Intraday volatilty continued as barometer index, the S&P BSE Sensex, once again slipped into the red from green in mid-afternoon trade. A divergent trend continued between the two key indices. While the Sensex was a tad lower, the 50-unit CNX Nifty retained positive zone. The Sensex was currently off 17.71 points or 0.06% at 27,567.56. The market breadth indicating the overall health of the market was positive. Global crude oil prices slumped. India stands to benefit from a rout in global crude oil prices given that the nation meets 80% of its crude oil requirements from imports.
Macroeconomic data released after trading hours yesterday, 12 January 2015, showed a lower-than-expected acceleration in inflation based on the consumer price indices last month. Finance Minister Arun Jaitely yesterday, 12 January 2015, said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so.
IndusInd Bank turned volatilie after reporting strong Q3 results. Jet Airways (India) hit 52-week high after slide in crude oil prices. Most IT stocks edged higher.
Earlier, the Sensex had hit one-week high and Nifty had hit its highest level in more than a week in early trade.
In overseas markets, European stocks reversed initial losses as gains in retailers outweighed a decline in energy companies. Asian stocks were mixed. US stocks edged lower for the second day in a row yesterday, 12 January 2015, as a renewed assault on oil prices eroded investor confidence ahead of the start of fourth-quarter earnings season.
Meanwhile, foreign portfolio investors bought shares worth a net Rs 244.95 crore yesterday, 12 January 2015, as per provisional data.
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In the foreign exchange market, the rupee edged higher against the dollar.
Global crude oil prices extended losses after a steep slide in prices yesterday, 12 January 2015, amid speculation that US crude stockpiles will increase, exacerbating a global supply glut that's driven prices to the lowest in more than 5-1/2 years. 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.
At 14:18 IST, the S&P BSE Sensex was down 17.71 points or 0.06% at 27,567.56. The index declined 81.48 points at the day's low of 27,503.79 in afternoon trade. The index rose 84.92 points at the day's high of 27,670.19 in early trade, its highest level since 6 January 2015.
The CNX Nifty was up 15.80 points or 0.19% at 8,338.80. The index hit a high of 8,356.65 in intraday trade, its highest level since 5 January 2015. The index hit a low of 8,321.20 in intraday trade
The BSE Mid-Cap index was up 38.57 points or 0.37% at 10,524.75. The BSE Small-Cap index was up 5.98 points or 0.29% at 11,297.48. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,449 shares advanced and 1,329 shares declined. A total of 102 shares were unchanged.
Most IT stocks edged higher. Tech Mahindra (up 0.44%), HCL Technologies (up 1.06%), and Wipro (up 0.98%) edged higher.
Shares of Infosys fell 1.06% on profit booking. The stock had gained 7.1% in the preceding two sessions after the company reported stronger-than-expected Q3 December 2014 results. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 5% to Rs 3250 crore on 3.4% increase in revenue to Rs 13796 crore in Q3 December 2014 over Q2 September 2014. The result was announced on 9 January 2015.
At the time of announcement of the third quarter results, Infosys said on that day that the company has maintained its guidance of 7%-9% growth in revenue in dollar terms for the year ending March 2015 (FY 2015) based on exchange rates as on 30 September 2014.
IndusInd Bank turned volatilie after reporting strong Q3 results. The stock was up 0.8% at Rs 838.05. The stock hit high of Rs 849 and low of Rs 826 so far during the day. IndusInd Bank's net profit jumped 28.91% to Rs 447.19 crore on 16.15% rise in total income to Rs 3047.70 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 13 January 2015.
The bank's provisions and contingencies declined 22.31% to Rs 98.01 crore in Q3 December 2014 over Q3 December 2013. The bank's provisions and contingencies surged on a sequential basis. Provisions and contingencies jumped 33.89% to Rs 98.01 crore in Q3 December 2014 over Q2 September 2014.
On absolute basis, gross non-performing assets (NPAs) edged up to Rs 672.66 crore as on 31 December 2014, from Rs 654.54 crore as on 30 September 2014 and Rs 625.84 crore as on 31 December 2013. The ratio of gross NPAs to gross advances declined to 1.05% as on 31 December 2014, from 1.08% as on 30 September 2014 and 1.18% as on 31 December 2013. The ratio of net NAPs to net advances declined to 0.32% as 31 December 2014, from 0.33% as on 30 September 2014. The ratio of net NAPs to net advances edged up on year-on-year basis. The ratio of net NAPs to net advances edged up to 0.32% as 31 December 2014, from 0.31% as on 31 December 2013.
Jet Airways (India) surged 5.74% to Rs 467 on slide in crude oil prices. The stock hit 52-week high of Rs 471.25 in intraday trade. Jet fuel constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices. PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price in the preceding fortnight.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.07, compared with its close of 62.165 during the previous trading session.
Brent crude oil futures extended losses after a steep slide yesterday, 12 January 2015, amid speculation that US crude stockpiles will increase, exacerbating a global supply glut that's driven prices to the lowest in more than 5-1/2 years. Brent for February settlement was off $1.97 a barrel at $45.46 a barrel. The contract had lost $2.68 a barrel or 5.4% to settle at $47.43 a barrel during the previous trading session, its lowest finish since March 2009. Brent for March settlement was off $2.08 a barrel at $46.62 a barrel.
On macro front, India's index of industrial production (IIP) increased at five-months high pace of 3.8% in November 2014, recovering from the sharpest pace of decline in three-years at 4.2% recorded in October 2014. The manufacturing sector's output growth rebounded to 3.8% in November 2014, snapping the largest decline in the last five-and-a-half years at 7.4% recorded in October 2014.
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 nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months. An increase in inflation food items contributed entirely to the inflation rise in November 2014. The IIP and CPI data was announced after market hours yesterday, 12 January 2015.
The rate of inflation based on the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon tomorrow, 14 January 2015.
Finance Minister Arun Jaitely yesterday, 12 January 2015, said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so. Speaking at the Seminar Invest in India Summit 2015 - Financing for Future Growth, held on the sidelines of Vibrant Gujarat, in Gandhinagar, Jaitely said that in the near future, the nationwide goods and services (GST) tax could become a reality and further improve the investment climate.
On the political front, the Election Commission (EC) yesterday, 12 January 2015, announced that the assembly election will be held in Delhi on 7 February 2015 and counting of votes will take place on 10 February 2015. With the declaration of the poll schedule, the Model Code of Conduct will come into force with immediate effect, the EC said. The last government in Delhi was headed by the Aam Aadmi Party (AAP) but Chief Minister Arvind Kejriwal resigned 49 days after assuming office.
European stocks reversed initial losses today, 13 January 2015, as gains in retailers outweighed a decline in energy companies. Key benchmark indices in France, Germany and UK were up 0.03% to 0.18%.
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 later this month. 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 stocks were mixed today, 13 January 2015. Key benchmark indices in China, Hong Kong, Indonesia and Taiwan were up by 0.9% to 0.79%. Key benchmark indices in Japan, Singapore and South Korea were off 0.8% to 0.64%.
China's exports rose 9.7 %in December from a year earlier on the back of stronger overseas demand, data released by the General Administration of Customs today, 13 January 2015, showed. The growth was higher than 4.7% rise in November. December imports fell 2.4% from a year earlier after a 6.7% fall in November. China's trade surplus narrowed to $49.61 billion in December from $54.47 billion in November.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell today, 13 January 2015. US stocks ended lower yesterday, 12 January 2015, led by another sharp decline in energy shares as oil prices tumbled and concern grew ahead of corporate earnings season.
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