After a rangebound movement near the flat line in early afternoon trade, key benchmark indices drifted higher in afternoon trade as European stocks rose and as US index futures trimmed losses. The barometer index, the S&P BSE Sensex, was currently trading above the psychological 28,000 level, having alternately moved above and below that level so far during the trading session The Sensex was currently up 94.59 points or 0.34% at 28,052.08. The BSE Mid-Cap index was up 1.03%. The BSE Small-Cap index was up 1.61%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong, with more than two gainers against every loser on BSE. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 3% to 20% for quite a few stocks. Among the gainers from the constituents of the BSE Mid-Cap index, gains ranged from about 2% to about 11% for quite a few stocks.
Pharma shares edged higher on renewed buying. Dr Reddy's Laboratories (DRL) rose after the company entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, in the territories of India, Nepal, Sri Lanka and Maldives for Rs 800 crore (euro 118 million). Index heavyweight and engineering & construction major L&T gained after the company announced fresh order wins. Hindalco Industries edged higher on reports that the Supreme Court has stayed summons issued to former Prime Minister Manmohan Singh, K.M. Birla, former coal secretary P.C. Parakh and two Hindalco Industries executives in relation to the allocation of a coal block in Odisha.
On the macro front, the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) recorded 1.4% growth in February 2015 over February 2014, data released by the government after trading hours yesterday, 31 March 2015 showed.
Meanwhile, the Reserve Bank of India has relaxed position limits for foreign portfolio investors (FPIs), domestic participants and importers of goods and services in the exchange traded currency derivatives (ETCD) market.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.07 crore yesterday, 31 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 283.71 crore yesterday, 31 March 2015, as per provisional data.
Brent crude oil futures edged lower as markets kept a close watch on US-Iran nuclear talks and the build-up in US oil supplies. 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.
Meanwhile, Indian Oil Corporation (IOC) today, 1 April 2015, announced a reduction in retail selling price of diesel by Rs 1.21 per litre at Delhi (including state levies) with corresponding decline in price in other states. IOC announced reduction in petrol price by 49 paise per litre.
In overseas markets, European stocks edged higher. Asian stock edged lower after a mixed bag of economic data releases in the region. US stocks registered sizable losses yesterday, 31 March 2015, amid fears that first-quarter earnings will disappoint.
Meanwhile, India's stock market remains closed tomorrow, 2 April 2015, on account of Mahavir Jayanti. The stock market remains closed again on Friday, 3 April 2015, on account of Good Friday.
At 13:18 IST, the S&P BSE Sensex was up 94.59 points or 0.34% at 28,052.08. The index jumped 123.97 points at the day's high of 28,081.46 in afternoon trade. The index fell 68.47 points at the day's low of 27,889.02 in early trade.
The CNX Nifty was up 22.05 points or 0.26% at 8,513.05. The index hit a high of 8,518.40 in intraday trade. The index hit a low of 8,464.75 in intraday trade.
The BSE Mid-Cap index was up 109.53 points or 1.03% at 10,701.75. The BSE Small-Cap index was up 174.95 points or 1.61% at 11,065.40. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong, with more than two gainers against every loser on BSE. 1,731 shares gained and 728 shares fell. A total of 92 shares were unchanged.
The total turnover on BSE amounted to Rs 1454 crore by 13:15 IST.
Pharma shares edged higher on renewed buying. Ranbaxy Laboratories (up 4.75%), Sun Pharmaceutical Industries (up 4.74%), Cadila Healthcare (up 1.97%), Aurobindo Pharma (up 2.11%), Cipla (up 0.09%), Glenmark Pharmaceuticals (up 0.51%), Lupin (up 0.94%) gained. Wockhardt fell 0.46%.
Dr Reddy's Laboratories (DRL) rose after the company entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, in the territories of India, Nepal, Sri Lanka and Maldives for Rs 800 crore (euro 118 million). The stock was up 1.47%. DRL during market hours said that the acquired business is being sold on a slump sale basis. The transaction included approximately 350 employees engaged in operations of the India business. The revenue of the acquired business was approximately Rs 150 crore for the calendar year 2014, DRL said.
The acquisition of UCB's existing brand equity in the areas of dermatology, respiratory and pediatrics diseases will further expand Dr Reddy's therapy footprint into these fast growing areas, the company said. The transaction is expected to be closed in Q1 June 2015.
Index heavyweight and engineering & construction major L&T gained after the company announced fresh order wins. The stock was up 0.72% at Rs 1,731.35. L&T during market hours today, 1 April 2015, announced that the company's construction arm won orders worth Rs 3343 crore across various business segments in March 2015. Separately, L&T during market hours today, 1 April 2015, said it has secured a contract worth more than Rs 5580 crore from NTPC for setting up a greenfield ultra supercritical thermal power plant in Khargone district of Madhya Pradesh on EPC basis.
Hindalco Industries edged higher on reports that the Supreme Court has stayed summons issued to former Prime Minister Manmohan Singh, K.M. Birla, former coal secretary P.C. Parakh and two Hindalco Industries executives in relation to the allocation of a coal block in Odisha. The stock was up 2.52%. A Supreme Court bench comprising justices Gopala Gowda and C. Nagappan also issued notices to the Union government on a plea by Hindalco challenging constitutional validity of section 13 (1)(d)(iii) of the Prevention of Corruption Act, according to reports. On 11 March, a special court judge Bharat Parashar, hearing the criminal cases arising out of the irregular coal block allocations during 1993-2010, had summoned Singh, Birla, Parakh and Hindalco executives over charges of criminal conspiracy and corruption. The case in the trial court pertains to the allotment of Talabira II and Talabira III coalfields in Odisha to a joint venture between Hindalco, Neyveli Lignite Corporation (NLC) and Mahanadi Coalfields in 2005.
Brent crude oil futures edged lower as markets kept a close watch on US-Iran nuclear talks and the build-up in US oil supplies. Brent for May settlement was off 40 cents at $54.71 a barrel. The contract had declined $1.18 a barrel or 2.09% to settle at $55.11 a barrel during previous trading session.
The ongoing nuclear talks between Iran and six world powers missed its deadline on Tuesday, but officials have agreed to continue talks in Switzerland for an extra day, according to media reports. A successful nuclear deal could pave the way for the lifting of sanctions against Iran, and release a large amount of stockpiled oil into an oversupplied global market, pressuring oil prices.
On the macro front, the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) recorded 1.4% growth in February 2015 over February 2014, data released by the government after trading hours yesterday, 31 March 2015 showed. Its cumulative growth during April to February, 2014-15 was 3.8%.
The Reserve Bank of India has relaxed position limits for foreign portfolio investors (FPIs), domestic participants and importers of goods and services in the exchange traded currency derivatives (ETCD) market. The RBI said yesterday, 31 March 2015, that the limit for domestic entities and FPIs to take foreign currency positions in the dollar-rupee pair on ETCD market without having to establish the existence of any underlying exposure has been increased to $15 million per exchange. In addition, there will be an aggregate limit of $ 5 million equivalent per exchange for EUR-INR, GBP-INR and JPY-INR pairs. The limit for domestic importers of goods and services to take hedging positions in ETCD markets has been increased from 50 per cent to 100 per cent of the higher of the average of their last three years' imports turnover and the previous year's turnover. The RBI also said that documentation and other administrative requirements for hedging on the ETCD markets have also been rationalised.
In overseas markets, European stocks edged higher today, 1 April 2015. Key benchmark indices in UK and France were up 0.32% to 0.37%. In Germany, the DAX was off 0.02%.
Asian stock markets edged lower today, 1 April 2015, following a mixed bag of economic data releases. Key indices in Japan, Taiwan, Singapore, South Korea, and Indonesia were off 0.14% to 0.98%. Key indices in China and Hong Kong were up 0.61% to 1.22%.
China's official Purchasing Managers Index rose to 50.1 in March from 49.9 in February, although the HSBC China manufacturing PMI fell to a final reading of 49.6 in March from 50.7 in February.
In Japan, the Bank of Japan's tankan corporate sentiment survey showed the main index measuring sentiment among big manufacturers was unchanged at plus 12 from the December poll.
Trading in US index futures indicated that the Dow could fall 67.50 points at the opening bell today, 1 April 2015. US stocks registered sizable losses yesterday, 31 March 2015, amid fears that first-quarter earnings will disappoint.
Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond and a voting member of the Federal Open Market Committee yesterday, 31 March 2015, said he expects solid growth and rising inflation this year, and as a result, would urge the US central bank to start raising interest rates relatively soon.
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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