Volatility ruled the roost as the key benchmark indices once again weakened after erasing almost entire intraday losses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 93.39 points or 0.32% at 29,465.79. The market breadth indicating the overall health of the market was negative.
Dr. Reddy's Laboratories (DRL) rose in volatile trade after declaring Q3 result. HDFC dropped after announcing Q3 result. Cement major Ambuja Cements scaled record high. In pharma pack, Aurobindo Pharma scaled record high. Among side counters, FDC, Procter & Gamble Hygiene and Health Care and Prestige Estates Projects scaled record high.
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 during the last one hour or so of the trading session 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 lower in volatile trade.
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In overseas markets, European stocks fell as disappointing earnings from Royal Dutch Shell Plc dragged energy companies lower. 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 14:20 IST, the S&P BSE Sensex was down 93.39 points or 0.32% at 29,465.79. The index fell 12 points at the day's high of 29,547.18 in mid-afternoon trade. 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 CNX Nifty was down 33.50 points or 0.38% at 8,880.80. 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 8,907.85 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,466 shares dropped and 1,293 shares rose. A total of 130 shares were unchanged.
The BSE Mid-Cap index was off 34.56 points or 0.32% at 10,773.88, with the decline in the index matching the Sensex's decline in percentage terms. The BSE Small-Cap index was up 10.36 points or 0.09% at 11,379.47, outperforming the Sensex.
Dr. Reddy's Laboratories (DRL) rose 1.6% to Rs 3,290. The stock hit high of Rs 3,349.50 and low of Rs 3,213.20 so far during the day. On a consolidated basis, DRL reported 7.09% fall in net profit to Rs 574.53 crore on 9.17% rise in total income to Rs 3877.20 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 29 January 2015.
Dr Reddy's Laboratories consolidated revenues rose 9% to Rs 3840 crore in Q3 December 2014 over Q3 December 2013. Revenues from the Global Generics (GG) segment rose 8% to Rs 3170 crore in Q3 December 2014 over Q3 December 2013. Revenues from the Pharmaceutical Services and Active Ingredients (PSAI) segment rose 21% to Rs 610 crore in Q3 December 2014 over Q3 December 2013.
Gross Profit Margin fell to 58.2% in Q3 December 2014 from 60.5% in Q3 December 2013. During Q3 December 2014, the company launched 13 new generic products, filed 18 new product applications and 14 DMFs globally.
HDFC fell 2.69% to Rs 1,308.50. The stock hit high of Rs 1,343 and low of Rs 1,303.70 so far during the day. The housing finance major reported 11.56% rise in net profit to Rs 1425.49 crore on 14.13% rise in total income to Rs 6870.95 crore in Q3 December 2014 over Q3 December 2013. HDFC's loan book stood at Rs 2.19 lakh crore as on 31 December 2014, as against Rs 1.92 lakh crore as on 31 December 2013.
Bharat Heavy Electricals (Bhel) shed 0.3% to Rs 278.05. The stock hit high of Rs 279.75 and low of Rs 276.10 so far during the day. Bhel during market hours said the company has achieved one more landmark by successfully commissioning another 600 megawatt (MW) thermal unit in Odisha. The unit was commissioned at Jindal India Thermal Power (JITPL)'s upcoming 2x600 MW thermal power project located at Derang in Angul District of Odisha.
In Odisha, Bhel is presently executing 3,970 MW of thermal power projects.
Ambuja Cements rose 1.33% to Rs 251.85 after scaling a record high of Rs 252.85 in intraday trade.
Aurobindo Pharma gained 3.53% to Rs 1,220 after scaling a record high of Rs 1,223.40 in intraday trade.
FDC advanced 5.9% to Rs 168.90 after scaling a record high of Rs 174.10 in intraday trade.
Procter & Gamble Hygiene and Health Care rose 3.63% to Rs 6,408 after scaling a record high of Rs 6,439 in intraday trade.
Prestige Estates Projects jumped 10.48% to Rs 303.20 after scaling a record high of Rs 323.70 in intraday trade.
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 61.50, compared with its close of 61.41 during the previous trading session.
Brent crude oil futures edged lower in volatile trade. Brent for March settlement was off 7 cents at $48.40 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.
Meanwhile, the Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review next week. The sixth bi-monthly monetary review from the RBI is scheduled on Tuesday, 3 February 2015. The central bank may likely focus on the details of the upcoming Union Budget 2015-16 which is scheduled on 28 February 2015, before taking a call on further monetary policy easing. The RBI surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
European stocks fell today, 29 January 2015, as disappointing earnings from Royal Dutch Shell Plc dragged energy companies lower. Key benchmark indices in UK, France and Germany were off 0.34% to 0.7%.
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.
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 Singapore, China, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.04% to 1.31%.
Japanese retail sales rose 0.2% in December from a year earlier, marking the sixth straight month of increase, the government said today, 29 January 2015. The figures, released by the Ministry of Economy, Trade and Industry, highlighted that consumer demand continues to rebound after the national sales tax increased to 8% from 5% in April.
Trading in US index futures indicated that the Dow could rise 56 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.
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