Key benchmark indices continued to trade firm in early afternoon trade as further fall in crude oil prices boosted sentiment. India imports 80% of its crude oil requirements and fall in crude oil prices augurs well for the economy. The barometer index, the S&P BSE Sensex was currently up 138.94 points or 0.49% at 28,375.33. The market breadth indicating the overall health of the market was strong.
Metal & mining stocks were mixed. Shares of public sector oil marketing companies rose as global crude oil prices fell.
Earlier, the barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in 2-1/2 weeks in morning trade.
In the global commodities markets, Brent crude oil futures edged lower touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world's second-largest economy.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 93.74 crore on Friday, 7 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 34.08 crore on Friday, 7 August 2015, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks edged lower on Friday, 7 August 2015, as a solid US jobs report for July raised chances for an increase in interest rates by the Federal Reserve as soon as September.
At 12:20 IST, the S&P BSE Sensex was up 138.94 points or 0.49% at 28,375.33. The index gained 181.20 points at the day's high of 28,417.59 in morning trade, its highest level since 23 July 2015. The index fell 8.12 points at the day's low of 28,228.27 in early trade.
The CNX Nifty was up 46.25 points or 0.54% at 8,610.85. The index hit a high of 8,621.55 in intraday trade, its highest level since 23 July 2015. The index hit a low of 8,564.45 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,639 shares gained and 1,027 shares fell. A total of 117 shares were unchanged.
The BSE Mid-Cap index was up 100.74 points or 0.87% at 11,658.26. The BSE Small-Cap index was up 61.77 points or 0.51% at 12,166.24. Both these indices outperformed the Sensex.
Metal & mining stocks were mixed. JSW Steel (up 0.07%), Hindustan Copper (up 0.78%), Hindalco Industries (up 0.82%), Jindal Steel & Power (up 1.34%), and National Aluminum Company (up 0.13%) gained. Hindustan Zinc (down 0.19%), Tata Steel (down 0.15%), Steel Authority of India (Sail) (down 1.22%), and NMDC (down 0.1%) declined.
Vedanta rose after the company said that it has received the relevant consent, license and approvals in place to commence the iron-ore mining operations in the State of Goa for some of its leases. The stock rose 0.35%. The company made announcement during market hours. The company is likely to recommence operations from today, 10 August 2015 at its biggest mine at Codli in Sanguem taluka in Goa. Further the company has been granted approval for total extraction of 5.5 million metric tons of which Codli is 3.1 million metric tons. Till date, five mining plans and schemes for company's mines have been cleared by Indian Bureau of Mines and the company is awaiting clearance of further 15 plans. Over the balance monsoon period the company anticipate receiving these approvals and expect a full scale resumption post monsoon. Even as India and in particular miners from Goa look to regain lost markets, Iron ore markets/prices are weak and the international trade environment remains challenging. The company continues to work with central and state government to improve competitiveness of Indian exports. Prior to the suspension of mining in 2012, India was the third largest exporter of iron ore and Vedanta o was the largest Indian exporter of low grade ores.
As informed earlier, the mining of operations in Karnataka resumed operations in February 2015, Vedanta said.
Shares of public sector oil marketing companies rose as global crude oil prices fell. BPCL (up 0.43%), Indian Oil Corporation (up 1.77%) and HPCL (up 0.33%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent crude oil futures edged lower touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world's second-largest economy. Brent for September settlement was currently off 21 cents at $48.40 a barrel. The contract had declined 91 cents or 1.84% to settle at $48.61 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a daily report issued on 9 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 9 August 2015. Region wise, the rainfall was 22% below the LPA in South Peninsula, 11% below the LPA in East & Northeast India, 8% below the LPA in Central India and 3% above the LPA in Northwest India until 9 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.
The weekly data released by the Ministry of Agriculture after trading hours on Friday, 7 August 2015, showed a pick up in the sowing of Kharif crops. The total sown area for Kharif crops as on 7 August 2015 stood at 847.40 lakh hectares compared with 808.40 lakh hectares at this time last year.
Meanwhile, the Ministry of Water Resources announced in its weekly report issued after trading hours on Friday, 7 August 2015, that the Water storage available in 91 important reservoirs of the country as on 6 August 2015 was 78.366 BCM which is 50% of total storage capacity of these reservoirs. This storage is 93% of the storage of corresponding period of last year and 99% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years. tates having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Rajasthan, Jharkhand, West Bengal, Tripura, Uttar Pradesh, Uttarakhand, Madhya Pradesh, and Tamil Nadu. States having lesser storage than last year for corresponding period are Odisha, Gujarat, Maharashtra, Chhattisgarh, (Two combined project in both states), Andhra Pradesh, Telangana, Karnataka, Kerala.
Among key macro economic announcements, the government is scheduled to unveil the consumer price index (CPI) data for the month of July 2015 and industrial production data for June 2015 at 17:30 IST on Wednesday, 12 July 2015. The CPI inflation accelerated to 5.4% in June 2015 from 5.01% in May 2015. Industrial production rose 2.7% in May 2015, compared with a revised growth of 3.4% in April 2015.
The government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon on Friday, 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.
Asian stocks were mixed today, 10 August 2015. Key benchmark indices in Taiwan and Japan rose by 0.29% to 0.41%. Key indices in Indonesia, South Korea, and Hong Kong fell by 0.02% to 0.99%. Markets in Singapore are closed for a holiday.
China's Shanghai Composite jumped 4.44%. China's exports in July slid 8.3% from a year earlier, reversing a gain of 2.8% in June, customs data released Saturday, 8 August 2015 showed. Imports fell for the ninth month in a row, dropping 8.1%, after a decline of 6.1% in June. And on Sunday, 9 August 2015, the government announced factory prices in July extended more than three years of declines, with the producer-price index taking its biggest year-over-year tumble in nearly six years. China's producer price deflation deepened to 5.4% in July, sending wholesale prices to their lowest since late 2009.
Japan posted 12 straight monthly balance of payments gains in June, taking the half-year surplus to its highest in five years as overseas income and tourism receipts prospered. June's current account surplus was 558.6 billion yen ($4.5 billion) Ministry of Finance data showed today, 10 August 2015.
US stocks edged lower on Friday, 7 August 2015, as a solid US jobs report for July raised chances for an increase in interest rates by the Federal Reserve as soon as September.
The US Department of Labor said on Friday, 7 August 2015, employers added 215,000 jobs in July, slightly above market expectations. The unemployment rate held at a seven-year low of 5.3% and there were signs that wages were beginning to pick up.
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