A range bound movement was witnessed as key benchmark indices retained positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, scaled record high. The market breadth indicating the overall health of the market was negative. The Sensex was currently up 124.52 points or 0.42% at 29,695.56. Asian stocks were mixed. Trading in index futures indicated a higher opening of US stocks later in the global day as Apple Inc. reported stronger-than-expected results for the fiscal first quarter ended 27 December 2014.
Meanwhile, weak US economic data overnight triggered speculation that interest rate hike from the US Federal Reserve could be delayed.
Bank stocks were in demand on renewed buying with shares of state-run State Bank of India hitting 52-week high. Realty stocks edged higher. IDFC rose after the Reserve Bank of India (RBI) granted no objection to the proposed scheme of arrangement between IDFC and IDFC Bank and their respective shareholders and creditors under Section 391 to 394 of Companies Act, 1956.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 953.50 crore yesterday, 27 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
Brent crude oil futures dropped after an industry report showing a larger-than-expected rise in weekly US crude inventories bolstered speculation that a global glut will persist.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contracts expire tomorrow, 29 January 2015.
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In overseas markets, Asian stocks were mixed. US stocks edged lower yesterday, 27 January 2015, following a surprise drop in durable-goods orders and disappointing earnings from Microsoft Corp. and Caterpillar Inc.
At 12:20 IST, the S&P BSE Sensex was up 124.52 points or 0.42% at 29,695.56. The index gained 137.36 points at the day's high of 29,708.40 in early afternoon trade, a record high for the index. The index fell 95.81 points at the day's low of 29,475.23 in morning trade.
The CNX Nifty was up 44.95 points or 0.5% at 8,955.45. The index hit a high of 8,962.05 in intraday trade, a record high for the index. The index hit a low of 8,889.10 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,328 shares declined and 1,213 shares rose. A total of 105 shares were unchanged.
The BSE Mid-Cap index was up 89.40 points or 0.83% at 10,869.87, outperforming the Sensex. The BSE Small-Cap index was up 17.60 points or 0.15% at 11,442.08, underperformed the Sensex.
The total turnover on BSE amounted to Rs 1889 crore by 12:15 IST, compared with turnover of Rs 1467 crore by 11:15 IST.
Bank stocks were in demand on renewed buying. Among private bank stocks, HDFC Bank (up 1.49%), IndusInd Bank (up 1.79%), Kotak Mahindra Bank (up 0.14%), Axis Bank (up 0.47%), and ICICI Bank (up 2.06%) gained. ING Vysya Bank shed 0.12%.
Yes Bank rose 1.2%. Yes Bank after trading hours yesterday, 27 January 2015, announced that the bank has teamed up with the Overseas Private Investment Corporation (OPIC), the US government's development finance institution, by signing a memorandum of understanding to explore OPIC financing of up to $220 million to increase lending to micro, small and medium enterprises (MSMEs) in India. Specifically, $100 million of the financing would be used to support either Micro-SMEs or SMEs in underserved rural and urban markets, Yes Bank and OPIC said in a joint statement. US-based lender Wells Fargo Bank, N.A., will act as sponsor and co-lender to the project.
Among PSU bank stocks, Punjab National Bank (up 2.44%), Bank of Baroda (up 2.02%), Canara Bank (up 0.97%), Bank of India (up 0.96%) gained.
State Bank of India (SBI) rose 1.61% to Rs 335.15. The stock hit a 52-week high of Rs 335.35 in intraday trade. The state-run bank yesterday, 27 January 2015, announced that the Committee of Directors for Capital Raising (the Committee) has decided to take enabling approval from the shareholders for raising additional equity share capital up to Rs 15000 crore by way of public issue (i.e. follow-on-public issue) or rights issue or private placement, including qualified institutions placement (QIP)/global depository receipt (GDRs)/American depository receipt (ADRs) and/or any other mode(s) or a combination(s) thereof. The Committee also decided to seek the approval of the Government of India and the Reserve Bank of India for raising capital under Section 5(2) of the State Bank of India Act, 1955 and take all necessary steps in this regard.
IDFC rose 1.12%. IDFC during market hours today, 28 January 2015, said that the Reserve Bank of India (RBI) has granted no objection to the proposed scheme of arrangement between IDFC and IDFC Bank and their respective shareholders and creditors under Section 391 to 394 of Companies Act, 1956.
Realty stocks were in demand on renewed buying. Housing Development and Infrastructure (up 2.13%), Sobha (up 4.92%), D B Realty (up 0.47%), Godrej Properties (up 1.75%), Oberoi Realty (up 0.29%), Indiabulls Real Estate (up 0.96%), Unitech (up 0.89%) and Parsvnath Developers (up 0.59%) gained.
Realty major DLF rose 0.54% to Rs 159. The stock was volatile. The stock hit high of Rs 159.50 and low of Rs 154.20 so far during the day.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 61.40, compared with its close of 61.41 during the previous trading session.
Brent crude oil futures dropped after an industry report showing a larger-than-expected rise in weekly US crude inventories bolstered speculation that a global glut will persist. Brent for March settlement was off 65 cents at $48.95 a barrel. The contract had gained $1.44 a barrel or 2.99% to settle at $49.60 a barrel during the previous trading session.
Finance Minister Arun Jaitley yesterday, 27 January 2015, said that there is huge curiosity and interest in India especially among domestic and foreign investors. The Finance Minister said that in order to make best use of this opportunity, India has to address two major concerns i.e. quick decision making & stability in policy matters and reforms in tax structure and administration. The Finance Minister made these comments in his speech at the Investiture Ceremony to honour the officers of Central Board of Excise and Customs (CBEC) for their excellent performance and International Customs Day function organised by CBEC. Jaitley said that that the government's revenue collection which was affected due to low manufacturing in the last 2-3 years is turning around and that the government hopes to meet its fiscal targets. Speaking on the occasion, Minister of State for Finance Jayant Sinha said that there is need for more transparency in tax administration and need to build data base for authentic and valid information.
Asian stocks were mixed today, 28 January 2015. Key benchmark indices in China, Singapore, Taiwan and Indonesia were off 0.01% to 1.12%. Key benchmark indices in Hong Kong, Japan, and South Korea were up 0.12% to 0.47%%.
Trading in US index futures indicated that the Dow could rise 72 points at the opening bell today, 28 January 2015. US stock markets fell heavily yesterday, 27 January 2015 following a string of disappointing financial results from big bellwether companies, including Procter & Gamble, Caterpillar, Microsoft and Pfizer.
A two-day meeting of the Federal Open Market Committee (FOMC) concludes today, 28 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.
In economic data, US durable goods, which economists treat as a proxy for business investment, dropped 3.4% in December 2014 following a 2.1% fall in November 2014.
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