High volatility characterized trading as key benchmark indices struck yet another record high. After extending gains in mid-afternoon trade soon after Ukraine's announcement that the country's President Petro Poroshenko had agreed on a permanent cease-fire in the Donbas region with his Russian counterpart Vladimir Putin, key indices came off the day's high shortly thereafter after a Russian official reportedly clarified that the two leaders had not agreed on a truce, but instead had discussed the peace process in eastern Ukraine. The barometer index, the S&P BSE Sensex was provisionally up 116.03 points or 0.43% at 27,135.42. IT stocks led gains. The market breadth indicating the overall health of the market turned negative from positive in late trade. Brent crude oil futures moved higher from a 16-month low hit yesterday, 2 September 2014. Provisional data showed that foreign funds remained net buyers of Indian stocks during the previous trading session. A survey showed that growth in India's service sector activity slowed last month. Global credit rating agency Moody's Investors Service reportedly said today, 3 September 2014, that India's fiscal deficit and inflation outlook could prevent any upgrades in the country's sovereign rating.
L&T gained after commissioning the world's largest solar photovoltaic plant in Amritsar, Punjab. ONGC dropped amid intraday volatility after its overseas subsidiary signed MoU with a major oil producing company in Argentina.
Key indices had witnessed intraday volatility earlier during the day after a firm opening. An overnight sharp slide in crude oil prices and positive cues from Asian markets had triggered a firm opening on the domestic bourses.
In overseas markets, European stocks surged after Ukraine's announcement that the country's President Petro Poroshenko had agreed on a permanent cease-fire in the Donbas region with his Russian counterpart Vladimir Putin. Asian stocks rose after reports showed faster expansion in China's service industries last month and as US manufacturing expanded at the fastest pace in three years last month.
As per the provisional figures, the S&P BSE Sensex was up 116.03 points or 0.43% at 27,135.42. The index jumped 206.46 points at the day's high of 27,225.85 in mid-afternoon trade, a record high for the index. The index rose 47.63 points at the day's low of 27,067.02 in intraday trade.
The CNX Nifty garnered 30.90 points or 0.38% at 8,113.95, as per provisional figures. The index hit a high of 8,141.90 in intraday trade, a record high for the index. The index hit a low of 8,092.25 in intraday trade.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,532 shares declined and 1,494 shares rose. A total of 109 shares were unchanged.
The BSE Mid-Cap index advanced 81.10 points or 0.85% at 9,604.87, outperforming the Sensex. The BSE Small-Cap index gained 41.30 points or 0.39% at 10,533.72, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3601 crore, higher than Rs 3354.76 crore on Tuesday, 2 September 2014.
Among the 30 Sensex shares, 16 declined and remaining shares gained.
L&T rose 1.4% after the company during market hours said that its construction division has recently commissioned the world's largest solar photovoltaic plant of 7.52 MWp capacity on a single roof at Amritsar in Punjab. The energy generated from this plant is being fed to the local grid through a power purchase agreement (PPA) signed with the state distribution company under the New and Renewable Sources of Energ (NRSE) Policy, L&T said in a statement.
ONGC lost 1.62% at Rs 437.40. The stock was volatile. The stock hit a high of Rs 450 and low of Rs 435.75. ONGC Videsh and YPF S.A., the major oil producing company of Argentina have entered into a memorandum of understanding (MoU) on 1 September 2014 to cooperate in the hydrocarbon sector. Under the MoU, the two companies will analyse the opportunities for cooperation in upstream sector in Argentina, India and third countries. The MoU also envisages collaboration in the areas of research & development and human resources, ONGC said in a statement.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 672.81 crore on Tuesday, 2 September 2014, as per provisional data from the stock exchanges.
A decline in crude oil prices is good news for India as the country imports 80% of its crude oil requirement. Brent crude futures slumped to a 16-month low yesterday, 2 September 2014, on concern slower manufacturing from Europe to China will curb global oil demand. Brent for October settlement slipped $2.45 a barrel to settle at $100.34 a barrel yesterday, 2 September 2014, the lowest close since 1 May 2013. In today's trading, Brent for October settlement was up 97 cents at $101.31 a barrel. Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation.
In the foreign exchange market, the rupee edged higher against the dollar as equity benchmark indices hit yet another record high and as Brent crude oil prices hit 16-month low yesterday, 2 September 2014. The partially convertible rupee was hovering at 60.475, compared with its close of 60.68/69 during the previous trading session.
A survey released by Markit Economics today, 3 September 2014, showed that growth in India's service sector activity slowed in August 2014. Adjusted for seasonal influences, the headline HSBC India Services Business Activity Index posted 50.6 in August, down from 52.2 in July. On the positive side, weaker activity has softened inflation indicators within the survey.
Global credit rating agency Moody's Investors Service reportedly said today, 3 September 2014, that India's fiscal deficit and inflation outlook could prevent any upgrades in the country's sovereign rating. Moody's said that India's finances would remain vulnerable to future cyclical downturns and external shocks. While stronger growth in this large and diverse economy will help to counterbalance these credit challenges, they limit further upward momentum in the sovereign rating, Moody's said. The credit agency rates India at "Baa3", the lowest investment-grade rating, with a "stable" outlook.
European stocks surged today, 3 September 2014, as geopolitical worries receded after Ukraine's announcement that the country's President Petro Poroshenko had agreed on a permanent cease-fire in the Donbas region with his Russian counterpart Vladimir Putin. The market held on to gains after a Russian official reportedly clarified that the two leaders had not agreed on a truce, but instead had discussed the peace process in eastern Ukraine. Key benchmark indices in UK, France and Germany were up by 0.85% to 1.74%.
A monthly meeting of the European Central Bank (ECB) is scheduled tomorrow, 4 September 2014. There are expectations that the European Central Bank (ECB) will announce quantitative easing in the coming months to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
Asian markets edged higher today, 3 September 2014 after data underscored that the US economy continues to gather gradual momentum. Key indices in Japan, China, Hong Kong, Taiwan, Singapore, and Indonesia were up 0.32% to 2.46%. In South Korea, the Seoul Composite index was off 0.02%.
The HSBC China services Purchasing Managers' Index rose to a 17-month high of 54.1 in August from 50 in July, HSBC Holdings PLC said today, 3 September 2014, while cautioning that sub-index readings pointed to a mixed picture of economic recovery. The HSBC Composite Output Index posted at 52.8, up from 51.6 in July, and signalled a robust rise in activity levels. Furthermore, it was the strongest expansion of business activity in 17 months.
China's official non-manufacturing activity slightly recovered in August, with the sector's purchasing managers' index (PMI) rebounding to 54.4 in August from 54.2 in July, official data showed today, 3 September 2014.
Trading in US index futures indicated that the Dow could gain 73 points at the opening bell on Wednesday, 3 September 2014. The Institute for Supply Management yesterday, 2 Setepmber 2014, said its US manufacturing activity index rose to 59 in August, the strongest since March 2011. Separately, US construction spending staged a strong rebound in July, rising by the largest amount in more than two years. Construction spending rose 1.8% in July, the biggest one-month gain since May 2012, the Commerce Department reported Tuesday, 2 September 2014. It followed a 0.9% decline in June, the largest setback in a year.
Powered by Capital Market - Live News
