Amid divergent trend among various index constituents, key benchmark indices traded near the flat line in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was off 2.09 points or 0.01% at 26,783.46. The 50-unit CNX Nifty was off 7.85 points or 0.1% at 8,111.45. The Sensex failed to retain the psychological 27,000 mark after surpassing that mark in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,364 shares rose and 1,019 shares declined. A total of 111 shares were unchanged. The BSE Mid-Cap index was up 0.19%. The BSE Small-Cap index was up 0.53%. Both of these indices outperformed the Sensex.
In overseas stock markets, Asian stocks rose 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.
Bharat Heavy Electricals (Bhel) (down 2.99%), Infosys (down 2.22%) and HDFC Bank (down 1.09%) were the major losers from the Sensex pack.
Oil exploration firms gained along with rise in crude oil prices. ONGC (up 2.35%), Cairn India (up 0.84%), Reliance Industries (RIL) (up 0.71%) and Oil India (up 0.3%) 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 18 cents at $49.43 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 2.44%), Indian Oil Corporation (up 1.12%) and HPCL (up 2.6%) edged higher.
Amtek Auto (up 11.72%), Hindustan Copper (up 6.69%), Indiabulls Real Estate (5.66%), Rajesh Exports (up 5.47%) and Bharti Infratel (up 4.93%) were the major gainers from the BSE's 'A' group.
Prabhat Dairy rose 4.5% after Reliance Mutual Fund bought 2.13% stake in the company through bulk deals on BSE and NSE yesterday, 5 October 2015. On Monday, 5 October 2015, Reliance Mutual Fund bought 9.37 lakh shares of Prabhat Dairy at Rs 117 on the NSE and bought 11.50 lakh shares at Rs 117 on the BSE.
Gujarat NRE Coke was locked at 20% upper circuit at Rs 3.76 after the company said that its board of directors yesterday, 5 October 2015 approved the sale of the company's wind mill business for a consideration of Rs 218.75 crore. The company made the announcement after market hours yesterday, 5 October 2015.
Wockhardt rose 2.65% after the company announced that inspection of its manufacturing unit at L-1, Chikalthana, Aurangabad in Maharashtra by UK Medicines and Healthcare products Regulatory Agency (MHRA) has been completed and there were no critical observations. The announcement was made after market hours yesterday, 5 October 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.
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 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. 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.
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 RBI will work together to consolidate the gains achieved in 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. It may be recalled that the Reserve Bank of India (RBI) announced a steeper-than-expected 50 basis points cut in the repo rate after a regular monetary policy review early last week. The RBI has cut the repo rate by 125 basis points since January 2015.
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