Key benchmark indices continue to hover in red in mid-morning trade. The barometer index, the S&P BSE Sensex was off 101.55 points or 0.35% at 29,081.40. The market breadth indicating the overall health of the market was strong.
India's fiscal deficit reached 100.2% of Budget Estimate (BE) in nine months ended December 2014 to Rs 5.32 lakh crore, highlighting tight financial position of the central government. It was 95% of BE in corresponding period last year.
IT stocks advanced. Maruti Suzuki India rose after strong sales in January 2015. Eicher Motors advanced after good sales in January 2015. Power Grid Corporation of India edged lower.
Foreign portfolio investors sold shares worth a net Rs 771.55 crore on Friday, 30 January 2015, as per provisional data.
In the overseas markets, Asian equity markets were lower today, 2 February 2015 as data showing China's manufacturing sector remaining in a poor state dampened investors' spirit. US stocks declined on Friday, 30 January 2015 with benchmarks down for a second month, after data showed US economic growth slowed sharply in the fourth quarter and Russia's central bank unexpectedly cut is benchmark interest rate.
In the foreign exchange market, the rupee edged higher against the dollar amid volatility.
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Brent crude oil futures declined amid speculation that the biggest strike at US refineries since 1980 will curtail crude processing in the world's leading consumer nation and worsen a global supply glut.
At 11:15 IST, the S&P BSE Sensex was down 101.55 points or 0.35% at 29,081.40. The index fell 158.03 points at the day's low of 29,024.92 in morning trade. The index fell 24.38 points at the day's high of 29,158.57 in early trade.
The CNX Nifty was down 22.60 points or 0.26% at 8,786.30. The index hit a low of 8,772.15 in intraday trade. The index hit a high of 8,808.10 in intraday trade.
The BSE Mid-Cap index was up 84.68 points or 0.79% at 10,823.27. The BSE Small-Cap index was up 100.07 points or 0.88% at 11,429.33. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,418 shares gained and 863 shares fell. A total of 93 shares were unchanged.
IT stocks advanced. HCL Technologies (up 4.63%), Wipro (up 1.64%), MindTree (up 1.46%), CMC (up 1.21%), TCS (up 0.91%), Oracle Financial Services Software (up 0.59%), and Infosys (up 0.03%) edged higher.
Tech Mahindra rose 1.89% at Rs 2,932.80. On a consolidated basis, Tech Mahindra's net profit rose 11.9% to Rs 805 crore on 4.8% increase in revenue to Rs 5752 crore in Q3 December 2014 over Q2 September 2014. Tech Mahindra said that net profit includes special adjustment of Rs 28.50 crore of half year ended 30 September 2014 profits of Mahindra Engineering Services (MESL) in Q3 December 2014 numbers. The Q3 result was announced after market hours on Friday, 30 January 2015.
Tech Mahindra's operating profit (earnings before interest, taxation, depreciation and amortization) {EBITDA} rose 5.7% to Rs 1160 crore in Q3 December 2014 over Q2 September 2014.
Tech Mahindra's board of directors at its meeting held today, 30 January 2015, has considered and approved for issue of one bonus equity share for every one equity share and also approved 2-for-1 stock split.
"Our continued focus on operational excellence is yielding tangible results for our stakeholders." said Vineet Nayyar, Executive Vice Chairman, Tech Mahindra.
Maruti Suzuki India rose 1.39% at Rs 3,696. The company's total sales rose 13.9% to 1.16 lakh units in January 2015 over January 2014. Domestic sales rose 9.3% to 1.05 lakh units in January 2015 over January 2014. Exports jumped 88.9% to 11,047 units in January 2015 over January 2014.
Eicher Motors rose 2.13% at Rs 16,650.65. The company before market hours today, 2 February 2015 said that its subsidiary VE Commercial Vehicles' total sales rose 25.1% to 3,262 units in January 2015 over January 2014. Domestic sales rose 25.1% to 2,905 units in January 2015 over January 2014. Exports rose 24.8% to 357 units in January 2015 over January 2014.
Separately, Eicher Motors during market hours today, 2 February 2015 said that its total motorcycles sales rose 43% to 28,927 units in January 2015 over January 2014. Exports rose 82% to 770 units in January 2015 over January 2014.
Power Grid Corporation of India' (PGCIL) fell 0.98% at Rs 146.50. The stock hit a high of Rs 148.25 and a low of Rs 146 so far during the day. PGCIL's board of directors approved investment worth about Rs 5000 crore for five of its projects.
In the foreign exchange market, the rupee edged higher against the dollar amid volatility. The partially convertible rupee was hovering at 61.85, compared with its close of 61.8750 during the previous trading session on Friday, 30 January 2015.
Brent crude oil futures declined amid speculation that the biggest strike at US refineries since 1980 will curtail crude processing in the world's leading consumer nation and worsen a global supply glut. Brent for March settlement was off $1.34 a barrel at $51.65 a barrel. The contract had jumped $3.86 a barrel or 7.85% to settle at $52.99 a barrel during the previous trading session on Friday, 30 January 2015.
India's fiscal deficit reached 100.2% of Budget Estimate (BE) in nine months ended December 2014 to Rs 5.32 lakh crore, highlighting tight financial position of the central government. It was 95% of BE in corresponding period last year. The rise in fiscal deficit was mainly due to subdued revenue collection. The net tax revenue collection in April-December was Rs 5.46 lakh crore 55.8% of BE, lower from 58.6% during the same period last year.
Total receipts during the nine months of FY15 was Rs 7.04 lakh crore, a 55.7% of the target, lower than 57.7% collected in corresponding period 2013-14.
Plan expenditure of the government during the period was Rs 3.53 lakh crore, 61.3% of BE and non-Plan expenditure was Rs 8.84 lakh crore or 72.4% of BE.
The government is committed to contain fiscal deficit at its targeted 4.1% of the total GDP by the end of 31 March 2015. The fall in global oil prices has helped the government curb oil subsidy to oil marketing companies. Also, the 10% stake-sale in Coal India has already netted the government Rs 22,600 crore. Moreover, the government has approved base price of Rs 3705 crore per megahertz for 3G spectrum which will fetch it Rs 17,500 crore. This combined with the proceeds from 2G spectrum sale, the government aims to net over Rs 1 lakh crore.
Meanwhile, data released by the Ministry of Statistics & Programme Implementation after trading hours on Friday, 30 January 2015, showed that the Indian economy witnessed a strong recovery in the fiscal year ended 31 March 2014 (FY 2014). Based on a new series of national accounts with revision in base year from 2004-05 to 2011-12, India's gross domestic product (GDP) expanded 6.9% in FY 2014 compared with 5.1% expansion in FY 2013. Based on the previous data, the GDP grew 4.7% in FY 2014, from 4.5% expansion in FY 2013. Changes in the base year are made every five years. The dramatic revision could shake up the way the current trajectory of India's economy is perceived both at home and abroad. It also remains to be seen if the revised data will influence the Reserve Bank of India's (RBI) future monetary policy decisions. The RBI surprised financial markets by announcing a cut in its main lending rate viz. 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. The sixth bi-monthly monetary review from the RBI is scheduled tomorrow, 3 February 2015.
Asian equity markets were lower today, 2 February 2015 as data showing China's manufacturing sector remaining in a poor state dampened investors' spirit. Key indices in China, Hong Kong, Japan, South Korea, and Indonesia were off 0.08% to 1.35%. Key indices in Taiwan and Singapore were up 0.09% to 0.44%.
The HSBC China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, inched up to a final reading of 49.7 in January from 49.6 in December, HSBC Holdings PLC said today, 2 February 2015. A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above indicates an expansion.
Trading in US index futures indicated that the Dow could gain 28 points at the opening bell today, 2 February 2015. US stocks declined on Friday, 30 January 2015 with benchmarks down for a second month, after data showed US economic growth slowed sharply in the fourth quarter and Russia's central bank unexpectedly cut is benchmark interest rate. US economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006. Gross domestic product expanded at a 2.6% annual pace after the third quarter's spectacular 5% rate, the Commerce Department said in its first GDP snapshot on Friday, 30 January 2015.
Meanwhile, Russia's central bank has surprised financial markets and sent the rouble tumbling by cutting its key interest rate to soften the blows from falling oil prices and western sanctions. The main interest rate was cut to 15% from 17%, just weeks after the central bank had raised the interest rate in the hope of preventing the rouble's collapse.
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