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 provisionally settled a tad below that mark after surpassing that level in late trade. The barometer index, the S&P BSE Sensex, hit 4-1/2-week high. The market breadth indicating the overall health of the market was positive.
The Sensex was provisionally up 132.71 points or 0.45% to 29,591.85. The BSE Small-Cap index was up 1.39%. The BSE Mid-Cap index was up 1.18%. 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.
IT stocks advanced. 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.
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 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 424.79 crore yesterday, 2 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 180.35 crore yesterday, 2 March 2015, as per provisional data.
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.
As per provisional closing, the S&P BSE Sensex was up 132.71 points or 0.45% to 29,591.85. The index jumped 177.72 points at the day's high of 29,636.86 in late trade, its highest level since 30 January 2015. The index slipped 94.27 points at the day's low of 29,364.87 in early trade.
The 50-unit CNX Nifty was up 39.50 points or 0.44% at 8,996.25, as per provisional closing. 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 was up 128.90 points or 1.18% at 11,081.83. The BSE Small-Cap index was up 158.09 points or 1.39% at 11,528.89. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,666 shares gained and 1,184 shares fell. A total of 146 shares were unchanged.
The total turnover on BSE amounted to Rs 4199 crore, lower than Rs 4647.93 crore during the previous trading session.
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.
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.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.905, 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 96 cents at $60.50 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 0.2% 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 2.15%. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.05% to 0.63%.
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 13 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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