A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 29,000 mark, having alternately moved above and below that level in intraday trade so far. The Sensex had reclaimed the psychological 29,000 mark after registering decent gains during the previous trading session on Monday, 13 April 2015. The Sensex was currently off 71.54 points or 0.25% at 28,972.90. The market breadth indicating the overall health of the market was positive.
Telecom stocks declined. Interest rate sensitive realty stocks reversed initial gains.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 417.01 crore during the previous trading session on Monday, 13 April 2015, as per provisional data as per provisional data released by the stock exchanges. The stock market was closed yesterday, 14 April 2015, for a holiday. Domestic institutional investors (DIIs) bought shares worth a net Rs 46.42 crore during the previous trading session on Monday, 13 April 2015, as per provisional data.
On the macro front, the latest data showed easing of consumer price inflation last month. Meanwhile, Prime Minister Narendra Modi early this week said that India is trying to introduce an element of transparency and predictability in its taxation system.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher. The recent rise in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. However, gains in rupee against the dollar will mitigate the negative impact of higher crude oil price. Gains in local currency will reduce the cost of imports. India imports about 80% of its crude oil requirements.
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In overseas markets, Asian stocks were mixed. Most US stocks edged higher yesterday, 14 April 2015, as crude oil prices rose.
At 11:18 IST, the S&P BSE Sensex was down 71.54 points or 0.25% at 28,972.90. The index fell 105.37 points at the day's low of 28,939.07 in mid-morning trade. The index gained 50.17 points at the day's high of 29,094.61 at onset of the trading session, its highest level since 13 March 2015.
The CNX Nifty was down 23.70 points or 0.27% at 8,810.30. The index hit a low of 8,801.60 in intraday trade. The index hit a high of 8,844.80 in intraday trade, its highest level since 13 March 2015
The market breadth indicating the overall health of the market was positive. On BSE, 1,393 shares gained and 989 shares fell. A total of 86 shares were unchanged.
The BSE Mid-Cap index was up 43.95 points or 0.39% at 11,171.37. The BSE Small-Cap index was up 49.24 points or 0.41% at 11,991.27. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2033 crore by 11:15 IST, compared with turnover of Rs 1476 crore by 10:15 IST.
Oil & Natural Gas Corporation (ONGC) rose 0.37%. With respect to media reports titled ONGC vying for oil & gas blocks in Mexico permit bid, ONGC during market hours today, 15 April 2015, clarified that the company's wholly owned subsidiary ONGC Videsh regularly scouts for and evaluates various oil and gas exploration & production opportunities outside India. A bid round for participation in some oil and gas blocks has been announced by the Government of Mexico and ONGC Videsh is in the early stages of evaluating the prospectivity of various blocks available under the bid round, ONGC said. Several other global oil and gas companies are also doing the evaluation. The information on Mexico bid round including the names of pre-qualified companies which includes ONGC Videsh is in public domain and also on the website of the Government of Mexico, the company said.
Telecom stocks declined. Bharti Airtel (down 2.98%), Idea Cellular (down 1.9%), MTNL (down 0.71%) declined. Reliance Communications (up 0.55%) and Tata Teleservices (Maharashtra) (up 2.09%) gained.
Interest rate sensitive realty stocks reversed initial gains. Ajmera Realty & Infra India (down 3.19%), Housing Development and Infrastructure (down 1.26%), Indiabulls Real Estate (down 0.62%), Unitech (down 0.28%), Godrej Properties (down 0.89%) declined. Oberoi Realty (up 1.11%), D B Realty (up 1.4%) and Parsvnath Developers (up 0.68%) rose.
The recent decline in interest rates on housing loans may boosts housing construction. Axis Bank and ICICI Bank have reportedly cut interest rates on housing loans. ICICI Bank yesterday, 14 April 2015, cut its home loan rate for both existing as well as new borrowers by 25 basis points (bps) to 9.9%, according to reports. Axis Bank yesterday, 14 April 2015, cut its home loan rate by 20 basis points (bps) to 9.95%, according to reports. Housing finance major HDFC and State Bank of India (SBI) had recently announced reduction in interest rate on housing loans. Purchases of both residential and commercial property are largely driven by finance.
Realty major DLF shed 0.8% to Rs 155.80. The stock hit high of Rs 158.25 and low of Rs 155.10 so far during the day.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.43, compared with closing of 62.5225 during the previous trading session on Monday, 13 April 2015. The foreign exchange market was closed yesterday, 14 April 2015, on the occasion of Dr. Baba Saheb Ambedkar Jayanti.
Brent crude oil futures edged higher. Brent for May settlement which expires today, 15 April 2015, was up 57 cents at $59 a barrel. The contract had risen 50 cents or 0.86% to settle at $58.43 a barrel during previous trading session. Brent for June settlement was up 40 cents to $60.21 a barrel.
On the macro front, data released by the government after market on Monday, 13 April 2015, showed that the all-India general CPI inflation slowed down to three-month low of 5.2% in March 2015 from 5.4% in February 2015. Food items were major contributors to the CPI inflation decline in March 2015.
Inflation based on the wholesale price index (WPI) is expected to remain in negative zone in March 2015. WPI inflation is expected at negative 2.2% for March 2015, as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation was negative 2.1% in February 2015. The government will unveil data on WPI for March 2015 today, 15 April 2015.
India and Germany have decided to utilize the momentum generated by India's participation in the Hannover Messe in Germany to foster stronger ties between business and industry in both the countries in order to support India's 'Make in India' initiative, according to a joint statement issued by India and Germany yesterday, 14 April 2015, after Prime Minister Narendra Modi held bilateral talks with German Chancellor Angela Merkel in Berlin. India and Germany have also decided to take steps whereby Germany will support development of urban planning and infrastructure in India, including the development of smart cities in India, setting up peer-to-peer network of municipalities for direct collaboration and assistance in the area of affordable housing. Germany will also support modernization of the railway infrastructure in India, including setting up of semi high-speed and high-speed railways and training and skill development of personnel in the rail sector starting with signalling and telecommunications and a high-speed rail system. Germany will also support India's proposed objective of 175 Giga Watts (GW) of renewable energy by 2022 through technical and financial support for developing comprehensive solar rooftop and green energy corridor projects in India.
India and Germany also agreed to strengthen their efforts towards carrying on negotiations for an ambitious EU India Free Trade Agreement with a view to its early conclusion.
Modi on Monday, 13 April 2015, said India is trying to introduce an element of transparency and predictability in taxation system. In his speech at the inauguration of the Indo-German Business Summit in Hannover, Germany, Modi said that the government has fast tracked approvals in industry and infrastructure. This includes environmental clearances, extending the industrial licences, delicencing of defence items and simplification of cross-border trade. Meanwhile, Modi said in his remarks at the Community Reception in Berlin yesterday, 14 April 2015, that the time is right for India to emerge as a global manufacturing hub. The Prime Minister called for balanced growth in the Indian economy, with equal emphasis on agriculture, manufacturing and services.
Asian stocks were mixed today, 15 April 2015. Key benchmark indices in China, Taiwan, Japan and Indonesia fell by 0.31% to 1.2%. Key benchmark indices in Hong Kong, Singapore and South Korea rose by 0.19% to 0.46%.
China's economy expanded at its slowest pace in six years in the first quarter, weighed down by a slumping property market, industrial overcapacity and sluggish overseas demand, data released today, 15 April 2015 showed. China's gross domestic product rose 7% from a year earlier in the first quarter, slowing from 7.3% recorded in the fourth quarter of 2014 and 7.4% for all of last year.
Value-added industrial output in China rose 5.6% in March from a year earlier, slowing from 6.8% growth in the combined January-February period, data from the National Bureau of Statistics showed today, 15 April 2015. Month-on-month, industrial output increased 0.25% in March from February, when output rose 0.45% from January.
Trading in US index futures indicated that the Dow could fall 12 points at the opening bell today, 15 April 2015. US stocks ended yesterday, 14 April 2015 mostly higher, helped by energy stocks and quarterly earnings reports that topped modest expectations following worries about a strong dollar.
In US economic data, sales at US retailers rose in March by the largest amount in a year, rebounding after three straight monthly declines. US producer prices rose a seasonally adjusted 0.2% in March after four straight monthly declines, the Labor Department said yesterday, 14 April 2015.
In Europe, investors are awaiting the European Central Bank (ECB) rate decision to be declared later in the global day today, 15 April 2015.
The International Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) that global growth prospects are uneven across major economies. In advanced economies, growth is projected to strengthen in 2015 relative to 2014, but in emerging market and developing economies it is expected to be weaker, the IMF said. Overall, global growth is forecast at 3.5% in 2015 and 3.8% in 2016. IMF said that risks to global growth are now more balanced relative to six months ago, but remain tilted to the downside. Macroeconomic risks have slightly decreased (e.g., recession and deflation in euro area), but financial and geopolitical risks have increased, the IMF said. On the upside, the decline in oil prices could provide a greater boost to global growth than anticipated.
IMF Economic Counselor and Director of Research Olivier Blanchard said that a number of complex forces are shaping the prospects around the world. Legacies of both the financial and the euro area crisesweak banks and high levels of public, corporate, and household debtare still weighing on spending and growth in some countries. Low growth in turn makes deleveraging a slow process. Global growth in 2015 will be driven by a rebound in advanced economiesforecast to increase from 1.8% last year to 2.4% this yearsupported by the decline in oil prices, the WEO notes. Growth forecasts for most emerging and developing economies (with the important exception of India) are slightly worse.
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