More than two gainers for every loser on BSE

After remaining firm in morning trade, key benchmark indices extended gains in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty were up more than 1% each. The gains on the bourses were broad based. There were more than two gainers for every loser on BSE. The Sensex was currently up 311.83 points or 1.1% at 28,539.22. The BSE Mid-Cap index was up 1.3%. The BSE Small-Cap index was up 1.15%. Both these indices outperformed the Sensex.

DLF dropped on weak Q3 results. Shares of other realty companies were mixed. Adani Enterprises rose after the company said that it signed a memorandum of understanding to jointly set up India's largest solar park of 10,000 megawatts in Rajasthan. Hindalco Industries rose after its overseas subsidiary, Novelis Inc, reported strong earnings in Q3 December 2014 yesterday, 9 February 2015.

On the political front, election trends showed that the Aam Aadmi Party (AAP) was heading for a landslide victory in Delhi assembly elections and that the party will be able to form the next government in the state. As per the leads available so far, AAP was leading in 64 seats and the Bharatiya Janata Party (BJP) was leading in 5 seats. The Congress party was leading in just 1 seat. Counting of votes of Delhi assembly elections is underway with final results expected by today, 10 February 2015, afternoon. A party needs 36 seats to form government in the 70-member Delhi assembly.

Meanwhile, according to the advance estimates of National Income, 2014-15 from the Ministry of Statistics & Programme Implementation released after trading hours yesterday, 9 February 2015, India's Gross Domestic Product (GDP) growth is likely to accelerate to 7.4% in 2014-15, from 6.9% growth in 2013-14 and 5.1% growth in 2012-13. Meanwhile, Prime Minister Narendra Modi yesterday, 9 February 2015, said that the NITI Aayog should focus on quick resolution of inter-departmental and Centre-State issues to speed up the pace of implementation of infrastructure projects.

Foreign portfolio investors sold shares worth a net Rs 660.30 crore yesterday, 9 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 469.55 crore yesterday, 9 February 2015, as per provisional data.

Earlier, the Sensex and the 50-unit CNX Nifty, both, bounced after hitting 3-1/2-week low at the onset of the trading session.

In overseas markets, Asian stocks edged lower after the latest data showed that China's consumer inflation slipped to a five-year low in January, adding to concerns about deflation in the world's second-largest economy and weakness of demand in a slowing economy. US stocks fell yesterday, 9 February 2015, dragged down by a sell-off in European markets, as investors were unnerved by the deepening standoff between Greece and its creditors.

In the foreign exchange market, the rupee strengthened past 62 against the dollar as key equity benchmark indices in India gained.

Brent crude oil futures edged lower after the International Energy Agency (IEA) said the United States will remain the world's top source of oil supply growth until to 2020.

At 11:20 IST, the S&P BSE Sensex was up 311.83 points or 1.1% at 28,539.22. The index jumped 312.86 points at the day's high of 28,540.25 in mid-morning trade. The index fell 182.90 points at the day's low of 28,044.49 in early trade, its lowest level since 16 January 2015.

The CNX Nifty was up 97.75 points or 1.15% at 8,624.10. The index hit a high of 8,633.15 in intraday trade, its highest level since 6 February 2015. The index hit a low of 8,470.50 in intraday trade, its lowest level since 16 January 2015.

The BSE Mid-Cap index was up 134.32 points or 1.3% at 10,476.59. The BSE Small-Cap index was up 125.24 points or 1.15% at 11,036.78. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was quiet strong, with more than two gainers for every loser on BSE. On BSE, 1,532 shares rose and 695 shares fell. A total of 66 shares were unchanged.

DLF dropped 2.26% to Rs 153.75 on weak Q3 results. The stock hit high of Rs 155.25 and low of Rs 148 so far during the day. DLF's consolidated net profit fell 9.29% to Rs 131.79 crore on 19.7% decline in total income to Rs 2079.82 crore in Q3 December 2014 over Q3 December 2013. The company announced Q3 results after market hours yesterday, 9 February 2015. DLF's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 20% to Rs 918 crore in Q3 December 2014 over Q3 December 2013.

In a post-result statement, DLF said that the company witnessed continued interest from actual users in the super luxury & luxury segment during the quarter. The company expects sales volume of residential products to reach normal volumes in the next 12-18 months. Rental business which is a leading indicator of demand continues to grow at targeted pace, DLF said. The realty major said that the outlook in the office leasing business is much better given the current demand-supply situation. As rate of inflation abates, further reduction of interest rates will lead to better GDP growth rates leading to more demand in both the residential and commercial segments of real estate, DLF said. DFL further said that the company remains committed to its medium term goals as articulated in February 2013 although the timelines of its implementation have been adversely impacted due to slower GDP growth and uncertainties due to the Sebi (Securities & Exchange Board of India) restrictions.

Shares of other realty companies were mixed. Sobha (down 0.65%), Phoenix Mills (down 0.63%) and D B Realty (down 0.58%), declined. Unitech (up 2.53%), Housing Development & Infrastructure (HDIL) (up 1.79%), Godrej Properties (up 2.11%), Anant Raj (up 1.27%), Parsvnath Developers (up 0.52%), Oberoi Realty (up 0.87%) and Prestige Estates (up 0.65%), edged higher.

Adani Enterprises rose 3.16% after the company said during market hours that it signed a memorandum of understanding (MoU) to jointly set up India's largest solar park of 10,000 megawatts (MW) in Rajasthan. AEL and Rajasthan Renewable Energy Corporation will form a joint venture to set up the solar park, which will include generation projects and a manufacturing unit for solar module, parts and equipment, AEL said in a statement. The solar park will produce clean and green energy of approximately 16644 million units, the company said.

Hindalco Industries rose 3.89% after its overseas subsidiary, Novelis Inc, reported strong earnings in Q3 December 2014 yesterday, 9 February 2015. Novelis Inc. reported a 253.85% jump in net profit to $46 million in Q3 December 2014 over Q3 December 2013.

Its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda, or operating profit) rose 16.26% to $236 million in Q3 December 2014 over Q3 December 2013. The increase was primarily driven by higher shipments as a result of strategic capacity expansions in Asia and South America, favorable product mix, and cost benefits from using recycled metal inputs.

Revenues climbed 18% to $2.8 billion in Q3 December 2014 over Q3 December 2013. Revenue growth was driven by a 5% increase in shipments of rolled aluminum products to 757 kilo tonnes for the third quarter of fiscal 2015 compared to 721 kilo tonnes in the prior year period. All four operating regions reported an increase in shipments year-over-year. Higher metal prices also contributed to the increase in revenue.

JK Tyre & Industries jumped 14.18% after consolidated net profit surged 55.5% to Rs 91.81 crore on 6.3% rise in total income to Rs 1842.29 crore in Q3 December 2014 over Q3 December 2013. The announcement was made after market hours yesterday, 9 February 2015.

Punjab National Bank rose 2.52% after the company said during market hours that the bank has raised Rs 1000 crore Long term Bonds at an annual coupon of 8.23% on Private Placement basis on 9 February 2015 through five arrangers.

In the foreign exchange market, the rupee strengthened past 62 against the dollar as key equity benchmark indices in India gained. The partially convertible rupee was hovering at 61.97, compared with its close of 62.175 during the previous trading session.

Brent crude oil futures edged lower after the International Energy Agency (IEA) said the United States will remain the world's top source of oil supply growth until to 2020, defying expectations of a more dramatic slowdown in shale output growth. Brent for March settlement was off 82 cents at $57.52 a barrel. The contract had advanced 54 cents or 0.93% to settle at $58.34 a barrel during the previous trading session.

On macro front, according to the advance estimates of National Income, 2014-15 from the Ministry of Statistics & Programme Implementation released after trading hours yesterday, 9 February 2015, India's Gross Domestic Product (GDP) growth is likely to accelerate to 7.4% in 2014-15, from 6.9% growth in 2013-14 and 5.1% growth in 2012-13. The advance estimate for 2014-15 is based on a new method of calculating GDP, which the Ministry of Statistics & Programme Implementation unveiled on 30 January 2015. The Ministry of Statistics & Programme Implementation also released GDP growth for Q3 December 2014. It said the economy expanded 7.5% in Q3 December 2014, which was lower than a revised 8.2% growth in Q2 September 2014. The revised GDP growth figure for Q1 June 2014 stands at 6.5%.

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.

Meanwhile, Prime Minister Narendra Modi yesterday, 9 February 2015, said that the NITI Aayog should focus on quick resolution of inter-departmental and Centre-State issues to speed up the pace of implementation of infrastructure projects. He was chairing a high-level meeting on infrastructure. The Prime Minister has directed the concerned ministries to work in a mission mode towards achieving electrification of the remaining 20,000 unelectrified villages, in a clearly defined time-frame, the Prime Minister's Office (PMO) said in a statement. Modi has said that innovative solutions should be explored for ensuring total rural electrification, including solar energy, power connectivity through nearby railway infrastructure, and off-grid solutions. The Prime Minister was informed that issues regarding coal supply to existing power plants have been resolved and not even a single power plant today faces a shortage of coal. The Prime Minister called for a fundamental change in the approach towards redevelopment of Railway stations and development of areas contiguous to railway corridors that run through major cities in the country. He directed all concerned departments of the government to work towards creating a holistic framework and environment that will be conducive for investment.

Finance Minister Arun Jaitley yesterday, 9 February 2015, said that the overall economic situation in the country is looking better and basic parameters of Indian economy are moving in the right direction. Jaitley said that current account deficit will be under control and he will try to keep fiscal deficit also within the prescribed limit. The Finance Minister said that the growth rate would be better than the last year as per the old system. The Finance Minster was making the opening remarks at the First Meeting of the Parliamentary Consultative Committee attached to his Ministry to discuss 'Suggestions for the Budget'. Jaitley's comments came before the release of the latest economic data from the Ministry of Statistics & Programme Implementation.

Regarding bringing back the black money stashed abroad, the Finance Minister said that India will soon become part of international consortium where the focus would be on automatic transfer of information which would in turn help the government in getting easy access to such foreign accounts of Indian residents.

Asian stocks edged lower today, 10 February 2015, as nervousness over Greece potentially withdrawing from the euro and escalating conflict in Ukraine sapped risk appetite. Key indices in Taiwan, Japan, Indonesia, Hong Kong and South Korea were down 0.03% to 0.71%. Key indices in and China and Singapore rose by 0.31% to 1.22%.

China's consumer inflation slipped to a five-year low in January, which will likely give the central bank more scope for further policy easing. China's consumer-price index rose 0.8% in January from a year earlier, slower than a 1.5% year-over-year rise in December, data from the National Bureau of Statistics showed today, 10 February 2015.

Trading in US index futures indicated that the Dow could gain 20 points at the opening bell today, 10 February 2015. US stocks fell yesterday, 9 February 2015, dragged down by a sell-off in European markets, as investors were unnerved by the deepening standoff between Greece and its creditors.

In Europe, the probability of Greece leaving the euro zone has risen several notches as Greece has taken an increasingly hard line over its government debt. Prime Minister Alexis Tsipras on Sunday, 8 February 2015, ruled out extending Greece's bailout deal and said some of the reforms imposed by lenders would be reversed. European Commission President Jean-Claude Juncker raised tensions further yesterday, 9 February 2015, by saying Greeks should not expect the euro zone to accept their latest terms.

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