has reportedly suggested removal of the limits on corporates' external commercial borrowings (ECBs).
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 294.52 crore from the secondary equity market yesterday, 9 April 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 492.79 crore yesterday, 9 April 2015, as per provisional data released by the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher in volatile trade, with investors closely following the strength of the dollar and waiting for the latest US rig-count data.
In overseas markets, European stocks edged higher, aided in part by a weaker euro. Asian stocks 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.
The S&P BSE Sensex fell 5.83 points or 0.02% to settle at 28,879.38, its lowest closing level since 8 April 2015. The index fell 128.46 points at the day's low of 28,756.75 in afternoon trade. The index gained 22.60 points at the day's high of 28,907.81 in late trade, its highest level since 19 March 2015.
The CNX Nifty rose 2.05 points or 0.02% to settle at 8,780.35, its highest closing level since 5 March 2015. The index hit a high of 8,787.40 in intraday trade. The index hit a low of 8,733.60 in intraday trade.
The BSE Mid-Cap index rose 42.77 points or 0.39% to settle at 11,093.02. The BSE Small-Cap index gained 128.85 points or 1.1% to settle at 11,846.33. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 4088 crore, lower than turnover of Rs 4269.28 crore registered during the previous trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,644 shares gained and 1,171 shares fell. A total of 123 shares were unchanged.
Maruti Suzuki India rose 0.11%. The company said during market hours that it will partner with the state government of Punjab to manage and run car driving training institutes in the state. Once fully operational, the driving training institutes will be able to train around 10,000 learners in first phase including women, youth and the underprivileged annually. The company will invest around Rs 3 crore in a phased manner under this corporate social responsibility program.
Metal stocks were mixed. Steel Authority of India (up 2.11%), NMDC (up 2.8%), Sesa Sterlite (up 3.34%), and Hindustan Zinc (up 5.95%) edged higher. National Aluminum Company (down 0.11%), JSW Steel (down 0.39%), Bhushan Steel (down 0.75%), Tata Steel (down 0.67%), Hindalco Industries (down 1.68%) and Jindal Steel & Power (down 2.39%) and edged lower.
Capital goods stocks dropped. BEML (down 1.18%), ABB India (down 0.74%), L&T (down 0.56%), Thermax (down 1.55%) and Siemens (down 0.54%) declined. Crompton Greaves (up 0.23%) and Bharat Heavy Electricals (Bhel) (up 0.61%) gained.
Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Communications (up 13.41%), Reliance Infrastructure (up 4.04%), Reliance Capital (up 2.39%) and Reliance Power (up 5.14%) gained.
Index heavyweight and housing finance major HDFC fell 1.12% to Rs 1,290.30. The stock hit high of Rs 1,309.40 and low of Rs 1,283.55.
Shares of public sector banks were in demand. Punjab and Sind Bank (up 10.6%), United Bank of India (up 2.36%), Bank of India (up 2.63%), IDBI Bank (up 1.54%), State Bank of India (up 1.85%), Punjab National Bank (up 0.99%), Canara Bank (up 0.87%), Corporation Bank (up 1.61%), Syndicate Bank (up 1.09%), Dena Bank (up 0.76%), Union Bank of India (up 0.37%), Allahabad Bank (up 1.16%), Vijaya Bank (up 0.42%), and Bank of Baroda (up 0.55%), edged higher.
Shares of private sector banks dropped. HDFC Bank (down 1.53%), Federal Bank (down 1.26%), Axis Bank (down 0.72%), ING Vysya Bank (down 0.58%), Kotak Mahindra Bank (down 0.81%), Yes Bank (down 0.06%) and ICICI Bank (down 0.73%) edged lower.
Telecom stocks gained. Bharti Airtel (up 1.12%), Tata Teleservices (Maharashtra) (up 3.13%), and Idea Cellular (up 4.23%) 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.
The Sensex snapped five-day winning streak today, 10 April 2015. From a recent low of 27,957.49 on 31 March 2015, the Sensex had risen 927.72 points or 3.31% in five trading sessions to settle at 28,885.21 yesterday, 9 April 2015. The Sensex has risen 921.89 points or 3.29% in this month so far (till 10 April 2015). The Sensex has risen 1,379.96 points or 5.01% in this calendar year so far (till 10 April 2015). From a 52-week low of 22,247.39 on 16 April 2014, the Sensex has risen 6,631.99 points or 29.81%. The Sensex is off 1,145.36 points or 3.81% from a record high of 30,024.74 hit on 4 March 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.30, compared with closing of 62.245 during the previous trading session.
Brent crude oil futures edged higher in volatile trade, with investors closely following the strength of the dollar and waiting for the latest US rig-count data. Brent for May settlement was up 4 cents at $56.61 a barrel. The contract had risen $1.02 a barrel or 1.93% to settle at $56.57 a barrel during previous trading session. Iran's supreme leader Ayatollah Ali Khamenei yesterday, 9 April 2015, said that the US and its negotiating partners must lift all sanctions on Iran immediately after a final nuclear deal is signed.
Closer home, a committee headed by M S Sahoo, a former member of the Securities and Exchange Board of India (Sebi), has reportedly suggested removal of the limits on corporates' external commercial borrowings (ECBs). The committee has also reportedly suggested removal of end-use restrictions on ECBs and recommended that every borrower should hedge a part of their borrowing. Currently the limit for each Indian company to raise funds through ECB is $750 million in a financial year barring in segments such as hotel, hospital and software sectors. Companies also have to limit their borrowing cost at 350 basis points over six-month LIBOR for three to five year maturity and at 500 bps over LIBOR for more than five years.
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 there is an increasing probability that actions by policymakers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years.
In overseas markets, European shares edged higher today, 10 April 2015, aided in part by a weaker euro. Key benchmark indices in UK, France and Germany were up 0.4% to 1.12%.
British manufacturers ramped up production in February after a January slump, official data showed today, 10 April 2015, but overall industrial output was slower than expected due to a fall in oil extraction. Manufacturing output rose 0.4% on the month, the Office for National Statistics said, compared with a 0.6% dip in January. Year-on-year, volumes produced increased 1.1%.
French industrial production failed to grow month on month in February, following 0.3% growth in January. The year on year figures were more positive, however. Industrial production in February was 0.6% higher than the same month in February 2014.
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, and Hong Kong rose by 0.35% to 1.94%. Indonesia's Jakarta Composite declined 0.17%. Japan's Nikkei Average declined 0.15%.
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 that the Dow could gain 5 points at opening bell 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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