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Last Updated : Jan 29 2015 | 2:15 PM IST

A recovery from lower level for key benchmark indices in morning trade proved short lived. The barometer index, the S&P BSE Sensex, was currently off 142.25 points or 0.48% at 29,416.93. The market breadth indicating the overall health of the market was positive.

Index heavyweight Reliance Industries (RIL) edged higher on reports that RIL and its partner BP plc of UK will invest about Rs 6000 crore by 2016 to help sustain and improve recovery from the two main gas fields in the eastern offshore KG-D6 block. Realty and cement stocks gained on renewed buying. Alstom T&D India tumbled after weak Q3 result.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1723.17 crore yesterday, 28 January 2015, as per provisional data.

Indian stocks may remain volatile today, 29 January 2015, 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 today, 29 January 2015.

In the foreign exchange market, the rupee edged lower against the dollar as the US central bank reiterated its commitment to raising interest rates in the United States some time in the latter part of the year after the conclusion of a two-day meeting on monetary policy review yesterday, 28 January 2015.

Brent crude oil futures edged higher.

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In overseas markets, Asian stocks declined after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year. US stocks edged lower yesterday, 28 January 2015, after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year.

At 11:15 IST, the S&P BSE Sensex was down 142.25 points or 0.48% at 29,416.93. The index lost 180.88 points at the day's low of 29,378.30 in early trade, its lowest level since 27 January 2015. The index fell 32.85 points at the day's high of 29,526.33 in early trade.

The CNX Nifty was down 41.45 points or 0.46% at 8,872.85. The index hit a low of 8,861.25 in intraday trade, its lowest level since 27 January 2015. The index hit a high of 8,902.05 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,235 shares advanced and 1,092 shares declined. A total of 104 shares were unchanged.

The BSE Mid-Cap index was up 18.09 points or 0.17% at 10,826.53. The BSE Small-Cap index was up 26.44 points or 0.23% at 11,395.55. Both these indices outperformed the Sensex

The total turnover on BSE amounted to Rs 1218 crore by 11:15 IST, compared with turnover of Rs 707 crore by 10:15 IST.

Index heavyweight Reliance Industries (RIL) edged higher on reports that RIL and its partner BP plc of UK will invest about Rs 6000 crore by 2016 to help sustain and improve recovery from the two main gas fields in the eastern offshore KG-D6 block. The stock was up 2.51% to Rs 928.55.

Cement stocks gained on renewed buying. Ambuja Cements (up 0.74%), ACC (up 1.21%), UltraTech Cement (up 1.03%) gained. Shree Cement shed 0.75%.

Grasim Industries was up 1.14% at Rs 3,935.30. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.

Realty stocks edged higher. DLF (up 1.85%), Indiabulls Real Estate (up 2.91%), Housing Development and Infrastructure (up 5.08%), D B Realty (up 5.29%), Unitech (up 3.6%), Godrej Properties (up 1.26%), Oberoi Realty (up 0.65%) and Parsvnath Developers (up 1.47%) gained.

Alstom T&D India tumbled 6.67% after net profit fell 86.4% to Rs 2.58 crore on 9.9% decline in net sales to Rs 762.98 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced after market hours yesterday, 28 January 2015.

In the foreign exchange market, the rupee edged lower against the dollar as the US central bank reiterated its commitment to raising interest rates in the United States some time in the latter part of the year after the conclusion of a two-day meeting on monetary policy review yesterday, 28 January 2015. The partially convertible rupee was hovering at 61.5125, compared with its close of 61.41 during the previous trading session.

Brent crude oil futures edged higher. Brent for March settlement was up 19 cents at $48.66 a barrel. The contract had declined $1.13 a barrel or 2.27% to settle at $48.47 a barrel during the previous trading session.

Meanwhile, the Union Cabinet yesterday, 28 January 2015, decided that the Government of India (GoI) will not file Special Leave Petition (SLP) before the Supreme Court of India against a Bombay High Court order dated 10 October 2014 which had quashed a transfer pricing-related tax demand on Vodafone Group Plc. The Union Cabinet also decided that the GoI will accept orders of courts/IT AT/DRP in cases of other taxpayers where similar transfer pricing adjustments have been made and the courts/IT AT/DRP have decided/decide in favour of the taxpayer. These decisions will bring greater clarity and predictability for taxpayers as well as tax authorities, thereby facilitating tax compliance and reducing litigation on similar issues, according to a government statement. This will also set at rest the uncertainty prevailing in the minds of foreign investors and taxpayers in respect of possible transfer pricing adjustments in India on transactions related to issuance of shares and thereby improve the investment climate in the country, the statement said. The Union Cabinet came to this view as this is a transaction on the capital account and there is no income to be chargeable to tax. So applying any pricing formula is irrelevant.

Asian stocks declined today, 29 January 2015, after the US Federal Reserve unexpectedly lifted its view on the economy, signalling that the US central bank remains firmly on track with plans to raise interest rates this year. Key benchmark indices in China, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.19% to 1.33%. In Singapore, the Straits Times index rose 0.14%.

Trading in US index futures indicated that the Dow could rise 29 points at the opening bell today, 29 January 2015. US stocks ended yesterday's choppy trading session sharply lower after the Federal Reserve's policy-making committee reiterated it plans to remain patient and watch the data as it decides when to raise interest rates.

The US Federal Reserve yesterday, 28 January 2015 said the US economy was expanding "at a solid pace" with strong job gains in a signal that the central bank remains on track with its plans to raise interest rates this year. The Fed repeated it would be "patient" in deciding when to raise benchmark borrowing costs from zero, though it also acknowledged a decline in certain inflation measures.

After a two-day meeting of the Federal Open Market Committee, policymakers struck an upbeat tone on the US economy's prospects and held to their view that energy-led weakness in inflation would dissipate. "Economic activity has been expanding at a solid pace," the Fed said in a statement that marked an upgrade to its prior assessment of a "moderate pace" of growth. "Labor market conditions have improved further, with strong job gains and a lower unemployment rate."

The Commerce Department releases its first estimate of fourth-quarter GDP tomorrow, 30 January 2015.

In Europe, Greece's Prime Minister Alexis Tsipras reportedly said yesterday, 28 January 2015, that he will push for debt relief from the country's international creditors.

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First Published: Jan 29 2015 | 11:17 AM IST

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