After a range bound movement in early afternoon trade, key benchmark indices extended gains in afternoon trade. The 50-unit CNX Nifty hit 4-1/2-week high.The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 86.64 points or 0.29% at 29,545.78. The BSE Small-Cap index was up 1.03%, outperforming the Sensex. Brent crude oil prices witnessed a steep slide overnight which augurs well for India.
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. Index heavyweight and housing finance major HDFC edged higher. Index heavyweight and cigarette major ITC edged lower in volatile trade. Pharma stocks edged higher, with Cipla scaling record high.
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.
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 higher 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. India imports 80% of its crude oil requirement.
In overseas markets, 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.
At 13:14 IST, the S&P BSE Sensex was up 86.64 points or 0.29% at 29,545.78. The index jumped 110.88 points at the day's high of 29,570.02 in afternoon trade. 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 19.15 points or 0.21% at 8,975.90. The index hit a high of 8,984.95 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,925.55 in intraday trade.
The BSE Mid-Cap index was up 86.60 points or 0.79% at 11,039.53. The BSE Small-Cap index was up 116.74 points or 1.03% at 11,487.54. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,471 shares gained and 1,133 shares fell. A total of 125 shares were unchanged.
The total turnover on BSE amounted to Rs 2325 crore by 13:15 IST
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 was up 4.36% at Rs 900.65. The stock hit high of Rs 904.20 and low of Rs 867.40 so far during the day. 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.
Indian Oil Corporation (IOC) rose 1.63%. With respect to media reports titled IOC director--designate Debangshu Ray suspended over info leak, IOC during market hours today, 3 March 2015, clarified that Debangsu Ray, who was General Manager (International Trade) at the company's corporate office, New Delhi, was suspended on 27 February 2015 in accordance with the conduct, discipline and appeal rules of the company. The matter is under investigation, IOC said. Ray was not a director on the board of IOC nor any communication for his appointment on the board was received from the Government of India, the company said.
Housing finance major and index heavyweight HDFC rose 1.24% to Rs 1,354.80. The stock hit high of Rs 1,364.55 and low of Rs 1,343.40 so far during the day.
Index heavyweight and cigarette major ITC edged lower in volatile trade. The stock was off 0.96% at Rs 340. The stock hit high of Rs 345.50 and low of Rs 339 so far during the day. Shares of ITC had tumbled recently after Finance Minister Arun Jaitely in the Union Budget 2015-16 announced on Saturday, 28 February 2015, raised excise duty on cigarettes.
Pharma stocks edged higher. Wockhardt (up 1.45%), Lupin (up 1.3%), Dr Reddy's Laboratories (up 2.07%), Aurobindo Pharma (up 0.98%) and Glenmark Pharmaceuticals (up 1.63%) edged higher.
In the Union Budget 2015-16 announced on Saturday, 28 February 2015, Finance Minister Arun Jaitley said that in spite of the large increase in the devolution to states, adequate provision is being made for the schemes for the poor with allocation of Rs 33152 crore to the health sector. He said, with a view to encourage savings and to promote healthcare among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is being increased from Rs 20,000 to Rs 30,000. Three new National Institutes of Pharmaceutical Education and Research will be set up in Maharashtra, Rajasthan and Chattisgarh and one institute of Science and Education Research will be set up in Nagaland and Odisha each.
Cipla gained 2.16% to Rs 730.75. The stock scaled a record high of Rs 732 in intraday trade today, 3 March 2015.
Sun Pharmaceutical Industries (Sun Pharma) rose 2.46%. Sun Pharma and GlaxoSmithKline (GSK) today, 3 March 2015, announced that their respective wholly owned subsidiaries have reached an agreement related to GSK's Opiates business in Australia. The current GSK Opiates business including related manufacturing sites in Latrobe (Tasmania) and Port Fairy (Victoria) and its portfolio of opiates products along with inventory, will transfer to a subsidiary of Sun Pharma. The product portfolio consists of poppy-derived opiate raw materials that are primarily used in the manufacture of analgesics for the treatment of moderate to severe pain. All employees from both sites will also be offered employment by Sun with the Opiates business.
Both Sun Pharma and GSK believe that the future of the Opiates business will be secured as part of Sun Pharma, a company with a global footprint. The financial terms of the transaction were not discloed. The transaction closure is subject to customary closing conditions and requisite regulatory and other approvals, and is expected to close by August 2015.
Ranbaxy Laboratories rose 1.97%. In a clarification with regard to news item titled "Ranbaxy loses drug pleas in US", Ranbaxy during market hours today, 3 March 2015, said that a US court has retained status quo that USFDA had created by rescinding Ranbaxy's tentative approvals and forfeiting 180-day exclusivity for Ranbaxy for Valganciclovir and Esomeprazole.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.83, 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 79 cents at $60.33 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.
Asian stock markets were mixed today, 3 March 2015. Key indices in China, Hong Kong and Japan were off 0.06% to 2.2%. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.05% to 0.52%.
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 8 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.
In Europe, as per the data released by the German Federal Statistical Office (Destatis) today, 3 March 2015, 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%.
Greece is reportedly preparing to tap its final pension reserves at the country's central bank if needed to avert a devastating default to the International Monetary Fund (IMF) and keep the government going over the next two weeks.
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