BSE Small-Cap, Mid-Cap indices outshine Sensex

capital market | Mumbai |

BSE Small-Cap, Mid-Cap indices outshine Sensex

After extending intraday gains in mid-morning trade, key benchmark indices trimmed gains later. The barometer index, the S&P BSE Sensex, was currently trading with gains of more than 1% for the day. The 50-unit CNX Nifty was currently trading with gains of almost 1% for the day. The market breadth indicating the overall health of the market was quite strong, with more than three gainers for every loser on BSE. The Sensex was currently up 281.60 points or 1.03% at 27,740.24. The BSE Mid-Cap index was up 1.31%. The BSE Small-Cap index was up 2.33%. Both these indices outperformed the Sensex. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 4% to about 16.5% for quite a few stocks.

Gains in Asian stocks and a slide in global crude oil prices underpinned sentiment on the domestic bourses. Fall in crude oil prices augur well for India as the country imports 80% of its crude oil requirements.

Auto stocks edged higher. Cement stocks also edge higher. Index heavyweights HDFC and ITC edged higher.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 320.52 crore during the previous trading session on Friday, 27 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 674.76 crore on Friday, 27 March 2015, as per provisional data.

In the foreign exchange market, the rupee edged lower against the dollar.

Brent crude oil futures edged lower, extending steep losses from the previous session, as Iran and six world powers tried to reach a deal that could result in oil supply glut if sanctions against Tehran are lifted. For India, the decline in global crude oil prices along with deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. India imports 80% of its crude oil requirement.

In overseas markets, Chinese stocks led gains in Asian stocks after China unveiled more details and projections for its New Silk Road plan to boost trade and economic relations with the rest of Eurasia and Africa. US stocks edged higher during the previous trading session on Friday, 27 March 2015, as investors digested Fed Chair Janet Yellen's remarks on monetary policy ahead of first quarter earnings in April.

At 11:17 IST, the S&P BSE Sensex was up 281.60 points or 1.03% at 27,740.24. The index jumped 332.79 points at the day's high of 27,791.43 in mid-morning trade, its highest level since 26 March 2015. The index rose 166.12 points at the day's low of 27,624.765 in morning trade.

The 50-unit CNX Nifty was up 75.90 points or 0.91% at 8,417.30. The index hit a high of 8,432.65 in intraday trade, its highest level since 26 March 2015. The index hit a low of 8,380.75 in intraday trade.

The BSE Mid-Cap index was up 135.49 points or 1.31% at 10,495.42. The BSE Small-Cap index was up 243.66 points or 2.33% at 10,684.37. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was quite strong, with more than three gainers for every loser on BSE. 1,697 shares gained and 520 shares fell. A total of 62 shares were unchanged.

Auto stocks edged higher. Eicher Motors (up 1.72%), Hero MotoCorp (up 0.13%) and Ashok Leyland (up 3.95%) edged higher. Bajaj Auto was off 0.01%.

Shares of Passenger car makers were mixed. Maruti Suzuki India (up 0.22%) and Mahindra & Mahindra (up 1.75%) edged higher. Tata Motors (down 0.13%) edged lower. According to reports, dwindling demand is taking a toll on the Indian passenger car market as only six of the 150 different models currently on offer are selling at their full ex-showroom price. Car companies are offering discounts , which have peaked in this month, to boost sales in the fiscal end to show better numbers and improve their annual performance, reports suggested.

Cement stocks advanced. UltraTech Cement (up 1.42%), Ambuja Cements (up 0.6%), and ACC (up 0.39%) edged higher. Shree Cement (down 0.86%) edged lower.

Grasim Industries was up 0.58% at Rs 3,572.50. Grasim Industries has exposure to cement sector through its subsidiary UltraTech Cement.

Index heavyweight and housing finance major HDFC rose 2.62% at Rs 1,294.85.

Another index heavyweight and cigarette maker ITC advanced 1.99% at Rs 323.40.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.6175, compared with its close of 62.425 during the previous trading session on Friday, 27 March 2015.

Brent crude oil futures edged lower, extending steep losses from the previous session, as Iran and six world powers tried to reach a deal that could result in oil supply glut if sanctions against Tehran are lifted. Brent for May settlement was off 40 cents at $56.01 a barrel. The contract had declined $2.78 a barrel or 4.69% to settle at $56.41 a barrel during the previous trading session on Friday, 27 March 2015. The western nations have reportedly intensified talks with Iran to reach an agreement on its nuclear programme, ahead of a March 31 deadline. The US secretary of state and German and French foreign ministers have all cancelled their travel plans in a bid to push for a deal, according to reports. The meeting, which is taking place in the Swiss city of Lausanne, is also being attended by representatives from China, Russia and the UK.

In overseas markets, Chinese stocks led gains in Asian stocks after China unveiled more details and projections for its New Silk Road plan to boost trade and economic relations with the rest of Eurasia and Africa. Key indices in Japan, Singapore, South Korea, Taiwan and Indonesia were up 0.1% to 0.94%

Hong Kong and Shanghai stocks both popped higher after China unveiled more details and projections for its New Silk Road plan to boost trade and economic relations with the rest of Eurasia and Africa. In Hong Kong, the Hang Seng was up 1.78%. In mainland China, the Shanghai Composite index was up 2.13%. Over the weekend, Chinese President Xi Jinping said he expected the One Belt, One Road initiative, part of the wider Silk Road trade-promotion plan to better link regional infrastructures, to boost annual trade between China and the economies involved to more than $2.5 trillion. The plan is slated to include investment in railways, roads, power grids, oil and gas pipelines, ports and other such facilities.

In Japan, the latest data showed that factory output fell by a worse-than-expected 3.4% in February, adding to the gloom enveloping the world's third largest economy.

Trading in US index futures indicated that the Dow could gain 54.50 points at the opening bell today, 30 March 2015. US stocks edged higher on Friday, 27 March 2015, as investors digested Fed Chair Janet Yellen's remarks on monetary policy ahead of first quarter earnings in April. Yellen said at a conference sponsored by the San Francisco Fed that gradual rate hikes are likely this year but stressed that the central bank would move cautiously. Yellen, for the first time, said that the Fed would stay on hold if there were further weakening in key inflation indicators. But she added that it wouldn't take an increase in inflation or wages to prompt the Fed to raise interest rates.

US economic growth cooled in the fourth quarter as previously estimated, with businesses throttling back on inventory and equipment investment but robust consumer spending limiting the slowdown in the pace of activity. Gross domestic product (GDP) expanded at a 2.2% annual rate, unchanged from last month's forecast, the Commerce Department said on Friday, 27 March 2015, in its third estimate. The economy grew at a 5% rate in the third quarter.

The influential monthly US nonfarm payroll data is due on Friday, 3 April 2015. The US government will announce the payroll report for March 2015 on 3 April 2015.

In Europe, Greece's creditors are reportedly studying new reform plans put forward by Prime Minister Alexis Tsipras' government in a bid to secure further bailout funds.

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