Key benchmark indices logged strong gains on first trading day of the week. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit almost one week high. The Sensex was provisionally up 382.42 points or 1.41% at 27,487.81. The market breadth indicating the overall health of the market was strong.
Metal and mining stocks gained after China cut interest rates for the third time in six months on Sunday, 10 May 2015 to stimulate growth. Pharma shares were in demand on renewed buying.
Meanwhile, the Narendra Modi government today, 11 May 2015 reportedly decided to send the controversial land acquisition bill to the joint committee of Parliament in view of continued opposition to the proposed legislation. The controversial bill was introduced in the Lok Sabha today amid a huge uproar by the Opposition.
In overseas markets, European stocks edged lower today, 11 May 2015 as investors await the outcome of the Eurogroup finance ministers meeting on Greece in Brussels later today, 11 May 2015. Asian stocks edged higher today, 11 May 2015 as investors cheered China's latest cut to interest rates to bolster its flagging economy and as US markets rallied on Friday, 8 May 2015 after a robust headline reading for US employment. US stocks surged on Friday, 8 May 2015 after a robust headline reading for US employment.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 437.56 crore during the previous trading session on Friday, 8 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 1114.38 crore during the previous trading session on Friday, 8 May 2015, as per provisional data.
As per provisional closing, the S&P BSE Sensex was up 382.42 points or 1.41% at 27,487.81. The index gained 438.85 points at the day's high of 27,544.24 in late trade, its highest level since 5 May 2015. The index rose 125.89 points at the day's low of 27,231.28 in early trade.
The CNX Nifty was up 133.75 points or 1.63% at 8,325.25. The index hit a high of 8,332.75 in intraday trade, its highest level since 5 May 2015. The index hit a low of 8,224.65 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,743 shares gained and 984 shares fell. A total of 103 shares were unchanged.
The BSE Mid-Cap index was up 217.75 points or 2.13% at 10,453.96, outperforming the Sensex. The BSE Small-Cap index was up 138.56 points or 1.28% at 10,967.62, underperforming the Sensex.
The total turnover on BSE amounted to Rs 2709 crore, lower than turnover of Rs 2718.72 crore registered during the previous trading session on Friday, 8 May 2015.
Metal and mining stocks gained after China cut interest rates for the third time in six months on Sunday, 10 May 2015 to stimulate growth. China is the world's largest consumer of steel, copper and aluminum.
Hindalco Industries (up 2.19%), Vedanta (up 4.95%), JSW Steel (up 1.28%), Tata Steel (up 2.95%), Steel Authority of India (Sail) (up 2.22%), Hindustan Copper (up 2.81%), NMDC (up 0.53%), National Aluminium Company (up 3.4%), and Jindal Steel & Power (up 1.04%) edged higher. Hindustan Zinc shed 0.17%.
Pharma shares were in demand on renewed buying. Dr Reddy's Laboratories (up 0.47%), Glenmark Pharmaceuticals (up 4.37%), Sun Pharmaceutical Industries (up 2.21%), Aurobindo Pharma (up 5.75%) and Wockhardt (up 0.64%) gained.
Cipla rose 1.91% on buzz a foreign brokerage upgraded the stock to outperform citing strong Nexium sales. According to the brokerage, Nexium profits will lead to strong earnings growth in the first half of FY 2016 and approval of generic Advair MDI in UK are strong near-term triggers of Cipla.
On the macro front, the government will unveil data on inflation based on the consumer price index (CPI) for April 2015 tomorrow, 12 May 2015. The all-India general CPI inflation slowed down to three months low of to 5.2% in March 2015 from 5.4% in February 2015. On the same day, the Index of Industrial Production (IIP) data for March 2015 will also be released. IIP increased 5% in February 2015 compared with the revised growth of 2.8% in January 2015.
Meanwhile, proceedings in parliament are being keenly watched. The Narendra Modi government today, 11 May 2015 reportedly decided to send the controversial land acquisition bill to the joint committee of Parliament in view of continued opposition to the proposed legislation. The controversial bill was introduced in the Lok Sabha today amid a huge uproar by the Opposition. It remains to be seen if the government is able to pass the Land Acquisition Bill during the ongoing Budget session. The amended Land Acquisition Bill seeks to scrap the consent clause for acquiring land for five sectors industrial corridors, public private partnership projects, rural infrastructure, affordable housing and defence. The bill also exempts projects in these five areas from social impact assessments and allows the purchase of irrigated multi-cropped land and other types of agricultural land.
The Lok Sabha on 6 May 2015, passed the Constitution Amendment Bill in respect of goods and services tax (GST). A constitutional amendment bill needs to be approved by a two-thirds majority in both houses of Parliament and ratified by half the state legislative assemblies before coming into effect. While the Bharatiya Janata Party-led National Democratic Alliance found it easy to pass the GST bill in the Lok Sabha where it is in a majority, the real test will come in the Rajya Sabha where the ruling alliance is in a minority, with 62 members in a 245-member house. The bill is expected to be introduced in the Rajya Sabha later during the budget session which ends on 13 May 2015.
Before voting on the GST bill began, the opposition Congress party walked out of the lower house after the government turned down its demand to send the bill to a standing committee.
GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
In overseas markets, European stocks edged lower today, 11 May 2015 as investors await the outcome of the Eurogroup finance ministers meeting on Greece in Brussels later today, 11 May 2015. Key indices in France and Germany fell by 0.58% to 1.55%. UK's FTSE 100 rose 0.18%.
The newly re-elected British Prime Minister David Cameron on Sunday, 10 May 2015 reportedly ruled out giving Scotland another independence referendum despite gains by Scottish nationalists in a UK-wide election.
Eurogroup finance ministers will meet today, 11 May 2015 to discuss once more Greece's progress in implementing economic reforms in exchange for bailout funds as it gets dangerously close to running out of cash. The Greece government is facing a 750 million euro ($832 million) debt repayment to the International Monetary Fund (IMF) tomorrow, 12 May 2015.
Asian stocks edged higher today, 11 May 2015, led by gains in Chinese stocks, as investors cheered China's latest cut to interest rates to bolster its flagging economy and as US markets rallied on Friday, 8 May 2015 after a robust headline reading for US employment. Key benchmark indices in China, Singapore, Hong Kong, Japan, and South Korea rose by 0.54% to 3.04%. Key benchmark indices in Taiwan and Indonesia were off 0.19% to 0.29%.
China cut interest rates for the third time in six months on Sunday, 10 May 2015 to stimulate growth. The People's Bank of China cut its benchmark, one-year lending rate by 25 basis points to 5.1% effective from today, 11 May 2015 and its benchmark deposit rate by the same amount to 2.25%.
US stocks surged on Friday, 8 May 2015 after a robust headline reading for US employment.
In economic data, the US Labor Department data showed on Friday, 8 May 2015 nonfarm payrolls increased 223,000 in April 2015, while the unemployment rate dropped to a near seven-year low of 5.4%.
Powered by Capital Market - Live News
