Key benchmark indices may open with strong gains tracking firm Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 65.40 points at the opening bell. Domestic data showing rebound in industrial production in February and easing of consumer price inflation in March may also support gains on the bourses. The India Meteorological Department (IMD) in its release of the long range forecast for the 2016 southwest monsoon predicted above normal monsoon this year. The stock market will remain shut tomorrow, 14 April 2016, on account of Dr. Baba Saheb Ambedkar Jayanti and again on Friday, 15 April 2016, on account of Ram Navami.
In overseas stock markets, Asian stocks gained as rising crude prices buoyed energy producers and a weaker Japanese currency boosted shares in Tokyo. US stocks gained yesterday, 12 April 2016 led by energy companies after news reports said Saudi Arabia and Russia were working toward an agreement to cut oil production. Investors also worked through the initial batch of earnings from the first quarter of the year.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 307.72 crore yesterday, 12 April 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 61.74 crore yesterday, 12 April 2016, as per provisional data.
The India Meteorological Department (IMD) in its release of the long range forecast for the 2016 southwest monsoon season rainfall yesterday, 12 April 2016 said that the monsoon seasonal rainfall during the forthcoming monsoon is likely to be 106% of the Long Period Average (LPA) with a model error of 5%. The LPA of the seasonal rainfall over the country as a whole for the period 1951-2000 is 89 cm.
Among macro data, industrial production (IIP) rebounded 2% in February 2016 over February 2015, while snapping consistent decline for last three straight months. The mining output posted healthy 5.0% growth, while electricity generation improved 9.6% contributing to the overall growth in industrial output in February 2016. The output of the manufacturing sector also improved 0.7% in February 2016.
The inflation data based on consumer price index (CPI) dipped to six months low of 4.83% in March 2016, while recording decline for second straight month. The CPI inflation had stood at 5.26% in February 2016, which is revised from the provisional figure of 5.18% released last month. CPI and IIP data were announced after market hours yesterday, 12 April 2016.
Among corporate news, L&T announced that its subsidiary Larsen & Toubro Infotech (L&T Infotech) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) yesterday, 12 April 2016 in order to undertake an initial public offer (IPO) of its equity shares of face value of Re 1 each. The offer comprises of an offer for sale (OFS) of up to 1.75 crore equity shares by L&T. The announcement was made after market hours yesterday, 12 April 2016.
Mahindra & Mahindra (M&M) announced that credit rating agency ICRA has reaffirmed its rating of [ICRA] AAA (stable) and [ICRA] A1+ for non-convertible debenture programme and bank facilities of the company. The announcement was made after market hours yesterday, 12 April 2016.
Auto and FMCG stocks led gains for key benchmark indices yesterday, 12 April 2016 after private weather forecaster Skymet forecast above normal southwest monsoon rainfall during June-September 2016. The barometer index, the S&P BSE Sensex, rose 123.43 points or 0.49% to settle at 25,145.59.
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