Metal stocks led the rally as key benchmark indices surged to record high. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit lifetime high after International Monetary Fund (IMF) yesterday, 19 January 2015, said India's economy will be world's fastest-growing major economy in the year through March 2017. Shares of index heavyweights ITC, HDFC, Reliance Industries (RIL), Infosys, ICICI Bank, HDFC Bank and L&T edged higher. The Sensex was provisionally up 502.48 points or 1.78% at 28764.49. The market breadth indicating the overall health of the market was positive. Asian and European stocks edged higher.
FMCG stocks witnessed selling pressure. Kotak Mahindra Bank rose after stong Q3 results. Infosys gained after Emirates Islamic Bank selected Infosys Finacle Islamic Banking solution.
While the IMF trimmed its global growth forecast for 2015 and 2016, the fund said that the growth forecast is broadly unchanged for India as weaker external demand is offset by the boost to the terms of trade from lower oil prices and a pickup in industrial and investment activity after policy reforms. IMF estimates India's growth accelerating to 6.5% in the fiscal year through March 2017.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 433.72 crore yesterday, 19 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude futures edged lower after the International Monetary Fund lowered its global economic growth outlook and China's economy expanded at its slowest pace in decades. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
The Indian government has used the steep fall in global crude oil prices to raise excise duty on petrol and diesel four times since November last year which will help increase the government's indirect tax revenue mobilization.
More From This Section
In overseas markets, European stocks advanced on speculation the European Central Bank will announce quantitative easing this week aimed at spurring Europe's ailing economy. Asian stocks rose after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectations.
As per provisional closing, the S&P BSE Sensex was up 502.48 points or 1.78% to 28764.49. The index jumped 567.28 points at the day's high of 28,829.29 in late trade, a lifetime high for the index. The index rose 62.84 points at the day's low of 28,324.85 in opening trade.
The CNX Nifty was up 137.85 points or 1.61% at 8,688.55, as per provisional closing. The index hit a high of 8,707.90 in intraday trade, a lifetime high for the index. The index hit a low of 8,574.50 in intraday trade.
The BSE Mid-Cap index was up 48.34 points or 0.45% at 10,729.36. The BSE Small-Cap index was up 47.73 points or 0.42% at 11,447.59. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,551 shares advanced and 1,416 shares declined. A total of 122 shares were unchanged.
The total turnover on BSE amounted to Rs 3487.72 crore, higher than turnover of Rs 3275 crore during the previous trading session.
Among the 30 Sensex shares, 23 rose and the remaining shares fell.
Sesa Sterlite rose 5.62%. According to reports, the company expects to restart iron ore mining in Goa within two weeks as it waits for environment clearance and clarity on dumping waste outside the lease area. The Goa state government last week revoked its 2012 order that had halted the over 60-year-old-mining industry in the state. The new order will pave the way for the resumption of mining activities in Goa, pending the lifting of the ban imposed by the Ministry of Environment and Forests, according to media reports.
Housing finance major HDFC was up 5.81% at Rs 1,247. The stock hit a high of 1,257.75 and low of Rs 1,183.40.
India's largest cigarette maker by sales ITC rose 3.59% to Rs 371.25. The stock hit a high of 371.85 and low of Rs 358.40.
Reliance Industries' (RIL) rose 2.14% to Rs 898.70. The stock hit high of Rs 903.75 and low of Rs 878.60. The stock had risen 1.25% to settle at Rs 879.85 yesterday, 19 January 2015. RIL's consolidated net profit fell 4.5% to Rs 5256 crore on 20.4% decline in revenue to Rs 96330 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015. RIL attributed the decline in revenue in Q3 December 2014 to a sharp fall in benchmark oil price.
Infosys gained after Emirates Islamic Bank selected Infosys Finacle Islamic Banking solution. The stock rose 1.18%. Emirates Islamic Bank, a leading Sharia-compliant banking institution in the Middle East has selected Infosys Finacle Islamic Banking solution to power its operations. The announcement was made during market hours today, 20 January 2015.
FMCG stocks witnessed selling pressure. Marico (down 1.99%), Dabur India (down 1.51%), Godrej Consumer Products (down 0.82%), Bata India (down 0.73%), Colgate-Palmolive (India) (down 0.69%), Nestle India (down 0.34%), Procter & Gamble Hygiene & Health Care (down 0.10%), Tata Global Beverages (down 0.06%) and GlaxoSmithKline Consumer Healthcare (down 0.02%) edged lower.
Hindustan Unilever was up 0.59% to Rs 898.10. The stock had tumbled yesterday, 19 January 2015, after the company reported muted sales volume growth at the time of announcing Q3 December 2014 results.
Kotak Mahindra Bank rose 0.32% to Rs 1,393.45. The stock hit a high of Rs 1,401.30 and a low of 1,384 in intraday trade. The bank's net profit rose 36.63% to Rs 464.52 crore on 20.15% growth in total income to Rs 2994.20 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced during market hours today, 20 January 2015.
Kotak Mahindra Bank's (KMBL) net interest income (NII) rose 16% to Rs 1060 crore in Q3 December 2014 over Q3 December 2013.
The banks' ratio of net non-performing assets (NPAs) to net advances stood at 0.97% as on 31 December 2014, compared with 1% as on 30 September 2014 and 1.1% as on 31 December 2013. The bank's ratio of gross NPAs to gross advances stood at 1.87% as on 31 December 2014, compared with 1.89% as on 30 September 2014 and 2.01% as on 31 December 2013.
Provisions and contingencies declined 57.09% to Rs 29.92 crore in Q3 December 2014 over Q3 December 2013. The bank's provision coverage ratio on NPAs as on 31 December 2014 was at 56.82%.
Kotak Mahindra Bank said that the shareholders of the bank and the shareholders of ING Vysya Bank have approved the amalgamation of ING Vysya with Kotak in the ratio of 725 shares of Kotak for every 1,000 shares of ING Vysya. The amalgamation is subject to the approval of the Reserve Bank of India (RBI) under the Banking Regulation Act, the Competition Commission of India and such other regulatory approvals as may be required, Kotak Mahindra Bank said. The amalgamation would be effective from 1 April 2015 or such other date as may be fixed mutually by ING Vysya and Kotak and sanctioned by the RBI, Kotak Mahindra Bank said.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.765, compared with its close of 61.705 during the previous trading session.
Brent crude futures edged lower after the International Monetary Fund lowered its global economic growth outlook and China's economy expanded at its slowest pace in decades. Brent for March settlement was off 48 cents cent at $48.36 a barrel. The contract declined $1.33 a barrel or 2.65% to settle at $48.84 a barrel in the previous trading session.
The International Monetary Fund (IMF) yesterday, 19 January 2015, downgraded global growth outlook for this year and the next as it downgraded its outlook for more than a dozen of the world's largest economies. The IMF said global growth would be 0.3 percentage point lower this year and next than it had previously expected. It now expects the world economy to expand 3.5% this year and 3.7% in 2016. Sliding oil prices will give global growth a brief jolt, but the benefits won't be strong enough to keep the world economy out of a deepening long-term rut, the IMF said.
European stocks edged higher today, 20 January 2015, on speculation the European Central Bank (ECB) will announce quantitative easing this week aimed at spurring Europe's ailing economy. Key benchmark indices in UK, France and Germany were up by 0.1% to 0.61%.
The governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review on Thursday, 22 January 2015. The ECB may introduce a large-scale bond-buying program on 22 January 2015.
French President Franis Hollande yesterday, 19 January 2015, said in a speech to business leaders at the ys Palace that he expects the ECB to announce that it will buy sovereign debt a move that he said will provide significant liquidity to the European economy and create a movement that is favorable to growth.
Meanwhile, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country on Sunday, 25 January 2015. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
Asian markets rose today, 20 January 2015, after China reported its economy had not slowed as far as many had feared, a rare glint of brightness amid gloom over the global outlook. Key benchmark indices in China, Indonesia, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.27% to 2.07%.
China's National Bureau of Statistics said the economy grew 7.4% last year and 7.3% in the October-December 2014 quarter. Beijing had targeted 7.5% growth for last year.
China's industrial output rose 7.9% in December and China's retail sales jumped 11.9% last month, the latest data showed.
Trading in US index futures indicated that the Dow could advance 37 points at the opening bell today, 20 January 2015. The US stock market was closed yesterday, 19 January 2015, for Martin Luther King, Jr. Day holiday.
Powered by Capital Market - Live News