Broad market depicts weakness

After trimming gains in morning trade, key benchmark indices moved within a range in mid-morning trade. While the benchmark indices retained positive zone, the broad market depicted weakness. The market breadth indicating the overall health of the market was weak. The BSE Small-Cap and Mid-Cap indices, were, both in red. The barometer index, the S&P BSE Sensex, was currently up 204.78 points or 0.71% at 29,210.80.

There are expectations that inflows from foreign funds into India will rise after European Central Bank (ECB) yesterday, 22 January 2015, announced a massive new bond-buying program to boost sluggish eurozone economy.

Tata Motors hit record high after the company yesterday, 22 January 2015, announced the commercial launch of its much-awaited sporty hatchback Bolt. Housing finance major HDFC also hit record high. Hotel shares were mixed. Tour operators were in demand. SpiceJet edged higher after the company said that the airline has received approval from the Ministry of Civil Aviation for change in ownership, management and control of SpiceJet in favour of Mr. Ajay Singh.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 592.79 crore yesterday, 22 January 2015, as per provisional data.

Earlier, the Sensex and the 50-unit CNX Nifty, had, both trimmed gains after hitting record high in early trade. The two benchmark indices had surged in early trade after European Central Bank (ECB) announced a massive new bond-buying program yesterday, 22 January 2015, aimed at boosting the sluggish eurozone economy.

In the foreign exchange market, the rupee edged higher against the dollar on optimism the European Central Bank's stimulus will boost demand for emerging- market assets.

Brent crude oil futures edged higher as news of the death of Saudi Arabia's King Abdullah added to uncertainty in energy markets.

In overseas markets, Asian stocks edged higher after the European Central Bank (ECB) launched a landmark bond-buying stimulus programme that buoyed investors' risk appetite. US stocks surged yesterday, 22 January 2015, after the European Central Bank laid out its plan to expand its asset-purchase program.

ECB left interest rates unchanged and announced larger than expected measures to stimulate the region's sagging economy after a monetary policy review yesterday, 22 January 2015. ECB will buy 60 billion euros worth of assets per month, more than markets had been hoping for. The ECB said it would purchase sovereign debt from this March until the end of September 2016.

At 11:20 IST, the S&P BSE Sensex was up 204.78 points or 0.71% at 29,210.80. The index jumped 402.71 points at the day's high of 29,408.73 in early trade, a lifetime high for the index. The index rose 159.54 points at the day's low of 29,165.56 in mid-morning trade.

The CNX Nifty was up 48.80 points or 0.56% at 8,810.20. The index hit a high of 8,866.40 in intraday trade, a lifetime high for the index. The index hit a low of 8,795.40 in intraday trade.

The BSE Mid-Cap index was off 40.55 points or 0.38% at 10,669.69. The BSE Small-Cap index was off 80.12 points or 0.7% at 11,369.38. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was weak. On BSE, 1,589 shares dropped and 894 shares advanced. A total of 94 shares were unchanged.

Housing finance major HDFC rose 2.28% to Rs 1,308.95. The stock hit a high of Rs 1,340.30 so far during the trade, which is a record high for the counter. The stock hit a low of Rs 1,287.10 so far during the trade.

Tata Motors hit record high after the company yesterday, 22 January 2015, announced the commercial launch of its much-awaited sporty hatchback Bolt. The stock was up 1.56% at Rs 575.15. The stock hit a high of Rs 586.45 in intraday trade so far during the trading session, which is record high for the counter. The stock hit a low of Rs 573.50 so far during the trading session.

Manufactured at the Pimpri plant in Pune, Bolt is the latest car from the company, under its Horizonext umbrella and offers many segment-defining features for Design, Drivability and Connectivity, Tata Motors said in a statement. The Bolt is launched at a starting price of Rs 4.44 lakh, ex-showroom, Delhi, for the Revotron (petrol) 1.2T and starts at Rs 5.49 lakh, ex-showroom, Delhi, for the diesel variant.

Mayank Pareek, President Passenger Vehicles Business Unit, Tata Motors said that he expects Bolt to strengthen Tata Motors' presence in the hatchback market, one of the most popular segments for the Indian customers.

Hotel shares were mixed. Indian Hotels Company (up 1.31%), EIH (up 1.17%) and Taj GVK Hotels & Resorts (up 0.79%), edged higher. Hotel Leela Venture (down 0.22%) edged lower.

Tour operators edged higher. Cox & Kings (up 0.05%) and Thomas Cook (India) (up 1.38%), edged higher.

Air carrier Jet Airways (India) was off 0.56%.

SpiceJet rose 0.9%. The company announced during trading hours that it has received the approval of the competent authority, the Ministry of Civil Aviation, Government of India for the scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet by Ajay Singh in accordance with the application made by the company.

SpiceJet had last week said that its board of directors at a meeting held on 15 January 2015, inter-alia, considered the proposal of the principal shareholder and promoter, Kalanithi Maran and KAL Airways to transfer the ownership, management and control of the company to Ajay Singh pursuant to a scheme of reconstruction and revival for the takeover of ownership, management and control of the company to be filed before the Ministry of Civil Aviation, Government of India.

Minister of State for Tourism (Independent Charge), Culture (Independent Charge) and Civil Aviation Dr. Mahesh Sharma yesterday, 22 January 2015, said that the coordination between tourism and airlines industries is crucial for promoting tourism in the country. He was speaking at an interaction between tourism and airlines organized by the Ministry of Tourism and Ministry of Civil Aviation in association with Federation of Association in Indian Tourism and Hospitality (FAITH). Sharma said that the government believes in bringing all stakeholders together to discuss how the air transport industry can best contribute to the development of tourism. Shares further said that the government has set up an agenda of 25 actionable points for the year 2015 to promote tourism.

In the foreign exchange market, the rupee edged higher against the dollar on optimism the European Central Bank's stimulus will boost demand for emerging- market assets. The partially convertible rupee was hovering at 61.50, compared with its close of 61.705 during the previous trading session.

Brent crude oil futures edged higher as news of the death of Saudi Arabia's King Abdullah added to uncertainty in energy markets. Brent for March settlement was up 93 cents at $49.45 a barrel. The contract had fallen 51 cents or 1.06% to settle at $48.52 a barrel during the previous trading session. Abdullah died early today, 23 January 2015, and his brother Salman became king, the royal court in the world's top oil exporter and birthplace of Islam said in a statement carried by state television.

US President Barack Obama arrives on a visit to India this weekend. The US President is the chief guest for India's Republic Day celebrations in New Delhi on 26 January 2015.

Stock market regulator Securities and Exchange Board of India (Sebi) yesterday, 22 January 2015, announced that 25% of the issue price must be received upfront where partly paid shares are issued through public issue and rights issue. The balance consideration shall continue to be received within 12 months if the issue size is less than Rs 500 crore. Where the issue size exceeds Rs 500 crore and the issuer has appointed a monitoring agency, the period can be decided by the issuer as per the existing regulatory framework, Sebi said. In respect of warrants issued along with public or rights issue of specified securities, 25% of the consideration shall be received upfront by the issuer and tenure of such warrants shall be 18 months as against 12 months presently, Sebi said.

The Sebi board also approved amendments to Issue and Listing of Debt Securities (ILDS) Regulations to incorporate express provisions for enabling "Consolidation and Re-issuance of Debt Securities" and "Call and Put options". By enabling consolidation and re-issuance of debt-securities, the illiquid and infrequently traded corporate bonds can be re-issued thereby leading to creation of a larger floating stock that can increase liquidity in the market, Sebi said in a press release. By enabling Call and Put options, the issuer and investors would have flexibility in redemption of debt securities.

In order to further develop the securitisation market, the Sebi board has approved amendments to Securitised Debt Instruments (SDI) regulations to rationalize and clarify the role and responsibilities of trustee, allowing banks and public financial institutions to act as trustee without obtaining registration, terms of appointment and capital requirement for trustee, and providing for a summary term sheet. This is expected to enhance the confidence of investors in securitisation transactions, Sebi said.

Asian stocks rallied after ECB launched a landmark bond-buying stimulus programme that buoyed investors' risk appetite. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.52% to 1.26%.

China's Shanghai Composite was up 0.70%. China's manufacturing sector strengthened slightly at the start of the year, according to a measure released Friday, but remains in a weak spot. A preliminary reading of the HSBC China Manufacturing Purchasing Managers Index rose to 49.80 in January from a final reading of 49.60 in December. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction. The overall growth of China's economy slowed to 7.4% in 2014, its slowest pace in more than 20 years, in part because of problems in manufacturing.

Trading in US index futures indicated that the Dow could fall 14 points at the opening bell today, 23 January 2015. US stocks ended higher yesterday following ECB's stimulus announcement. Separately, the number of Americans filing new claims for unemployment benefits fell last week from a seven-month high, pointing to continued improvement in labour market conditions. Initial claims for state unemployment benefits slipped 10,000 to a seasonally adjusted 307,000 for the week ended 17 January 2015, the Labour Department said yesterday.

In Europe, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country on Sunday, 25 January 2015. Greece is set to hold snap elections after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.

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