After holding positive zone in morning trade, key benchmark indices reversed direction and slipped into the red mid-morning trade. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently off 34.90 points or 0.12% at 29,424.24. Brent crude oil prices witnessed a steep slide overnight which augurs well for India.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after a steep slide in Brent crude oil prices overnight. Shares of oil exploration and production (E&P) companies were mixed. Jubilant Life Sciences advanced after the company received final approval from the US Food & Drug Administration for generic Montelukast Sodium chewable tablets used in the treatment of asthma.
Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty, Finance Minister Arun Jaitley reportedly said yesterday, 2 March 2015. Jaitley used China as the example of what high growth rates can do over a decades-long period.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 424.79 crore yesterday, 2 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 180.35 crore yesterday, 2 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 sharp slump. Decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
In overseas markets, Asian stock markets were mixed. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attained record closing high as investors brushed off slightly disappointing economic data.
At 11:25 IST, the S&P BSE Sensex was down 34.90 points or 0.12% at 29,424.24. The index gained 71.55 points at the day's high of 29,530.69 in morning trade. The index slipped 94.27 points at the day's low of 29,364.87 in early trade.
The 50-unit CNX Nifty was down 15.55 points or 0.17% at 8,941.20. The index hit a high of 8,969.80 in intraday trade. The index hit a low of 8,925.55 in intraday trade.
The BSE Mid-Cap index was up 55.66 points or 0.51% at 11,008.59. The BSE Small-Cap index was up 94.79 points or 0.83% at 11,465.59. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,332 shares gained and 1,001 shares fell. A total of 108 shares were unchanged.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after a steep slide in Brent crude oil prices overnight. HPCL (up 0.44%) and Indian Oil Corporation (up 1.01%) edged higher. BPCL (down 0.4%) edged lower. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Shares of oil exploration & production (E&P) companies were mixed. Reliance Industries (up 1.93%) and ONGC (up 0.22%) edged higher. Oil India (down 0.68%) and Cairn India (down 1.53%) edged lower. Decline in crude oil prices will reduce realizations from crude sales for oil exploration firms.
Tata Power Company fell 0.17% at Rs 85.85. The stock hit a high of Rs 86.75 and a low of Rs 85.55 so far during the day. Tata Power during market hours today, 3 March 2015, said that the company has successfully commissioned 63 megawatts (MW) sized Unit 1 of its 126 MW Daguchhu Hydro project in Bhutan. This project is in line with Tata Power's commitment to commission 120 MW of new hydro power project this year as part of the centenary year celebration theme of Invisible Goodness, and is the first cross border project registered under UNFCCCI's Clean Development Mechanism (CDM), Tata Power said in a statement.
The Dagacchu project is a joint venture (JV) initiative between Tata Power and Druk Green Power Corporation, owned by Royal Government of Bhutan (RGoB) and National Pension & Provident Fund of Bhutan. Dagacchu Hydro Power Corporation has entered into a 25-year power purchase agreement (PPA) with Tata Power Trading Company (TPTCL) for sale of power from the project. The power generated from the project shall be sold by TPTCL in the Indian power market, Tata Power said in a statement.
Ranbaxy Laboratories rose 1.44% at Rs 733.15. In a clarification with regard to news item titled "Ranbaxy loses drug pleas in US", Ranbaxy during market hours today, 3 March 2015, said that a US court has retained status quo that USFDA had created by rescinding Ranbaxy's tentative approvals and forfeiting 180-day exclusivity for Ranbaxy for Valganciclovir and Esomeprazole.
Jubilant Life Sciences (JLL) rose 4.52% at Rs 166.50. JLL after market hours yesterday, 2 March 2015, said that the company has received final approval from the US Food & Drug Administration (USFDA) for generic Montelukast Sodium chewable tablets used in the treatment of asthma. The total market size for the drug is $83 million per annum in United States.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.845, compared with its close of 61.87 during the previous trading session.
Brent crude oil futures edged higher after previous trading session's sharp slump. Brent for April settlement was up 96 cents at $60.50 a barrel. The contract had slumped $3.04 a barrel or 4.85% to settle at $59.54 a barrel during the previous trading session.
Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty, Finance Minister Arun Jaitley reportedly said yesterday, 2 March 2015. Jaitley used China as the example of what high growth rates can do over a decades-long period.
Meanwhile, data released by the government after trading hours yesterday, 2 March 2015, showed that the index of Eight Core Infrastructure Industries rose at moderate pace of 1.8% January 2015, compared with 2.4% growth recorded in December 2014. Meanwhile, the cumulative growth stood at 4.1% in April-January 2014-15.
Asian stock markets were mixed today, 3 March 2015. Key indices in China, Japan, and Taiwan were off 0.15% to 1.3%. Key indices in Hong Kong, Singapore, South Korea, and Indonesia were up 0.05% to 0.7%.
The Reserve Bank of Australia (RBA) today, 3 March 2015, left the official cash rate on hold at 2.25%. Most economists were expecting a cut.
Trading in US index futures indicated that the Dow could fall 7 points at the opening bell today, 3 March 2015. US stocks closed higher yesterday, 2 March 2015, with the Nasdaq above the psychologically key level of 5,000 for the first time since March 2000 and the Dow and S&P 500 at records as investors cheered US economic data and an interest rate cut in China.
Outlays for US construction projects declined 1.1% in January to a seasonally adjusted annual rate $971.4 billion, led by public spending, the US Commerce Department said yesterday, 2 March 2015.
In Europe, Greece is reportedly preparing to tap its final pension reserves at the country's central bank if needed to avert a devastating default to the International Monetary Fund (IMF) and keep the government going over the next two weeks.
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