A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P Sensex, was currently trading below the psychological 29,000 mark. The Sensex was currently off 11.55 points or 0.04% at 28,988.59. Global crude oil prices surged overnight.
Prime Minister Narendra Modi yesterday, 3 February 2015, said that the priority of the government is growth and to create jobs. Meanwhile, the outcome of a monthly survey released today, 4 February 2015, showed a solid expansion in India's services sector activity in January 2015
Shares of pharmaceuticals and IT firms were mixed. Lupin rose after the company clarified that it actively explores opportunities for organic and inorganic growth including overseas acquisitions on day to day basis.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit 2-week low in mid-morning trade as these two key benchmark indices reversed direction after a firm start.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 264.35 crore yesterday, 3 February 2015, as per provisional data.
In overseas market, Asian shares edged higher after overnight rally in US stocks. US stocks surged yesterday, 3 February 2015, as equities kept pace with surging crude-oil prices.
In the foreign exchange market, the rupee reversed intraday gains against the dollar.
Brent crude oil futures edged higher in volatile trade. The recent rebound in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. The rebound in crude oil prices comes after a steep slide in prices over the past few months. India imports about 80% of its crude oil requirements.
At 12:16 IST, the S&P BSE Sensex was down 11.55 points or 0.04% at 28,988.59. The index fell 133.14 points at the day's low of 28,867 in mid-morning trade, its lowest level since 21 January 2015. The index jumped 133.48 points at the day's high of 29,133.62 in mid-morning trade.
The CNX Nifty was down 9.30 points or 0.11% at 8,747.25. The index hit a low of 8,716.40 in intraday trade, its lowest level since 21 January 2015. The index hit a high of 8,792.85 in intraday trade.
The BSE Mid-Cap index was down 5.02 points or 0.05% at 10,763.21. The decline in the index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 31.16 points or 0.27% at 11,457.94, outperforming the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,279 shares declined and 1,255 shares advanced. A total of 105 shares were unchanged.
IT stocks were mixed. MindTree (up 1.73%), MphasiS (up 1.68%), Infosys (up 1%), Hexaware Technologies (up 0.53%), Wipro (up 0.46%) and Oracle Financial Services Software (up 0.07%), edged higher. HCL Technologies (down 0.24%), CMC (down 1.06%) and TCS (down 1.73%), edged lower.
Tech Mahindra fell 1.14% to Rs 2,883.65. Tech Mahindra and Aeris, the Made for Machines technology and service provider, announced during trading hours the launch of Jumpstart Internet of Things (IoT) service solution that provides the blueprint for mobile operators to build a scalable and profitable IoT business. According to the Machina Research M2M Forecast Database, global M2M and IoT services spend is expected to reach $126 billion in 2015, with a 23.5% CAGR through 2020.
Pharmaceuticals shares were mixed. Glenmark Pharmaceuticals (up 3.10%), Sun Pharmaceutical Industries (up 2.26%), Ranbaxy Laboratories (up 1.88%), GlaxoSmithKline Pharmaceuticals (up 0.95%), Dr. Reddy's Laboratories (up 0.83%), Strides Arcolab (up 0.79%), Cipla (up 0.27%) and Piramal Enterprises (up 0.25%), edged higher. Wockhardt (down 0.11%), IPCA Laboratories (down 0.18%), Divi's Laboratories (down 0.7%), Cadila Healthcare (down 1.08%) and Aurobindo Pharma (down 1.12%), edged lower.
Lupin rose 1.15% to Rs 1,563.10. With respect to news article titled "Lupin eyes small-sized assets in Russian market," Lupin clarified during trading hours that it actively explores opportunities for organic and inorganic growth including overseas acquisitions on day to day basis. The company shall promptly inform the exchanges once any such proposal is considered and duly approved by the board, Lupin added.
In the foreign exchange market, the rupee reversed intraday gains against the dollar. The partially convertible rupee was hovering at 61.69, compared with its close of 61.68 during the previous trading session.
Brent crude oil futures edged higher in volatile trade. Brent for March settlement was up 4 cents at $57.95 a barrel. The contract had jumped $3.16 a barrel or 5.8% to settle at $57.91 a barrel during the previous trading session.
The outcome of a monthly survey released today, 4 February 2015, showed a solid expansion in India's services sector activity in January 2015. The HSBC India Services PMI Business Activity Index edged up to 52.4 in January 2015, from 51.1 in December 2014. According to survey responses, the latest increase in the services activity reflected further growth of new business during the month. Indian service providers were the most upbeat regarding the 12-month outlook for activity since mid- 2014. Panel members attributed optimism to anticipated improvements in demand and new commercial initiatives. Input costs faced by Indian services firms rose for the second straight month in January, having fallen for the first time in more than five-and-a-half years in November. The rate of cost inflation picked up to the sharpest in six months, although it remained muted in the context of historical data. Prices charged in the Indian service economy also increased for the second consecutive month in January.
Prime Minister Narendra Modi yesterday, 3 February 2015, said that his priority was for India to establish global benchmarks in areas such as governance, transparency and taxation. Interacting over dinner with participants of the BlackRock India Investor Summit, he said that the priority of the government is growth and to create jobs. The Prime Minister said infrastructure development is one of the best routes to create jobs for the youth. He said India requires both expansion and upgradation of its infrastructure. He said the Railways could become a growth engine for the economy. The Prime Minister said the goal of Affordable Housing for all by 2022, would in itself, provide a huge boost for the economy. In terms of the education system, he said the best in the world should be there in India as well. The Prime Minister said he believes in a fair, predictable and consistent tax system, and in economic policies that will drive growth.
Asian share markets tracked US market higher today as revived risk sentiment dented the US dollar and sovereign bonds. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.41% to 1.98%.
China's Shanghai Composite fell 0.27%. The HSBC China services purchasing managers index fell to a six-month low at 51.8 in January from 53.4 in December, HSBC Holdings PLC said Wednesday, pointing to a slowdown outside the nation's factory sector. Despite the fall in the index, service activity was still expanding from the previous month, although at a slower rate.
The HSBC Hong Kong Purchasing Managers Index contracted in January, a signal of the city's deteriorating output at the start of 2015 amid China's economic slowdown. HSBC said Wednesday that January's manufacturing PMI fell to 49.4 from 50.3 in December. A reading below 50 indicates a contraction in manufacturing, while a reading above that indicates an expansion.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell today, 4 February 2015. US market ended higher for second day in a row on Tuesday, 3 February 2015, led by energy shares as oil prices extended their recent rally, while higher-than-expected January car sales also bolstered the advance.
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