Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 33 points at the opening bell ahead of the central bank's policy review meet today, 7 April 2015. Asian markets rose today, 7 April 2015, following overnight gains in US stocks.
The Reserve Bank of India (RBI) is widely expected to keep its benchmark lending rate viz. the repo rate unchanged at first bi-monthly Monetary Policy for 2015-16 scheduled today, 7 April 2015, as Governor Raghuram Rajan waits to see how RBI's recent rate cuts percolate through the country's financial system. The RBI had surprised financial markets by announcing reduction in repo rate by 25 basis points to 7.5% in an unscheduled monetary policy review on 4 March 2015. Earlier, the RBI had on 15 January 2015 announced a cut in the repo rate by 25 basis points to 7.75%. Despite a cumulative rate cut of 50 basis points from the RBI, most commercial banks have refrained from cutting their lending rates.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 936.81 crore on Monday, 6 April 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 170.03 crore on Monday, 6 April 2015, as per provisional data.
Among corporate news, Rural Electrification Corporation (REC) will be watched. Government of India (GoI), the promoter of REC after market hours yesterday, 6 April 2015, issued a notice for offer for sale (OFS) of upto 4.93 crore equity shares of the face value of Rs 10 each, representing 5% of the total paid up equity share capital of REC through a sale on the separate window provided by the stock exchanges. Retail investors will be allocated offer shares at a discount of 5% to the bid price. The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence on Wednesday, 8 April 2015 at 9:15 IST and close on the same date at 15:30 IST.
The GoI held 65.64% stake in REC (as per the shareholding pattern as on 31 December 2014).
Shares of Kotak Mahindra Bank and ING Vysya Bank will be in focus. Kotak Mahindra Bank after market hours yesterday, 6 April 2015 said that 17 April 2015 has been fixed as the record date for the purpose of ascertaining the shareholders of ING Vysya Bank who shall be entitled to the shares of Kotak Mahindra Bank in the ratio of 725 equity shares of Rs 5 each in Kotak Mahindra Bank for every 1,000 equity shares of Rs 10 each held in ING Vysya Bank.
Cairn India announced after market hours yesterday, 6 April 2015, that the company has on 6 April 2015, filed a writ petition with the Delhi High Court praying for quashing/setting aside the order passed by the Tax Authorities under Section 201 of the Income Tax Act, 1961. As informed earlier, the company had received an order from the Income Tax Department for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings (CUHL), the company's erstwhile parent company, a subsidiary of Cairn Energy Plc. This was in respect of the transaction of CUHL transferring the shares of Cairn India Holdings (CIHL) to Cairn India as part of internal group reorganisation in 2006-07 to facilitate the IPO of Cairn India.
Steel stocks will be in focus. Major Indian Steel Companies, signed a Memorandum of Agreement with Ministry of Steel yesterday, 6 April 2015, in the presence of Shri Narendra Singh Tomar, Minister for Steel & Mines for setting up of Steel Research & Technology Mission of India (SRTMI) in New Delhi today. It makes a new beginning in the R&D in steel sector of the country. The SRTMI is an industry-led initiative in association with the Steel Ministry to promote collaborative research programmes in steel sector, which aims at increasing investment on Research & Development in the steel sector from present level of 0.2-0.3 % of turnover progressively towards the international benchmark of 1-2 % of turnover. The initial corpus for setting up of SRTMI is to the tune of Rs 200 crore wherein Rs 100 crore will be contributed from the Steel Development Fund of the Ministry, and Rs 100 crore will be provided by these participating companies.
Bank stocks will be in focus. Reserve Bank of India said yesterday, 6 April 2015, that in cases where, in the assessment of the banks, the implementation of the project has been stalled primarily due to inadequacies of the existing promoters and a subsequent change in the ownership of the borrowing entity has been effected, banks may permit extension of the date of commencement of commercial operations (DCCO) up to a further period of two years, in addition to the extension of DCCO permitted under existing regulations. In order to facilitate change in ownership and revival, it has been decided to provide further flexibility by allowing a further extension of the DCCO of such projects where a change of ownership takes place, without adversely affecting the asset classification of loans to such projects, subject to certain conditions.
MMTC after market hours yesterday, 6 April 2015 said it has received orders for import of steam coal from Coal India and Andhra Pradesh Power Development Company for approximately 0.75 MMT (out of 5 MMT that Coal India has initially tendered) and 1.6 MMT, respectively for supply during the FY 2016-16.
Realty, pharma and FMCG stocks led rally as key benchmark indices surged on the first trading session of the week on Monday, 6 April 2015, after a weak US jobs report spurred speculation the US Federal Reserve will keep interest rates low. The S&P BSE Sensex jumped 244.32 points or 0.86% to settle at 28,504.46, its highest closing level since 18 March 2015.
Asian markets rose today, 7 April 2015, following overnight gains in US stocks. Key indices in Indonesia, China, Japan, Singapore, South Korea and Taiwan rose by 0.01% to 1.42%.
Stock markets in Hong Kong were closed today, 7 April 2015, for Ching Ming Festival.
US stocks rose yesterday, 6 April 2015, as the disappointing jobs data announced last week fed expectations that the Federal Reserve could wait longer before raising interest rates.
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