Firmness continued on the bourses in mid-morning trade after a survey showed that manufacturing activity momentum in India accelerated to a two-year high last month. The barometer index, the S&P BSE Sensex, was currently up 330.10 points or 1.2% at 27,837.64. The market breadth indicating the overall health of the market was strong with more than two gainers for every loser on BSE. The BSE Mid-Cap index was up 1.04%. The BSE Small-Cap index was up 1.09%. US equity index futures indices a positive start to US stocks later in the global day today, 2 January 2015.
The rally for key indices materialised today, 2 January 2015, after the government yesterday, 1 January 2015, evening announced the setting up of NITI Aayog (National Institution for Transforming India) as replacement for the Planning Commission and said that the NITI Aayog will seek to provide a critical directional and strategic input into the development process.
Earlier, the key benchmark indices had surged to their highest level in more than three weeks in morning trade.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 18.20 crore yesterday, 1 January 2015, as per provisional data.
In overseas markets, Asian stocks edged higher amid thin volumes following the New Year's Day holiday.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
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Brent crude futures edged higher supported by a larger-than-expected fall in weekly US crude stocks.
At 11:15 IST, the S&P BSE Sensex was up 330.10 points or 1.2% at 27,837.64. The index jumped 347.68 points at the day's high of 27,855.22 in morning trade, its highest level since 10 December 2014. The index rose 11.72 points at the day's low of 27,519.26 in early trade.
The CNX Nifty was up 95.30 points or 1.15% at 8,379.30. The index hit a high of 8,385.65 in intraday trade, its highest level since 10 December 2014. The index hit a low of 8,288.70 in intraday trade.
The market breadth indicating the overall health of the market was strong with over two gainers for every loser on BSE. 1,692 shares gained and 675 shares fell. A total of 83 shares were unchanged.
The BSE Mid-Cap index was up 108.18 points or 1.04% at 10,548.35. The BSE Small-Cap index was up 122.18 points or 1.09% at 11,347.40. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 1105 crore by 11:20 IST, compared with turnover of Rs 690 crore by 10:20 IST.
Bank stocks rose across the board as the two-day Bankers Retreat called 'Gyan Sangam' organized by the Department of Financial Services (DFS), Ministry of Finance begins today, 2 January 2015, to prepare a blue print of reform action plan for banking sector. The objective of this retreat is to create a platform for formal and informal discussions around the issues which are important for banking sector reform, the finance ministry had said on 24 December 2014.
BSE's banking sector index, the S&P BSE Bankex was up 1.48% at 21,791.47. The index hit record high of 21,823.92 in intraday trade.
Among PSU bank stocks, State Bank of India (SBI) (up 1.1%), Punjab National Bank (up 0.82%), Bank of Baroda (up 1.39%), Canara Bank (up 0.7%), Bank of India (up 0.43%) and Union Bank of India (up 0.37%) gained.
Among private bank stocks, HDFC Bank (up 1.58%), IndusInd Bank (up 0.55%), ING Vysya Bank (up 0.56%), Kotak Mahindra Bank (up 1.1%), Axis Bank (up 1.96%), Yes Bank (up 1.47%) and ICICI Bank (up 1.91%) gained.
SJVN rose 2.36%. SJVN after trading hours yesterday, 1 January 2015, said it has signed an Memorandum of Understandings (MoU) with Hindustan Salts to conceptualise, structure, implement, operate and maintain the ultra mega hybrid renewable energy (solar & wind) park at salt pan land in Kharaghoda, Gujarat. Further, SJVN also signed an MoU with Rajasthan Electronics and Instruments to develop a solar power plant of about 2 megawatts capacity at Kotla, Himachal Pradesh and other places in the project area of SJVN.
Kalpataru Power Transmission rose 2.44% to Rs 235.50 after HDFC Mutual Fund Equity bought a total of about 17.81 lakh shares in bulk deals on BSE and NSE yesterday, 1 January 2015. HDFC Mutual Fund Equity bought 8.23 lakh shares of Kalpataru Power Transmission at Rs 229.96 per share in a bulk deal on NSE yesterday, 1 January 2015. It also bought 9.58 lakh shares of Kalpataru Power Transmission at Rs 230 per share in a bulk deal on BSE yesterday, 1 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 63.285, compared with its close of 63.34 during the previous trading session.
Brent crude futures edged higher supported by a larger-than-expected fall in US weekly crude stocks. Brent for February settlement was up 14 cents at $57.47 a barrel.
A monthly survey today, 2 January 2015, showed that manufacturing activity momentum in India accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad. Adjusted for seasonal factors, the headline HSBC India Purchasing Managers' Index (PMI) climbed to a two-year high of 54.5 in December, up from 53.3 in November. A steep rise in new orders from the consumer sector more than offset a slowdown in new order growth from investment goods. In line with falling commodity prices over the last few months, input price inflation was modest, and this trend was also mirrored in output prices. With the disinflationary trend gaining ground, the Reserve Bank of India (RBI) is expected to find space for some rate cuts in 2015, according to Pranjul Bhandari, Chief India Economist at HSBC. Cost pressures at Indian manufacturers eased to weakest in more than five-and-a-half years, according to the survey.
Meanwhile, the Indian government yesterday, 1 January 2015, announced the setting up of NITI Aayog (National Institution for Transforming India) as replacement for the Planning Commission and said that the NITI Aayog will seek to provide a critical directional and strategic input into the development process. The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states, the Prime Minister's Office (PMO) said in a statement. NITI Aayog will emerge as a "think-tank" that will provide governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy. The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination, the PMO said. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation. The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and partners. It will offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda. Among other obectives, the NITI Aayog aims to enable India to better face complex challenges, through policy support to more than 50 million small businesses, which are a major source of employment creation.
Asian stocks edged higher today, 2 January 2015, amid thin volumes following the New Year's Day holiday. Key benchmark indices in Hong Kong, Singapore, Indonesia and South Korea were up by 0.14% to 0.71%.
Stock markets in China, Japan and Taiwan are closed today, 2 January 2015, for holiday.
Trading in US index futures indicated that the Dow could rise 105 points at the opening bell today, 2 January 2015. US markets remained shut yesterday, 1 January 2015 for New Year's Day holiday
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