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, and the 50-unit CNX Nifty, both, attained their highest closing level in a week. The Sensex advanced 271.13 points or 0.95% to settle at 28,805.10. The market breadth indicating the overall health of the market was positive. The BSE Mid Cap index rose 1.13%. The BSE Small Cap index gained 1.27%. Both these indices outperformed the Sensex. Finance Minister Arun Jaitley today, 12 February 2015, said that the government is determined to pursue economic reforms despite a defeat for the Bharatiya Janata Party (BJP) in assembly election in Delhi early this week.
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.
Bank stocks were mixed. Bank of India tumbled after poor Q3 numbers. Realty stocks advanced. Bharat Heavy Electricals (Bhel) edged higher. MRF advanced after strong Q1 earnings. Reliance Power rose after the company said it has signed a memorandum of understanding with the Government of Rajasthan to develop 6,000 megawatts (MW) of solar power projects in Rajasthan over the period of next 10 years.
Foreign portfolio investors sold shares worth a net Rs 351.86 crore into the secondary equity market yesterday, 11 February 2015, as per data from Central Depository Services. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, 11 February 2015, as per provisional data released by the stock exchanges.
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.
In the foreign exchange market, the rupee edged lower against the dollar in volatile trade.
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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.
The S&P BSE Sensex advanced 271.13 points or 0.95% to settle at 28,805.10, its highest closing level since 5 February 2015. The index jumped 304.55 points at the day's high of 28,838.52 in late trade. 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 rose 84.15 points or 0.98% to settle at 8,711.55, its highest closing level since 5 February 2015. The index hit a high of 8,732.55 in intraday trade. The index hit a low of 8,599.25 in intraday trade.
The BSE Mid-Cap index advanced 119 points or 1.13% to settle at 10,662.11. The BSE Small-Cap index rose 140.76 points or 1.27% to settle 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, 1,616 shares rose and 1,229 shares fell. A total of 126 shares were unchanged.
Among sectoral indices on BSE, the S&P BSE Auto index (up 1.47%), BSE Bankex index (up 0.96%), BSE Capital Goods index (up 2.33%), BSE Healthcare index (up 1.69%), BSE IT index (up 1.04%), BSE Power index (up 2.51%), BSE Realty index (up 1.28%), and BSE Teck index (up 0.99%), outperformed the Sensex. The S&P BSE Consumer Durables index (up 0.24%), BSE FMCG index (down 0.16%), BSE Metal index (up 0.26%), and BSE Oil & Gas index (up 0.82%), underperformed the Sensex.
Hero MotoCorp and ACC edged higher on reports that their weightings were increased in the MSCI Indexes. Hero MotoCorp rose 1.92% at Rs 2,805.35. The stock hit a high of Rs 2,817 and a low of Rs 2,760.
Cement major ACC rose 2.68% at Rs 1,592.95. The stock hit a high of Rs 1,614 and a low of Rs 1,561.25.
Dr Reddy's Laboratories surged after news of a cease-fire deal in Ukraine. The stock jumped 5.49% at Rs 3,327.50. The stock hit a high of Rs 3,344 and a low of Rs 3,182. Dr Reddy's Laboratories reportedly gets about 15% of its revenue from Russia and the CIS countries.
Index heavyweight Bharat Heavy Electricals (Bhel) surged 4.98% at Rs 267.90. The stock hit a high of Rs 269.50 and a low of Rs 251. Bhel's net profit fell 69.4% to Rs 212.60 crore on 27.48% decline in total income to Rs 6472.06 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours today, 12 February 2015.
Bhel had an outstanding order book position of about Rs 103900 crore as on 31 December 2014.
Neyveli Lignite Corporation (NLC) rose 3.41% at Rs 78.90. The stock hit a high of Rs 80.65 and a low of Rs 75.70. NLC's net profit fell 36.71% to Rs 309.47 crore on 8.92% decline in total income to Rs 1701.53 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 12 February 2015.
MRF jumped 7.44% at Rs 40,702.75 after net profit jumped 79.83% to Rs 323.51 crore on 5.23% growth in total income to Rs 3378.63 crore in Q1 December 2014 over Q1 December 2013. The result was announced during market hours today, 12 February 2015.
Bank stocks were mixed. State Bank of India (down 0.56%), Kotak Mahindra Bank (down 0.28%), and Canara Bank (down 1.01%) edged lower. Bank of Baroda (up 0.19%), ICICI Bank (up 1.39%), Yes Bank (up 1.44%), IndusInd Bank (up 1.64%), Axis Bank (up 1.69%) and Federal Bank (up 0.75%) edged higher.
HDFC Bank rose 1.8% at Rs 1,077.60. The stock hit a high of Rs 1,081.40 and a low of Rs 1,053. Shares allotted by HDFC Bank to institutional investors under Qualified Institutional Placement (QIP) were admitted for trading on the bourses today, 12 February 2015. A total of 1.87 crore shares will be admitted for trading. HDFC Bank had priced the issue of shares to institutional investors at Rs 1,067 per share.
It may be recalled that HDFC Bank had early this month raised Rs 2000 crore from the QIP issue. The private sector bank had also raised about $1.27 billion from issue of American Depository Receipts (ADR) early this month.
Punjab National Bank (PNB) fell 1.71% at Rs 166.35. The stock hit a high of Rs 170.45 and a low of Rs 165.10. PNB after market hours today, 12 February 2015, said that it has raised Rs 1500 crore through Basel III compliant perpetual debt instruments in the nature of debentures for inclusion in additional Tier I capital at an annual coupon of 9.15% per annum with call option at the end of 10 years through private placement.
Bank of India (BoI) tumbled 5.77% at Rs 227.65. BoI's after net profit fell 70.40% to Rs 173.38 crore on 9.95% increase in total income to Rs 11947.45 crore in Q3 December 2014 over Q3 December 2013. The result was announced during trading hours today, 12 February 2015.
Bank of India's ratio of net non-performing assets (NPAs) to net advances stood at 2.50% as on 31 December 2014, compared with 2.32% as on 30 September 2014 and 1.75% as on 31 December 2013. The bank's ratio of gross NPAs to gross advances stood at 4.07% as on 31 December 2014, compared with 3.54% as on 30 September 2014 and 2.81% as on 31 December 2013.
Provisions and contingencies rose 12.61% to Rs 1580.72 crore in Q3 December 2014 over Q3 December 2013. The provisioning coverage ratio as on 31 December 2014 stood at 56.62%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.68% as on 31 December 2014, compared with 10.97% as on 30 September 2014 and 10.84% as on 31 December 2013.
Realty stocks gained. Unitech (up 2.45%), Housing Development & Infrastructure (HDIL) (up 2.36%), Godrej Properties (up 1.81%), Phoenix Mills (up 0.64%), Anant Raj (up 3.79%), Oberoi Realty (up 0.6%) and Prestige Estates (up 1.74%), Sobha (up 0.89%), and DLF (up 0.13%) edged higher.
Indiabulls Real Estate rose 4.91% at Rs 76.85 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.
L&T gained 2.02% at Rs 1,646.80. 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.
Sadbhav Engineering rose 6.73% at Rs 318.65 after net profit rose 45.45% to Rs 37.73 crore on 15.44% increase in total income to Rs 723.52 crore in Q3 December 2014 over Q3 December 2013. The result was announced during trading hours today, 12 February 2015.
Jindal Steel & Power (JSPL) dropped 2.71% at Rs 147. The stock hit a high of Rs 154.80 and a low of Rs 145.70. The Delhi High Court yesterday, 11 February 2015, reportedly granted relief to JSPL by asking the Centre to review its decision to change end-use norm for the coal blocks allotted to the company. A bench of Justices Badar Durrez Ahmed and Sanjeev Sachdeva segregated the blocks - Utkal B1 and Utkal-B2 in Odisha and Gare Palma IV/6 in Chhattisgarh - from the auction process on the ground that the Centre, while changing the end-use from steelmaking to power generation, failed to consider the adverse impact on the steel industry. JSPL had been allotted Utkal-B1 for operating a steel unit and Gare Palma IV/6 for a sponge iron industry. The allocations were among the 204 allotments cancelled by the Supreme Court. In its plea, JSPL had contended that change of end-use prohibits the company from bidding for those coal blocks, threatening the company's investments of over Rs 24000 crore to set up units as per the original end-use close to these mines.
Hindalco Industries rose 2% to Rs 152.85. 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.
Reliance Power (RPower) rose 2.34% at Rs 59.15. RPower during market hours today, 12 February 2015, said that the company and the Government of Rajasthan (GoR) signed a memorandum of understanding (MoU) to develop 6,000 megawatts (MW) of solar power projects in Rajasthan over the period of next 10 years.
Power Grid Corporation of India rose 3.12% at Rs 150.35 after net profit rose 17.9% to Rs 1228.91 crore on 18.1% growth in total income to Rs 4486.11 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 11 February 2015.
Container Corporation of India rose 1.91% at Rs 1,441.30 after net profit rose 20.6% to Rs 301.08 crore on 15.7% rise in total income to Rs 1537.01 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 11 February 2015.
Bata India fell 2.92% at Rs 1,255.20 after net profit fell 33.76% to Rs 34.94 crore on 3.1% decline in total income to Rs 544.72 crore in Q4 December 2014 over Q4 December 2013. The result was announced after market hours yesterday, 11 February 2015.
Reliance Infrastructure rose 4.19% at Rs 440.90 after the company said it has set up three wholly owned subsidiaries, Reliance Defence Systems, Reliance Defence Technologies and Reliance Defence and Aerospace to pursue growth opportunities in the defence sector. The announcement was made during trading hours today, 12 February 2015.
IL&FS Engineering & Construction Company hit an upper circuit limit of 20% at Rs 71.45 on BSE after the company reported net profit of Rs 76.46 crore in Q3 December 2014 as against net loss of Rs 58.27 crore in Q3 December 2013. The result was announced after market hours yesterday, 11 February 2015. IL&FS Engineering & Construction Company's net sales rose 44.91% to Rs 675.79 crore in Q3 December 2014 over Q3 December 2013.
India Cements jumped 12.32% at Rs 106.70 after the company said the Board of Directors of the company at its meeting held yesterday, 11 February 2015, approved a proposal for reorganisation of Chennai Super Kings Cricket, the company's wholly-owned subsidiary, under which the ownership of the Franchise will be held by shareholders of The India Cements. The announcement was made after market hours yesterday, 11 February 2015.
PI Industries gained 3.31% at Rs 514.85 after net profit surged 79.3% to Rs 62.22 crore on 40.3% growth in total income to Rs 515.45 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 11 February 2015.
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 0.07% at Rs 1,134. The stock hit a high of Rs 1,153.75 and a low of Rs 1,131.20. 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.
Key benchmark indices advanced for the third straight day today, 12 February 2015. The Sensex has risen 577.71 points or 2.04% in three trading sessions from a recent low of 28,227.39 on Monday, 9 February 2015. The Sensex has lost 377.85 points or 1.29% in this month so far (till 12 February 2015). The Sensex has risen 1,305.68 points or 4.74% in this calendar year so far (till 12 February 2015). From a 52-week low of 20,149.01 on 14 February 2014, the Sensex has risen 8,656.09 points or 42.96%. The Sensex is off 1,039.06 points or 3.48% from a record high of 29,844.16 hit on 30 January 2015.
In the foreign exchange market, the rupee edged lower against the dollar in volatile trade. The partially convertible rupee was hovering at 62.27, 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 $1.10 a barrel at $55.76 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 a barrel at $56.92 a barrel.
Finance Minister Arun Jaitley today, 12 February 2015, said that the government is determined to pursue economic reforms despite a defeat for the Bharatiya Janata Party (BJP) in assembly election in Delhi early this week. Jaitley also reportedly said in a news conference after talks with his US counterpart, Treasury Secretary Jack Lew that India's economy is poised to take off at a much faster pace. The BJP was trounced in assembly election held in Delhi last week. The Aam Aadmi Party won 67 of 70 seats. The BJP won a mere 3 seats.
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 0.41% to 1.07%.
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 0.93%.
Trading in US index futures indicated that the Dow could gain 87 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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