A range bound movement was witnessed as key benchmark indices hovered in green in early afternoon trade. The broad market depicted strength. There were more than two gainers against every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 198.79 points or 0.71% at 28,270.72. The BSE Mid-Cap index was up 1.03%. The BSE Small-Cap index was up 1.28%. Both these indices outperformed the Sensex. In overseas markets, Asian stocks edged higher after the outcome of a monthly survey showed that China's services sector showed continued strength in July.
Auto stocks gained. Shares of small car maker Maruti Suzuki India scaled record high. Telecom stocks were in demand with shares of sector leader Bharti Airtel gaining after declaring good Q1 result.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks in morning trade as these two key benchmark indices extended initial gains.
Meanwhile, Taiwanese electronics giant Foxconn said yesterday, 4 August 2015, that the company is considering setting up manufacturing facilities in India.
Meanwhile, the outcome of a monthly survey released today, 5 August 2015, showed that India's services sector activity rose last month, primarily in response to a renewed increase in new business.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 118.70 crore yesterday, 4 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 112.55 crore yesterday, 4 August 2015, as per provisional data released by the stock exchanges
In overseas markets, Asian stocks edged higher after the outcome of a monthly survey showed that China's services sector showed continued strength in July. US stocks edged lower yesterday, 4 August 2015, after Federal Reserve Bank of Atlanta President Dennis Lockhart indicated that a September interest-rate hike is likely unless there is a significant deterioration in the economy.
At 12:19 IST, the S&P BSE Sensex was up 198.79 points or 0.71% at 28,270.72. The index jumped 236.57 points at the day's high of 28,308.50 in morning trade, its highest level since 24 July 2015. The index rose 63.75 points at the day's low of 28,135.68 in early trade.
The CNX Nifty was up 54.40 points or 0.64% at 8,571.30. The index hit a high of 8,587.45 in intraday trade, its highest level since 24 July 2015. The index hit a low of 8,545.85 in intraday trade.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,880 shares gained and 785 shares fell. A total of 97 shares were unchanged.
The BSE Mid-Cap index was up 118.39 points or 1.03% at 11,575.62. The BSE Small-Cap index was up 153.93 points or 1.28% at 12,175.07. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2212 crore by 12:15 IST compared with Rs 1674 crore by 11:15 IST.
Auto stocks gained. Tata Motors (up 1.23%), Mahindra & Mahindra (M&M) (up 0.38%), Eicher Motors (up 1.94%), Bajaj Auto (up 2.63%), Hero MotoCorp (up 0.89%) and TVS Motor Company (up 0.49%) rose. Ashok Leyland fell 0.17%.
Maruti Suzuki India gained 0.61% to Rs 4,465. The stock hit a high of Rs 4,478 in intraday so far, which is a record high for the stock. Maruti Suzuki India after market hours yesterday, 4 August 2015, announced that its total production rose 19.46% to 1.33 lakh units in July 2015 over July 2014.
Maruti Suzuki India had on 1 August 2015 announced that total vehicle sales rose 20.1% to 1.21 lakh units in July 2015 over July 2014. Total domestic sales rose 22.5% to 1.10 lakh units in July 2015 over July 2014. Exports rose 0.2% to 11,307 units in July 2015 over July 2014.
Telecom stocks were in demand. Idea Cellular (up 1.09%), MTNL (up 3.82%), Tata Teleservices (Maharashtra) (up 4.77%) and Reliance Communications (up 4.48%) gained.
Bharti Airtel gained 1.46% after consolidated net profit rose 40.2% to Rs 1554 crore on 3.1% increase in revenue to Rs 23671 crore in Q1 June 2015 over Q1 June 2014. The Q1 result was announced after market hours yesterday, 4 August 2015. The results are as per International Financial Reporting Standards (IFRS).
Bharti Airtel's bottom line in Q1 June 2015 was boosted by exceptional income of a net Rs 458.10 crore. The company's profit before tax and exceptional items dropped 13.3% to Rs 2500.70 crore in Q1 June 2015 over Q1 June 2014. The company's EBITDA (earnings before interest, taxes, depreciation and amortization) rose 6.4% to Rs 8262 crore in Q1 June 2015 over Q1 June 2014. EBITDA margin improved to 34.9% in Q1 June 2015, from 33.8% in Q1 June 2014.
Bharti Airtel said consolidated mobile data revenues grew by 56.9% to Rs 3459 crore in Q1 June 2015 over Q1 June 2014, uplifted by data traffic growth of 86.5%.
Meanwhile, Taiwanese electronics giant Foxconn said yesterday, 4 August 2015, that the company is considering setting up manufacturing facilities in India. Foxconn Chairman Terry Gou reportedly said at a news conference in New Delhi yesterday, 4 August 2015, that Foxconn intends to set up manufacturing facilities for producing televisions, routers, switches, storage equipment and batteries among other devices in India. Foxconn is the world's largest contract electronics manufacturer by revenue.
Meanwhile, the outcome of a monthly survey released today, 5 August 2015, showed that India's services sector activity rose last month, primarily in response to a renewed increase in new business. The seasonally adjusted Nikkei Services Business Activity Index rose back above the 50 no-change mark in July, posting 50.8 from 47.7 in June. Although growing for the first time in three months, the expansion in new business was slight. The upturn in incoming new work led Indian service providers to take on additional workers in July. Although slight, the rate of job creation was the quickest in two years. While contrasting with continued marginal job shedding in the manufacturing sector, the rise in services employment was enough to result in higher staffing levels overall. Rates charged by service providers to their users rose for the 8th month in a row in July. Nonetheless, the latest increase was only marginal. Anecdotal evidence suggests that strong competitive pressures had weighed on service providers' pricing power. Confidence among Indian services firms deteriorated in July. Although companies remained optimistic on average, the level of positive sentiment dipped to a survey low.
Meanwhile, the Reserve Bank of India (RBI) Governor Dr. Raghuram G. Rajan indicated in his written monetary policy statement yesterday, 4 August 2015, that monetary policy could be eased if there is greater transmission of monetary policy by way of cut in base rate by commercial banks. The RBI kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy yesterday, 4 August 2015, while retaining the accommodative stance of monetary policy.
Meanwhile, India's weather office, the India Meteorological Department (IMD) said in a daily report issued yesterday, 4 August 2015, that the Southwest Monsoon was active over Madhya Pradesh, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 4 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, 6% below the LPA in Central India and 6% above the LPA in Northwest India until 4 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, Asian stocks edged higher today, 5 August 2015, after the outcome of a monthly survey showed that China's services sector showed continued strength in July. Key benchmark indices in Taiwan, South Korea, Hong Kong, Singapore, China, Japan and Indonesia were up 0.06% to 0.46%.
Activity in China's services sector expanded at its fastest pace in 11 months in July, thanks to stronger new business, a private survey showed today, 5 August 2015. The services Purchasing Managers' Index (PMI) compiled by Caixin/Markit rose to 53.8 in July from June's 51.8. The July level is the highest since August 2014 and marks a 12th straight month of expansion. A reading above 50 points indicates growth on a monthly basis, while one below that points to a contraction. A government measure of services and construction, known as the official nonmanufacturing PMI, was also strong in July, rising to 53.9 from 53.8 in June, according to government data released on 1 August 2015.
US stocks edged lower yesterday, 4 August 2015, after Federal Reserve Bank of Atlanta President Dennis Lockhart indicated that a September interest-rate hike is likely unless there is a significant deterioration in the economy. The influential monthly US nonfarm payroll report for July 2015 is due on Friday, 7 August 2015. The report will be scrutinized for clues to the strength of the labor-market recovery. The Federal Reserve has said it is watching economic indicatorswages and employment numbers in particularas it assesses when to hike interest rates for the first time in a decade. The ADP employment report, considered a precursor to the nonfarm data, is due later in the global day today, 5 August 2015.
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