Metal stocks led the rally as key benchmark indices extended gains in mid-afternoon trade. The 50-unit CNX Nifty hit record high. The barometer index, the S&P BSE Sensex, hit its highest level in almost 7 weeks. Shares of index heavyweights ITC, HDFC, Reliance Industries (RIL), Infosys, HDFC Bank and ICICI Bank edged higher. The Sensex was currently up 393.10 points or 1.39% at 28,655.11. The market breadth indicating the overall health of the market was positive. Asian and European stocks were in green.
Metal and mining shares rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectations. Cement shares were in demand.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 433.72 crore yesterday, 19 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude futures edged lower after the International Monetary Fund lowered its global economic growth outlook and China's economy expanded at its slowest pace in decades. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
The Indian government has used the steep fall in global crude oil prices to raise excise duty on petrol and diesel four times since November last year which will help increase the government's indirect tax revenue mobilization.
More From This Section
In overseas markets, European stocks advanced on speculation the European Central Bank will announce quantitative easing this week. Asian stocks rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectations.
At 14:20 IST, the S&P BSE Sensex was up 393.10 points or 1.39% at 28,655.11. The index jumped 393.55 points at the day's high of 28,655.56 in mid-afternoon trade, its highest level since 4 December 2014. The index rose 62.84 points at the day's low of 28,324.85 in opening trade.
The CNX Nifty was up 109.50 points or 1.28% at 8,660.20. The index hit a high of 8,661.35 in intraday trade, a lifetime high for the index. The index hit a low of 8,574.50 in intraday trade.
The BSE Mid-Cap index was up 55.89 points or 0.52% at 10,736.91. The BSE Small-Cap index was up 59.99 points or 0.53% at 11,459.85. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,517 shares advanced and 1,338 shares declined. A total of 130 shares were unchanged.
Housing finance major HDFC was up 5.74% at Rs 1,249.25. The stock hit a high of 1,252.90 and low of Rs 1,183.40 so far during the trading session.
India's largest cigarette maker by sales ITC rose 2.58% to Rs 367.60. The stock hit a high of 367.90 and low of Rs 358.40 so far during the trading session.
Reliance Industries' (RIL) rose 1.61% to Rs 894. The stock hit high of Rs 894.20 and low of Rs 878.60 so far during the trading session. The stock had risen 1.25% to settle at Rs 879.85 yesterday, 19 January 2015. RIL's consolidated net profit fell 4.5% to Rs 5256 crore on 20.4% decline in revenue to Rs 96330 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015. RIL attributed the decline in revenue in Q3 December 2014 to a sharp fall in benchmark oil price.
Metal and mining shares rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectations. China is the world's largest consumer of copper, steel, and aluminium.
Among mining stocks, NMDC (up 2.11%), Ashapura Minechem (up 1.38%), Hindustan Copper (up 1.19%), MOIL (up 0.84%), Coal India (up 0.45%) and Neyveli Lignite Corporation (up 0.39%), edged higher.
Among metal stocks, Tata Steel (up 3.66%), Hindalco Industries (up 3%), Jindal Steel & Power (up 2.97%), JSW Steel (up 2.83%), Steel Authority of India (up 1.43%) and Bhushan Steel (up 0.11%), edged higher.
Sesa Sterlite rose 4.12%. According to reports, the company expects to restart iron mining in Goa within two weeks as it waits for environment clearance and clarity on dumping waste outside the lease area. The Goa state government last week revoked its 2012 order that had halted the over 60-year-old-mining industry in the state. The new order will pave the way for the resumption of mining activities in Goa, pending the lifting of the ban imposed by the Ministry of Environment and Forests, according to media reports.
China's production of crude steel, an indicator of its industrial demand, fell to its slowest pace of growth on record last year, according to data released by the National Statistics Bureau today, 20 January 2015. Output of the metal rose just 0.9% from 2013 to 822.7 million metric tons, underscoring how China's vast steel complex, which produces half the world's steel, has fallen to Beijing's push for a cleaner, consumption-led economy.
Meanwhile, India's Minister of Steel and Mines Narendra Singh Tomar yesterday, 19 January 2015, said that simplification and transferability brought in the MMDR Act, 1957 through the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015 will attract private investment in the mining sector. Addressing a meeting of mines ministers and secretaries from across the country, Tomar said that the ordinance is a revolutionary step in revival of mining sector in the country, hitherto stagnated due to various reasons. He added that the classification of minerals will lead to their better scientific exploration and with more power to the states mining process will be expedite. Citing the example of falling levels of iron ore production in the country, Tomar urged state governments to revive mining in all earnestness. Mining ministers and secretaries from different states expressed optimism over the amendments, and offered constructive suggestions for its implementation on the ground level, the Ministry of Mines said in a statement. It was agreed that delays in environment and forest clearances had to be resolved by MoEF for providing unhindered support in growth of mining.
Hindustan Zinc rose 1.06%. The company's net profit rose 38.11% to Rs 2379.37 crore on 20.42% rise in total income to Rs 4665.29 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Monday, 19 January 2015.
The increase in revenue in Q3 December 2014, was driven by higher zinc LME and lead & silver metal volumes, partly offset by lower silver price and refined zinc volume. EBITDA rose 14% to Rs 2089 crore in Q3 December 2014 over Q3 December 2013 as a result of better revenues and lower cost of production.
Sindesar Khurd mine expansion is proceeding better than planned, although Rampura Agucha underground shaft project is behind schedule. The board has approved deepening of the open cast mine by 50 metres which will extend mine life to FY 2019-20 and ensure a stable transition from open pit to underground at Rampura Agucha. The pre-stripping work will start in the current quarter, Hindustan Zinc said.
Cement shares were in demand. JK Lakshmi Cement (up 4.08%), Birla Corporation (up 3.98%), The Ramco Cement (up 2.93%), India Cements (up 2.81%), Dalmia Cement (Bharat) (up 2.79%), HeidelbergCement India (up 2.54%), Prism Cement (up 2.53%), J K Cements (up 1.63%), Shree Cement (up 0.95%), Saurastra Cement (up 0.83%), UltraTech Cement (up 0.41%), Mangalam Cement (up 0.35%) and ACC (up 0.31%), edged higher.
Grasim Industries was up 0.93%. Grasim hold majority stake in UltraTech Cement.
Ambuja Cements (down 0.12%) and Jaiprakash Associates (down 0.56%), edged lower.
IT shares were mixed. MindTree (down 4.22%), Hexaware Technologies (down 0.96%), TCS (down 0.8%), CMC (down 0.7%) and MphasiS (down 0.35%) edged lower.
Oracle Financial Services Software (up 1.20%), Infosys (up 0.44%) and Tech Mahindra (up 0.02%) edged higher.
HCL Technologies was up 1.37%, extending Monday's miniscule gains triggered by the company's announcement that its board of directors will consider issue of bonus shares. HCL Technologies before market hours on yesterday, 19 January 2015, said that the company's board of directors will consider issue of bonus shares along with Q2 December 2014 results during 28 January 2015 to 30 January 2015
Wipro was up 0.50%, with the stock extending previous session's rally triggered by the company's better than expected Q3 results. Wipro's consolidated net profit as per International Financial Reporting Standards rose 9% to Rs 2190 crore on 6% growth in total revenue to Rs 11990 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015. The results are as per International Financial Reporting Standards (IFRS).
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.77, compared with its close of 61.705 during the previous trading session.
Brent crude futures edged lower after the International Monetary Fund lowered its global economic growth outlook and China's economy expanded at its slowest pace in decades. Brent for March settlement was off 30 cents cent at $48.54 a barrel. The contract declined $1.33 a barrel or 2.65% to settle at $48.84 a barrel in the previous trading session.
The International Monetary Fund (IMF) yesterday, 19 January 2015, downgraded global growth outlook for this year and the next as it downgraded its outlook for more than a dozen of the world's largest economies. The IMF said global growth would be 0.3 percentage point lower this year and next than it had previously expected. It now expects the world economy to expand 3.5% this year and 3.7% in 2016. Sliding oil prices will give global growth a brief jolt, but the benefits won't be strong enough to keep the world economy out of a deepening long-term rut, the IMF said.
European stocks edged higher today, 20 January 2015, on speculation the European Central Bank will announce quantitative easing this week. Key benchmark indices in UK, France and Germany were up by 0.51% to 0.67%.
The governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review on Thursday, 22 January 2015. The ECB may introduce a large-scale bond-buying program on 22 January 2015.
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.
Asian markets rose today, 20 January 2015, after China reported its economy had not slowed as far as many had feared, a rare glint of brightness amid gloom over the global outlook. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.77% to 2.07%. Indonesia's Jakarta Composite was off 0.13%.
China's National Bureau of Statistics said the economy grew 7.4% last year and 7.3% in the October-December 2014 quarter. Beijing had targeted 7.5% growth for last year.
China's industrial output rose 7.9% in December and China's retail sales jumped 11.9% last month, the latest data showed.
Trading in US index futures indicated that the Dow could advance 48 points at the opening bell today, 20 January 2015. The US stock market was closed yesterday, 19 January 2015, for Martin Luther King, Jr. Day holiday.
Powered by Capital Market - Live News