A rangebound movement was witnessed as key benchmark indices hovered in positive zone in early afternoon trade. At 12:28 IST, the barometer index, the S&P BSE Sensex was up 86.62 points or 0.34% at 25,696.83. The 50-unit CNX Nifty was up 24.55 points or 0.32% at 7,813.85. On the macro front, the latest data showed that the annual rate of inflation based on monthly wholesale price index remained in negative zone for the 10th straight month in August 2015.
The market breadth indicating the overall health of the market was strong. On BSE, 1,454 shares rose and 843 shares declined. A total of 91 shares were unchanged. The BSE Mid-Cap index was up 0.89%. The BSE Small-Cap index was up 0.61%. Both these indices outperformed the Sensex.
Bank stocks edged higher after the latest data showed that the annual rate of inflation based on monthly wholesale price index remained in negative zone for the ninth straight month in August 2015. Among PSU banks, Union Bank of India (up 3.1%), Andhra Bank (up 1.64%), Bank of India (up 1.48%), IDBI Bank (up 1.34%), Corporation Bank (up 0.77%), Canara Bank (up 1.35%), State Bank of India (up 1.17%), Bank of Baroda (up 0.99%), Punjab National Bank (up 1.12%) and United Bank of India (up 0.72%) edged higher. Dena Bank (down 0.98%) and Vijaya Bank (down 0.42%) edged lower.
Among private sector banks, Yes Bank (up 2.34%), Axis Bank (up 1.77%), Kotak Mahindra Bank (up 0.99%), IndusInd Bank (up 0.39%), ICICI Bank (up 0.69%) and HDFC Bank (up 0.05%) edged higher.
Cement stocks rose. ACC (up 1.94%), Shree Cement (up 0.91%), Ambuja Cements (up 0.7%) and UltraTech Cement (up 0.45%) edged higher.
Grasim Industries was up 0.22% at Rs 3,467. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Rolta India rose after the company said it has won an additional $13 million contract for engineering systems from one of the world's largest petrochemical complexes. The stock surged 3.83% at Rs 101.75.
Gayatri Projects edged higher after the company said that its joint venture company Thermal Powertech Corporation India (TPCIL) successfully commenced full commercial operation with the completion of its second 660-megawatt unit. The stock rose 4.1% at Rs 457.20. The announcement was made during trading hours today, 14 September 2015. TPCIL is the joint venture company between Gayatri Energy Ventures (a wholly-owned subsidiary of Gayatri Projects) and Singapore based SembCorp Utilities (a wholly-owned subsidiary of SembCorp Industries).
On the macro front, lower global crude oil prices and a recovery in the rupee against the dollar augur well for India. India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. In the global commodities markets, Brent for October settlement was currently off 32 cents at $47.82 a barrel. The contract had fallen 75 cents or 1.53% to settle at $48.14 a barrel during the previous trading session. The Brent October contract expires tomorrow, 15 September 2015. Brent for November settlement was currently off 25 cents at $48.79 a barrel.
A recovery in the rupee against the dollar has eased concerns about higher crude import costs. In the foreign exchange market, the partially convertible rupee was hovering at 66.3575, compared with its close of 66.53 during the previous trading session. A weak rupee raises the cost of imports.
Meanwhile, the annual rate of inflation based on monthly wholesale price index (WPI) stood at minus 4.95% (provisional) for the month of August 2015 compared to minus 4.05% (provisional) for the previous month and 3.85% during the corresponding month of the previous year, according to the data released by the government during market hours today, 14 September 2015.
The government is scheduled to unveil the consumer price index (CPI) data for the month of August 2015 after market hours today, 14 September 2015. The all-India general CPI inflation dipped to 3.78% in July 2015 from 5.4% in June 2015.
Meanwhile, data released after market hours on Friday, 11 September 2015 showed that India's index of industrial production (IIP) increased 4.2% in July 2015 over a year ago compared with the revised growth of 4.4% in June 2015. The IIP growth for June 2015 has been scaled up 4.4% in the first revision compared with 3.8% reported provisionally.
Another data released after market hours on Friday, 11 September 2015, showed that India's current account deficit (CAD) narrowed to $6.2 billion (1.2% of GDP) in Q1 June 2015 from $7.8 billion (1.6% of GDP) a year ago. This improvement was mainly on account of the merchandise trade deficit ($34.2 billion during Q1 June 2015) which contracted on a year-on-year (y-o-y) basis due to a larger absolute decline in merchandise imports relative to merchandise exports. The reduction in the CAD was also enabled by higher net earnings through services and lower outflow on account of primary income (profit, dividend and interest).
In overseas equity markets, stocks in China and Japan edged lower after Chinese data released over the weekend showed growth in China's factory output and fixed-asset investment were both weaker than expected in August 2015, a month when Beijing temporarily closed some factories ahead of a high-profile military parade. US stocks edged higher during the previous trading session on Friday, 11 September 2015, on speculation the US Federal Reserve will not hike interest rates this month due to concerns about global growth and amid a recent turmoil in global equity markets. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015. The Fed has held its benchmark short-term interest rate near zero since December 2008.
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