A bout of volatility was witnessed as key benchmark indices recovered from lower level soon after trimming intraday gains in mid-afternoon trade. Shares of insurance companies advanced on reports the government introduced Insurance Bill in Lok Sabha today, 3 March 2015. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 109.85 points or 0.37% at 29,568.99. The BSE Small-Cap index was up 1.24%, outperforming the Sensex. Brent crude oil prices witnessed a steep slide overnight which augurs well for India.
FMCG stocks edged higher. Bharti Airtel dropped amid volatility after the company announced strategic collaboration with China Mobile under which the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Titan Company edged higher after the company said it has commenced production of world-class stainless steel cases at a new facility in Coimbatore, which will cater to the increasing demand for premium watches.
Meanwhile, Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit both, hit 4-1/2-week high in afternoon trade as these two key benchmark indices extended intraday gains.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 424.79 crore yesterday, 2 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 180.35 crore yesterday, 2 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher after previous trading session's sharp slump. Decline in global crude oil prices and 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. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. India imports 80% of its crude oil requirement.
In overseas markets, European stock markets edged higher. Asian stock markets were mixed. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attaining record closing high as investors brushed off slightly disappointing economic data.
At 14:15 IST, the S&P BSE Sensex was up 109.85 points or 0.37% at 29,568.99. The index jumped 135.88 points at the day's high of 29,595.02 in afternoon trade, its highest level since 30 January 2015. The index slipped 94.27 points at the day's low of 29,364.87 in early trade.
The 50-unit CNX Nifty was up 22.30 points or 0.25% at 8,979.05. The index hit a high of 8,990.85 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,925.55 in intraday trade.
The BSE Mid-Cap index was up 83.75 points or 0.76% at 11,036.68. The BSE Small-Cap index was up 140.43 points or 1.24% at 11,511.23. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,507 shares gained and 1,167 shares fell. A total of 141 shares were unchanged.
Shares of insurance companies advanced on reports the government introduced Insurance Bill in Lok Sabha today, 3 March 2015. Reliance Capital (up 2.87%), Religare Enterprises (up 2.35%), Bajaj Finserv (up 2.31%), HDFC (up 1.47%), Max India (up 1.21%), and Aditya Birla Nuvo (up 1.19%) edged higher. Exide Industries (down 0.14%), State Bank of India (down 0.43%), and ICICI Bank (down 0.64%) edged lower.
The Insurance Bill intends to raise foreign investment in the insurance sector to 49% from 26%. The Bill will replace the Ordinance issued last year.
Shares of FMCG firms advanced. Britannia Industries (up 2.48%), Emami (up 2.77%), Marico (up 1.75%), Colgate-Palmolive (India) (up 1.28%), Dabur India (up 0.86%), Bajaj Corp (up 2.36%), and Nestle India (up 0.21%) edged higher. Hindustan Unilever (down 0.88%) edged lower.
Godrej Consumer Products (GCPL) rose 0.44% at Rs 1,130. GCPL after market hours yesterday, 2 March 2015, said that the company has completed the acquisition of 100% of the business of Frika Hair (Pty) in South Africa.
Maruti Suzuki India rose 0.08% at Rs 3,711. Maruti Suzuki India during market hours today, 3 March 2015, said that the company's production rose 12.03% to 1.21 lakh units in February 2015 over February 2014.
Bharti Airtel fell 0.37% at Rs 348.10. The stock hit a high of Rs 350.60 and a low of Rs 344.10 so far during the day. Bharti Airtel during market hours today, 3 March 2015, announced a strategic collaboration with China Mobile under which the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Airtel and China Mobile will also work towards shaping up a joint strategy for procurement of devices that include Mifi, smartphones, data cards, LTE CPEs and USIM, Bharti Airtel said in a statement.
Bharti Airtel and China Mobile will work together for understanding and sharing testing and validation practices (including network equipment, features and new releases etc.) and also jointly conduct proof of concepts as well as trials. China Mobile and Airtel will also aim to bring in cost efficiencies by driving synergies in their procurement strategies, among other collaborative efforts included in this MoU agreement.
Titan Company rose 1.57% at Rs 418.55. Titan Company during market hours today, 3 March 2015 said it has commenced production of world-class stainless steel cases at a new facility in Coimbatore. Set up at a cost of over Rs 75 crore, the new plant will manufacture around one million cases per annum and scale it up to two million cases per annum eventually, Titan said in a statement. Chief Executive Officer of Titan's watches and accessories business Mr. H G Raghunath said that plant will cater to the increasing demand for premium watches.
Crompton Greaves rose 1.33% at Rs 182.20. Crompton Greaves during market hours today, 3 March 2015, said that the company's board of directors at a meeting held today, 3 March 2015, approved a new Scheme of Arrangement for the vertical demerger of consumer products business into a separate listed company to be named Crompton Greaves Consumer Electricals. The demerger will come into effect from the Appointed Date 1 October 2015, subject to receipt of all regulatory approvals.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.875, compared with its close of 61.87 during the previous trading session.
Brent crude oil futures edged higher after previous trading session's sharp slump. Brent for April settlement was up 57 cents at $60.11 a barrel. The contract had slumped $3.04 a barrel or 4.85% to settle at $59.54 a barrel during the previous trading session.
Finance Minister Arun Jaitley reportedly said in New York yesterday, 2 March 2015, that India's economy needs to reach an annual growth rate of 9% to 10% and then sustain that level of high growth for many years in order to improve infrastructure and bring down rampant poverty. Jaitley used China as the example of what high growth rates can do over a decades-long period.
Meanwhile, data released by the government after trading hours yesterday, 2 March 2015, showed that the index of eight core infrastructure industries rose at moderate pace of 1.8% January 2015, compared with 2.4% growth recorded in December 2014. The cumulative growth stood at 4.1% in April-January.
In overseas markets, European stock markets edged higher today, 3 March 2015. Key indices in Germany, UK, and France were up 0.19% to 0.25%.
As per the data released by the German Federal Statistical Office (Destatis) today, 3 March 2015, retail sales in January rose 5.3%, up from the December's upwardly revised 4.8% rise. Month-on-month, the retail sales printed at 2.9%, higher from the December's upwardly revised 0.6%.
Greece is reportedly preparing to tap its final pension reserves at the country's central bank if needed to avert a devastating default to the International Monetary Fund (IMF) and keep the government going over the next two weeks.
A monthly monetary policy review from the European Central Bank is scheduled on Thursday, 5 March 2015.
Asian stock markets were mixed today, 3 March 2015. Key indices in China, Hong Kong and Japan were off 0.06% to 2.15%. Key indices in Taiwan, Singapore, South Korea, and Indonesia were up 0.05% to 0.63%.
The Reserve Bank of Australia (RBA) today, 3 March 2015, left the official cash rate on hold at 2.25%. Most economists were expecting a cut.
Trading in US index futures indicated that the Dow could fall 12 points at the opening bell today, 3 March 2015. US stocks edged higher yesterday, 2 March 2015, with the S&P 500 and the Dow Jones Industrial Average, both, attaining record closing high as investors brushed off slightly disappointing economic data.
Outlays for US construction projects declined 1.1% in January to a seasonally adjusted annual rate $971.4 billion, led by public spending, the US Commerce Department said yesterday, 2 March 2015.
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