After a range bound movement in mid-morning trade, key benchmark indices extended gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently trading above the psychological 28,000 level, after surpassing that level after a higher opening. The market breadth indicating the overall health of the market was quite strong, with more than two gainers for every loser on BSE. The Sensex was currently up 112.85 points or 0.4% at 28,088.71. The BSE Small-Cap index was up 1.22%, outperforming the Sensex. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 3% to about 18% for quite a few stocks.
Brent crude oil futures dropped. Fall in crude oil prices augur well for India as the country imports 80% of its crude oil requirements.
Oil and gas stocks advanced across the board. Reliance Industries advanced after a foreign brokerage upgraded the stock to overweight from underweight.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week in early trade as these two key benchmark indices extended initial gains after a positive start.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 240.34 crore yesterday, 30 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 651.67 crore yesterday, 30 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower, extending previous trading session's small decline. For India, the decline in global crude oil prices along with 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. India imports 80% of its crude oil requirement.
In overseas markets, Asian stocks were mixed. US stocks edged higher yesterday, 30 March 2015, with the main indexes booking solid gains for the second straight session, driven by dovish comments from China's central-bank chief as well as a continued flurry of deal announcements.
At 12:15 IST, the S&P BSE Sensex was up 112.85 points or 0.4% at 28,088.71. The index jumped 131.25 points at the day's high of 28,107.11 in early trade, its highest level since 25 March 2015. The index rose 50.41 points at the day's low of 28,026.27 in early trade.
The CNX Nifty was up 35.30 points or 0.42% at 8,527.60. The index hit a high of 8,530.60 in intraday trade, its highest level since 25 March 2015. The index hit a low of 8,499.85 in intraday trade.
The BSE Mid-Cap index was up 74.93 points or 0.71% at 10,634.45. The BSE Small-Cap index was up 131.87 points or 1.22% at 10,927.27. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong, with more than two gainers for every loser on BSE. 1,561 shares gained and 776 shares fell. A total of 89 shares were unchanged.
Shares of public sector oil marketing companies (PSU OMCs) advanced on slide in global crude oil prices. BPCL (up 3.88%), HPCL (up 3.08%), Indian Oil Corporation (up 5%) edged higher. Lower crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Shares of state-run upstream oil and gas companies edged higher as lower crude oil prices will reduce their subsidy sharing burden. ONGC was up 0.73%. Oil India was off 0.11%.
Shares of state-run gas transmission and distribution major GAIL (India) advanced 2.36% at Rs 388.80.
State run upstream oil and gas companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) on sale of petroleum products by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Among private sector upstream oil firms, Cairn India was up 1.09%.
Reliance Industries (RIL) edged higher after a foreign brokerage upgraded the stock to overweight from underweight. The stock was up 1.94% at Rs 826.10. The brokerage reportedly said that RIL's profits stagnated for the last five years, leading to underperformance of 80%, adding that foreign institutional investors (FII) ownership and valuations of the stock are at multi year lows.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.62, compared with its close of 62.68 during previous trading session.
Brent crude oil futures edged lower, extending previous trading session's small decline. Brent for May settlement was off 49 cents at $55.80 a barrel. The contract had declined 12 cents or 0.21% to settle at $56.29 a barrel during previous trading session.
In overseas markets, Asian stocks were mixed. Key indices in Hong Kong, Taiwan, South Korea, and Indonesia were up 0.21% to 1.02%. Key indices in China, Japan and Singapore were off 0.18% to 1.05%.
Trading in US index futures indicated that the Dow could fall 31 points at the opening bell today, 31 March 2015. US stocks edged higher yesterday, 30 March 2015, with the main indexes booking solid gains for the second straight session, driven by dovish comments from China's central-bank chief as well as a continued flurry of deal announcements.
Meanwhile, Fed Vice Chairman Stanley Fischer today, 31 March 2015, said that Fed policy makers should start thinking further ahead.
The influential monthly US nonfarm payroll data is due on Friday, 3 April 2015, when the US stock market is closed on account of Good Friday. The US government will announce the payroll report for March 2015 on 3 April 2015.
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