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Key indices edge higher in early trade

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Capital Market
Last Updated : Jan 09 2015 | 11:45 AM IST

Key benchmark indices edged higher in early trade tracking strength in Asian markets and overnight gains on Wall Street. The barometer index, the S&P BSE Sensex was currently up 219.59 points or 0.81% at 27,494.30. The market breadth indicating the overall health of the market was quite strong with more than six gainers for every loser on BSE.

Infosys advanced ahead of its Q3 December 2014 results today, 9 January 2015, SJVN rose after the company said it has signed a joint venture agreement with six state power generating companies for formation of a JV company for mining coal from Deocha Pachami-Dewanganj Horisingha Coal Block in West Bengal.

In overseas markets, Asian stock markets were higher today, 9 January 2015, taking cues from a surge on Wall Street amid hopes for continued improvement in the US economy, while steady oil prices also provided support.

Meanwhile, foreign portfolio investors sold shares worth a net Rs 466.78 crore yesterday, 8 January 2015, as per provisional data.

At 9:21 IST, the S&P BSE Sensex was up 219.59 points or 0.81% at 27,494.30. The index surged 232.96 points at the day's high of 27,507.67 in early trade. The index rose 129.48 points at the day's low of 27,404.19 in opening trade.

The CNX Nifty was up 65.35 points or 0.79% at 8,299.95. The index hit a high of 8,300.90 in intraday trade. The index hit a low of 8,284.55 in intraday trade.

The BSE Mid-Cap index was up 87.11 points or 0.84% at 10,507.74, outperforming the Sensex. The BSE Small-Cap index was up 86.13 points or 0.77% at 11,272.01, underperforming the Sensex.

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The market breadth indicating the overall health of the market was quite strong with more than six gainers for every loser. On BSE, 920 shares advanced and 144 shares declined. A total of 26 shares were unchanged.

Infosys rose 0.46% at Rs 1,983.55. The company announces its Q3 December 2014 results at 12:30 noon today, 9 January 2015. Due to cross currency headwinds, analysts expects Infosys' management to prune the company's revenue growth guidance in dollar terms for the year ending 31 March 2015 (FY 2015). The IT major is widely expected to prune its FY 2015 dollar revenue growth to 7%-8%, from 7%-9%.

At the time of announcement of Q2 September 2014 results, Infosys had on 10 October 2014 retained its earlier guidance of 7% to 9% growth in revenue in dollar terms for FY 2015. At that time, the company had raised its revenue growth guidance in rupee terms due to rupee depreciation. The company had raised the revenue growth guidance for FY 2015 in rupee terms to 6.7%-8.7% from earlier 5.6%-7.6% at that time. The revised guidance was based on rupee dollar conversion rate of 61.

SJVN rose 2.58% at Rs 25.80. The company after market hours yesterday, 8 January 2015 said that the company has signed a Joint Venture Agreement on 7 January 2015 with six state power generating companies belonging to West Bengal, Bihar, Uttar Pradesh, Punjab, Karnataka and Tamilnadu for formation of a JV Company for mining coal from Deocha Pachami-Dewanganj Horisingha Coal Block located in Birbhum district of West Bengal State. The coal mined from the block would feed to the 1320 megawatt (MW) (2*660MW) supercritical thermal power project of SJVN Thermal at Buxar, Bihar.

On the macro front, data to be released in near future is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours on Monday, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.

The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours on Monday, 12 January 2015.

The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.

The rate of inflation based 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 on 14 January 2015.

Asian stock markets were higher today, 9 January 2015, taking cues from a surge on Wall Street amid hopes for continued improvement in the US economy, while steady oil prices also provided support. Key indices in China, Japan, Hong Kong, Singapore, South Korea, and Indonesia were up 0.23% to 1.2%. In Taiwan, the Taiwan Weighted index was off 0.02%.

China's consumer inflation remained tepid in December, while prices at the factory gate continued to slide. The consumer price index rose 1.5% on year in December, up slightly from a 1.4% on-year rise in November, data from the National Bureau of Statistics showed today, 9 January 2015.

US stocks surged for a second day yesterday, 8 January 2015, with benchmarks turning higher for the year, as oil steadied and on thinking the Federal Reserve and the European Central Bank would buttress the global economy.

The US Labor Department reports monthly payroll data for December 2014 later in global day today, 9 January 2015.

In Europe, the 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.

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First Published: Jan 09 2015 | 9:16 AM IST

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