Sensex, Nifty attain 6-week closing high
Positive cues from global markets aided small upmove for Indian stocks at the onset of the week. The barometer index, the S&P BSE Sensex, rose 86.29 points or 0.35% to settle at 24,804.28. The 50-unit Nifty 50 index rose 28.55 points or 0.38% to settle at 7,538.75. The two key benchmark indices gained for the second day in a row. The Sensex and the Nifty, both, attained their a 6-week closing high.
Coal India fell sharply as the stock turned ex-dividend for a liberal interim dividend of Rs 27.40 per share for the year ending 31 March 2016 (FY 2016). Bharat Heavy Electricals (Bhel) edged higher after the company announced that it has successfully synchronised a 110 megawatts (MW) unit at Barauni thermal power station in Bihar following renovation and modernisation. State-run iron ore miner NMDC moved higher after raising product prices.
In overseas stock markets, European stocks edged higher in the aftermath of aggressive easing measures announced by the European Central Bank last week. Earlier during the global day, Asian stocks moved higher on expectations of further stimulus from policy makers in China. In mainland China, the Shanghai Composite ended 1.75% higher. In Hong Kong, the Hang Seng index settled 1.17% higher. In Japan, the Nikkei Average settled 1.74% higher. The Bank of Japan's (BOJ) two-day policy meeting begins today, 14 March 2016. The BOJ is seen holding policy rate steady after adopting negative interest rates at its meeting in late January.
US stocks jumped on Friday, 11 March 2016, in a rally largely fueled by a rebound in oil prices. The US Federal Reserve's crucial two-day monetary policy meeting begins tomorrow, 15 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
The Sensex rose 86.29 points or 0.35% to settle at 24,804.28, its highest closing level since 1 February 2016. The index gained 16.05 points or 0.06% at the day's low of 24,734.04. The barometer index rose 242.52 points or 0.98% at the day's high of 24,960.51.
The Nifty rose 28.55 points or 0.38% to settle at 7,538.75, its highest closing level since 1 February 2016. The index gained 4.85 points or 0.06% at the day's low of 7,515.05. The index rose 73.50 points or 0.97% at the day's high of 7,583.70.
The BSE Mid-Cap index rose 0.31%, underperforming the Sensex. The BSE Small-Cap index rose 0.41%, outperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,330 shares fell and 1,323 shares rose. A total of 173 shares were unchanged.
The total turnover on BSE amounted to Rs 4089 crore, higher than turnover of Rs 2419.55 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (down 2.04%), the S&P BSE Energy index (down 0.51%), the S&P BSE Realty index (down 0.32%), the S&P BSE Consumer Durables index (down 0.23%), the S&P BSE IT index (up 0.01%), the S&P BSE Teck index (up 0.08%), the S&P BSE Capital Goods index (up 0.09%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.19%), the S&P BSE Healthcare index (up 0.20%), the S&P BSE Utilities index (up 0.22%) and the S&P BSE Power index (up 0.29%), underperformed the Sensex. The S&P BSE Telecom index (up 0.46%), the S&P BSE Oil & Gas index (up 0.47%), the S&P BSE Finance index (up 0.59%), the S&P BSE Auto index (up 0.60%), the S&P BSE Basic Materials index (up 0.63%), the S&P BSE FMCG index (up 0.69%), the S&P BSE Industrials index (up 0.73%) and the S&P BSE Bankex (up 0.81%), outperformed the Sensex.
Coal India dropped 6.96% to Rs 296.85 as the stock turned ex-dividend today, 14 March 2016, for interim dividend of Rs 27.40 per share for the year ending 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 8.58% based on the closing price of Rs 319.05 on Friday, 11 March 2016.
Asian Paints declined 0.17%. The company has approved the appointment of TSR Darashaw as the Registrar & Transfer Agent (R&TA) of the company from 1 April 2016, in place of Sharepro Services (India), the existing R&TA. Asian Paints had announced earlier this month that it had filed First Information Report (FIR) with the Police department against Sharepro Services (India) and its employees after discovering certain irregularities at Sharepro with respect to share transfer operations and dividend encashment activities. Asian Paints had issued a termination notice to Sharepro for the termination of Registrar & Transfer Agent services with effect from 1 April 2016.
Bharat Heavy Electricals (Bhel) rose 1.88% after the company announced that it has successfully synchronised a 110 megawatts (MW) unit at Barauni thermal power station in Bihar following renovation and modernisation. Following the renovation and modernisation, the working life of the machine that was first commissioned in May 1985 has been extended by another 15-20 years. The announcement was made during market hours today, 14 March 2016.
Index heavyweight and cigarette maker ITC gained 0.83% to Rs 323.75. The stock hit high of Rs 323.95 and low of Rs 321.25 in intraday trade.
Commercial vehicles manufacturer Tata Motors gained 3.36% to Rs 365.90. The stock hit high of Rs 370.25 and low of Rs 359 in intraday trade.
Stocks of most public sector banks moved higher. Corporation Bank (up 7.39%), Punjab and Sind Bank (up 2.96%), UCO Bank (up 2.39%), Central Bank of India (up 1.94%), Allahabad Bank (up 1.87%), Syndicate Bank (up 1.65%), Canara Bank (up 1.51%), State Bank of India (up 0.86%), Bank of Maharashtra (up 0.69%), Union Bank of India (up 0.56%), Punjab National Bank (up 0.55%), Bank of India (up 0.37%), Bank of Baroda (up 0.18%) and Dena Bank (up 0.18%), edged higher. Indian Bank (down 0.5%), Andhra Bank (down 0.96%), Vijaya Bank (down 1.11%), IDBI Bank (down 1.15%) and United Bank of India (down 1.53%) edged lower.
Stocks of private sector banks witnessed a mixed trend. City Union Bank (up 3.11%), Axis Bank (up 0.85%) and Yes Bank (up 0.39%) edged higher. HDFC Bank (down 0.06%), IndusInd Bank (down 0.63%), Federal Bank (down 0.72%) and Kotak Mahindra Bank (down 1.17%) edged lower.
Reserve Bank of India (RBI) Governor Raghuram Rajan on Saturday, 12 March 2016, reiterated that the RBI's intent is to have clean and fully provisioned bank balance sheets by March 2017. He was speaking at the First Ramnath Goenka Memorial Lecture in New Delhi.
ICICI Bank rose 3.70% to Rs 221.70. The stock hit a high of Rs 222.55 and a low of Rs 218.10 in intraday trade.
Most metal and mining stocks rose on gains in global commodity prices. Bhushan Steel (up 5.68%), Vedanta (up 1.89%), Hindalco Industries (up 1.56%), National Aluminium Company (up 1.30%), Tata Steel (up 0.63%) and Hindustan Zinc (up 0.38%), edged higher. JSW Steel (down 0.24%), Hindustan Copper (down 0.52%), Steel Authority of India (down 0.82%) and Jindal Steel & Power (down 4.86%), edged lower.
Meanwhile, High Grade Copper for May 2016 delivery was currently up 0.4% at $2.25 per pound on the COMEX.
State-run iron ore miner NMDC rose 1.78% at Rs 94.55 after raising iron ore prices. NMDC has raised iron ore lump price by 8.33% to Rs 1,950 per tonne effective Friday, 11 March 2016. The state-run firm also raised prices for iron ore fines by 9.62% to Rs 1,710 per tonne. The announcement was made after market hours on Friday, 11 March 2016.
Shares of oil exploration and production companies rose. Cairn India (up 3.06%), Oil India (up 0.94%), ONGC (up 1.51%) and Reliance Industries (up 0.29%) edged higher.
Shares of public sector oil marketing companies declined. HPCL (down 0.77%) and BPCL (down 0.03%) and Indian Oil Corporation (down 0.30%) edged lower.
In the global commodities markets, Brent for May settlement was currently down 64 cents at $39.75 a barrel. The contract had risen 34 cents or 0.84% to settle at $40.39 a barrel during the previous trading session.
On macroeconomic front, data announced during market hours today, 14 March 2016, showed that inflation based on wholesale price index (WPI) stood at negative 0.91% in February 2016 as compared to a reading of negative 0.9% (provisional) in January 2016. Build up inflation rate in the financial year so far was minus 1.19% compared to a build up rate of minus 2.61% in the corresponding period of the previous year. For December 2015, WPI was revised to minus 1.06% as compared to minus 0.73% reported earlier.
Meanwhile, the data announced after market hours on Friday, 11 March 2016, showed that industrial production declined for the third straight month, registering a fall of 1.5% in January 2016 over January 2015. The output of the manufacturing sector declined 2.8% in January 2016, contributing to the decline in industrial production. Meanwhile, the mining sector output improved 1.2%, while the electricity generation also galloped 6.6% in January 2016.
RBI's Rajan on Saturday, 12 March 2016, said that the central bank's inflation-focused monetary framework would be strengthened by the constitution of the monetary policy committee (MPC) mooted in the Finance Bill 2016. Currently, the RBI governor decides key interest rates. Rajan's comments on MPC come after Finance Minister Arun Jaitley said in his speech on Union Budget 2016-17 on 29 February 2016 that the RBI Act 1934 is being amended to provide statutory basis for a Monetary Policy Framework and a Monetary Policy Committee through the Finance Bill 2016. Not only will a committee aggregate multiple views better than an individual can, it will offer more continuity and be less subject to undue pressure, Rajan said speaking at the First Ramnath Goenka Memorial Lecture in New Delhi.
Rajan also welcomed fiscal prudence, emphasis on capital spending and structural reforms in the agriculture sector in the Union Budget 2016-17. Rajan attributed the slowdown in India's international trade mainly to a fall in commodity prices and to some extent to a fall in trade volumes.
Rajan said the RBI has steadily expanded investment limits for foreign investors in government bonds and it will continue to do so. While making a case for attracting stable capital flows, Rajan said that the central bank intends to continuously ease both entry and exit norms for foreign investors.
The Sensex has risen 180.94 points or 0.73% in the preceding two trading sessions from its close of 24,623.34 on 10 March 2016. The Sensex has risen 1,806.28 points or 7.85% in this month so far (till 14 March 2016). The Sensex has fallen 1,308.26 points or 5.01% in calendar year 2016 so far (till 14 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,312.67 points or 10.28%. The Sensex is off 4,288.33 points or 14.74% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 5,219.46 points or 17.38% from a record high of 30,024.74 hit on 4 March 2015.
Coal India fell sharply as the stock turned ex-dividend for a liberal interim dividend of Rs 27.40 per share for the year ending 31 March 2016 (FY 2016). Bharat Heavy Electricals (Bhel) edged higher after the company announced that it has successfully synchronised a 110 megawatts (MW) unit at Barauni thermal power station in Bihar following renovation and modernisation. State-run iron ore miner NMDC moved higher after raising product prices.
In overseas stock markets, European stocks edged higher in the aftermath of aggressive easing measures announced by the European Central Bank last week. Earlier during the global day, Asian stocks moved higher on expectations of further stimulus from policy makers in China. In mainland China, the Shanghai Composite ended 1.75% higher. In Hong Kong, the Hang Seng index settled 1.17% higher. In Japan, the Nikkei Average settled 1.74% higher. The Bank of Japan's (BOJ) two-day policy meeting begins today, 14 March 2016. The BOJ is seen holding policy rate steady after adopting negative interest rates at its meeting in late January.
US stocks jumped on Friday, 11 March 2016, in a rally largely fueled by a rebound in oil prices. The US Federal Reserve's crucial two-day monetary policy meeting begins tomorrow, 15 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
The Sensex rose 86.29 points or 0.35% to settle at 24,804.28, its highest closing level since 1 February 2016. The index gained 16.05 points or 0.06% at the day's low of 24,734.04. The barometer index rose 242.52 points or 0.98% at the day's high of 24,960.51.
The Nifty rose 28.55 points or 0.38% to settle at 7,538.75, its highest closing level since 1 February 2016. The index gained 4.85 points or 0.06% at the day's low of 7,515.05. The index rose 73.50 points or 0.97% at the day's high of 7,583.70.
The BSE Mid-Cap index rose 0.31%, underperforming the Sensex. The BSE Small-Cap index rose 0.41%, outperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,330 shares fell and 1,323 shares rose. A total of 173 shares were unchanged.
The total turnover on BSE amounted to Rs 4089 crore, higher than turnover of Rs 2419.55 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (down 2.04%), the S&P BSE Energy index (down 0.51%), the S&P BSE Realty index (down 0.32%), the S&P BSE Consumer Durables index (down 0.23%), the S&P BSE IT index (up 0.01%), the S&P BSE Teck index (up 0.08%), the S&P BSE Capital Goods index (up 0.09%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.19%), the S&P BSE Healthcare index (up 0.20%), the S&P BSE Utilities index (up 0.22%) and the S&P BSE Power index (up 0.29%), underperformed the Sensex. The S&P BSE Telecom index (up 0.46%), the S&P BSE Oil & Gas index (up 0.47%), the S&P BSE Finance index (up 0.59%), the S&P BSE Auto index (up 0.60%), the S&P BSE Basic Materials index (up 0.63%), the S&P BSE FMCG index (up 0.69%), the S&P BSE Industrials index (up 0.73%) and the S&P BSE Bankex (up 0.81%), outperformed the Sensex.
Coal India dropped 6.96% to Rs 296.85 as the stock turned ex-dividend today, 14 March 2016, for interim dividend of Rs 27.40 per share for the year ending 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 8.58% based on the closing price of Rs 319.05 on Friday, 11 March 2016.
Asian Paints declined 0.17%. The company has approved the appointment of TSR Darashaw as the Registrar & Transfer Agent (R&TA) of the company from 1 April 2016, in place of Sharepro Services (India), the existing R&TA. Asian Paints had announced earlier this month that it had filed First Information Report (FIR) with the Police department against Sharepro Services (India) and its employees after discovering certain irregularities at Sharepro with respect to share transfer operations and dividend encashment activities. Asian Paints had issued a termination notice to Sharepro for the termination of Registrar & Transfer Agent services with effect from 1 April 2016.
Bharat Heavy Electricals (Bhel) rose 1.88% after the company announced that it has successfully synchronised a 110 megawatts (MW) unit at Barauni thermal power station in Bihar following renovation and modernisation. Following the renovation and modernisation, the working life of the machine that was first commissioned in May 1985 has been extended by another 15-20 years. The announcement was made during market hours today, 14 March 2016.
Index heavyweight and cigarette maker ITC gained 0.83% to Rs 323.75. The stock hit high of Rs 323.95 and low of Rs 321.25 in intraday trade.
Commercial vehicles manufacturer Tata Motors gained 3.36% to Rs 365.90. The stock hit high of Rs 370.25 and low of Rs 359 in intraday trade.
Stocks of most public sector banks moved higher. Corporation Bank (up 7.39%), Punjab and Sind Bank (up 2.96%), UCO Bank (up 2.39%), Central Bank of India (up 1.94%), Allahabad Bank (up 1.87%), Syndicate Bank (up 1.65%), Canara Bank (up 1.51%), State Bank of India (up 0.86%), Bank of Maharashtra (up 0.69%), Union Bank of India (up 0.56%), Punjab National Bank (up 0.55%), Bank of India (up 0.37%), Bank of Baroda (up 0.18%) and Dena Bank (up 0.18%), edged higher. Indian Bank (down 0.5%), Andhra Bank (down 0.96%), Vijaya Bank (down 1.11%), IDBI Bank (down 1.15%) and United Bank of India (down 1.53%) edged lower.
Stocks of private sector banks witnessed a mixed trend. City Union Bank (up 3.11%), Axis Bank (up 0.85%) and Yes Bank (up 0.39%) edged higher. HDFC Bank (down 0.06%), IndusInd Bank (down 0.63%), Federal Bank (down 0.72%) and Kotak Mahindra Bank (down 1.17%) edged lower.
Reserve Bank of India (RBI) Governor Raghuram Rajan on Saturday, 12 March 2016, reiterated that the RBI's intent is to have clean and fully provisioned bank balance sheets by March 2017. He was speaking at the First Ramnath Goenka Memorial Lecture in New Delhi.
ICICI Bank rose 3.70% to Rs 221.70. The stock hit a high of Rs 222.55 and a low of Rs 218.10 in intraday trade.
Most metal and mining stocks rose on gains in global commodity prices. Bhushan Steel (up 5.68%), Vedanta (up 1.89%), Hindalco Industries (up 1.56%), National Aluminium Company (up 1.30%), Tata Steel (up 0.63%) and Hindustan Zinc (up 0.38%), edged higher. JSW Steel (down 0.24%), Hindustan Copper (down 0.52%), Steel Authority of India (down 0.82%) and Jindal Steel & Power (down 4.86%), edged lower.
Meanwhile, High Grade Copper for May 2016 delivery was currently up 0.4% at $2.25 per pound on the COMEX.
State-run iron ore miner NMDC rose 1.78% at Rs 94.55 after raising iron ore prices. NMDC has raised iron ore lump price by 8.33% to Rs 1,950 per tonne effective Friday, 11 March 2016. The state-run firm also raised prices for iron ore fines by 9.62% to Rs 1,710 per tonne. The announcement was made after market hours on Friday, 11 March 2016.
Shares of oil exploration and production companies rose. Cairn India (up 3.06%), Oil India (up 0.94%), ONGC (up 1.51%) and Reliance Industries (up 0.29%) edged higher.
Shares of public sector oil marketing companies declined. HPCL (down 0.77%) and BPCL (down 0.03%) and Indian Oil Corporation (down 0.30%) edged lower.
In the global commodities markets, Brent for May settlement was currently down 64 cents at $39.75 a barrel. The contract had risen 34 cents or 0.84% to settle at $40.39 a barrel during the previous trading session.
On macroeconomic front, data announced during market hours today, 14 March 2016, showed that inflation based on wholesale price index (WPI) stood at negative 0.91% in February 2016 as compared to a reading of negative 0.9% (provisional) in January 2016. Build up inflation rate in the financial year so far was minus 1.19% compared to a build up rate of minus 2.61% in the corresponding period of the previous year. For December 2015, WPI was revised to minus 1.06% as compared to minus 0.73% reported earlier.
Meanwhile, the data announced after market hours on Friday, 11 March 2016, showed that industrial production declined for the third straight month, registering a fall of 1.5% in January 2016 over January 2015. The output of the manufacturing sector declined 2.8% in January 2016, contributing to the decline in industrial production. Meanwhile, the mining sector output improved 1.2%, while the electricity generation also galloped 6.6% in January 2016.
RBI's Rajan on Saturday, 12 March 2016, said that the central bank's inflation-focused monetary framework would be strengthened by the constitution of the monetary policy committee (MPC) mooted in the Finance Bill 2016. Currently, the RBI governor decides key interest rates. Rajan's comments on MPC come after Finance Minister Arun Jaitley said in his speech on Union Budget 2016-17 on 29 February 2016 that the RBI Act 1934 is being amended to provide statutory basis for a Monetary Policy Framework and a Monetary Policy Committee through the Finance Bill 2016. Not only will a committee aggregate multiple views better than an individual can, it will offer more continuity and be less subject to undue pressure, Rajan said speaking at the First Ramnath Goenka Memorial Lecture in New Delhi.
Rajan also welcomed fiscal prudence, emphasis on capital spending and structural reforms in the agriculture sector in the Union Budget 2016-17. Rajan attributed the slowdown in India's international trade mainly to a fall in commodity prices and to some extent to a fall in trade volumes.
Rajan said the RBI has steadily expanded investment limits for foreign investors in government bonds and it will continue to do so. While making a case for attracting stable capital flows, Rajan said that the central bank intends to continuously ease both entry and exit norms for foreign investors.
The Sensex has risen 180.94 points or 0.73% in the preceding two trading sessions from its close of 24,623.34 on 10 March 2016. The Sensex has risen 1,806.28 points or 7.85% in this month so far (till 14 March 2016). The Sensex has fallen 1,308.26 points or 5.01% in calendar year 2016 so far (till 14 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,312.67 points or 10.28%. The Sensex is off 4,288.33 points or 14.74% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 5,219.46 points or 17.38% from a record high of 30,024.74 hit on 4 March 2015.
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