A rally during the latter part of the trading session took key benchmark indices higher. The strong bounce back during the latter part of the trading session materialized after the benchmark indices languished in red until afternoon trade. Key indices surged in late trade after European leaders brokered a cease-fire deal in Ukraine. The barometer index, S&P BSE Sensex, hit its highest level in almost a week. The 50-unit CNX Nifty hit one-week high.
European stocks rose and US index futures pointed to opening gains for US stocks later in the global day after Russian President Vladimir Putin said an agreement has been reached for a cease-fire in Ukraine, starting Sunday, 15 February 2015. The Sensex was provisionally up 276.24 points or 0.97% at 28,810.21. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index was up 1.13%. The BSE Small-Cap index was up 1.27%. Both these indices outperformed the Sensex.
Capital goods stocks rose. Indiabulls Real Estate rose on strong Q3 results. Page Industries rose on decent Q3 results.
Finance Minister Arun Jaitley reportedly said today, 12 February 2015, that India's economy is poised to take off at a much faster pace.
Foreign portfolio investors sold shares worth a net Rs 371.27 crore yesterday, 11 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, 11 February 2015.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, reversed direction after hitting their highest level in almost a week at the onset of the trading session.
In overseas markets, European stocks edged higher after Russian President Vladimir Putin said an agreement has been reached for a cease-fire in Ukraine, starting Sunday, 15 February 2015. Asian stocks also edged higher. US stocks were flat at close yesterday, 11 February 2015, after seeing high intraday volatility as investors eyed negotiations between Greece and its international creditors.
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In the foreign exchange market, the rupee edged higher against the dollar in volatile trade.
Brent crude oil futures edged higher, recovering from previous day's slide.
Key indices edged higher for the third day in a row today, 12 February 2015.
As per provisional figures, the S&P BSE Sensex was up 276.24 points or 0.97% at 28,810.21. The index jumped 304.55 points at the day's high of 28,838.52 in late trade, its highest level since 6 February 2015. The index fell 127.72 points at the day's low of 28,406.25 in early afternoon trade, its lowest level since 10 February 2015.
The CNX Nifty was up 84.15 points or 0.98% at 8,711.55, as per provisional figures. The index hit a high of 8,732.55 in intraday trade, its highest level since 5 February 2015. The index hit a low of 8,599.25 in intraday trade.
The BSE Mid-Cap index was up 119 points or 1.13% at 10,662.11. The BSE Small-Cap index was up 140.76 points or 1.27% at 11,200.15. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3561 crore, higher than turnover of Rs 3269.77 crore during the previous trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,604 shares rose and 1,241 shares fell. A total of 126 shares were unchanged.
Capital goods stocks rose. Thermax (up 5.38%), Crompton Greaves (up 0.12%) and Siemens (up 1.8%) gained.
L&T gained 2.47%. The company after market hours yesterday, 11 February 2015 in a clarification with regard to news item titled "L&T, BEL consortia set to get Rs. 40,000-crore project" said that the company has neither issued any media release on this subject nor interacted with the media. L&T further added that it does not have any official communication from the government in the said matter.
Hindalco Industries rose 2.42% to Rs 153.45. The stock hit high of Rs 153.50 and low of Rs 149.20. The company's net profit rose 7.59% to Rs 359.36 crore on 17.89% rise in total income to Rs 8815.51 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced during market hours.
Pipavav Defence and Offshore Engineering Company rose 5.32% to Rs 67.35. According to media reports, Mahindra & Mahindra (M&M) is set to purchase a majority stake in Pipavav Defence for roughly Rs 3000 crore at Rs 66 a share in a three-phase deal. Along with debt of around Rs 6800 crore and fresh equity that will be issued, the deal is seen as having an enterprise value of Rs 12000 crore, the report added. In the first phase, Mahindra Defence Systems (MDS) will purchase a 19% stake in Pipavav Defence from the founders, Chairman Nikhil Gandhi and his younger brother and Managing Director Bhavesh Gandhi, who own about 45% of the company. Later, Pipavav Defence will issue preferential shares to the acquirer to raise the latter's stake to 40%. In the third phase, MDS will make an open offer to purchase an additional 26% stake from the public to abide by takeover guidelines, the report indicated.
Meanwhile, Pipavav during market hours in its clarification with regards to reports M&M to acquire Pipavav Defence in Rs 300 crore deal' said that it has not entered into any negotiations or agreements with M&M.
Mahindra & Mahindra (M&M) rose 0.01%. M&M clarified separately regarding the reports that given the policy of the company of not commenting on speculative news/reports, it will not be able to comment on the same.
Indiabulls Real Estate rose 4.91% after consolidated net profit surged 177.68% to Rs 78.75 crore on 57.56% increase in total income to Rs 728.79 crore in Q3 December 2014 over Q3 December 2013. The result was announced during trading hours today, 12 February 2015. Indiabulls Real Estate said its net debt stood at Rs 5337 crore in Q3 December 2014 compared with Rs 5,083 in Q2 September 2014. Net debt/equity ratio stood at 0.76 as at 31 December 2014.
In the foreign exchange market, the rupee edged higher against the dollar in volatile trade. The partially convertible rupee was hovering at 62.255, compared with its close of 62.26 during the previous trading session.
Brent crude oil futures edged higher, recovering from previous day's slide. Brent for March settlement which expires today, 12 February 2015, was up $1.04 a barrel at $55.77 a barrel. The contract had lost $1.77 a barrel or 3.13% to settle at $54.66 a barrel during the previous trading session. Brent for April settlement was up $1.41 a barrel at $57.33 a barrel.
Meanwhile, macroeconomic data to be released by the government in the coming days is likely to show deceleration in industrial production growth in December 2014 and acceleration in inflation in January 2015. The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.5% in January 2015 from 5% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil CPI data for January 2015 at 17:30 IST today, 12 February 2015.
The rate of inflation based on the wholesale price index (WPI) is seen accelerating to 0.4% in January 2015 from 0.1% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI data for January 2015 at 12.10 noon on 16 February 2015.
Growth in industrial production is seen decelerating to 1.5% in December 2014 from 3.8% expansion in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will industrial production data for December 2014 at 17:30 IST today, 12 February 2015. All these projections for CPI, WPI and industrial production are based on the old series data with 2004-05 as base year. It may be recalled that the Ministry of Statistics & Programme Implementation revised the way it measures GDP on 30 January 2015. It brought forward the base year used in national economy calculations by seven years to 2011-12 from 2004-05. It also switched from using production costs to market prices. Changes in the base year are made every five years.
The next major event for the financial markets is Union Budget for 2015-16. Finance Minister Arun Jaitley will present Union Budget 2015-16 on 28 February 2015. Analysts will scrutinize measures in the Budget for financing infrastructure projects as well as the government's own capital expenditure on infrastructure for the year ahead. This is the first full fledged Budget of the Narendra Modi government and analysts will look for a roadmap for economic growth for the next few years.
Changes in rates of dividend distribution tax, capital gains tax on sale of shares, Securities Transaction Tax (STT) and Minimum Alternate Tax (MAT), if any, will be closely watched. The dividend distribution tax is currently at 15%. The minimum alternate tax is currently at 18.5% of book profits. Short term capital gains tax on sale of shares is currently at 15% while there is zero long capital gains tax on sale of shares held for a period of more than one year.
The upcoming Budget session of the parliament assumes utmost importance as the government intends to replace the ordinances it had promulgated after the conclusion of the winter session of the parliament with Bills and get them cleared by both Houses of Parliament during the budget session. The Narendra Modi government promulgated a slew of ordinances after the last session of Parliament. Some of the key ordinances include raising the FDI in the insurance sector from 26% to 49%, e-auctioning of coal mines and amendment to the Land Acquisition Act.
European stocks edged higher today, 12 February 2015, after Russian President Vladimir Putin said an agreement has been reached for a cease-fire in Ukraine, starting Sunday, 15 February 2015. Key indices in France, Germany and UK were up 0.35% to 1.21%.
A ceasefire will begin in eastern Ukraine on 15 February, the leaders of Russia and Ukraine have announced. Thousands of people have been killed in the fighting in the east of Ukraine. The meeting in Belarus - which lasted for about 17 hours - was focused on securing a ceasefire, withdrawal of heavy weapons and creating a demilitarised zone in Eastern Ukraine. Putin said the agreement also established a line from which heavy weaponry would be pulled back. Ukraine's pro-Russian rebels have accepted the deal, the leaders said.
The Swedish Riksbank cut its repo rate to negative 0.1%, the central bank said today, 12 February 2015. The Riksbank also said it would buy government bonds for 10 billion krona ($11.84 billion), and was ready to do more if needed.
Eurozone finance ministers after a meeting held in Brussels, Belgium, yesterday, 11 February 2015, failed to agree on new financing steps for debt-stricken Greece. After more than six hours of negotiations, the ministersalong with the heads of the International Monetary Fund and the European Central Bankpledged to keep talking in the coming days with the hope of coming up with a plan at their next meeting. In an unusual development for their get-together, the ministers failed to agree on a joint statement. Greek Finance Minister Yanis Varoufakis reportedly said after the meeting that he still hoped that a deal on new financing for his debt-stricken country could be found by next week.
Meanwhile, a summit meeting of European Union (EU) leaders is scheduled in Brussels today, 12 February 2015.
Asian stocks rose today, 12 February 2015. Key indices in China, Taiwan, Indonesia, Hong Kong and Japan rose 0.13% to 1.85%. Key indices in Singapore, and South Korea were down 0.21% to 0.74%.
Trading in US index futures indicated that the Dow could gain 70 points at the opening bell today, 12 February 2015. US stocks ended with small losses yesterday, 11 February 2015, as investors eyed negotiations between Greece and its international creditors.
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