A bout of volatility was witnessed as key benchmark indices slipped into the red from green immediately after reversing intraday losses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 53.97 points or 0.19% at 28,831.24. The market breadth indicating the overall health of the market was positive. Small-cap stocks were in demand. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 2% to about 20% for quite a few stocks.
Reliance Anil Dhirubhai Ambani (ADA) Group shares were in demand. Capital goods stocks dropped.
Meanwhile, a committee headed by M S Sahoo, a former member of the Securities and Exchange Board of India (Sebi), has reportedly suggested removal of the limits on corporates' external commercial borrowings (ECBs).
Meanwhile, global credit rating agency Fitch Ratings yesterday, 9 April 2015, affirmed India's sovereign credit rating at 'BBB-' with a stable outlook. The government's broad-based structural reform agenda has brought dynamism back to the Indian economy after a couple of years of limited progress on the structural front, the rating agency said adding that India's sovereign ratings are constrained by limited improvement in India's fiscal position, which is a long standing key weakness.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 193.81 crore yesterday, 9 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 492.79 crore yesterday, 9 April 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher in volatile trade, with investors closely following the strength of the dollar and waiting for the latest US rig-count data.
In overseas markets, European stocks edged higher. Asian stocks rose after news that Greece had made a 450 million euro loan payment to the International Monetary Fund. US stocks edged higher yesterday, 9 April 2015, helped by a rally in energy and health-care sectors.
At 14:21 IST, the S&P BSE Sensex was down 53.97 points or 0.19% at 28,831.24. The index fell 128.46 points at the day's low of 28,756.75 in afternoon trade. The index gained 13.98 points at the day's high of 28,899.19 in morning trade.
The CNX Nifty was down 25.10 points or 0.29% at 8,753.20. The index hit a low of 8,733.60 in intraday trade. The index hit a high of 8,781.40 in intraday trade.
The BSE Mid-Cap index was up 49.64 points or 0.45% at 11,099.89. The BSE Small-Cap index was up 106.23 points or 0.91% at 11,823.71. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,574 shares gained and 1,110 shares fell. A total of 119 shares were unchanged.
Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Communications (up 14.51%), Reliance Infrastructure (up 4.15%), Reliance Capital (up 3.24%) and Reliance Power (up 5.74%) gained.
Capital goods stocks dropped. BEML (down 0.71%), ABB India (down 0.74%), L&T (down 0.83%), Thermax (down 1.13%) and Siemens (down 0.8%) declined. Crompton Greaves (up 0.43%) and Bharat Heavy Electricals (Bhel) (up 0.58%) gained.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.345, compared with closing of 62.245 during the previous trading session.
Brent crude oil futures edged higher in volatile trade, with investors closely following the strength of the dollar and waiting for the latest US rig-count data. Brent for May settlement was up 2 cents at $56.59 a barrel. The contract had risen $1.02 a barrel or 1.93% to settle at $56.57 a barrel during previous trading session. Iran's supreme leader Ayatollah Ali Khamenei yesterday, 9 April 2015, said that the US and its negotiating partners must lift all sanctions on Iran immediately after a final nuclear deal is signed.
Meanwhile, a committee headed by M S Sahoo, a former member of the Securities and Exchange Board of India (Sebi), has reportedly suggested removal of the limits on corporates' external commercial borrowings (ECBs). The committee has also reportedly suggested removal of end-use restrictions on ECBs and recommended that every borrower should hedge a part of their borrowing. Currently the limit for each Indian company to raise funds through ECB is $750 million in a financial year barring in segments such as hotel, hospital and software sectors. Companies also have to limit their borrowing cost at 350 basis points over six-month LIBOR for three to five year maturity and at 500 bps over LIBOR for more than five years.
Macroeconomic data to be released starting today, 10 April 2015, is likely to show a pick up in industrial production growth in February 2015 and consumer price inflation remaining stable in March 2015. Growth in industrial production is seen rising to 3.3% in February 2015 from 2.6% expansion registered in January 2015, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on industrial production for February 2015 after trading hours today, 10 April 2015.
Inflation based on the consumer price index (CPI) is expected to remain steady at 5.4% in March 2015, as per the median estimate of a poll of economists carried out by Capital Market. CPI inflation stood at 5.4% in February 2015. The government will unveil data on CPI for March 2015 after trading hours on Monday, 13 April 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 at 12:10 noon on 14 April 2015.
Meanwhile, global credit rating agency Fitch Ratings yesterday, 9 April 2015, affirmed India's sovereign credit rating at 'BBB-' with a stable outlook. The government's broad-based structural reform agenda has brought dynamism back to the Indian economy after a couple of years of limited progress on the structural front, the rating agency said adding that India's sovereign ratings are constrained by limited improvement in India's fiscal position, which is a long standing key weakness. Implementation of the government's structural reform agenda and structurally lower inflation would improve the sovereign credit profile, as both would improve the investment climate and benefit real GDP growth, Fitch said in a statement.
The announcement from Fitch came hours after another global credit rating agency Moody's Investors Service raised India's credit rating outlook to positive from stable. The driver for the upgrade in rating outlook is Moody's view that there is an increasing probability that actions by policymakers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years.
In overseas markets, European shares edged higher today, 10 April 2015. Key benchmark indices in UK, France and Germany were up 0.16% to 0.61%.
French industrial production failed to grow month on month in February, following 0.3% growth in January. The year on year figures were more positive, however. Industrial production in February was 0.6% higher than the same month in February 2014.
Asian markets rose today, 10 April 2015, after news that Greece had made a 450 million euro loan payment to the International Monetary Fund. Key indices in China, South Korea, Taiwan, Singapore, and Hong Kong rose by 0.28% to 1.94%. Indonesia's Jakarta Composite declined 0.44%. Japan's Nikkei Average declined 0.15%.
China's consumer inflation stayed flat at 1.4% in March, while producer prices fell slightly less than projected, official data showed today, 10 April 2015, keeping pressure on profit margins at Chinese companies as Beijing struggles to stimulate growth. The producer price index (PPI) declined 4.6%, the National Bureau of Statistics (NBS) said today, 10 April 2015, extending a long-running factory deflation cycle that began in March 2012 to three years.
Trading in US index futures indicates that the Dow may decline 19 points at opening bell today, 10 April 2015. US stocks rose yesterday, 9 April 2015, helped by a rally in energy and health-care sectors. On economic front, the US Labor Department said workers filing for first-time jobless benefits totalled 281,000 last week, fewer than what had forecast, and bringing the four-week average of claims to its lowest since 2000.
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