IT stocks led modest gains for key benchmark indices. However, a decline in banking stocks pulled benchmark indices off the day's high. Benchmark indices hovered in green throughout the trading session today, 5 August 2015. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was provisionally up 130.69 points or 0.47% at 28,202.62. Realty stocks edged higher on renewed buying. In overseas markets, Asian and European stocks edged higher after the outcome of a monthly survey showed that China's services sector showed continued strength in July.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks as these two key benchmark indices extended intraday gains in mid-afternoon trade.
Meanwhile, Taiwanese electronics giant Foxconn said yesterday, 4 August 2015, that the company is considering setting up manufacturing facilities in India.
Meanwhile, the outcome of a monthly survey released today, 5 August 2015, showed that India's services sector activity rose last month, primarily in response to a renewed increase in new business.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 118.70 crore yesterday, 4 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 112.55 crore yesterday, 4 August 2015, as per provisional data released by the stock exchanges
In overseas markets, European stocks edged higher, tracking gains in Asia, on the back of some robust data on China's services sector. Asian stocks edged higher after the outcome of a monthly survey showed that China's services sector showed continued strength in July. US stocks edged lower yesterday, 4 August 2015, after Federal Reserve Bank of Atlanta President Dennis Lockhart said the economy is ripe for a rise in short-term interest rates.
As per provisional closing, the S&P BSE Sensex was up 130.69 points or 0.47% at 28,202.62. The index jumped 243.78 points at the day's high of 28,315.71 in mid-afternoon trade, its highest level since 24 July 2015. The index rose 63.75 points at the day's low of 28,135.68 at the onset of the trading session.
The CNX Nifty was up 51.05 points or 0.6% at 8,567.95. The index hit a high of 8,591.85 in intraday trade, its highest level since 23 July 2015. The index hit a low of 8,545.85 in intraday trade.
The market breadth indicating the overall health of the market was positive on BSE. 1,770 shares gained and 1,183 shares fell. A total of 110 shares were unchanged.
The BSE Mid-Cap index was up 87.23 points or 0.76% at 11,544.46. The BSE Small-Cap index was up 114.87 points or 0.96% at 12,136.01. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 4479 crore, higher than turnover of Rs 4468.92 crore registered during the previous trading session.
IT stocks were in demand on renewed buying. TCS (up 1.34%), Infosys (up 2.64%), Wipro (up 2.74%), HCL Technologies (up 0.37%) and Tech Mahindra (up 1.96%) gained.
Realty stocks edged higher on renewed buying. DLF (up 6.12%), Indiabulls Real Estate (up 4.57%), Housing Development and Infrastructure (up 4.08%), D B Realty (up 4.37%), Unitech (up 4.95%), Sobha (up 0.2%), Godrej Properties (up 0.77%), Oberoi Realty (up 0.33%) and Parsvnath Developers (up 2.94%) gained.
Meanwhile, Taiwanese electronics giant Foxconn said yesterday, 4 August 2015, that the company is considering setting up manufacturing facilities in India. Foxconn Chairman Terry Gou reportedly said at a news conference in New Delhi yesterday, 4 August 2015, that Foxconn intends to set up manufacturing facilities for producing televisions, routers, switches, storage equipment and batteries among other devices in India. Foxconn is the world's largest contract electronics manufacturer by revenue.
Meanwhile, the outcome of a monthly survey released today, 5 August 2015, showed that India's services sector activity rose last month, primarily in response to a renewed increase in new business. The seasonally adjusted Nikkei Services Business Activity Index rose back above the 50 no-change mark in July, posting 50.8 from 47.7 in June. Although growing for the first time in three months, the expansion in new business was slight. The upturn in incoming new work led Indian service providers to take on additional workers in July. Although slight, the rate of job creation was the quickest in two years. While contrasting with continued marginal job shedding in the manufacturing sector, the rise in services employment was enough to result in higher staffing levels overall. Rates charged by service providers to their users rose for the 8th month in a row in July. Nonetheless, the latest increase was only marginal. Anecdotal evidence suggests that strong competitive pressures had weighed on service providers' pricing power. Confidence among Indian services firms deteriorated in July. Although companies remained optimistic on average, the level of positive sentiment dipped to a survey low.
Meanwhile, the Reserve Bank of India (RBI) Governor Dr. Raghuram G. Rajan indicated in his written monetary policy statement yesterday, 4 August 2015, that monetary policy could be eased further if there is greater monetary policy transmission by way of cut in base rate by commercial banks. The RBI kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy yesterday, 4 August 2015, while retaining the accommodative stance of monetary policy.
Meanwhile, India's weather office, the India Meteorological Department (IMD) said in a daily report issued yesterday, 4 August 2015, that the Southwest Monsoon was active over Madhya Pradesh, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 4 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, 6% below the LPA in Central India and 6% above the LPA in Northwest India until 4 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.
In overseas markets, European stocks edged higher today, 5 August 2015, tracking gains in Asia, on the back of some robust data on China's services sector. Key benchmark indices in UK, France and Germany were up by 0.2% to 1.19%.
In Greece, the Athex Composite was off 3.67%. Both Greece and its lenders reportedly said yesterday, 4 August 2015, that they were optimistic they could broker a deal within days on a multi-billion euro bailout. A bailout worth up to 86 billion euros ($94.5 billion) must be settled by 20 August 2015 -- or a second bridge loan agreed -- if Greece is to pay off debt of 3.5 billion euros to the European Central Bank (ECB) that matures on that day, reports suggested.
Asian stocks edged higher today, 5 August 2015, after the outcome of a monthly survey showed that China's services sector showed continued strength in July. Key benchmark indices in Taiwan, South Korea, Hong Kong, Singapore, Japan and Indonesia were up 0.01% to 1.45%.
In mainland China, the China's Shanghai Composite lost 1.65%. The tepid performance of the mainland market follows Chinese authorities' moves to clamp down on short selling early this week.
Activity in China's services sector expanded at its fastest pace in 11 months in July, thanks to stronger new business, a private survey showed today, 5 August 2015. The services Purchasing Managers' Index (PMI) compiled by Caixin/Markit rose to 53.8 in July from June's 51.8. The July level is the highest since August 2014 and marks a 12th straight month of expansion. A reading above 50 points indicates growth on a monthly basis, while one below that points to a contraction. A government measure of services and construction, known as the official nonmanufacturing PMI, was also strong in July, rising to 53.9 from 53.8 in June, according to government data released on 1 August 2015.
US stocks edged lower yesterday, 4 August 2015, after Federal Reserve Bank of Atlanta President Dennis Lockhart said the economy is ripe for a rise in short-term interest rates.
The influential monthly US nonfarm payroll report for July 2015 is due on Friday, 7 August 2015. The report will be scrutinized for clues to the strength of the labor-market recovery. The ADP employment report, considered a precursor to the nonfarm data, is due later in the global day today, 5 August 2015. Investors have been parsing economic data, from inflation to wages, for clues about when the Fed might raise rates.
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