A divergent trend was witnessed among the two key benchmark indices. While the barometer index, the S&P BSE Sensex, was trading a tad lower for the day, the 50-unit CNX Nifty continued to trade in positive zone. The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. The Sensex was currently off 8.21 points or 0.03% at 29,353.29. The BSE Mid Cap index was up 1.01%. Meanwhile, the outcome of a survey showed that Indian manufacturing activity expanded at its slowest pace in five months in February.
Index heavyweight L&T hit record high on strong infrastructure push in the Union Budget 2015-16. Another index heavyweight HDFC Bank also advanced. ITC extended steep losses registered during the previous trading session triggered by the government raising excise duty on cigarettes in the Union Budget 2015-16. Pharma stocks were mostly higher. Infosys edged lower amid volatility after the company said it has signed a five-year agreement with the leading global express delivery company TNT, to help TNT simplify and transform its technology applications.
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.
Meanwhile, the Government of India and the Reserve Bank of India (RBI) have signed an agreement on monetary policy framework whereby the two sides have officially decided inflation targeting by the RBI.
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 during the previous trading session 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 edged lower against the dollar.
Brent crude oil futures edged lower after previous trading session's sharp rally.
In overseas markets, European stock markets were higher. Asian stocks edged higher, buoyed by an interest rate cut in China.
At 14:18 IST, the S&P BSE Sensex was down 8.21 points or 0.03% at 29,353.29. The index fell 101.73 points at the day's low of 29,259.77 in afternoon trade. 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 CNX Nifty was up 23 points or 0.26% at 8,924.85. 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 8,885.45 in intraday trade.
The BSE Mid-Cap index was up 108.69 points or 1.01% at 10,919.54. The BSE Small-Cap index was up 79.59 points or 0.71% at 11,346.03. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,418 shares advanced and 1,323 shares declined. A total of 104 shares were unchanged. Earlier, the breadth had turned positive from negative in early afternoon trade.
Index heavyweight L&T hit record high on strong infrastructure push in the Union Budget 2015-16. The stock was up 4.14% at Rs 1,840. The stock hit a high of Rs 1,844 so far during the day, which is a record high on strong infrastructure push in the Union Budget. The stock hit a low of Rs 1,780.25 so far during the day.
The Union Budget 2015-16 announced on Saturday, 28 February 2015, proposed setting up 5 new ultra mega power projects of 4,000 megawatts (MW) each in the plug-and-play mode. All clearances and linkages will be in place before the project is awarded by a transparent auction system. Similar plug-and-play projects in other infrastructure projects such as roads, ports, rail lines, airports etc will also be considered, Finance Minister Arun Jaitley said in his first full-fledged Union Budget 2015-16 announced on Saturday, 28 February 2015.
Index heavyweight Bharat Heavy Electricals (Bhel) rose 4.16% at Rs 273.05. The stock hit a high of Rs 274.55 and a low of Rs 263.80 so far during the day.
Another index heavyweight HDFC Bank rose 2.24% at Rs 1,091.75. The stock hit a high of Rs 1,098.50 and a low of Rs 1,069.15 so far during the day.
While presenting the Union Budget 2015-16, Jaitley on Saturday, 28 February 2015, said that the government intends to do away with the distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments, and replace them with composite caps The sectors which are already on a 100% automatic route would not be affected, he said.
Pharma stocks were mostly higher. Wockhardt (up 3.94%), Lupin (up 2.86%), Cipla (up 3.41%), Dr Reddy's Laboratories (up 1.12%), Ipca Laboratories (up 1.4%), Divi's Laboratories (up 1.5%), Glenmark Pharmaceuticals (up 0.18%), Sun Pharmaceutical Industries (up 0.21%), Piramal Enterprises (up 0.08%), Strides Arcolab (up 0.77%), and Jyothy Laboratories (up 1.47%) edged higher. Ranbaxy Laboratories (down 0.06%), Aurobindo Pharma (down 0.95%), and Cadila Healthcare (down 0.97%) edged lower.
In the Union Budget 2015-16 announced on Saturday, 28 February 2015, Finance Minister Arun Jaitley said that in spite of the large increase in the devolution to states, adequate provision is being made for the schemes for the poor with allocation of Rs 33152 crore to the health sector. He said, with a view to encourage savings and to promote healthcare among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is being increased from Rs 20,000 to Rs 30,000. Three new National Institutes of Pharmaceutical Education and Research will be set up in Maharashtra, Rajasthan and Chattisgarh and one institute of Science and Education Research will be set up in Nagaland and Odisha each.
Natco Pharma surged 3.32% at Rs 1,414.15. Natco Pharma during market hours today, 2 March 2015 said that the company has signed a nonexclusive licensing agreement with Gilead Sciences, to manufacture and sell generic versions of its chronic hepatitis C medicines. The medicines include sofosbuvir, ledipasvir/sofosbuvir and the investigational NS5A inhibitor GS-5816, which is being evaluated in Phase 3 clinical studies as part of a single tablet regimen that combines the compound and sofosbuvir for the treatment of all six genotypes of hepatitis C, Natco Pharma said.
Infosys fell 0.29% at Rs 2,288.20. The stock hit a high of Rs 2,308 and a low of Rs 2,278.40 so far during the day. Infosys during market hours today, 2 March 2015, said that it has signed a five-year agreement with the leading global express delivery company TNT, to help TNT simplify and transform its technology applications.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.8750, compared with its close 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 52 cents at $62.06 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.
The Government of India and the Reserve Bank of India (RBI) have signed an agreement on monetary policy framework whereby the two sides have officially decided inflation targeting by the RBI. A document dated 20 February 2015 published on the finance ministry's website today, 2 March 2015, showed that the two sides have set consumer price inflation target of 4% with a band of plus or minus 2 percentage points for the financial year 2016-17 and all subsequent years. The RBI will first aim to have consumer inflation fall below 6% by January 2016. The RBI governor will determine the main lending rate viz. the repo rate and any other measures needed to achieve the inflation target. The central bank will be deemed to have missed its target if consumer inflation is at more than 6% for three consecutive quarters, starting from the financial year 2015-16. The central bank will also be deemed to have missed its target if consumer inflation is less than 2% for three consecutive quarters, starting from the financial year 2016-17. If the central bank fails to meet the inflation target, it will have to submit a report to the Government of India stating therein the reasons for the RBI's failure to achieve the inflation target, the remedial actions proposed to be taken by the RBI and an estimate of the time-period within which the inflation target will be achieved pursuant to the timely implementation of the proposed remedial measures.
Meanwhile, the outcome of a survey showed that Indian manufacturing activity expanded at its slowest pace in five months in February, 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.
European stock markets were higher today, 2 March 2015. Key indices in Germany and UK were up 0.35% to 0.39%. In France, the CAC 40 index was off 0.06%.
Meanwhile, 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.
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 0.06% to 0.78%. 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 51 points at the opening bell today, 2 March 2015.
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