Key benchmark indices hit fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex was currently above the psychological 28,000 mark after moving past that mark in afternoon trade. The Sensex was currently up 481.15 points or 1.75% at 28,030.68. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 2%, outperforming the Sensex.
Hindalco Industries rose after announcing Q1 results. BPCL dropped after announced Q1 results. Shares of other PSU OMCs dropped.
The market sentiment was boosted by data released today, 14 August 2015 showed wholesale price index (WPI) for July 2015, slipped further into negative terrain and stood at -4.05% (provisional) as compared to -2.4% in June 2015, after data earlier this week showed consumer price inflation tumbled in July 2015, raising hopes for a possible rate cut by the Reserve Bank of India.
Meanwhile, the government is reportedly sounding out political parties over scheduling a two-day session of Parliament in September ahead of the Bihar elections to pass the Goods and Services Tax Bill, seen to be a crucial piece of tax reform linked to the Narendra Modi government's effort to improve ease of business and boost revenues. The monsoon session of Parliament ended yesterday, 13 August 2015, without passage of any major bills amid political tussle between the government and the opposition parties.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 625.90 crore yesterday, 13 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 545.86 crore yesterday, 13 August 2015, as per provisional data.
In overseas markets, European stocks edged higher after reports Greek Prime Minister Alexis Tsipras confronted a widening rebellion within his leftist Syriza party as parliament voted to approve the country's third financial rescue by foreign creditors in five years. Asian stocks were mixed. US stocks closed mostly lower yesterday, 13 August 2015, following a choppy session marked by narrow gains and losses, as readings on retail sales and jobless claims suggested the US economy is on healthy footing.
At 14:25 IST, the S&P BSE Sensex was up 481.15 points or 1.75% at 28,030.68. The index surged 540.21 points at the day's high of 28,089.74 in mid-afternoon trade, its highest level since 11 August 2015. The index rose 93.67 points at the day's low of 27,643.20 in early trade.
The CNX Nifty was up 156.45 points or 1.87% at 8,512.30. The index hit a high of 8,526.60 in intraday trade, its highest level since 11 August 2015. The index hit a low of 8,381.20 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,726 shares gained and 992 shares fell. A total of 106 shares were unchanged.
The BSE Mid-Cap index was up 224.18 points or 2% at 11,414.24, outperforming the Sensex. The BSE Small-Cap index was up 164.52 points or 1.42% at 11,732.16, underperforming the Sensex.
Hindalco Industries rose 3.8% after announcing Q1 results. The company's net profit fell 67.27% to Rs 107.19 crore on 6.78% rise in total income to Rs 8769.69 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours.
BPCL dropped after announcing Q1 results. The stock dropped 0.41%. The company's net profit jumped 95.36% to Rs 2376.16 crore on 22.88% decline in total income to Rs 52296.12 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours. The average gross refining margin (GRM) for Q1 June 2015 was $8.55 per barrel compared with $3.38 per barrel in Q1 June 2014.
Shares of other PSU OMCs also dropped after BPCL announced Q1 results. HPCL (down 0.13%) and Indian Oil Corporation (down 1.23%) dropped.
On macro front, the government said inflation based on the wholesale price index (WPI) for July 2015 slipped further in negative terrain and stood at -4.05% (provisional) as compared to -2.4% (provisional) for the previous month and 5.41% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.8% compared to a build up rate of 2.61% in the corresponding period of the previous year. For the month of May, 2015, the final Wholesale Price Index stood at -2.2% as compared to -2.36% (provisional) respectively as reported on 15 June 2015. Due to a large base effect, inflation based on the consumer price index (CPI) eased sharply last month. CPI inflation eased to 3.78% in July 2015 from 5.4% in June 2015, according to the data released by the Ministry of Statistics & Programme Implementation earlier during the week on 12 August 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a weekly report issued yesterday, 13 August 2015, that the rainfall was 31% below normal for the country as a whole during the period from 6 August to 12 August 2015. Region wise, the rainfall was 8% below the Long Period Average (LPA) in South Peninsula, 13% below LPA in Northwest India, 44% below LPA in Central India and 45% below LPA in East & Northeast India during the period from 6 August to 12 August 2015.
As per IMD's extended range forecast till 19 August 2015, near normal rainfall activity is likely over central and northwest India during next 3-4 days. Subsequently rainfall would increase considerably along the foot hills of Himalayas, northeastern states & adjoining east India and Peninsula India.
In its separate daily monsoon update issued yesterday, 13 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 13 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 13% below the LPA in East & Northeast India, 8% below the LPA in Central India and 1% above the LPA in Northwest India until 13 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, European stocks edged higher today, 14 August 2015 after reports Greek Prime Minister Alexis Tsipras confronted a widening rebellion within his leftist Syriza party as parliament voted to approve the country's third financial rescue by foreign creditors in five years. Key benchmark indices in UK, France and Germany were up 0.43% to 0.52%.
The vote was held after daybreak today, 14 August 2015 after lawmakers bickered through the night over procedural matters. Euro zone finance ministers are expected to approve the vital aid for Athens later today, 14 August 2015.
Economic growth in Germany accelerated slightly in the second quarter on rising exports, but hit the brakes in France, underscoring the big divergences within the eurozone that threaten its prospects for a sustained recovery. Germany's gross domestic product grew 0.4% from the previous quarter, data from the country's statistical agency, Destatis, showed today, 14 August 2015.
French economic growth ground to a halt in the second quarter of 2015, indicating that a fall in oil prices and monetary stimulus aren't providing the momentum for a strong enough recovery to quickly reduce debt and unemployment. Gross domestic product in the eurozone's second-largest economy was unchanged in the second quarter from the first, national statistics agency Insee said today, 14 August 2015. That was below economist forecasts and marked a sharp slowdown from the 0.7% jump in the first quarter. Insee previously estimated a 0.6% rise in the first quarter.
Asian stocks were mixed today, 14 August 2015. Key indices in Hong Kong, Indonesia, Taiwan and Japan fell by 0.04% to 0.37%. Key indices in China, South Korea and Singapore were up 0.27% to 0.8%.
Investors awaited today's yuan fixing to see if China's central bank would set its official guidance rate lower for a fourth day. The People's Bank of China (PBOC) set its rate nearly 2% lower on Tuesday, 11 August 2015 a move it said was aimed at making its foreign exchange system more responsive to market forces. The PBOC reassured investors on Thursday, 13 August 2015 saying there was no reason for the yuan to fall further given the country's strong economic fundamentals, helping to calm investors who pared holdings of risk assets for fear of a currency war.
US stocks closed mostly lower yesterday, 13 August 2015, following a choppy session marked by narrow gains and losses, as readings on retail sales and jobless claims suggested the US economy is on healthy footing.
On macro front, US retail sales rose in July and were revised up for June, while the trend of weekly jobless claims pointed to a tightening job market.
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