Gains in metal, pharma and oil sector stocks enabled small gains for key benchmark indices after the Reserve Bank of India (RBI) kept its benchmark interest rate unchanged after a monetary policy review. The barometer index, the S&P BSE Sensex, rose 23.74 points or 0.09% to settle at 26,169.41. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 19.65 points or 0.25% to settle at 7,954.90. Small gains took the Nifty to its highest closing level in almost 4 weeks. With tiny gains, the Sensex attained a 3-1/2-week closing high.
The market breadth indicating the overall health of the market was positive. On BSE, 1,672 shares rose and 1,153 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index rose 0.78%. The BSE Small-Cap index rose 0.46%. Both these indices outperformed the Sensex.
The RBI kept its benchmark interest rate viz. the repo rate unchanged at 6.75% after a monetary policy review today, 1 December 2015. The central bank also kept the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL). The decision was announced at 11:00 IST. Retaining the easing stance of monetary policy, the RBI said that it will use the space for further accommodation when available. The RBI said that switching to the marginal cost of funds methodology for determining the base rate and linking small savings interest rates to market interest rates will allow increased transmission of policy rates into lending rates.
In overseas stock markets, European stocks edged lower in choppy trade. Earlier during the global day, shares in Hong Kong led a rally in Asian markets on expectations for more stimulus for the Chinese economy after the latest data showed China's manufacturing sector remains plagued by overcapacity, falling prices and weak demand.
The Sensex rose 23.74 points or 0.09% to settle at 26,169.41, its highest closing level since 6 November 2015. The barometer index rose 100.35 points or 0.38% at the day's high of 26,246.02. The barometer index fell 24.15 points or 0.09% at the day's low of 26,121.52.
The Nifty rose 19.65 points or 0.25% to settle at 7,954.90, its highest closing level since 5 November 2015. The Nifty rose 36.90 points or 0.46% at the day's high of 7,972.15. The index dropped 1.10 points or 0.01% at the day's low of 7,934.15.
The total turnover on BSE amounted to Rs 2980 crore, higher than turnover of Rs 2831.87 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 3.18%), the S&P BSE Basic Materials index (up 1.54%), the S&P BSE FMCG index (up 1.07%), the S&P BSE Healthcare index (up 1.07%), the S&P BSE Energy index (up 0.91%), the S&P BSE Oil & Gas index (up 0.84%), the S&P BSE Power index (up 0.44%), the S&P BSE Realty index (up 0.27%), the S&P BSE Utilities index (up 0.18%) and the S&P BSE Finance index (up 0.16%), outperformed the Sensex. The S&P BSE Capital Goods index (down 0.05%), the S&P BSE IT index (down 0.06%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.2%), the S&P BSE Teck index (down 0.22%), the S&P BSE Industrials index (down 0.26%), the S&P BSE Bankex (down 0.29%), the S&P BSE Consumer Durables index (down 0.34%), the S&P BSE Auto index (down 0.58%) and the S&P BSE Telecom index (down 1.14%), underperformed the Sensex.
Index heavyweight and software major Infosys dropped 1.24% to Rs 1,075. The stock hit high of Rs 1,093.05 and low of Rs 1,072 in intraday trade.
Coal India gained 3.55% to Rs 342.45. The stock hit high of Rs 343 and low of Rs 331 in intraday trade.
Bharti Airtel lost 3.17% to Rs 323.90. The stock hit high of Rs 336 and low of Rs 321.30 in intraday trade.
Auto stocks declined after the RBI kept the repo rate unchanged after a monetary policy review. Hero MotoCorp (down 0.91%), Tata Motors (down 1.31%), Ashok Leyland (down 1.48%), Eicher Motors (down 2.86%) and TVS Motor Company (down 1.16%) declined. Bajaj Auto rose 0.95%. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Maruti Suzuki India fell 0.63% to Rs 4,547.75. The stock was volatile. The stock hit high of Rs 4,620 and low of Rs 4,532 in intraday trade. The company's total sales rose 9.7% to 1.2 lakh vehicles in November 2015 over November 2014. Domestic sales rose 10.6% to 1.1 lakh vehicles in November 2015 over November 2014. Exports rose 1% to 10,225 vehicles in November 2015 over November 2014.
Mahindra & Mahindra (M&M) rose 0.18%. The company said during market hours that its total auto sales rose 21% to 41,590 units in November 2015 over November 2014. Domestic sales rose 23% to 39,383 units in November 2015 over November 2014. Exports rose 1% to 2,207 units in November 2015 over November 2014.
Separately, M&M said during market hours that its total tractor sales jumped 42% to 21,717 units in November 2015 over November 2014. Domestic sales jumped 47% to 20,819 units in November 2015 over November 2014. Exports fell 20% to 898 units in November 2015 over November 2014.
Bank stocks witnessed mixed trend after the RBI kept the repo rate unchanged after a monetary policy review. Among public sector banks, UCO Bank (up 1.34%), Syndicate Bank (up 0.21%), Corporation Bank (up 2.24%), and United Bank of India (up 2%) edged higher. Bank of India (down 0.42%), Bank of Baroda (down 1.45%), Punjab National Bank (down 0.62%), State Bank of India (SBI) (down 0.18%), and Canara Bank (down 0.81%) declined. Union Bank of India was flat.
Allahabad Bank gained 0.65% after the bank indicated that it may divest its stake in insurance joint venture Universal Sompo General Insurance. Allahabad Bank announced after market hours yesterday, 30 November 2015, that a meeting of its board of directors will be held on 4 December 2015, to consider floating request for proposal for appointment of consultant for advising and undertaking redrafting of existing shareholders agreement forming insurance the joint venture of bank namely Universal Sompo General Insurance Company so as to align the same with amended Indian Insurance Laws. Presently, the shareholding of Allahabad Bank in Universal Sompo General Insurance Company is 30%. The board of directors may also consider partial/complete disinvestment of the bank's stake in the insurance joint venture in compliance with the applicable laws, rules and regulations as amended.
Among private sector banks, HDFC Bank (up 0.39%), Federal Bank (up 0.43%), and IndusInd Bank (up 0.89%) edged higher. ICICI Bank (down 0.22%), Axis Bank (down 1.51%) and Kotak Mahindra Bank (down 0.81%) declined.
The Reserve Bank of India (RBI) will shortly finalise the methodology for determining the base rate based on the marginal cost of funds.
Yes Bank fell 0.85%. The bank said during market hours that it has signed loan agreements totalling $265 million with Overseas Private Investment Corporation (OPIC) and Wells Fargo to support small business growth in India. The bank said it has signed an agreement with the OPIC, the US government's development financial institution, for debt financing of $245 million to increase lending to micro, small and medium enterprises (MSMEs) in India. US based lender Wells Fargo will act as sponsor and co-lender to the project, providing a loan of $20 million, bringing the total facility amount to $265 million. Specifically half of the financing will be used to support either micro SMEs or SMEs in undeserved rural and urban markets.
Realty stocks were mixed after the RBI kept the repo rate unchanged after a monetary policy review. Sobha (down 2.23%), Indiabulls Real Estate (down 1.8%), Godrej Properties (down 1.47%) and Housing Development & Infrastructure (HDIL) (down 0.35%) declined. DLF (up 2.08%), and Anant Raj (up 0.82%) edged higher. Purchases of both residential and commercial property are largely driven by finance.
Unitech rose 2.82% after Citigroup Global Markets Mauritius bought 1.45 crore shares of the company at an average price of Rs 6.99 per share in a bulk deal on the NSE yesterday, 30 November 2015.
Metal and mining stocks rose on expectations for more stimulus for the Chinese economy after the latest data showed China's manufacturing sector remains plagued by overcapacity, falling prices and weak demand. China is the world's largest consumer of steel, copper and aluminum.
JSW Steel (up 4.74%), Vedanta (up 5.16%), Hindalco Industries (up 3.44%), Hindustan Zinc (up 2.3%), Jindal Steel & Power (up 4.74%), Tata Steel (up 3.63%), Steel Authority of India (Sail) (up 1.86%), Hindustan Copper (up 0.95%) and NMDC (up 1.06%) gained. National Aluminum Company fell 0.37%.
China's official reading on factory activity fell to 49.60 in November 2015 from 49.80 in October 2015. The Caixin China manufacturing purchasing managers index, a private gauge, rose to 48.60 in November 2015 from 48.30 in October 2015. A reading below 50 indicates contraction.
Oil sector stocks rose on renewed buying. Among oil exploration and production companies, ONGC (up 0.34%), Oil India (up 2.46%), and Cairn India (up 2.31%) gained. Reliance Industries (RIL) fell 0.29%.
Among public sector oil marketing companies (PSU OMCs), BPCL (up 2.9%), HPCL (up 0.98%) and Indian Oil Corporation (IOCL) (up 2.47%) gained. PSU OMCs reduced petrol price by Rs 0.58 per litre and diesel by Rs 0.25 per litre in Delhi with corresponding price revision in other states. The new prices are effective from 1 December 2015.
In the global commodities markets, Brent for January settlement was currently off 14 cents at $44.47 a barrel. The contract had fallen 25 cents or 0.55% to settle at $44.61 a barrel during the previous trading session.
Pharma stocks gained. Cipla (up 0.62%), Lupin (up 1.07%), Wockhardt (up 1.96%), Dr Reddy's Laboratories (up 3.35%), Glenmark Pharmaceuticals (up 0.14%) and Cadila Healthcare (up 0.64%) gained. Sun Pharmaceutical Industries was down marginally by 0.02%.
Aurobindo Pharma gained 1.8% after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Risedronate Sodium tablets USP, 5 milligram (mg), 30 mg and 35 mg. This approval is an extension of tentative approval received on 10 October 2012. This product is ready for launch. The announcement was made during trading hours today, 1 December 2015.
The approved abbreviated new drug application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) ACTONEL Tablets of Warner Chilcott Co., LLC Risedronate Sodium tablets are used in the treatment of Osteoporosis. The approved product has an estimated market size of $113 million in the US for the twelve months ending October 2015 according to IMS.
IVRCL gained 1.11% after the company said that at the company's joint lenders forum (JLF) meeting held on 26 November 2015, the lenders have invoked strategic debt restructuring in the company and adopted the reference date for the purpose as 26 November 2015. It was also decided that a senior lenders meeting will be held to decide the way forward in the same, IVRCL said. The announcement was made during market hours today, 1 December 2015.
Steel Strips Wheels (SSWL) rose 2.86% after the company announced securing an export order from Jaguar Land Rover. This order is one of SSWL's biggest export order. The company will supply products to JLR's UK and one more European facility, SSWL said. The wheels will be supplied from SSWL's Chennai plant in India with the first supplies planned to start from February 2016, the company said. SSWL said it looks to forging a strong working relationship with JLR.
The Sensex edged higher for the fourth trading session in a row today, 1 December 2015. The barometer index has risen 393.67 points or 1.52% in the preceding four trading sessions from its close of 25,775.74 on 24 November 2015. The Sensex has fallen 1,330.01 points or 4.83% in this calendar year so far (till 1 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,335.87 points or 5.37%. The Sensex is off 3,855.33 points or 12.84% from a record high of 30,024.74 hit on 4 March 2015.
On macro front, India's gross domestic product (GDP) rose 7.4% in Q2 September 2015 over Q2 September 2014, with growth mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in Q2. The GDP growth has shown a pick up from 7% growth recorded in Q1 June 2015. Meanwhile, the GDP growth remained below 8.4% rise recorded in the corresponding quarter of the last year. The Q2 GDP data was announced after market hours yesterday, 30 November 2015. The finance ministry is expecting the economy to grow in the vicinity of 7.5% in the year ending 31 March 2016 (FY 2016).
Meanwhile, the outcome of a monthly survey showed tepid growth in India's manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a 25-month low of 50.3 in November 2015.
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