Gains in index heavyweight ITC and oil and pharma sector stocks aided modest gains for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 131.67 points or 0.49% at 26,917.22, as per the provisional closing data. The 50-unit CNX Nifty gained 34.05 points or 0.42% at 8,153.35, as per the provisional closing data. The Sensex failed to retain the psychological 27,000 mark after surpassing that mark in intraday trade.
Benchmark indices witnessed intraday volatility. The Sensex jumped 224.72 points or 0.83% to reach a 6-1/2-week high of 27,010.27. The barometer index lost 34.30 points or 0.12% at the day's low of 26,751.25. The Nifty jumped 61.65 points or 0.75% to reach a 6-1/2-week high of 8,180.95. The index lost 22.80 points or 0.28% at the day's low of 8,096.50.
In overseas stock markets, European shares reversed initial losses triggered by disappointing German manufacturing orders data. Asian stocks edged higher on prospects of a delay in the US Federal Reserve's plan to raise interest rates and signs of some stability in oil and commodity markets. US stocks jumped yesterday, 5 October 2015, with the S&P 500 index rising for the fifth day in a row, as rising oil prices boosted energy stocks and investors bet the Federal Reserve would not raise interest rates in calendar year 2015.
Closer home, key indices edged higher for the fifth day in a row.
The market breadth indicating the overall health of the market was positive. On BSE, 1,595 shares rose and 1,144 shares declined. A total of 115 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.31%, underperforming the Sensex. The BSE Small-Cap index was provisionally up 0.69%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2883 crore, lower than turnover of Rs 3038.42 crore registered during the previous trading session.
Metal & mining stocks edged higher on renewed buying. Bhushan Steel (up 0.45%), Hindustan Copper (up 5.59%), Vedanta (up 1.24%), Hindalco Industries (up 0.88%), Hindustan Zinc (up 0.49%), Steel Authority of India (Sail) (up 1.44%), Tata Steel (up 0.85%), Jindal Steel & Power (up 6.21%), and National Aluminum Company (up 1.28%) gained. JSW Steel (down 1.1%) and NMDC (down 0.42%) declined.
Shares of Coal India gained 3.95%.
Tata Motors jumped 5.74%, with the stock extending a rally registered during the previous trading session. Jaguar Land Rover North America announced on 1 October 2015 that its US sales rose 61% to 6,850 units in September 2015 over September 2014.
Index heavyweight and cigarette maker ITC rose 4.24% on media reports that the company has decided to foray into the dairy segment with the launch of its new product Aashirvaad ghee this Diwali. Aashirvaad is a brand of staple food and kitchen ingredients owned by ITC and the range of products include atta, salt, spices and instant mixes.
Oil exploration firms gained along with rise in crude oil prices. ONGC (up 2.85%), Cairn India (up 2.39%), Reliance Industries (RIL) (up 1.09%) and Oil India (up 1.13%) gained. Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms.
In the global commodities markets, Brent for November settlement was currently up 12 cents at $49.37 a barrel. The contract had risen $1.12 a barrel or 2.32% to settle at $49.25 a barrel during the previous trading session.
Shares of public sector oil marketing companies also rose. BPCL (up 1.89%), Indian Oil Corporation (up 0.39%) and HPCL (up 2.9%) edged higher.
Meanwhile, the finance ministry yesterday, 5 October 2015, announced that the central government's expenditure on major subsidies has come down to 1.6% of GDP in 2015-16 from 2.5% of GDP in 2012-13. There could be a shortfall of around 5% to the estimated target of tax collection of Rs 14.5 lakh crore for the current fiscal year. The government is committed to achieving this year's fiscal deficit target as well as the fiscal glide path laid out in the budget, the finance ministry said. The central government's infrastructure spending has picked-up on the back of accelerated spending on highways, railways and the power sector. The central government's Plan Cap-EX has increased by over 30% this year. This is beginning to crowd-in private investment. The public private partnership projects which had been stalled are also now picking up.
With regard to inflation, the finance ministry said that the government's proactive food management to augment domestic supplies will ensure that food inflation is contained in the wake of scanty rains. The government and the Reserve Bank of India (RBI) will work together to consolidate the gains achieved on inflation control through the inflation targeting framework and the associated institutional arrangements. The finance ministry further said that the government will play its part to ensure that the benefits of falling interest rates are transmitted to the economy at large. A number of commercial banks have announced a reduction in their base rate during the past few days in the wake of a steeper-than-expected 50 basis points cut in the repo rate announced by the RBI after a regular monetary policy review early last week.
The finance ministry issued the statement after a press conference held by various secretaries to the Ministry of Finance and Chief Economic Adviser (CEA) Dr Arvind Subramanian on the completion of six months of financial year 2015-16 on 30 September 2015.
Meanwhile, the outcome of a monthly survey from Markit Economics showed that the growth in India's services sector activity eased last month. The Nikkei India Business Activity index dropped to 51.3 in September 2015 from 51.8 in August 2015. The slowdown in growth in the services sector comes close on the heels of another data showing slowdown in growth momentum in the manufacturing sector in September 2015.
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