Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex hit almost one week high. The barometer index, the S&P BSE Sensex was currently up 355.75 points or 1.31% at 27,461.14. The market breadth indicating the overall health of the market was strong, with over two gainers for every loser. Bank stocks edged higher. Bank of Baroda spurted as bad loans declined sequentially.
In overseas markets, 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.
At 11:23 IST, the S&P BSE Sensex was up 355.75 points or 1.31% at 27,461.14. The index gained 382.31 points at the day's high of 27,487.70 in mid-morning 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 113.45 points or 1.38% at 8,304.95. The index hit a high of 8,306.20 in intraday trade, its highest level since 6 May 2015. The index hit a low of 8,226.50 in intraday trade.
The market breadth indicating the overall health of the market was strong, with over two gainers for every loser. On BSE, 1,544 shares gained and 654 shares fell. A total of 85 shares were unchanged.
The BSE Mid-Cap index was up 157.41 points or 1.54% at 10,393.62, outperforming the Sensex. The BSE Small-Cap index was up 128.66 points or 1.19% at 10,957.72, underperforming the Sensex.
The total turnover on BSE amounted to Rs 999 crore by 11:15 IST compared with Rs 596 crore by 10:15 IST.
Bank stocks were in demand. Among PSU bank stocks, State Bank of India (SBI) (up 3.27%), Punjab National Bank (up 0.51%), Canara Bank (up 2.7%), Bank of India (up 3.53%) and Union Bank of India (up 3.17%) gained.
Bank of Baroda spurted 12.13% as bad loans declined sequentially. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 1.89% as on 31 March 2015, lower than 2.11% as on 31 December 2014.
The bank's ratio of gross NPAs to gross advances stood at 3.72% as on 31 March 2015, lower than 3.85% as on 31 December 2014.
The state-run bank's net profit declined 48.29% to Rs 598.35 crore on 3.81% growth in total income to Rs 12057.39 crore in Q4 March 2015 over Q4 March 2014. The Q4 result was announced during market hours today, 11 May 2015.
Among private bank stocks, IndusInd Bank (up 0.57%), Axis Bank (up 1.01%) and Yes Bank (up 1.91%), and ICICI Bank (up 2.45%) gained. HDFC Bank (down 0.08%), Kotak Mahindra Bank (down 0.12%) declined.
Indian Oil Corporation rose 0.85% after PESO issued permission to the company to set up hydrogen manufacturing and dispensing facilities in its R&D centre at Faridabad, Haryana. Minister of State (Independent Charge) in the Ministry of Commerce & Industry Nirmala Sitharaman in a written reply in Lok Sabha on Friday, 8 May 2015 said that the Petroleum and Explosives Safety Organization (PESO) under Department of Industrial Policy and Promotion (DIPP) issued a licence for dispensing of Hydrogen-CNG blend as fuel to Indian Oil Corporation (IOCL) at its R&D Centre Faridabad, Haryana for its own use for demonstration purpose. PESO has also given 'in principal' approval for IOCL for dispensing hydrogen to vehicles for demonstration and data acquisition purpose at the above centre.
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 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.
Meanwhile, 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.
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. Key benchmark indices in China, Singapore, Hong Kong, Japan, Indonesia and South Korea rose by 0.5% to 1.88%. Taiwan's Taiwan Weighted index shed 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%.
In Europe, 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.
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