Key benchmark indices edged higher in what was a volatile trading session as sentiment was boosted after Global rating agency, Moody's Investors Service today, 9 April 2015, changed India's outlook to positive from stable, saying there was an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years. The barometer index, the S&P BSE Sensex, attained highest closing level in four weeks while the 50-unit CNX Nifty, attained its highest closing level in more than five weeks. Rally gathered steam in late trade with indices hitting fresh intraday high. The market breadth indicating the overall health of the market was positive. The S&P BSE Sensex advanced 177.46 points or 0.62% to settle at 28,885.21.
Index heavyweight Reliance Industries (RIL) extended recent gains after the company's KG-D6 partner Niko Resources had on 6 April 2015 said that it has received an independent resources evaluation report for the MJ Discovery in the D6 block in India. Bank stocks gained after rating agency Moody's upgraded India's sovereign ratings outlook. IT stocks advanced. Cement stocks declined.
The Sensex gained for the fifth day in a row today, 9 April 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 295.39 crore in secondary equity market yesterday, 8 April 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 382.54 crore yesterday, 8 April 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged higher after yesterday's sharp losses, that was triggered by a shock jump in US crude inventories and record Saudi output.
In overseas markets, European markets edged higher. Asian markets declined. US stocks posted modest gains yesterday, 8 April 2015, after a volatile session following the minutes of Federal Reserve's last meeting.
The S&P BSE Sensex advanced 177.46 points or 0.62% to settle at 28,885.21, its highest closing level since 12 March 2015. The index gained 198.96 points at the day's high of 28,906.71 in late trade, its highest level since 19 March 2015. The index fell 85.31 points at the day's low of 28,622.44 in morning trade.
The CNX Nifty rose 63.90 points or 0.73% to settle at 8,778.30, its highest closing level since 5 March 2015. The index hit a high of 8,785.50 in intraday trade, its highest level since 19 March 2015. The index hit a low of 8,682.45 in intraday trade.
The BSE Mid-Cap index rose 28.08 points or 0.25% to settle at 11,050.25, underperforming the Sensex. The BSE Small-Cap index rose 82.10 points or 0.71% to settle at 11,717.48, outperforming the Sensex.
The total turnover on BSE amounted to Rs 3558 crore, lower than turnover of Rs 3631.62 crore registered during the previous trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,584 shares gained and 1,256 shares fell. A total of 84 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Bankex index (up 2.58%) and BSE Metal index (up 1.43%) outperformed the Sensex. The S&P BSE Auto index (down 0.03%), BSE Consumer Durables index (down 0.31%), BSE Capital Goods index (down 0.45%), BSE FMCG index (up 0.08%), BSE Healthcare index (down 2.08%), BSE IT index (up 0.5%), BSE Oil & Gas index (up 0.05%), BSE Power index (up 0.37%), BSE Realty index (down 0.94%), and BSE Teck index (up 0.27%) underperformed the Sensex.
Reliance Industries (RIL) extended recent gains after the company's KG-D6 partner Niko Resources had on 6 April 2015 said that it has received an independent resources evaluation report for the MJ Discovery in the D6 block in India. The stock was up 3.4% at Rs 894.95. Niko Resources chief operating officer William T. Hornaday said, The discovery and successful appraisal of MJ adds a new and exciting chapter to the D6 block. Going forward, the contractor group in the block will be working on plans to develop MJ, which may lead to potentially significant additions to reserves and production levels in the coming years.
RIL is the operator of the KG-D6 block with a 60% stake. BP Plc holds 30% and Niko the rest.
Bank stocks gained after rating agency Moody's upgraded India's sovereign ratings outlook. Among public sector banks, UCO Bank (up 1.12%), Syndicate Bank (up 3.07%), Punjab National Bank (up 6.03%), Corporation Bank (up 2.69%), Allahabad Bank (up 2.62%), Bank of Baroda (up 2.4%), State Bank of India (SBI) (up 2.5%), Union Bank of India (up 2.26%), Canara Bank (up 2.48%), Bank of India (up 3.15%) and United Bank of India (up 2.06%) edged higher.
Among private sector banks, Axis Bank (up 2.88%), HDFC Bank (up 1.68%), ING Vysya Bank (up 3.97%), ICICI Bank (up 1.65%), Kotak Mahindra Bank (up 4.2%), Yes Bank (up 2.67%), and IndusInd Bank (up 4.63%) edged higher.
Cement stocks edged lower. ACC (down 0.87%), Ambuja Cements (down 0.45%), and UltraTech Cement (down 0.74%) declined. Shree Cement (up 0.69%) gained.
Grasim Industries was down 0.68% at Rs 3,761. Grasim Industries has exposure to cement sector through its subsidiary UltraTech Cement.
IT stocks advanced. MindTree (up 3.15%), Oracle Financial Services Software (up 0.76%), TCS (up 0.59%), HCL Technologies (up 0.58%), Infosys (up 0.48%), and CMC (up 0.28%) edged higher. Wipro (down 0.03%), Tech Mahindra (down 0.3%), and MphasiS (down 0.5%) edged lower.
Telecom stocks declined. Bharti Airtel (down 2.97%), Idea Cellular (down 2.29%), and Tata Teleservices (Maharashtra) (down 0.5%) edged lower. Reliance Communications (up 1.28%) and Mahanagar Telephone Nigam (up 1.01%) edged higher.
Meanwhile, Telecom Regulatory Authority of India (TRAI) today, 9 April 2015, cut ceiling tariffs for national roaming calls and text messages and mandated telecom service providers (TSPs) to offer a special roaming tariff plan. These changes will come into effect from 1 May 2015, TRAI said.
Tata Motors fell 0.39% at Rs 559.35. The stock hit a high of Rs 565 and a hit a low of Rs 552.30. With respect to news item titled Focus Shifts To Core Areas - Tatas Look to Put Auto Design Co on the Block", Tata Motors after market hours yesterday, 8 April 2015 clarified that Tata Motors along with its subsidiary currently holds 72.32% stake in Tata Technologies (TTL) and 15.47% stake is held by rest of the Tata Group. Tata Motors said it continually explores opportunities for optimising its capital deployment through various measures, such as improving operating cash flows, better working capital management, encashment of non-core assets, value realisation from some part of its investments including in TTL, as well as capital raising initiatives like the current rights offering. Tata Motors further said that it considers TTL as strategically important for its business. There is no intention of the company to sell majority/strategic stake in TTL and reports of divestment of the 90% stake are incorrect, Tata Motors said.
DLF fell 1.67% at Rs 159.35. The company said after market hours yesterday, 8 April 2015, that it has on 8 April 2015,fiiled an appeal before the Securities Appellate Tribunal against the order dated 26 February 2015 passed by the Adjudicating Officer, SEBI under Section 15HA and HB of the SEBI Act 1992 imposing a cumulative penalty of Rs 26 crore. A copy of the appeal has been served on SEBI. The appeal would come up for hearing before the Securities Appellate Tribunal in due course, DLF said.
The Sensex edged higher for the fourth straight trading session today, 8 April 2015. The Sensex has risen 927.72 points or 3.31% in five trading sessions from a recent low of 27,957.49 on 31 March 2015. The Sensex has risen 927.72 points or 3.31% in this month so far (till 9 April 2015). The Sensex has risen 1,385.79 points or 5.03% in this calendar year so far (till 9 April 2015). From a 52-week low of 22,247.39 on 16 April 2014, the Sensex has risen 6,637.82 points or 29.83%. The Sensex is off 1,139.53 points or 3.79% from a record high of 30,024.74 hit on 4 March 2015.
In the foreign exchange market, the rupee edged higher against the dollar tracking firmness in domestic stock markets. The partially convertible rupee was hovering at 62.235, compared with closing of 62.24 during the previous trading session.
Brent crude oil futures edged higher after yesterday's sharp losses, that was triggered by a shock jump in US crude inventories and record Saudi output. Brent for May settlement was up $1.71 a barrel at $57.26 a barrel. Brent for May settlement was down $3.55 a barrel or 6% at $55.55 a barrel during previous trading session.
A 10.95 million-barrel surge in US crude stockpiles to 482.4 million last week, the biggest gain in 14 years, and Saudi oil production of 10.3 million barrels a day in March had battered crude futures yesterday, 8 April 2015.
Arvind Subramanian, the chief economic adviser at the finance ministry reportedly said today, 9 April 2015, India's summer monsoon rains are expected to be normal this year, Monsoon rains are vital for India's farm sector, which accounts for 14% of the $2 trillion economy, as half of the country's farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation. Arvind Subramanian also said inflation is not expected to run up in the medium term due to the recent unseasonal rains, which have damaged over 10 million hectares (24.7 million acres) of crops.
Moody's Investors Service today, 9 April 2015, changed India's outlook to positive, saying there was an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years.
Moody's said it expected structural advantages, supported by relatively benign global commodity prices and liquidity conditions, will keep India's growth higher than that of its peers over the rating horizon. The ratings agency affirmed India's Baa3 rating.
In overseas markets, European markets were higher today, 9 April 2015 after positive economic data in Germany. Key indices in Germany, UK, and France were up 0.52% to 0.97%.
Meanwhile, Britain's trade deficit widened in February after narrowing sharply the month before, as exports of goods fell to their lowest in more than four years. The gulf between the value of what the UK sells abroad and what it buys was 2.9 billion pounds ($4.3 billion) during the month, the Office for National Statistics said today,9 April 2015. This is compared with a much narrower GBP1.5 billion deficit in January, a wider figure than in previous estimates but still the lowest level in almost a year.
Germany's exports picked up in February after a weaker start to the year, data from the federal statistics office showed today, 9 April 2015. Exports increased by 1.5% in February compared with January, according to calendar and seasonally adjusted data, following a 2.1% drop in January, Destatis said. Imports rose by 1.8% on the month in February after a 0.2% decline in the first month of the year.
German industrial production was up by 0.2% in February from the previous month on a price, seasonally and working day adjusted basis, compared to the expectation of a 0.1% gain, latest data released by the Federal Statistical Office (Destatis) today 9 April 2015 showed. The output had contracted 0.4% in January.
Asian markets declined today, 9 April 2015. Key indices in China, South Korea, Taiwan, and Singapore fell by 0.02% to 0.91%. Key indices in Hong Kong, Indonesia, Japan rose by 0.26% to 2.7%.
Trading in US index futures indicates that the Dow Jones industrial average could fall 21.50 points at the opening bell today, 9 April 2015. US stocks posted modest gains yesterday, 8 April 2015, after a volatile session following the minutes of Federal Reserve's last meeting.
Minutes of the Federal Reserve's last meeting showed the Fed was still on course to hike interest rates this year. Fed officials acknowledged risks from overseas and a weak start to the year at their March meeting but remained confident enough in the strength of the recovery to continue laying the groundwork for an interest rate hike later this year, the minutes showed.
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