Key benchmark indices spurted and hit fresh intraday high in late trade as firmness in European and Asian stocks boosted sentiment. Fall in crude oil prices also aided upmove on the bourses. India imports two-third of its crude oil requirement. Lower crude oil prices ease concerns about India's adverse fiscal and current account deficit situation. The barometer index, the S&P BSE Sensex was provisionally up 250.92 points or 0.98% at 25,731.76. The market breadth indicating the overall health of the market was strong.
IT stocks led rally on the bourses. HCL Technologies rose after the company said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable). PSU OMCs jumped as crude oil prices declined on Friday, 1 August 2014.
Key indices moved in a narrow band during the session after opening higher and witnessing a sharp rise in mid-morning trade. Key indices spurted once again and hit fresh intraday high in late trade.
As per provisional figures, the S&P BSE Sensex was up 250.92 points or 0.98% to 25,731.76. The index gained 273.58 points at the day's high of 25,754.42 in late trade. The index rose 50.54 points at the day's low of 25,531.38 in morning trade.
The CNX Nifty was up 87 points or 1.14% to 7,689.60, as per provisional figures. The index hit a high of 7694.80 in intraday trade. The index hit a low of 7,622.05 in intraday trade.
The total turnover on BSE amounted to Rs 2416 crore, lower than Rs 3360.96 crore on Friday, 1 August 2014.
The market breadth indicating the overall health of the market was strong. On BSE, 1,799 shares rose and 1,114 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 82.48 points or 0.9% at 9,196.81, underperforming the Sensex. The BSE Small-Cap index was up 108.78 points or 1.1% at 9.999.75, outperforming the Sensex.
Among the 30 Sensex shares, 19 rose and the remaining shares declined. Hindalco Industries (up 3.9%), Sesa Sterlite (up 2.56%), and ONGC (up 1.75%), edged higher from the Sensex pack.
IndusInd Bank rose 0.62%. The bank announced during market hours a strategic partnership with Jet Airways to launch a suite of Jet Airways IndusInd Bank credit cards. This co-brand programmer will be managed by Jat Privilege on behalf of Jet Airways.
Separately, Indusind Bank said that the bank has opened two new branches in Chandigarh and one branch in Panchkula. The bank plans to further strengthen its presence and customer reach in Punjab and Haryana with more branches in the coming quarters.
Shares of Jet Airways gained 1.34%.
IT stocks edged higher. TCS (up 0.37%), Infosys (up 3.55%), Tech Mahindra (up 1.85%) and Wipro (up 2.45%) gained.
HCL Technologies rose 2.34% after the company after market hours on Friday, 1 August 2014 said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable).
PSU OMCs rose as crude oil prices declined on Friday, 1 August 2014. HPCL (up 5.89%), BPCL (up 4.29%) and Indian Oil Corporation (up 4.07%) edged higher.. Lower crude oil prices could decrease under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. It is expected that the gap between administered price and market price of diesel would be eliminated by early FY 2015, the Finance Ministry said in its fiscal policy strategy statement on 10 July 2014. The government has already freed pricing of petrol.
PSU OMCs on 31 July 2014, decided to increase retail diesel price by Rs 0.50 a litre and cut retail petrol prices by Rs 1.09 a litre in Delhi with effect from midnight of 31 July 2014. PSU OMCs, however, reduced the diesel price for bulk consumers by Rs 0.72 a litre at Delhi. Price of non-subsidized LPG cylinder was reduced by Rs 2.50 for a 14.2 kg cylinder and that of commercial LPG cylinder was reduced by Rs 4 for a 19kg cylinder at Delhi. The rates will vary from state to state depending on local taxes and levies.
The under-recovery on High Speed Diesel (HSD) applicable for 1st fortnight of August effective 1 August 2014 will go down to Rs 1.33 per litre. This was Rs 2.49 per litre during 2nd fortnight of July 2014. In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the 1st fortnight of August 2014 will be Rs 32.98 per litre (Rs 33.07 per litre in last fortnight) and Rs 447.87 per cylinder (Rs 449.17 per cylinder in last fortnight) respectively. Oil Marketing Companies (OMCs), effective 1 August 2014, are now incurring combined daily under-recovery of about Rs 226 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 261 crore daily under-recoveries during previous fortnight. The under-recoveries for the financial year 2014-15 are projected to be Rs 91,665 crore while the figure was Rs 1, 39,869 crore in the 2013-14. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas reviewed international prices of crude oil and petroleum products during the 2nd fortnight of July 2014.
3M India surged 11.12% after net profit jumped 102.1% to Rs 25.45 crore on 10.1% rise in net sales to Rs 455.09 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Friday, 1 August 2014.
Bank of Maharashtra lost 1.39% after net profit declined 55.8% to Rs 117.82 crore on 10.5% growth in total income to Rs 3286.12 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Saturday, 2 August 2014. Bank of Maharashtra (BOM)'s provisions and contingencies declined 12.4% to Rs 236.25 crore in Q1 June 2014 over Q1 June 2013.
Indian stocks snapped two-day losing streak today, 4 August 2014.
Brent crude rose to just over $105 a barrel on Monday as it came off a four-month low hit in the previous session, although worries about global oversupply still outweigh concerns about violence in the Middle East and North Africa. Brent crude oil futures for September delivery rose 20 cents at $105.04 a barrel in electronic trade today, 4 August 2014. The contract fell $1.18 on Friday to $104.84 a barrel, its lowest settlement since April 2.
Monsoon was 9% below long period average (LPA) in the week from 24 July to 30 July 2014, Indian Meteorological Department (IMD) said on 1 August 2014. The cumulative rainfall during this year's monsoon has so far upto 30 July 2014 was 23% below the LPA.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.065, compared with its close of 61.1875 on Friday, 1 August 2014.
The Reserve Bank of India (RBI) announces monetary policy review tomorrow, 5 August 2014.
European market edged higher today, 4 August 2014 aided by gains in lenders after Portugal bailed out Banco Espirito Santo SA. Key benchmark indices in UK and France were up by 0.26% to 0.39%. Germany's DAX fell 0.29%.
Portugal's central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro ($6.6 billion) bailout. Banco Espirito Santo has been forced to take government money after regulators uncovered potential losses on loans to other companies tied to Portugal's Espirito Santo family and ordered the lender to raise capital. Bank of Portugal Governor Carlos Costa had sought to find private investors to inject the cash, and said government funds would only be used as a last resort.
Asian stocks rose today, 4 August 2014, as investors weighed a smaller-than-forecast increase in US payrolls and the bailout of a Portuguese bank. Key benchmark indices in Hong Kong, Indonesia, South Korea, China and Taiwan were up 0.28% to 1.74%. Key benchmark indices in Japan and Singapore fell by 0.31% to 0.78%.
The People's Bank of China warned that the country's credit and money supply have increased rapidly and indicated that it will refrain from broader monetary easing to support growth.
A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market. The non-manufacturing Purchasing Managers' Index fell to 54.2 from 55 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A reading above 50 indicates expansion.
Trading in US index futures indicated that the Dow could gain 38 points at the opening bell on Monday, 4 August 2014. US stocks declined on Friday, 1 August 2014, as concern over Argentina and Portugal overshadowed data that signaled the Federal Reserve may have leeway to keep rates low.
US added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997. The 209,000 advance fell short of forecasts. The jobless rate climbed to 6.2% from 6.1% in June as more people entered the labor force. Wages and hours were unchanged from June.
Manufacturing expanded in July at the fastest pace in more than three years, showing US factories will help power the economy after a second-quarter rebound. The Institute for Supply Management's index increased to 57.1, the highest since April 2011, from 55.3 a month earlier, the Tempe, Arizona-based group's report showed. Readings above 50 indicate growth.
Argentina's failure to pay interest on its bonds is a credit event that will trigger settlement of $1 billion of default insurance, according to the International Swaps & Derivatives Association. Argentina is the first nation to trigger default swaps since Greece restructured its debt in 2012.
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