A range bound movement was witnessed as key benchmark indices retained positive zone in mid-morning trade. The gains for the benchmark indices were minuscule. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 32.15 points or 0.11% at 29,412.88.
Shares of insurance companies advanced after the Lok Sabha yesterday, 4 March 2015, passed the Insurance Laws (Amendment) Bill, 2015, that proposes to raise the foreign investment cap to 49% from 26% in the insurance sector. Pipavav Defence and Offshore Engineering Company (Pipavav Defence) was locked at 10% lower circuit after Reliance Infrastructure after market hours yesterday, 4 March 2015, inked a pact with the promoters of Pipavav Defence to acquire 18% stake in Pipavav Defence at Rs Rs 63 per share, a 17.65% discount to Pipavav Defence's closing price on BSE yesterday, 4 March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 2786.24 crore yesterday, 4 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 16.89 crore yesterday, 4 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher after previous trading session's small decline.
In overseas markets, Asian stock markets edged lower today, 5 March 2015, following a weak lead from Wall Street, and as China lowered its gross domestic product (GDP) growth target to 7% for 2015 from 7.5% last year.
At 11:15 IST, the S&P BSE Sensex was up 32.15 points or 0.11% at 29,412.88. The index gained 115.87 points at the day's high of 29,496.60 in early trade. The index fell 62.70 points at the day's low of 29,318.03 in morning trade.
The CNX Nifty was up 5.35 points or 0.06% at 8,928. The index hit a high of 8,949.05 in intraday trade. The index hit a low of 8,891.15 in intraday trade, its lowest level since 2 March 2015.
The BSE Mid-Cap index was up 76.65 points or 0.7% at 11,040.92. The BSE Small-Cap index was up 60.40 points or 0.53% at 11,442.05. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,174 shares advanced while 1,078 shares fell. A total of 91 shares remained unchanged.
Shares of insurance companies advanced after the Lok Sabha yesterday, 4 March 2015, passed the Insurance Laws (Amendment) Bill, 2015, that proposes to raise the foreign investment cap to 49% from 26% in the insurance sector. Among insurance stocks, Bajaj Finserv (up 6.3%), Exide Industries (up 1.05%), HDFC (up 0.68%), Religare Enterprises (up 0.6%), State Bank of India (up 0.07%), and Reliance Capital (up 0.35%) edged higher. Aditya Birla Nuvo (down 0.96%), Max India (down 0.41%), and ICICI Bank (down 1.32%) edged lower.
The Insurance Laws (Amendment) Bill, 2015 now faces its real test in the upper house of parliament viz. Rajya Sabha where the ruling Bharatiya Janata Party (BJP) is in a minority and is dependent on opposition parties to pass the legislation. The BJP-led NDA government has a commanding majority in the 543-member Lok Sabha with 334 seats, but is in a minority in the 245-seat Rajya Sabha, where it has just 57 members. The government had promulgated an ordinance last year for allowing higher foreign investment in the insurance sector after the opposition parties stalled the passage of the bill in Rajya Sabha.
GAIL (India) fell 1.37% at Rs 400.95. The stock hit a high of Rs 406 and a low of Rs 397.95 so far during the day. In a clarification with regard to news item titled "GAIL drops plan to set up Odisha LNG terminal", GAIL (India) during market hours today, 5 March 2015, said that in October 2013, GAIL had signed MoU with Paradip Port Trust for setting up an FSRU Project within the port limits of Paradip Port. GAIL has also assessed technical feasibility of the FSRU Project at Paradip. Thereafter, GAIL initiated the process of selecting a strategic partner by inviting 'Expression of Interest' (EOI) from interested parties for becoming a strategic partner in GAIL's FSRU Project at Paradip Port, Odisha. GAIL (India) said it has decided to undertake an evaluation of various opportunities in the setting up LNG importation facilities in Odisha and has accordingly, withdrawn the EOI process. However, GAIL continues to remain interested in participating in LNG importation project along the coast of Odisha and would be working towards that end, GAIL (India) said.
SpiceJet fell 0.68% at Rs 21.75. The stock hit a high of Rs 22.05 and a low of Rs 21.50 so far during the day. In a clarification with regard to news item titled "Spicejet says it has paid $10 m to three leasing companies", SpiceJet during market hours today, 5 March 2015, said that the company has recently paid outstanding lease rentals of $10 million to three lessors from whom the company has taken Boeing 737 aircraft on lease.
Pipavav Defence and Offshore Engineering Company (Pipavav Defence) was locked at 10% lower circuit at Rs 68.85. Reliance Infrastructure and Pipavav after market hours yesterday, 4 March 2015, announced that Reliance Infrastructure acquired Pipavav Defence with management control. Shares of Reliance Infrastructure were up 2.04% at Rs 484.60.
Reliance Infrastructure (RInfra) announced the acquisition of 18% stake in Pipavav Defence at Rs 819 crore from the promotes of the company. R-Infra has agreed to acquire 13 crore equity shares of Pipavav Defence at Rs 63 each, a 17.65% discount to Pipavav Defence's closing price on Wednesday, 4 March 2015. Reliance Defence Systems, a subsidiary of Reliance Infrastructure, will also make an open offer to acquire another 26% in Pipavav Defence at Rs 66 per share.
As per the agreement with the promoters of Pipavav Defence, RInfra will also acquire from them additional equity shares at Rs 63 per share to ensure that Reliance's shareholding is not less than 25.10%. Anil D Ambani, chairman, Reliance Group, will become the chairman of the company, which will be renamed Reliance Defence. Post the transaction, the existing promoters of Pipavav Defence will continue to retain a minority stake in the company, together with two non-executive board seats. As on 31 December 2014, promoters owned 44.50% stake in Pipavav Defence .
India's financial markets remain closed tomorrow, 6 March 2015, on account of Holi.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.24, compared with its close of 62.26 during the previous trading session.
Brent crude oil futures edged higher after previous trading session's small decline. Brent for April settlement was up 4 cents at $60.59 a barrel. The contract had declined 47 cents or 0.77% to settle at $60.55 a barrel during the previous trading session.
In overseas markets, Asian stocks edged lower today, 5 March 2015, following a weak lead from Wall Street, and as China lowered its gross domestic product (GDP) growth target to 7% for 2015, down from 7.5% last year. Key indices in China, Hong Kong, Taiwan, and Singapore were off 0.22% to 1.12%. Key indices in Japan, South Korea and Indonesia were up 0.13% to 0.51%.
Trading in US index futures indicated that the Dow could gain 10 points at the opening bell today, 5 March 2015. US stocks closed lower yesterday, 4 March 2015 amid a series of economic data that continued to show moderate growth ahead of today's key jobs report.
The US government is scheduled to announce US nonfarm payroll data for February 2015 tomorrow, 6 March 2015.
Most Federal Reserve districts reported a expanding economy and a prevailing sense of optimism, Fed's Beige Book survey showed yesterday, 4 March 2015. Jobs gained across a variety of sectors, though wage pressures were muted, according to the March summary of economic forecasts the Fed compiled in its Beige Book of indicators.
In Europe, a monthly monetary policy review from the European Central Bank is scheduled today, 5 March 2015.
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