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Key indices edge higher in early trade

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Capital Market
Last Updated : Feb 03 2015 | 10:00 AM IST

Key benchmark indices edged higher in early trade buoyed by overnight rally on Wall Street. The barometer index, the S&P BSE Sensex was currently up 104.83 points or 0.36% at 29,227.10. The market breadth indicating the overall health of the market was strong with more than three gainers for every loser on BSE.

The sixth bi-monthly monetary review from the Reserve Bank of India (RBI) is scheduled today, 3 February 2015. 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.

Shares of Reliance Industries and State Bank of India advanced after these two companies in a joint statement said that RIL has applied for payments banking license and RIL will be the promoter while SBI will be the joint venture partner with equity investment of upto 30%. NTPC edged higher.

Asian stocks were mixed today, 3 February 2015. US stocks ended sharply higher yesterday, 2 February 2015 after a late rally driven by hopes for a Greek debt deal and as energy shares bounced with oil prices.

Meanwhile, Foreign portfolio investors sold shares worth a net Rs 629.97 crore yesterday, 2 February 2015, as per provisional data.

At 9:15 IST, the S&P BSE Sensex was up 104.83 points or 0.36% at 29,227.10. The index rose 114.83 points at the day's high of 29,237.10 in early trade. The index rose 69.73 points at the day's low of 29,192 in early trade.

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The CNX Nifty was up 25.75 points or 0.29% at 8,823.15. The index hit a high of 8,823.15 in intraday trade. The index hit a low of 8,823.15 in intraday trade.

The BSE Mid-Cap index was up 15.69 points or 0.15% at 10,814.82. The BSE Small-Cap index was up 23.60 points or 0.21% at 11,480.44. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was strong with more than three gainers for every loser on BSE. On BSE, 796 shares gained and 205 shares fell. A total of 30 shares were unchanged.

Reliance Industries (RIL) rose 0.78% at Rs 915. State Bank of India was up 1.04% at Rs 311. RIL has applied for payments banking license. RIL will be the promoter and State Bank of India (SBI) will be the joint venture partner with equity investment of upto 30%, RIL and SBI issued a joint statement after market hours yesterday, 2 February 2015.

The payments bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses, the two companies said in a press release. It will deploy state-of-the-art technology, build scalable infrastructure and create extensive branch and business correspondent network in order to provide last-mile access and intuitive user experience to all sections of society, the press release added.

Besides promoting financial inclusion by providing banking and transaction services to unbanked, underbanked and small businesses, the partners see formation of the payments bank as an opportunity to lead and co-create an eco-system to provide accessible, simple and affordable banking solutions, digitize payments and act as catalyst towards a cashless society and democratise banking and payment services through massive adoption and low transaction costs, the joint press release indicated.

NTPC rose 0.28% at Rs 142.40. NTPC after market hours yesterday, 2 February 2015 in a clarification with regard to news item titled "NTPC Shortlists GVK, Essae, Avantha Plants for Stake Buy" said that the news item is media speculation based on the companies who applied against the Expression of Interest issued by NTPC in early 2014, which is in process. It is difficult for NTPC to comment on genesis of such information, the company said.

The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stands at 172.7 in December, 2014, which was 2.4% higher compared to the index of December, 2013. Its cumulative growth during April to December, 2014-15 was 4.4%.

Meanwhile, data released by the Ministry of Statistics & Programme Implementation after trading hours on 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 today, 3 February 2015.

Asian stocks were mixed today, 3 February 2015. Key indices in China, Taiwan, and Indonesia were up 0.31% to 0.68%. Key indices in Japan, Hong Kong, South Korea, and Singapore were off 0.14% to 0.38%.

US stocks ended sharply higher yesterday, 2 February 2015 after a late rally driven by hopes for a Greek debt deal and as energy shares bounced with oil prices.

In Europe, Greece's new government has proposed ending a standoff with its international creditors by swapping its outstanding debt for new growth-linked bonds, Finance Minister Yanis Varoufakis was quoted as saying yesterday, 2 February 2015.

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First Published: Feb 03 2015 | 9:15 AM IST

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