Key benchmark indices edged higher and hit record high in early trade as market sentiment was boosted after data showed current account deficit narrowed sharply in Q1 June 2014 compared with Q1 June 2013. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, scaled record high. The Sensex was currently up 42.32 points or 0.16% at 26,909.87. The market breadth indicating the overall health of the market was strong. The market sentiment was also boosted by provisional data showing that foreign funds were net buyers of Indian stocks during the previous trading session.
Tata Motors fell after the company reported weak sales in August 2014. Hero MotoCorp gained after the company reported strong August sales. TVS Motor Company jumped after the company registered good sales in August. Tata Steel rose after the company said Jamshedpur Continuous Annealing and Processing Company (JCAPCPL) Continuous Annealing & Processing Line, a 6 lakh tonnes per annum facility for manufacturing 'Automotive Grade Continuous Annealed Products', was inaugurated on 1 September 2014.
At 9:17 IST, the S&P BSE Sensex was up 42.32 points or 0.16% at 26,909.87. The index gained 80.53 points at the day's high of 26,949.08 in early trade, a record high for the index. The index rose 18.67 points at the day's low of 26,886.22 in early trade.
The CNX Nifty was up 17.40 points or 0.22% at 8,045.10. The index hit a high of 8,048.65 in intraday trade, a record high for the index. The index hit a low of 8,037.45 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 865 shares gained and 270 shares fell. A total of 32 shares were unchanged.
The BSE Mid-Cap index was up 42.72 points or 0.45% at 9,487.31. The BSE Small-Cap index was up 55.18 points or 0.53% at 10,452.77. Both these indices outperformed the Sensex.
Tata Steel rose 0.13%. The company said after market hours on Monday, 1 September 2014, Jamshedpur Continuous Annealing and Processing Company (JCAPCPL) Continuous Annealing & Processing Line, a 6 lakh tonnes per annum facility for manufacturing 'Automotive Grade Continuous Annealed Products', was inaugurated on 1 September 2014 at Steelennium Hall inside Tata Steel 's Jamshedpur Works. JCAPCPL is a 51:49 joint venture of Tata Steel and Nippon Steel & Sumitomo Metal Corporation (NSSMC). The project has been set up at a capital investment of about Rs 2750 crore.
Tata Motors lost 0.07% after the company after market hours on Monday, 1 September 2014, said that its total sales (including exports) of Tata commercial and passenger vehicles declined 18% to 40,883 units in August 2014 over August 2013. The company's domestic sales of Tata commercial and passenger vehicles fell 19% to 36,403 units in August 2014 over August 2013.
The company's sales of commercial vehicles in the domestic market fell 23% to 25,428 units in August 2014 over August 2013. LCV sales declined 35% to 16,287 units in August 2014 over August 2013. M&HCV sales rose 11% to 9,141 units in August 2014 over August 2013.
Sales of passenger vehicles declined 5% to 10,975 units in August 2014 over August 2013. Sales of the passenger cars fell 6% to 8,229 units in August 2014 over August 2013. The sales of utility vehicles fell 2% to 2,746 units in August 2014 over August 2013.
The company's sales from exports declined 8% to 4,480 units in August 2014 over August 2013.
Hero MotoCorp rose 1.44% after the company market hours on Monday, 1 September 2014 said that its total sales rose 21% to 5.58 lakh units in August 2014 over August 2013.
All the recent launches - including the new Karizma, ZMR Xtreme, Passion Pro TR and the New Pleasure scooter - have received overwhelming response from customers, and the Splendor iSmart continues to drive volumes in the market, Hero MotoCorp said.
Hero MotoCorp said it is confident of keeping up this growth momentum heading into the festive season, with as many as 10 new launches - including new models, upgrades and refreshes - during this period. The eagerly-awaited new bike Splendor Pro Classic will be available in dealerships across the country in the coming weeks, Hero MotoCorp said in a statement.
TVS Motor Company jumped 4.19% after the company after market hours on Monday, 1 September 2014, said its total sales jumped 46% to 2.27 lakh units in August 2014 over August 2013. The company's total exports jumped 28% to 35,074 units in August 2014 over August 2013.
Total two wheeler sales increased by 47% to 2.17 lakh units in August 2014 over August 2013. Domestic two wheeler sales grew 50% to 1.90 lakh units in August 2014 over August 2013. Two wheeler exports rose 27% to 27,115 units in August 2014 over August 2013.
Scooters sales rose 84% to 67,240 units in August 2014 over August 2013. Motorcycles sales rose 36% to 83,332 units in August 2014 over August 2013.
Three wheeler sales rose 39% to 9,820 units in August 2014 over August 2013.
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 554.14 crore on Monday, 1 September 2014, as per provisional data from the stock exchanges.
Japanese Prime Minister Shinzo Abe yesterday, 1 September 2014, expressed his intention to realize 3.5 trillion yen of public and private investment and financing from Japan, including Overseas Development Assistance (ODA) to India in five years, to finance appropriate public and private projects of mutual interest including in the areas of next generation infrastructure, connectivity, transport systems, Smart Cities, rejuvenation of Ganga and other rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain, and rural development. This was stated in a joint statement issued yesterday, 1 September 2014, after a meeting between Prime Minister Narendra Modi and Abe. Modi is currently on a five-day visit to Japan. The Prime Ministers of the two countries have decided to set a target of doubling Japan's foreign direct investment and the number of Japanese companies in India within five years as an objective to be jointly achieved.
In macro economic data, the Eight Core Industries output has increased 2.7% in July 2014, showing moderation in growth from 7.3% increase in June 2014. However, the cumulative growth has remained steady at 4.1% in April-July 2014 over April-July 2013. The data was announced after market hours on Monday, 1 September 2014.
India's current account deficit (CAD) narrowed sharply to $7.8 billion or 1.7% of GDP in Q1 June 2014, from $21.8 billion or 4.8% of GDP in Q1 June 2013. The lower CAD was primarily on account of a contraction in the trade deficit contributed by a rise in exports and a decline in imports. On sequential basis, the CAD rose from $1.2 billion or 0.2% of GDP in Q4 March 2014.
The preliminary data on India's balance of payments (BoP) also showed that foreign direct investment (FDI) in India rose to $8.2 billion in Q1 June 2014, from $6.5 billion in Q1 June 2013. The data was announced after market hours on Monday, 1 September 2014.
Asian stocks were mixed today, 2 September 2014. Key benchmark indices in Singapore, Japan, Indonesia, and China were up 0.12% to 1.43%. Key benchmark indices in Hong Kong, Taiwan, and South Korea were off 0.51% to 0.78%.
US stock markets were closed on Monday, 1 September 2014 for Labor Day holiday.
According to reports, the Russian officials pressed Ukraine on Monday, 1 September 2014, to declare a cease-fire with separatists, but Ukrainians say they are locked in a war not just against the rebels but also against Russia on behalf of Europe. Ukraine and its Western allies have surmised that Russian forces are significantly aiding pro-Russian separatists.
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