A range bound movement was witnessed as key benchmark indices hovered in green in morning trade. The barometer index, the S&P BSE Sensex, was currently up 32.04 points or 0.11% at 28,536.50. The market breadth indicating the overall health of the market was positive. The Reserve Bank of India (RBI) is widely expected to keep its benchmark lending rate viz. the repo rate unchanged at first bi-monthly Monetary Policy for 2015-16 scheduled at 11:00 IST today, 7 April 2015.
Realty stocks declined. IT stocks gained. Insecticides (India) surged after the company's board of directors fixed 17 April 2015 as record date for 1:2 bonus issue.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 April 2015, said that legitimate taxes must be paid and should not be perceived as 'tax terrorism'. Jaitley said at a Confederation of Indian Industry conference in New Delhi that while India does not practice tax terrorism, it is not a tax haven either.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 936.81 crore yesterday, 6 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 170.03 crore yesterday, 6 April 2015, as per provisional data.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost three weeks in early trade.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower after a leading foreign investment bank said prices needed to remain low for months to achieve a slowdown in US crude oil output growth.
In overseas markets, Asian markets edged higher after overnight gains in US stocks. US stocks rose yesterday, 6 April 2015, as the disappointing jobs data announced last week fed expectations that the Federal Reserve could wait longer before raising interest rates.
At 10:16 IST, the S&P BSE Sensex was up 32.04 points or 0.11% at 28,536.50. The index jumped 136.62 points at the day's high of 28,641.08 in early trade, its highest level since 19 March 2015. The index rose 8.06 points at the day's low of 28,512.52 in morning trade.
The CNX Nifty was up 6.35 points or 0.07% at 8,666.25. The index hit a high of 8,693.60 in intraday trade, its highest level since 19 March 2015. The index hit a low of 8,655.30 in intraday trade.
The BSE Mid-Cap index was up 39.69 points or 0.37% at 10,909.51. The index underperformed the Sensex. The BSE Small-Cap index was up 65.41 points or 0.58% at 11,364.71. The index outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,199 shares gained and 831 shares fell. A total of 77 shares were unchanged.
TCS gained 1.28%. With respect to news titled "TCS, Others in Race to Acquire Elitecore," TCS stated during market hours today, 7 April 2015, that the company does not have any specific comment to offer with regard to the news item.
Glenmark Pharmaceuticals rose 0.06%. Glenmark Generics USA, a subsidiary of Glenmark Generics has been granted final abbreviated new drug approval (ANDA) from the United States Food & Drug administration (USFDA) for Norethindrone Acetate and Ethinyl Estradiol Tablets USP, 0.5 mg/2.5 mcg and 1mg/mcg. Glenmark will commence distribution of the product immediately. These tablets are Glenmark's generic version of Warner Chilcott's FemHRT. The company made announcement during market hours. For the twelve months ended February 2015, the FemHRT market garnered annual sales of $38.6 million in the US, according to the IMS Health.
Rural Electrification Corporation (REC) lost 3.26% to Rs 324.65. The Government of India (GoI), the promoter of Rural Electrification Corporation (REC) after market hours yesterday, 6 April 2015, issued a notice for offer for sale (OFS) of upto 4.93 crore equity shares of the face value of Rs 10 each, representing 5% of the total paid up equity share capital of REC through a sale on the separate window provided by the stock exchanges. The government will declare the floor price for the OFS latest by 17:00 IST today, 7 April 2015. Retail investors will be allocated offer shares at a discount of 5% to the bid price. The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence tomorrow, 8 April 2015 at 9:15 IST and close on the same date at 15:30 IST. The GoI currently holds 65.64% stake in REC (as per the shareholding pattern as on 31 December 2014).
Insecticides (India) surged 5.94% after the company's board of directors fixed 17 April 2015 as record date for 1:2 bonus issue. The company made the announcement after market hours yesterday, 6 April 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.305, compared with its close of 62.19 during the previous trading session.
Brent crude oil futures edged lower after a leading foreign investment bank said prices needed to remain low for months to achieve a slowdown in US crude oil output growth. Brent for May settlement was down 69 cents at $57.43 a barrel.
The Reserve Bank of India (RBI) is widely expected to keep its benchmark lending rate viz. the repo rate unchanged at first bi-monthly Monetary Policy for 2015-16 scheduled today, 7 April 2015, as Governor Raghuram Rajan waits to see how RBI's recent rate cuts percolate through the country's financial system. The RBI had surprised financial markets by announcing reduction in repo rate by 25 basis points to 7.5% in an unscheduled monetary policy review on 4 March 2015. Earlier, the RBI had on 15 January 2015 announced a cut in the repo rate by 25 basis points to 7.75%. Despite a cumulative rate cut of 50 basis points from the RBI, most commercial banks have refrained from cutting their lending rates.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 April 2015, said that legitimate taxes must be paid and should not be perceived as 'tax terrorism'. Jaitley said at a Confederation of Indian Industry conference in New Delhi that while India does not practice tax terrorism, it is not a tax haven either. Jaitley said that the aim of the government is to create a conducive business environment by addressing the challenges faced, especially with respect to taxation, the Land Acquisition and Rehabilitation and Resettlement bill, and corruption. To facilitate ease of doing business, the government is focusing on tax reforms with the aim of pushing for the implementation of the Goods and Services Tax (GST) and lowering the corporate tax rate.
With respect to the land law, which is commonly perceived as anti-farmer and detrimental to the cause of rural India, Jaitley said the government was cognizant of the large population that would get impacted, but was also aware of the potential of this to unleash productivity and employment. Amendments in the Land Acquisition and Rehabilitation and Resettlement bill are required to support building of rural infrastructure including roads, irrigation and industrial corridors, Jaitley said.
The Finance Minister said that the government will do its share by creating a policy framework that enables economic growth. The time now, he said, is to slog to implement the changes at the ground level. Jaitley sought the industry's support in implementing these changes.
Asian markets rose today, 7 April 2015, following overnight gains in US stocks. Key indices in Indonesia, Japan, China, Singapore, and Taiwan rose by 0.32% to 1.8%. South Korea's Kospi fell 0.01%.
Stock markets in Hong Kong remain closed today, 7 April 2015, for Ching Ming Festival.
Trading in US index futures indicates that the Dow Jones industrial average could gain 1 point at the opening bell today, 7 April 2015. US stocks rose yesterday, 6 April 2015, as the disappointing jobs data announced last week fed expectations that the Federal Reserve could wait longer before raising interest rates.
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