A bout of volatility was witnessed in morning trade as key benchmark indices trimmed initial gains. The barometer index, the S&P BSE Sensex was currently up 124.14 points or 0.45% at 27,636.40. The market breadth indicating the overall health of the market was strong. The macro economic data announced after market hours yesterday, 12 August 2015, showing industrial production registered year-on-year growth of 3.8% in June 2015 and inflation based on the consumer price index (CPI) eased sharply last month to 3.78% from 5.4% in June 2015, have raised hopes that the Reserve Bank of India (RBI) may cut rates to strengthen economic growth. Firmness in Asian stocks also boosted sentiment.
Realty stocks rose after data showed industrial production registered year-on-year growth of 3.8% in June 2015 and inflation based on the consumer price index eased sharply last month to 3.78%. IT stocks advanced. HCL Technologies rose after the company said it has been appointed as the strategic IT partner to SAI Global.
In overseas markets, Asian stocks edged higher taking heart from a late recovery of US stocks overnight and from efforts by China's central bank to slow the sharp descent of the yuan. US stocks rebounded after a late recovery yesterday, 12 August 2015 after a early slide triggered by China weakening its currency again, spooking investors worried about a slowdown in the world's second-largest economy and its effects on global growth.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,855.02 crore yesterday, 12 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1223.80 crore yesterday, 12 August 2015, as per provisional data.
At 10:20 IST, the S&P BSE Sensex was up 124.14 points or 0.45% at 27,636.40. The index gained 278.84 points at the day's high of 27,791.10 in early trade. The index rose 106.08 points at the day's low of 27,618.34 in morning trade.
The CNX Nifty was up 32.45 points or 0.39% at 8,381.90. The index hit a high of 8,429.50 in intraday trade. The index hit a low of 8,339.75 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,321 shares gained and 822 shares fell. A total of 80 shares were unchanged.
The BSE Mid-Cap index was up 62.87 points or 0.56% at 11,279.21, outperforming the Sensex. The BSE Small-Cap index was up 39.32 points or 0.34% at 11,707.07, underperforming the Sensex.
Realty stocks rose after data showed industrial production registered year-on-year growth of 3.8% in June 2015 and inflation based on the consumer price index eased sharply last month to 3.78%. Sobha (up 1.35%), Indiabulls Real Estate (up 0.62%), Unitech (up 1.94%), Housing Development & Infrastructure (HDIL) (up 2.27%), Oberoi Realty (up 3.11%), and Godrej Properties (up 1.31%) edged higher.
DLF rose 2.05%. The company said that the company has on 11 August 2015, pursuant to a shelf information memorandum cum private placement offer letter and pricing supplement dated 10 August 2015, allotted 12.25% privately placed fully-paid non-convertible debentures of a principal amount of Rs 1000 crore, redeemable for cash at par in separate series within a period of 5 years from the date of allotment. These debentures are proposed to be secured by certain immovable assets of a wholly owned subsidiary of DLF, and are proposed to be listed on BSE, in accordance with the terms of applicable law, corporate approvals, transaction documents and other relevant considerations. The announcement was made after market hours yesterday, 12 August 2015.
IT stocks advanced. Tech Mahindra (up 1.21%), Infosys (up 1.16%), and Wipro (up 0.25%) edged higher. TCS fell 0.45%.
HCL Technologies rose after the company said it has been appointed as the strategic IT partner to SAI Global. The stock rose 1.51%. The announcement was made during market hours today, 13 August 2015. Under the terms of the five-year partner agreement, HCL Technologies will provide SAI Global with IT Managed Application Services and Projects. SAI Global is one of the world's leading risk management solutions providers, working with many of the largest companies around the globe.
Among macro economic data, industrial production registered year-on-year growth of 3.8% in June 2015, according to the data released by the Ministry of Statistics & Programme Implementation after trading hours yesterday, 12 August 2015. The cumulative growth in industrial production for the period April-June 2015 over the corresponding period of the previous year stands at 3.2%.
Due to a large base effect, inflation based on the consumer price index (CPI) eased sharply last month. CPI inflation eased to 3.78% in July 2015 from 5.4% in June 2015, according to the data released by the Ministry of Statistics & Programme Implementation after trading hours yesterday, 12 August 2015. Consumer Food Price Index (CFPI) eased to 2.15% in July 2015 from 5.48% in June 2015, the latest data showed.
The government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon tomorrow, 14 August 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. The WPI inflation stood at negative 2.4% in June 2015, unchanged from the level in May 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 12 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 12 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 12% below the LPA in East & Northeast India, 8% below the LPA in Central India and 2% above the LPA in Northwest India until 12 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.
Asian stocks edged higher today, 13 August 2015 taking heart from a late recovery of US stocks overnight and from efforts by China's central bank to slow the sharp descent of the yuan. Key indices in Hong Kong, South Korea, Indonesia, Japan and Singapore were up 0.25% to 1.38%. Key indices in China and Taiwan fell 0.09% to 0.62%.
China's central bank said today, 13 August 2015, that there is no basis for further depreciation in the yuan currency given strong economic fundamentals, in a bid to reassure jittery global financial markets after it devalued the currency earlier in the week. The People's Bank of China (PBOC) said that the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provide "strong support" to the exchange rate. China's yuan fell recent days after the PBOC shocked markets by pushing its official guidance rate down 2% on Tuesday, 11 August 2015 the sharpest adjustment in the history of China's foreign exchange market.
Japanese data released today, 13 August 2015, showed Japan's core machinery orders fell a greater-than-expected 7.9% in June, down for the first time in four months.
US stocks settled higher after a late recovery yesterday, 12 August 2015 from a early slide triggered by China weakening its currency again, spooking investors about a slowdown in the world's second-largest economy and its effects on global growth.
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