Key benchmark indices edged higher and hit fresh record high in early trade as firmness in Asian stocks boosted sentiment. The Sensex was currently up 111.59 points or 0.41% at 27,130.98. The market breadth indicating the overall health of the market was strong with more than 3 gainers for every loser on BSE. The market sentiment was also boosted by provisional data showing that foreign funds were net buyers of Indian stocks during the previous trading session.
A slide in crude oil prices aided market upmove. Brent crude oil futures hit 16-month low on Tuesday, 2 September 2014. Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation.
Cipla gained after the company announced the launch of Serroflo, its Salmeterol/Fluticasone MDI, in Germany and Sweden. Sesa Sterlite advanced ahead of board meeting on Friday, 5 September 2014, to consider fund raising. NMDC rose after announcing provisional data on production and sales.
Asian markets were trading higher today, 3 September 2014 after data underscored that the US economy continues to gather gradual momentum.
At 9:19 IST, the S&P BSE Sensex was up 111.59 points or 0.41% at 27,130.98. The index gained 129.51 points at the day's high of 27,148.90 in early trade, a record high for the index. The index rose 84.85 points at the day's low of 27,104.24 in early trade.
The CNX Nifty was up 36.15 points or 0.45% at 8,119.20. The index hit a high of 8,121.65 in intraday trade, a record high for the index. The index hit a low of 8,109.95 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,045 shares gained and 288 shares fell. A total of 32 shares were unchanged.
The BSE Mid-Cap index was up 57.59 points or 0.6% at 9,581.36. The BSE Small-Cap index was up 69.30 points or 0.66% at 10,561.72. Both these indices outperformed the Sensex.
Among 30-share Sensex pack, 21 stocks advanced while remaining declined.
Cipla rose 0.48% after the company after market hours on Tuesday, 2 September 2014 announced the launch of Serroflo, its Salmeterol/Fluticasone MDI, in Germany and Sweden. With this launch, Cipla opens the door for new, highly efficient treatments in the European healthcare market. Serroflo will substantially improve the affordability of fixed combinations in Europe and help manage health costs for respiratory treatment, Cipla said in a statement.
In Germany the new product is distributed under the name "Serroflo", whereas in Sweden the combination is launched as "Salmeterol/Fluticasone Cipla". Serroflo and Salmeterol/Fluticasone Cipla will be available in a pMDI with HFA propellant in two strengths, Cipla said in a statement.
NMDC rose 0.89%. On a provisional basis, NMDC said that total iron ore production rose to 12.10 million tonne in five months upto August 2014 from 10.83 million tonne in five months upto August 2013. Sales rose to 13.57 million tonne in five months upto August 2014 from 11.44 million tonne in five months upto August 2013.
Meanwhile, NMDC kept price of iron ore unchanged for September 2014. NMDC said it has rolled over the August 2014 price of lump ore (Rs 4600 per tonne) and fines (Rs 3160 per tonne) to the month of July 2014.
Meanwhile, NMDC said that the company has subscribed to its full entitlement of shares of the Rights Offer of Legacy Iron Ore. Accordingly, after the allotment of shares by Legacy, NMDC is holding 115.34 crore shares with a voting power of 78.56% in Legacy.
Sesa Sterlite rose 0.59%. The company after market hours on Tuesday, 2 September 2014 said that its board of directors will meet on Friday, 5 September 2014, inter alia, to consider enabling approval for raising of funds through issue of Securities including convertible debentures, bonds, warrants, NCDs etc.
The market sentiment was also boosted by provisional data showing that foreign funds were net buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 672.81 crore on Tuesday, 2 September 2014, as per provisional data from the stock exchanges.
On macro front, HSBC Services PMI for August 2014 is due today, 3 September 2014. The Services PMI had declined to 52.20 in July 2014, from 54.40 in June 2014.
Asian markets were trading higher today, 3 September 2014 after data underscored that the US economy continues to gather gradual momentum. Key indices in Japan, China, Hong Kong, Taiwan, Singapore, and Indonesia were up 0.18% to 1.21%. In South Korea, the Kospi index was down 0.02%.
The HSBC China services Purchasing Managers' Index rose to a 17-month high of 54.1 in August from 50 in July, HSBC Holdings PLC said today, 3 September 2014 while cautioning that sub-index readings pointed to a mixed picture of economic recovery. The HSBC Composite Output Index posted at 52.8, up from 51.6 in July, and signalled a robust rise in activity levels. Furthermore, it was the strongest expansion of business activity in 17 months.
China's official non-manufacturing activity slightly recovered in August, with the sector's purchasing managers' index (PMI) rebounding to 54.4 in August from 54.2 in July, official data showed today, 3 September 2014.
Business activity in Japan's service sector worsened from a previous month of growth in August, although at a fractional pace, data from Markit Economics showed today, 3 September 2014. The headline seasonally adjusted Business Activity Index posted a reading below the neutral 50 mark that separates expansion from contraction in August, signalling a deterioration in services output. However, at 49.9, the index posted close to the 50 no-change mark indicating only a fractional decrease in activity. The Composite Output Index overall signalled a slight improvement in business activity with the index posting at 50.8 in August, up from 50.2 in July.
US stocks mostly fell on Tuesday, 2 September 2014, with the S&P 500 holding above 2,000 after rising to another intraday record, as energy companies dropped along with the price of oil and investors fretted whether the European Central Bank would make further monetary policy moves this week.
Among economic data, the Institute for Supply Management said its US manufacturing activity index rose to 59 in August, the strongest since March 2011.
Separately, US construction spending staged a strong rebound in July, rising by the largest amount in more than two years. Construction spending rose 1.8% in July, the biggest one-month gain since May 2012, the Commerce Department reported Tuesday, 2 September 2014. It followed a 0.9% decline in June, the largest setback in a year.
In Europe, a monthly meeting of the European Central Bank (ECB) is scheduled tomorrow, 4 September 2014. There are expectations that the European Central Bank (ECB) will announce quantitative easing in the coming months to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
Russia called on the US on Tuesday, 2 September 2014, to push Kiev into giving up its military campaign against pro-Russia rebels in eastern Ukraine and negotiating a political deal, as recent Ukrainian gains on the battlefield were reversed by what Western officials called an influx of Russian men and materiel.
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