After languishing in negative zone in morning trade, key benchmark indices moved into positive zone in mid-morning trade. The market breadth indicating the overall health of the market turned positive from negative in mid-morning trade. The 50-unit CNX Nifty was currently hovering above the psychological 8,000 mark, having alternately moved above and below that mark in intraday trade so far. Earlier, the Nifty had fallen below the psychological 8,000 mark in early trade. The Nifty had settled just a tad above the psychological 8,000 mark after registering modest gains during the previous trading session on Friday, 28 August 2015. The barometer index, the S&P BSE Sensex, was currently up 20.12 points or 0.08% at 26,412.50.
Bank stocks rose after the Reserve Bank of India released quarterly statistics on deposits and loans of commercial banks. Shares of public sector oil marketing companies (PSU OMCs) edged higher as global crude oil prices fell.
In overseas markets, Asian stocks edged lower after Federal Reserve Vice Chairman Stanley Fischer kept the door open for an interest rate hike in September at the US central bank's annual Jackson Hole conference. US stocks ended on a mixed note during the previous trading session on Friday, 28 August 2015, as fears about a global economic slowdown due to China tested sentiment.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 56.41 crore during the previous trading session on Friday, 28 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 847.43 crore on Friday, 28 August 2015, as per provisional data released by the stock exchanges.
At 11:16 IST, the S&P BSE Sensex was up 20.12 points or 0.08% at 26,412.50. The index gained 77.04 points at the day's high of 26,469.42 in opening trade. The index fell 166.67 points at the day's low of 26,225.71 in morning trade, its lowest level since 27 August 2015.
The CNX Nifty was up 10.80 points or 0.13% at 8,012.75. The index hit a high of 8,017.95 in intraday trade. The index hit a low of 7,954.30 in intraday trade, its lowest level since 27 August 2015.
The market breadth indicating the overall health of the market turned positive from negative in mid-morning trade. On BSE, 1,138 shares gained and 988 shares declined. A total of 74 shares were unchanged.
The BSE Mid-Cap index was up 58.97 points or 0.55% at 10,818.38. The BSE Small-Cap index was up 38.04 points or 0.35% at 11,030.86. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 748 crore by 11:15 IST compared with turnover of Rs 451 crore by 10:15 IST.
Bank stocks rose after the Reserve Bank of India released quarterly statistics on deposits and loans of commercial banks. Among private bank stocks, Kotak Mahindra Bank (up 0.88%), ICICI Bank (up 0.05%), Axis Bank (up 0.9%), IndusInd Bank (up 0.79%), Yes Bank (up 2.78%) and HDFC Bank (up 0.04%) rose.
Among PSU bank stocks, Punjab National Bank (up 2.16%), Bank of Baroda (up 1.89%), Canara Bank (up 2.64%), State Bank of India (SBI) (up 0.32%), IDBI Bank (up 3.25%), Bank of India (up 3.46%) and Union Bank of India (up 3.83%) gained.
Growth in aggregate deposits and gross bank credit decelerated to 10.6% and 8.6%, respectively, as on 26 June 2015, from 11.9% and 12.9%, respectively, a year ago. The deceleration was broad based and observed across all population groups, the RBI said. The all India credit-deposit (C-D) ratio was 75.8% as on 26 June 2015.
State Bank of India (SBI) and associates, Regional Rural Banks (RRBs) and private sector banks witnessed accelerated growth in aggregate deposits in June 2015 over the year ago. In the case of credit, private sector banks and foreign banks improved their growth rate in June 2015 over the year ago. However, credit growth for the private sector banks was lower in June 2015 than in the preceding quarter. Public sector banks accounted for the largest share of 72.5% in aggregate deposits and 70.4% in gross bank credit, followed by private sector banks with 19.8% share of aggregate deposits and 20.6% share of gross bank credit as on 26 June 2015.
Shares of public sector oil marketing companies (PSU OMCs) edged higher as global crude oil prices fell. BPCL (up 2.04%), HPCL (up 0.06%) and Indian Oil Corporation (up 1.15%) edged higher. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
In the global commodities markets, Brent crude oil futures edged lower amid concerns the latest rally in the oil prices would be difficult to sustain. Brent for October settlement was currently off 72 cents at $49.33 a barrel. The contract had gained $2.49 a barrel or 5.23% to settle at $50.05 a barrel on Friday, 28 August 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 66.3150, compared with closing of 66.1675 during the previous trading session.
On the macro front, the government will release the data on gross domestic product (GDP) for Q1 June 2015 at 17:30 IST today, 31 August 2015. India's GDP grew 7.5% in Q4 March 2015 over Q4 March 2014.
Meanwhile, investors continue to watch the performance of the monsoon rains which will have a bearing on food prices and rural income. India's weather office India Meteorological Department (IMD), said in a daily report issued yesterday, 30 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 12% below the Long Period Average (LPA) until 30 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 15% below the LPA in Central India, 9% below the LPA in Northwest India and 4% below the LPA in East & Northeast India until 30 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Prime Minister Narendra Modi on Sunday, 30 August 2015, said in his monthly radio address Mann Ki Baat that the land ordinance will not be reissued. The ordinance, first issued in December and repromulgated thrice, lapses on 31 August 2015.
In overseas markets, Asian stocks edged lower today, 31 August 2015, after Federal Reserve Vice Chairman Stanley Fischer kept the door open for an interest rate hike in September at the US central bank's annual Jackson Hole conference. Key benchmark indices in Singapore, Taiwan, Japan and South Korea fell by 0.36% to 1.95%. In Indonesia, the Jakarta Composite rose 0.78%.
Chinese stocks fell on media reports that China will avoid massive share purchases after an over $200 million two-month spree to support stocks, which sparked concerns about another round of a stock market sell-off. In mainland China, the Shanghai Composite fell 2.61%. In Hong Kong, the Hang Seng index was off 0.77%.
Japan's industrial output unexpectedly fell in July, trade ministry data showed today, 31 August 2015. The 0.6% decline in output in July follows a 1.1% rise in June. Output fell in July as companies produced less smartphone parts, computers and cars, the data showed.
Trading in US index futures indicated that the Dow could slide 167 points at the opening bell today, 31 August 2015. US stocks ended on a mixed note on Friday, 28 August 2015, as fears about a global economic slowdown due to China tested sentiment.
Over the weekend, Federal Reserve Vice Chairman Stanley Fischer said at the Kansas City Fed's annual retreat in Jackson Hole that there is "good reason" to expect inflation to rise and stabilize as the American economy grows stronger.
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