Intraday volatility continued as key benchmark indices once again pared gains in mid-afternoon trade. The broad market depicted weakness. The market breadth indicating the overall health of the market turned weak. The BSE Mid-Cap and Small-Cap indices were both in the red. Shares of index heavyweight and cigarette major ITC extended losses after the company reported a muted sales growth in its main cigarettes business. The barometer index, the S&P BSE Sensex, was currently was up 47.06 points or 0.16% at 28,831.73. Sugar stocks were in demand.
Earlier, the Sensex and the 50-unit CNX Nifty, had, both surged to record high in morning trade as these key benchmark indices extended initial gains.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1275.59 crore yesterday, 20 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar on optimism demand for local assets will increase as plunging oil prices improve India's economic outlook.
Finance Minister Arun Jaitley yesterday, 20 January 2015, said that the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) is a game changer for the economy as it has provided the platform for direct benefits transfer (DBT) which, in turn, will help in plugging leakages in subsidies and thereby provide savings to the exchequer.
Brent crude futures edged higher amid signs that prices are receiving support around current levels.
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In overseas markets, European shares reversed their initial gains. Chinese shares led gains in Asian stocks. US stocks eked out small gains yesterday, 20 January 2015, after seeing high intraday volatility.
At 14:16 IST, the S&P BSE Sensex was up 47.06 points or 0.16% at 28,831.73. The index jumped 173.43 points at the day's high of 28,958.10 in morning trade, a lifetime high for the index. The index rose 7.90 points at the day's low of 28,792.57 in mid-morning trade.
The CNX Nifty was up 16.20 points or 0.19% at 8,711.80. The index hit a high of 8,741.85 in intraday trade, a lifetime high for the index. The index hit a low of 8,689.60 in intraday trade so far.
The BSE Mid-Cap index was off 50.26 points or 0.47% at 10,677.55. The BSE Small-Cap index was off 43.92 points or 0.38% at 11,402.35. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,744 shares declined and 1,095 shares advanced. A total of 110 shares were unchanged.
Shares of index heavyweight and cigarette major ITC dropped after the company reported a muted sales growth in its main cigarette business. The stock was off 4.57% at Rs 354.25. The stock hit high of Rs 373.60 and low of Rs 353.50 so far during the day. The company's net profit rose 10.46% to Rs 2635 crore on 2.47% growth in total income from operations (net) to Rs 8942.59 crore in Q3 December 2014 over Q3 December 2013. Segment wise results showed that sales of the cigarette division rose 0.62% to Rs 4141.94 crore in Q3 December 2014 over Q3 December 2013. Sales of the FMCG business jumped 11.37% to Rs 2314.12 crore in Q3 December 2014 over Q3 December 2013. ITC announced the third quarter results during market hours today, 21 January 2015.
ITC's non-operational income jumped 48.82% to Rs 581.99 crore in Q3 December 2014 over Q3 December 2013. ITC's operating profit rose 5.47% to Rs 3464.20 crore in Q3 December 2014 over Q3 December 2013. Operating profit margin (OPM) edged up to 38.73% in Q3 December 2014, from 37.63% in Q3 December 2013.
Sugar stocks were in demand. Oudh Sugar Mills (up 5.44%), Rana Sugars (up 2.95%), Shree Renuka Sugar (up 2.22%), Bajaj Hindusthan (up 2.11%), KCP Sugar & Industries (up 1.50%), Dhampur Sugar (up 1.50%), Simbhaoli Sugars (up 0.98%), Sakthi Sugars (up 0.90%), Dwarikesh Sugar (up 0.82%), Balrampur Chini Mills (up 0.65%), Triveni Engineering Industries (up 0.41%) and EID Parry (India) (up 0.11%), edged higher.
In the foreign exchange market, the rupee edged higher against the dollar on optimism demand for local assets will increase as plunging oil prices improve India's economic outlook. The partially convertible rupee was hovering at 61.6175, compared with its close of 61.70 during the previous trading session.
Brent crude futures edged higher amid signs that prices are receiving support around current levels. Brent for March settlement was up 51 cents at $48.50 a barrel. The contract declined 85 cents, or 1.74%, to settle at $47.99 a barrel during the previous trading session.
Finance Minister Arun Jaitley yesterday, 20 January 2015, said that the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY) is a game changer for the economy as it has provided the platform for direct benefits transfer (DBT) which, in turn, will help in plugging leakages in subsidies and thereby provide savings to the exchequer. As against the original target of opening bank accounts for 7.5 crore uncovered households in the country by 26 January 2015, banks have already opened 11.50 crore accounts as on date 17 January 2015 under PMJDY after conducting survey of 21.02 crore households in the country. Jaitley further said that so far 19 schemes out of 35 DBT schemes have been rolled-out across the country, including MGNREGS in 300 districts. The Finance Minister said that the state governments have also been requested to transfer cash/benefits directly in the bank accounts of beneficiaries thereby cutting layers in the delivery process.
Meanwhile, the Ministry of Commerce & Industry today, 21 January 2015, said that Vietnam's Deputy Prime Minister Hoang Trung Hai while meeting an Indian delegation to Vietnam led by Rajeev Kher, Secretary, Ministry of Commerce, Government of India, has expressed his pleasure at the blossoming of trade and economic relations and his confidence that India and Vietnam would be able to achieve the target of bilateral trade of $15 billion by 2020. He noted that there is great potential for trade and investment cooperation in textiles, agriculture, pharmaceuticals, leather, energy and oil and gas, and invited Indian companies to invest in Vietnam.
European stocks reversed their initial gains today, 21 January 2015. Key benchmark indices in France and Germany were off 0.05% to 0.26%. In UK, the FTSE 100 index was up 0.65%.
The governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review tomorrow, 22 January 2015. The ECB may announce a large-scale bond-buying program tomorrow, 22 January 2015, aimed at spurring Europe's ailing economy.
Meanwhile, 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 25 January 2015. Greece is set to hold snap elections on 25 January 2015 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.
Chinese shares led gains in Asian stocks today, 21 January 2015. Key benchmark indices in Indonesia, South Korea, Singapore and Taiwan were up 0.15% to 0.95%. Japan's Nikkei Average fell 0.49%.
Mainland China's benchmark Shanghai Composite Index shot up 4.7%, marking its biggest daily percentage increase since October 2009, extending gains after 1.8% advance yesterday, 20 January 2015. The advance in mainland Chinese markets also boosted Hong Kong stocks, with the Hang Seng Index closing up 1.7%. China yesterday, 20 January 2015, reported a higher-than-expected economic growth for December.
In Japan, the Bank of Japan (BoJ) today, 21 January 2015, cut its near-term inflation outlook and left its key easing policy unchanged, citing brighter economic growth that could eventually help put prices back on a firm upward path. The BoJ sharply raised its view on growth adjusted for inflation, expecting gross domestic product to rise 2.1% in fiscal 2015 and 1.6% the following year. But it cut its forecast for the year ending in March to a 0.5% contraction from the previous 0.5% expansion.
Trading in US index futures indicated that the Dow could fall 40 points at the opening bell today, 21 January 2015. US stocks eked out small gains after high intraday volatility yesterday, 20 January 2015. In economic news, a gauge of confidence among home builders ticked down this month by one point to 57, staying close to the highest level since late 2005, according to National Association of Home Builders/Wells Fargo data. Readings above 50 signal that builders, generally, are optimistic about sales trends.
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