Key benchmark indices provisionally closed higher as firmness in overseas markets supported gains on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 73.25 points or 0.3% at 24,791.24, as per the provisional closing data. The 50-unit Nifty 50 index gained 20.80 points or 0.28% at 7,531, as per the provisional closing data. The two key benchmark indices gained for the second day in a row.
After opening higher, key indices hovered in positive zone throughout the trading session. The Sensex gained 16.05 points or 0.06% at the day's low of 24,734.04 in late trade. The barometer index hit six-week high when it rose 242.52 points or 0.98% at the day's high of 24,960.51 in early trade. The Nifty gained 4.85 points or 0.06% at the day's low of 7,515.05 in late trade. The index hit six-week high when it rose 73.50 points or 0.97% at the day's high of 7,583.70 in early trade.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,339 shares fell and 1,315 shares rose. A total of 172 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.31%. The BSE Small-Cap index provisionally gained 0.41%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks edged higher in the aftermath of aggressive easing measures announced by the European Central Bank last week. Earlier during the global day, Asian stocks moved higher on expectations of further stimulus from policy makers in China. In mainland China, the Shanghai Composite ended 1.75% higher. In Hong Kong, the Hang Seng index settled 1.17% higher. In Japan, the Nikkei Average settled 1.74% higher. The Bank of Japan's (BOJ) two-day policy meeting begins today, 14 March 2016. The BOJ is seen holding policy rate steady after adopting negative interest rates at its meeting in late January.
US stocks jumped on Friday, 11 March 2016, in a rally largely fueled by a rebound in oil prices. The US Federal Reserve's crucial two-day monetary policy meeting begins tomorrow, 15 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
The total turnover on BSE amounted to Rs 4089 crore, higher than turnover of Rs 2419.55 crore registered during the previous trading session.
Asian Paints declined 0.17%. The company has approved the appointment of TSR Darashaw as the Registrar & Transfer Agent (R&TA) of the company from 1 April 2016, in place of Sharepro Services (India), the existing R&TA. Asian Paints had announced earlier this month that it had filed First Information Report (FIR) with the Police department against Sharepro Services (India) and its employees after discovering certain irregularities at Sharepro with respect to share transfer operations and dividend encashment activities. Asian Paints had issued a termination notice to Sharepro for the termination of Registrar & Transfer Agent services with effect from 1 April 2016.
Bharat Heavy Electricals (Bhel) rose 1.88% after the company announced that it has successfully synchronised the 110 megawatts (MW) unit-7 at Barauni Thermal Power Station in Bihar following renovation and modernisation. Following the renovation and modernisation, the working life of the machine that was first commissioned in May 1985 has been extended by another 15-20 years. The announcement was made during market hours today, 14 March 2016.
Index heavyweight and cigarette maker ITC gained 0.83% to Rs 323.75. The stock hit high of Rs 323.95 and low of Rs 321.25 in intraday trade.
Index heavyweight Reliance Industries (RIL) rose 0.29% to Rs 1,018.55. The stock hit high of Rs 1,026 and low of Rs 1,013 in intraday trade.
Commercial vehicles manufacturer Tata Motors gained 3.36% to Rs 365.90. The stock hit high of Rs 370.25 and low of Rs 359 in intraday trade.
Coal India dropped 6.96% to Rs 296.85 as the stock turned ex-dividend today, 14 March 2016, for interim dividend of Rs 27.40 per share for the year ending 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 8.58% based on the closing price of Rs 319.05 on Friday, 11 March 2016.
Cupid surged 9.98% after the company said it has secured a non-exclusive long term contract for manufacture and supply of Cupid female condoms to United Nations Population Fund for a period of 3 years. The announcement was made after market hours on Friday, 11 March 2016.
On macroeconomic front, data announced during market hours today, 14 March 2016, showed that inflation based on wholesale price index (WPI) stood at negative 0.91% in February 2016 as compared to a reading of negative 0.9% (provisional) in January 2016. Build up inflation rate in the financial year so far was minus 1.19% compared to a build up rate of minus 2.61% in the corresponding period of the previous year. For December 2015, WPI was revised to minus 1.06% as compared to minus 0.73% reported earlier.
Meanwhile, the data announced after market hours on Friday, 11 March 2016, showed that industrial production declined for the third straight month, registering a fall of 1.5% in January 2016 over January 2015. The output of the manufacturing sector declined 2.8% in January 2016, contributing to the decline in industrial production. Meanwhile, the mining sector output improved 1.2%, while the electricity generation also galloped 6.6% in January 2016.
Reserve Bank of India (RBI) Governor Raghuram Rajan on Saturday, 12 March 2016, said that the central bank's inflation-focused monetary framework would be strengthened by the constitution of the monetary policy committee (MPC) mooted in the Finance Bill 2016. Currently, the RBI governor decides key interest rates. Rajan's comments on MPC come after Finance Minister Arun Jaitley said in his speech on Union Budget 2016-17 on 29 February 2016 that the RBI Act 1934 is being amended to provide statutory basis for a Monetary Policy Framework and a Monetary Policy Committee through the Finance Bill 2016. Not only will a committee aggregate multiple views better than an individual can, it will offer more continuity and be less subject to undue pressure, Rajan said speaking at the First Ramnath Goenka Memorial Lecture in New Delhi.
Rajan also welcomed fiscal prudence, emphasis on capital spending and structural reforms in the agriculture sector in the Union Budget 2016-17. Rajan attributed the slowdown in India's international trade mainly to a fall in commodity prices and to some extent to a fall in trade volumes.
Rajan said the RBI has steadily expanded investment limits for foreign investors in government bonds and it will continue to do so. While making a case for attracting stable capital flows, Rajan said that the central bank intends to continuously ease both entry and exit norms for foreign investors.
Powered by Capital Market - Live News
