A bout of volatility was witnessed as key benchmark indices trimmed gains after extending gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks. The Sensex was currently up 397.99 points or 1.45% at 27,905.53. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap and the BSE Small-Cap indices were up 1.29% each.
The rally for key indices materialised today, 2 January 2015, after the government yesterday, 1 January 2015, evening announced the setting up of NITI Aayog (National Institution for Transforming India) as replacement for the Planning Commission and said that the NITI Aayog will seek to provide a critical directional and strategic input into the development process. The government after trading hours yesterday, 1 January 2015, also announced increase in excise duty on petrol and diesel by Rs 2 a litre each to raise money to build 15,000 kilometers of roads during current and next financial year. Meanwhile, a monthly survey today, 2 January 2015, showed that manufacturing activity momentum in India accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad.
Tata Motors advanced after reporting strong sales for December 2014. Bharat Heavy Electricals (Bhel) gained after the company bagged an order worth Rs 3810 crore for setting up a supercritical thermal power plant in Telangana.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 18.20 crore yesterday, 1 January 2015, as per provisional data.
In overseas markets, European stocks edged higher on the first trading day of the year 2015 following gains in Asia. Asian stocks edged higher amid thin volumes following the New Year's Day holiday.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
Brent crude futures reversed intraday gains as an abundance of oil erased earlier support drawn from a larger-than-expected fall in US weekly crude stocks.
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At 14:21 IST, the S&P BSE Sensex was up 397.99 points or 1.45% at 27,905.53. The index jumped 429.93 points at the day's high of 27,937.47 in mid-afternoon trade, its highest level since 9 December 2014. The index rose 11.72 points at the day's low of 27,519.26 in early trade.
The CNX Nifty was up 117.75 points or 1.42% at 8,401.75. The index hit a high of 8,410.60 in intraday trade, its highest level since 9 December 2014. The index hit a low of 8,288.70 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,784 shares gained and 1,054 shares fell. A total of 114 shares were unchanged.
The BSE Mid-Cap index was up 134.58 points or 1.29% at 10,574.75. The BSE Small-Cap index was up 144.30 points or 1.29% at 11,369.52. Both these indices underperformed the Sensex.
Tata Motors advanced 3.32%. Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles rose 10% to 41,734 units in December 2014 over December 2013. The company's domestic sales of Tata commercial and passenger vehicles rose 8% to 37,776 units in December 2014 over December 2013. Tata Motors' exports jumped 40% to 3,958 units in December 2014 over December 2013. The sales figures were announced during market hours today, 2 January 2015.
Tata Motors' passenger vehicles rose 30% to 12,040 units in December 2014 over December 2013. The trend of growth in passenger vehicles continued with the strong Zest and Nano sales, Tata Motors said.
Bharat Heavy Electricals (Bhel) gained after the company bagged an order worth Rs 3810 crore from Telangana State Power Generation Corporation (TSGENCO) for setting up a supercritical thermal power plant in Telangana. The stock was up 3%. Bhel during market hours today, 2 January 2015, said that the company has received an advance of Rs 350 crore against the order from TSGENCO. Significantly, the project is targeted to be commissioned in 36 months on fast track basis with both Bhel and TSGENCO setting up teams to expedite clearances and execution of the project. Bhel further said that TSGENCO has entered into an MoU with Bhel for construction of new thermal power plants totalling to 6,000 megawatts (MW) in Telangana in the next three years to meet the increasing demand for power, which has been identified as a crucial factor for the development of the state.
Bharat Forge rose 0.97%. Bharat Forge during market hours today, 2 January 2015, said that the company's wholly owned subsidiary company, CDP Bharat Forge Holding GmBH, Germany has acquired 100% equity shares of Mecanique Generale Langroise, France. The transaction value is EUR 11.8 million, Bharat Forge said. MGL based in Saint Goesmes, France is a strong technology oriented company focused on precision machining and other high value added processes like cladding for critical application in the oil & gas industry. MGL supplies turnkey components for drilling application like Blow out Preventers (BoP), Surface & sub-sea well heads in addition to components for power sector.
This acquisition is largely focused on further consolidating Bharat Forge's position in the oil & gas space by enhancing service offerings and geographical reach. This also brings the company closer to its customers and increases the value addition provided to them, Bharat Forge said.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 63.29, compared with its close of 63.34 during the previous trading session.
Brent crude futures reversed intraday gains as an abundance of oil erased earlier support drawn from a larger-than-expected fall in US weekly crude stocks. Brent for February settlement was off 27 cents at $57.06 a barrel.
A monthly survey today, 2 January 2015, showed that manufacturing activity momentum in India accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad. Adjusted for seasonal factors, the headline HSBC India Purchasing Managers' Index (PMI) climbed to a two-year high of 54.5 in December, up from 53.3 in November. A steep rise in new orders from the consumer sector more than offset a slowdown in new order growth from investment goods. In line with falling commodity prices over the last few months, input price inflation was modest, and this trend was also mirrored in output prices. With the disinflationary trend gaining ground, the Reserve Bank of India (RBI) is expected to find space for some rate cuts in 2015, according to Pranjul Bhandari, Chief India Economist at HSBC. Cost pressures at Indian manufacturers eased to weakest in more than five-and-a-half years, according to the survey.
Meanwhile, the Indian government yesterday, 1 January 2015, announced the setting up of NITI Aayog (National Institution for Transforming India) as replacement for the Planning Commission and said that the NITI Aayog will seek to provide a critical directional and strategic input into the development process. The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states, the Prime Minister's Office (PMO) said in a statement. NITI Aayog will emerge as a "think-tank" that will provide governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy. The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination, the PMO said. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation. The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and partners. It will offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda. Among other obectives, the NITI Aayog aims to enable India to better face complex challenges, through policy support to more than 50 million small businesses, which are a major source of employment creation.
The government after trading hours yesterday, 1 January 2015, also announced increase in excise duty on petrol and diesel by Rs 2 a litre each to raise money to build 15,000 kilometers of roads during current and next financial year.
European stocks edged higher on the first trading day of the year 2015 following gains in Asia. Key benchmark indices in UK, France and Germany were up 0.06% to 0.33%.
Asian stocks edged higher today, 2 January 2015, amid thin volumes following the New Year's Day holiday. Key benchmark indices in Hong Kong, Singapore, Indonesia and South Korea were up by 0.08% to 1.07%.
Stock markets in China, Japan and Taiwan are closed today, 2 January 2015, for holiday.
Trading in US index futures indicated that the Dow could rise 104 points at the opening bell today, 2 January 2015. US markets had remained shut yesterday, 1 January 2015 for New Year's Day holiday.
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