After holding firm in morning trade, key benchmark indices gave away a lion's portion of intraday gains in mid-morning trade after the latest data showed that Indian manufacturing activity expanded at its slowest pace in five months in February. The barometer index, the S&P BSE Sensex, was currently up 22.47 points or 0.08% at 29,383.97. The market breadth indicating the overall health of the market was positive.
Meanwhile, global credit rating agency Standard and Poor's reportedly said today, 2 March 2015, that a relatively heavy general government debt burden and large budgetary subsidies could constrain its sovereign credit ratings on India. The rating agency said that India's budget for 2015/16 highlighted the government's commitment to keeping the fiscal deficit low.
Auto stocks were mixed. Maruti Suzuki India advanced after good sales in February 2015. Eicher Motors edged higher after strong sales in Febraury 2015. Index heavyweight Reliance Industries edged lower after the company said that a fire was noticed in a section of its associate company Reliance Gas Transportation Infrastructure (RGTIL)'s pipeline in Maddikunta near Sadasivapet (earlier reported near Zaheerabad) in remote Telangana.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than four weeks in morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 614.03 crore on Saturday, 28 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 740.74 crore on Saturday, 28 February 2015, as per provisional data. A special live trading session was held on that day due to presentation of the Budget.
In the foreign exchange market, the rupee was currently unchanged against the dollar.
Brent crude oil futures edged lower after previous trading session's sharp rally.
In overseas markets, Asian stocks edged higher, buoyed by an interest rate cut in China.
At 11:18 IST, the S&P BSE Sensex was up 22.47 points or 0.08% at 29,383.97. The index jumped 214.82 points at the day's high of 29,576.32 in morning trade, its highest level since 30 January 2015. The index fell 3.36 points at the day's low of 29,358.14 in mid-morning trade.
The CNX Nifty was up 10.90 points or 0.12% at 8,912.75. The index hit a high of 8,972.35 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,909.60 in intraday trade.
The BSE Mid-Cap index was up 52.25 points or 0.48% at 10,863.10. The BSE Small-Cap index was up 45.98 points or 0.41% at 11,312.42. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,225 shares gained and 1,057 shares fell. A total of 101 shares were unchanged.
Auto stocks were mixed. Tata Motors (down 1.15% at Rs 586.80) and Mahindra & Mahindra (down 1.24% at Rs 1,275.50) edged lower.
The Union Budget 2015-16 on Saturday, 28 February 2015, announced to speed up the implementation of Goods and Service Tax (GST) that the auto industry had been demanding for quite a long time. Also, basic customs duty on commercial vehicles was hiked to 40% from 10% and effective rate from 10% to 20%.
Maruti Suzuki India rose 1.89% at Rs 3,686.70. Maruti Suzuki India during market hours today, 2 March 2015, said that its total sales rose 8.7% to 1.18 lakh units in February 2015 over February 2014. Domestic sales rose 8.2% to 1.07 lakh units in February 2015 over February 2014. Exports rose 14% to 10,659 units in February 2015 over February 2014.
Eicher Motors rose 1.7% at Rs 16,501.70. Eicher Motors before market hours today, 2 March 2015, said that the total sales of its subsidiary VE Commercial Vehicles rose 9.2% to 3,100 units in February 2015 over February 2014. Domestic sales rose 9.6% to 2,774 units in February 2015 over February 2014. Exports rose 5.5% to 326 units in February 2015 over February 2014.
Separately, Eicher Motors before market hours today, 2 March 2015 said that its total sales jumped 49% to 30,240 units in February 2015 over February 2014. Exports rose 49% to 749 units in February 2015 over February 2014.
Reliance Industries (RIL) fell 0.89% at Rs 858.50. The stock hit a high of Rs 875.60 and a low of Rs 856.50 so far during the day. RIL during market hours today, 2 March 2015, said that early morning today, 2 March 2015, a fire was noticed in a section of its associate company Reliance Gas Transportation Infrastructure (RGTIL)'s pipeline in Maddikunta near Sadasivapet (earlier reported near Zaheerabad) in remote Telangana. The company's experts immediately reached the war room as well as the site of fire, RIL said. There was no injury or loss of life, RIL added. The fire has been controlled by safely evacuating and coordoning off that section of pipeline. After an internal investigation, normal gas flow to the downstream customers will be resumed, RIL said. Reduction or interruption of gas flow to the downstream customers is expected to last for a period of about 24 to 48 hours, RIL said. All concerned authorities and affected customers have been informed, it added.
Cairn India rose 0.49% at Rs 256. In a clarification with regard to news item titled "3 senior Cairn execs under leakgate probe", Cairn India during market hours today, 2 March 2015, said that Cairn India is a law abiding corporate and follows highest standards of corporate governance. The matter is under investigation and it would be inappropriate to make any comments at this stage, Cairn India said. The company however, has and will continue to extend all necessary cooperation to the authorities, Cairn India said.
In the foreign exchange market, the rupee was currently unchanged against the dollar. The partially convertible rupee was hovering at 61.83, matching its closing value of 61.83 during the previous trading session on Friday, 27 February 2015.
Brent crude oil futures edged lower after previous trading session's sharp rally. Brent for April settlement was off 37 cents at $62.21 a barrel. The contract had jumped $2.53 a barrel or 4.21% to settle at $62.58 a barrel during the previous trading session on Friday, 27 February 2015.
Indian manufacturing activity expanded at its slowest pace in five months in February as a slowdown in new orders dragged on overall output, a business survey showed today, 2 March 2015, with output and new orders expanding at softer rates than those seen in the past four months. The HSBC Manufacturing Purchasing Managers' Index, compiled by Markit, fell for the second consecutive month, to 51.2 in February from 52.9 in January. A reading above 50 separates growth from contraction. The moderation in the growth rate was evident across the three monitored market groups. Subsequently, employment decreased, reversing the marginal rise seen in January. Output charge inflation was historically muted as some manufacturers offered discounts due to a competitive environment. Furthermore, costs fell for the first time in almost six years. On a positive note, foreign orders rose at a strong and accelerated pace, while the PMI remained in positive territory. These factors brighten the prospects for a rebound in output and employment in coming months, said Pollyanna De Lima, Economist at Markit.
Meanwhile, global credit rating agency Standard and Poor's reportedly said today, 2 March 2015, that a relatively heavy general government debt burden and large budgetary subsidies could constrain its sovereign credit ratings on India. The rating agency said that India's budget for 2015/16 highlighted the government's commitment to keeping the fiscal deficit low.
Finance Minister Arun Jaitley provided a thrust on the infrastructure sector, sharply increased the government's capital expenditure for 2015-16 and announced a road map for cut in corporate tax rate by five per cent over four years when he presented Union Budget 2015-16 in parliament on Saturday, 28 February 2015.
Asian stock markets edged higher today, 2 March 2015, buoyed by an interest rate cut in China. Key indices in China, Japan, Hong Kong, South Korea, and Indonesia were up 0.15% to 0.51%. Key indices in Taiwan and Singapore were off 0.17% to 0.22%.
China's central bank cut benchmark interest rates for the second time in three months as disinflation gives room to step up support for the nation's slowing economy. The People's Bank of China on Saturday, 28 February 2015, cut the benchmark interest rate by 25 basis points (bps) to 5.35% and reduced the benchmark saving rate by a similar margin to 2.5%.
HSBC's final reading of China's manufacturing sector in Febuary came in at 50.7, much higher than the flash reading of 50.1 and the official February reading announced over the weekend, latest data today, 2 March 2015 showed.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell today, 2 March 2015.
In Europe, German finance minister Wolfgang Schaeuble reportedly softened his hard-line attitude towards Greece, saying its new Left-wing Syriza government needs a bit of time but appears to be able to work towards resolving its debt crisis.
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