Gains in IT stocks and index heavyweights Reliance Industries and HDFC led rally as 50-unit CNX Nifty hit record high above the psychological 9,000 level. The Nifty hit 9,000 level for the first time in its history. The index settled a tad below that after surpassing that level in late trade. On closing basis, Nifty achieved another record high. The barometer index, the S&P BSE Sensex, attained its highest closing level in almost five weeks. The market breadth indicating the overall health of the market was positive.
The Sensex rose 134.59 points or 0.46% to settle at 29,593.73. The BSE Small-Cap index rose 1.18%. The BSE Mid-Cap index rose 1.39%. Both these indices outperformed the Sensex. Brent crude oil prices witnessed a steep slide overnight which augurs well for India. European stocks edged higher after better-than-expected economic data from Germany and Spain.
Key benchmark indices edged higher for fourth day in a row today, 3 March 2015.
IT stocks edged higher on renewed buying. Index heavyweight Reliance Industries (RIL) surged after the company after market hours yesterday, 2 March 2015, in a disclosure to BSE said that Life Insurance Corporation of India (LIC) has raised its stake in the company. Coal India dropped on turning ex-dividend today, 3 March 2015. L&T advanced after the company said that its construction division secured orders worth Rs 2215 crore across various business segments over the last two months.
FMCG stocks edged higher. Index heavyweight and cigarette major ITC edged lower in volatile trade. Among pharma stocks, Cipla scaled record high.
Key indices witnessed intraday volatility during the second half of the trading session after a range bound movement earlier during the trading session.
Meanwhile, Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty. Reserve Bank of India Governor Raghuram Rajan said that the central bank could not afford to cut interest rates to reduce foreign flows into the country because of high inflation, according to a media report.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 468.79 crore from the secondary equity market yesterday, 2 March 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 180.35 crore yesterday, 2 March 2015, as per provisional data released by the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher after previous trading session's sharp slump. Decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. 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. India imports 80% of its crude oil requirement.
In overseas markets, European stock markets edged higher after better-than-expected economic data from Germany and Spain. Asian stock markets were mixed. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attaining record closing high as investors brushed off slightly disappointing economic data.
The S&P BSE Sensex rose 134.59 points or 0.46% to settle at 29,593.73, its highest closing level since 29 January 2015. The index jumped 177.72 points at the day's high of 29,636.86 in late trade. The index slipped 94.27 points at the day's low of 29,364.87 in early trade.
The 50-unit CNX Nifty rose 39.50 points or 0.44% at 8,996.25, a record closing high for the index. The index hit a high of 9,008.40 in intraday trade, a lifetime high for the index. The index hit a low of 8,925.55 in intraday trade.
The BSE Mid-Cap index rose 128.90 points or 1.18% to settle at 11,081.83. The BSE Small-Cap index rose 158.09 points or 1.39% to settle at 11,528.89. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,667 shares gained and 1,176 shares fell. A total of 143 shares were unchanged.
The total turnover on BSE amounted to Rs 4199 crore, lower than Rs 4647.93 crore during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (up 2.21%), the S&P BSE IT index (up 1.45%), the S&P BSE Healthcare index (up 1.33%), the S&P BSE Teck index (up 1.27%) and the S&P BSE Consumer Durables index (up 0.59%) outperformed the Sensex.
The S&P BSE Capital Goods index (up 0.37%), the S&P BSE FMCG index (up 0.3%), the S&P BSE Power index (up 0.26%), the S&P BSE Bankex (down 0.27%), the S&P BSE Metal index (down 0.65%), the S&P BSE Auto index (down 0.86%), and the S&P BSE Realty index (down 1.19%) underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) surged after the company after market hours yesterday, 2 March 2015, in a disclosure to BSE said that Life Insurance Corporation of India (LIC) has raised its stake in the company. The stock rose 4.32% at Rs 901. The stock hit high of Rs 906.50 and a low of Rs 867.40. LIC, India's biggest institutional investor, has raised its stake in RIL to 9.084% from 6.987% through acquisition of additional shares via open market purchases. LIC acquired additional 6.78 crore shares of RIL through open market purchases during the period from 23 January 2010 and 28 February 2015. As per RIL's shareholding pattern as on 31 December 2014, LIC's holding in RIL stood at 8.67% as on 31 December 2014.
Indian Oil Corporation (IOC) rose 1.63%. With respect to media reports titled IOC director--designate Debangshu Ray suspended over info leak, IOC during market hours today, 3 March 2015, clarified that Debangsu Ray, who was General Manager (International Trade) at the company's corporate office, New Delhi, was suspended on 27 February 2015 in accordance with the conduct, discipline and appeal rules of the company. The matter is under investigation, IOC said. Ray was not a director on the board of IOC nor any communication for his appointment on the board was received from the Government of India, the company said.
Housing finance major and index heavyweight HDFC rose 2.14% to Rs 1,366.75. The stock hit high of Rs 1,370 and low of Rs 1,343.40.
Shares of insurance companies advanced on reports the government introduced Insurance Bill in Lok Sabha today, 3 March 2015. Reliance Capital (up 3.58%), Religare Enterprises (up 4.16%), Bajaj Finserv (up 2.34%), Max India (up 0.91%), and Aditya Birla Nuvo (up 1.41%) edged higher. Exide Industries fell 0.25%.
The Insurance Bill intends to raise foreign investment in the insurance sector to 49% from 26%. The Bill will replace the Ordinance issued last year.
Bank stocks were mixed after a committee set up by Reserve Bank of India (RBI) suggested a sub-target of 8% per cent of adjusted net bank credit (ANBC) for small and marginal farmers to be achieved in a phased manner while retaining the target of 18% of ANBC for agriculture credit and overall target of 40% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher, for priority sector lending.
Among PSU banks, IDBI Bank (up 10.53%), Oriental Bank of Commerce (up 6.11%), Bank of Baroda (up 3.48%), Allahabad Bank (up 1.61%), Canara Bank (up 3.05%), State Bank of India (up 0.36%), Punjab National Bank (up 2.56%), Union Bank of India (up 2.22%), Bank of India (up 2.12%), Indian Overseas Bank (up 2.04%), and Andhra Bank (up 1.69%) edged higher.
Shares of private sector banks declined. Axis Bank (down 2.16%), ING Vysya Bank (down 0.68%), Yes Bank (down 0.44%), IndusInd Bank (down 0.69%), ICICI Bank (down 0.09%), HDFC Bank (down 0.18%) edged lower. Kotak Mahindra Bank rose 0.27%.
An Internal Working Group set up by the Reserve Bank of India (RBI) to review the existing priority sector lending guidelines in a report released yesterday, 2 March 2015, also suggested that more flexibility should be given to banks to lend the remaining 10% of the overall 18% agriculture loan target to other farmers, agricultural infrastructure and ancillary activities. To give a fillip to agri-infrastructure and agri-processing, no caps on loan limits have been stipulated.
The committee has suggested that in addition to micro and small enterprises, medium enterprises be included within the ambit of priority sector lending. To ensure that the micro enterprises are not crowded out, a sub-target of 7.5% for micro enterprises has been recommended, which is to be achieved in a phased manner. The committee has suggested that loan to sanitation, health care and drinking water facilities and renewable energy should come under the priority sector ambit. It has also suggested that incremental loans made to exports, with certain ceilings, should come under the priority sector ambit.
The committee has recommended introduction of priority sector lending certificates (PSLCs) which will enable banks to meet their priority sector lending requirements even while leveraging their comparative advantage in lending.
Index heavyweight and cigarette major ITC edged lower in volatile trade. The stock was off 0.73% at Rs 340.80. The stock hit high of Rs 345.50 and low of Rs 339. Shares of ITC had tumbled recently after Finance Minister Arun Jaitely in the Union Budget 2015-16 announced on Saturday, 28 February 2015, raised excise duty on cigarettes.
Shares of FMCG firms advanced. Britannia Industries (up 1.93%), Emami (up 2.27%), Marico (up 2.61%), Colgate-Palmolive (India) (up 1.72%), Dabur India (up 0.25%), and Nestle India (up 1.64%) edged higher. Hindustan Unilever shed 0.42%.
Godrej Consumer Products (GCPL) rose 3.19%. GCPL after market hours yesterday, 2 March 2015, said that the company has completed the acquisition of 100% of the business of Frika Hair (Pty) in South Africa.
Bharti Airtel slipped 0.11%. Bharti Airtel during market hours today, 3 March 2015, announced a strategic collaboration with China Mobile under which the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Airtel and China Mobile will also work towards shaping up a joint strategy for procurement of devices that include Mifi, smartphones, data cards, LTE CPEs and USIM, Bharti Airtel said in a statement.
Bharti Airtel and China Mobile will work together for understanding and sharing testing and validation practices (including network equipment, features and new releases etc.) and also jointly conduct proof of concepts as well as trials. China Mobile and Airtel will also aim to bring in cost efficiencies by driving synergies in their procurement strategies, among other collaborative efforts included in this MoU agreement.
Meanwhile, with respect to media reports titled Airtel, Ericsson extend services deal, Bharti Airtel after market hours today, 3 March 2015, clarified that it is a routine ordinary course of business transaction wherein the company has renewed its existing agreement with Ericsson. The transaction does not have any material or significant impact on the operations of the company, Bharti Airtel said.
Reliance Communications (RCom) rose 0.3%. RCom during market hours today, 3 March 2015, said that Fitch Ratings (Fitch) has assigned a long-term foreign- and local-currency issuer default ratings (IDR) of 'BB-' (Stable Outlook) to the company. RCom also said that Moody's Investors Services (Moody's) has assigned a corporate family rating (CFR) of Ba3 (Stable Outlook) to the company. This is the first time that Fitch and Moody's have assigned ratings to the company, RCom said in a statement.
IT stocks edged higher on renewed buying. TCS (up 4.34%), CMC (up 3.84%), MphasiS (up 1.53%), Wipro (up 1.28%), MindTree (up 0.83%), Tech Mahindra (up 1.4%), HCL Technologies (up 0.29%), and Infosys (up 0.05%), and Oracle Financial Services Software (up 0.25%) edged higher.
Coal India fell 3.98% at Rs 379 on turning ex-dividend today, 3 March 2015, for for an interim dividend of Rs 20.70 per share for the year ending 31 March 2015.
Meanwhile, with respect to media reports titled CIL Board Approves East corridor Railway Project, Coal India after market hours yesterday, 2 March 2015, clarified that at the company's board meeting held on 27 February 2015, the board considered project report on East Rail Corridor Railways Project for construction of rail line at Chhattisgarh state and accorded its approval to first year expenditure. The minutes of the meeting is under preparation and it will take some time to finalize. The company is waiting for the final minutes to disseminate the information to stock exchanges, Coal India said.
Tata Power Company rose 1.34% at Rs 87.15. Tata Power during market hours today, 3 March 2015, said that the company has successfully commissioned 63 megawatts (MW) sized Unit 1 of its 126 MW Daguchhu Hydro project in Bhutan. This project is in line with Tata Power's commitment to commission 120 MW of new hydro power project this year as part of the centenary year celebration theme of Invisible Goodness, and is the first cross border project registered under UNFCCCI's Clean Development Mechanism (CDM), Tata Power said in a statement.
The Dagacchu project is a joint venture (JV) initiative between Tata Power and Druk Green Power Corporation, owned by Royal Government of Bhutan (RGoB) and National Pension & Provident Fund of Bhutan. Dagacchu Hydro Power Corporation has entered into a 25-year power purchase agreement (PPA) with Tata Power Trading Company (TPTCL) for sale of power from the project. The power generated from the project shall be sold by TPTCL in the Indian power market, Tata Power said in a statement.
NMDC rose 0.33% at Rs 138.50. The stock hit a high of Rs 140.40 and a low of Rs 136.35. NMDC during market hours today, 3 March 2015, announced reduction in prices of lump ore to Rs 3,250 per WMT for March 2015 from Rs 3,750 per WMT in February 2015. The price of fines was cut to Rs 2,460 per WMT for March 2015 from Rs 2,760 per WMT in February 2015.
NMDC also announced that the company's iron ore production rose 5.29% to 27.82 million tonnes during the period from April 2014 to February 2015 over the corresponding previous year period. Sales of iron ore rose 0.44% to 27.25 million tonnes during the period from April 2014 to February 2015 over the corresponding previous year period. The production and sales data is on provisional basis.
L&T rose 0.37% at Rs 1,850.25. L&T during market hours today, 3 March 2015, said that its construction division secured orders worth Rs 2215 crore across various business segments over the last two months.
Mahindra & Mahindra (M&M) fell 3.48%. M&M after market hours yesterday, 2 March 2015, said that the company's auto sales declined 10% to 38,033 units in February 2015 over February 2014. Domestic sales fell 11% to 34,918 units in February 2015 over February 2014. Exports rose 10% to 3,115 units in February 2015 over February 2014.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said that looking at the overall Union Budget 2015-16 proposals including planned spend on infrastructure and social reforms, the company expects positive sentiments going forward. Further, with an expected revision in lending rates in the RBI policy in early April, the industry should see better times ahead, Shah said.
Separately, M&M after market hours yesterday, 2 March 2015, said that the company's total tractor sales fell 35% to 11,437 units in February 2015 over February 2014. Domestic sales declined 38% to 10,267 units in February 2015 over February 2014. Exports rose 13% to 1,170 units in February 2015 over February 2014.
Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, Mahindra & Mahindra said that the industry continues to witness de-growth with negative sentiments and low crop output during February 2015.
Maruti Suzuki India shed 0.21%. Maruti Suzuki India during market hours today, 3 March 2015, said that the company's production rose 12.03% to 1.21 lakh units in February 2015 over February 2014.
Hero MotoCorp rose 0.51%. Hero MotoCorp after market hours yesterday, 2 March 2015, reported 3.85% fall in sales to 4.84 lakh shares in February 2015 over February 2014. Hero MotoCorp is set to launch a slew of new models in the coming months, including a range of scooters, the company said.
TVS Motor Company surged 7.37%. TVS Motor Company after market hours yesterday, 2 March 2015 said its total sales rose 15% to 2.04 lakh units in February 2015 over February 2014.
Pharma major Cipla gained 2.66% to Rs 734.35. The stock scaled a record high of Rs 736.95 in intraday trade today, 3 March 2015.
Sun Pharmaceutical Industries (Sun Pharma) rose 1.75%. Sun Pharma and GlaxoSmithKline (GSK) today, 3 March 2015, announced that their respective wholly owned subsidiaries have reached an agreement related to GSK's Opiates business in Australia. The current GSK Opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, will transfer to a subsidiary of Sun Pharma. The product portfolio consists of poppy-derived opiate raw materials that are primarily used in the manufacture of analgesics for the treatment of moderate to severe pain. All employees from both sites will also be offered employment by Sun with the Opiates business.
Both Sun Pharma and GSK believe that the future of the Opiates business will be secured as part of Sun Pharma, a company with a global footprint. The financial terms of the transaction were not discloed. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.
Ranbaxy Laboratories rose 1.25%. In a clarification with regard to news item titled "Ranbaxy loses drug pleas in US", Ranbaxy during market hours today, 3 March 2015, said that a US court has retained status quo that USFDA had created by rescinding Ranbaxy's tentative approvals and forfeiting 180-day exclusivity for Ranbaxy for Valganciclovir and Esomeprazole.
In April 2014, Sun Pharmaceutical Industries had proposed the acquisition of Ranbaxy Laboratories in an all-stock deal valued at an enterprise value of about $4 billion.
Jubilant Life Sciences (JLL) rose 2.2%. JLL after market hours yesterday, 2 March 2015, said that the company has received final approval from the US Food & Drug Administration (USFDA) for generic Montelukast Sodium chewable tablets used in the treatment of asthma. The total market size for the drug is $83 million per annum in United States.
Titan Company rose 0.9%. Titan Company during market hours today, 3 March 2015 said it has commenced production of world-class stainless steel cases at a new facility in Coimbatore. Set up at a cost of over Rs 75 crore, the new plant will manufacture around one million cases per annum and scale it up to two million cases per annum eventually, Titan said in a statement. Chief Executive Officer of Titan's watches and accessories business Mr. H G Raghunath said that plant will cater to the increasing demand for premium watches.
Crompton Greaves rose 0.42%. Crompton Greaves during market hours today, 3 March 2015, said that the company's board of directors at a meeting held today, 3 March 2015, approved a new Scheme of Arrangement for the vertical demerger of consumer products business into a separate listed company to be named Crompton Greaves Consumer Electricals. The demerger will come into effect from the Appointed Date 1 October 2015, subject to receipt of all regulatory approvals.
Key indices edged higher for fourth day in a row today, 3 March 2015. The Sensex has gained 847.08 points or 2.94% in four trading sessions from its recent low of 28,746.65 on 26 February 2015. The Sensex garnered 410.78 points or 1.4% in February 2015 so far (till 3 February 2015). The Sensex has risen 2,094.31 points or 7.61% in this calendar year so far (till 3 March 2015). From a 52-week low of 20,920.98 on 3 March 2014, the Sensex has risen 8,672.75 points or 41.45%. The Sensex is off 250.43 points or 0.83% from a record high of 29,844.16 hit on 30 January 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.90, compared with its close of 61.87 during the previous trading session.
Brent crude oil futures edged higher after previous trading session's sharp slump. Brent for April settlement was up $1.36 a barrel at $60.90 a barrel. The contract had slumped $3.04 a barrel or 4.85% to settle at $59.54 a barrel during the previous trading session.
Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty. Jaitley used China as the example of what high growth rates can do over a decades-long period.
Meanwhile, data released by the government after trading hours yesterday, 2 March 2015, showed that the index of eight core infrastructure industries rose at moderate pace of 1.8% January 2015, compared with 2.4% growth recorded in December 2014. The cumulative growth stood at 4.1% in April-January.
In overseas markets, European stock markets edged higher today, 3 March 2015, after better-than-expected economic data from Germany and Spain. Key indices in Germany, UK, and France were up 0.15% to 0.25%.
In Germany, the latest data showed that retail sales in January rose 5.3%, up from the December's upwardly revised 4.8% rise. Month-on-month, the retail sales printed at 2.9%, higher from the December's upwardly revised 0.6%
In Spain, the latest data showed that jobless claims unexpectedly fell by a seasonally adjusted 13,538 in February.
A monthly monetary policy review from the European Central Bank is scheduled on Thursday, 5 March 2015.
Asian stock markets were mixed today, 3 March 2015. Key indices in China, Hong Kong and Japan were off 0.06% to 2.2%. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.05% to 0.54%.
The Reserve Bank of Australia (RBA) today, 3 March 2015, left the official cash rate on hold at 2.25%. Most economists were expecting a cut.
Trading in US index futures indicated that the Dow could fall 7 points at the opening bell today, 3 March 2015. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attaining record closing high as investors brushed off slightly disappointing economic data.
Outlays for US construction projects declined 1.1% in January to a seasonally adjusted annual rate $971.4 billion, led by public spending, the US Commerce Department said yesterday, 2 March 2015.
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