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Sensex reclaims 29,000 level

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Capital Market
Last Updated : Feb 05 2015 | 12:01 AM IST

After a range bound movement in early afternoon trade, key benchmark indices edged higher in afternoon trade. The barometer index, the S&P Sensex, regained the psychological 29,000 mark, having alternately moved above and below that level in intraday trade so far. The market breadth indicating the overall health of the market was negative. The Sensex was currently up 48.65 points or 0.17% at 29,048.79. Global crude oil prices surged overnight. Asian shares edged higher amid receding fears over Greece.

Prime Minister Narendra Modi yesterday, 3 February 2015, said that the priority of the government is growth and to create jobs. Meanwhile, the outcome of a monthly survey released today, 4 February 2015, showed expansion in India's services sector activity in January 2015.

Power equipment Bharat Heavy Electricals (Bhel) reversed direction after hitting 52-week high. Adani Enterprises hit 52-week high. Canara Bank gained after the state-run bank reported strong Q3 result. Realty stocks logged sharp gains. Tyre stocks fell across the board.

Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit 2-week low in mid-morning trade as these two key benchmark indices reversed direction after a firm start.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 264.35 crore yesterday, 3 February 2015, as per provisional data.

In overseas market, Asian shares edged higher amid receding fears over Greece. US stocks surged yesterday, 3 February 2015, as equities kept pace with surging crude-oil prices.

In the foreign exchange market, the rupee edged lower against the dollar.

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Brent crude oil futures edged lower after a sharp surge during the preceding trading session. The recent rebound in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. The rebound in crude oil prices comes after a steep slide in prices over the past few months. India imports about 80% of its crude oil requirements.

At 13:17 IST, the S&P BSE Sensex was up 48.65 points or 0.17% at 29,048.79. The index fell 133.14 points at the day's low of 28,867 in mid-morning trade, its lowest level since 21 January 2015. The index jumped 133.48 points at the day's high of 29,133.62 in mid-morning trade.

The CNX Nifty was up 12.30 points or 0.14% at 8,768.85. The index hit a low of 8,716.40 in intraday trade, its lowest level since 21 January 2015. The index hit a high of 8,792.85 in intraday trade.

The BSE Mid-Cap index was up 18.11 points or 0.17% at 10,786.34, with the rise in the index matching the Sensex's rise in percentage terms. The BSE Small-Cap index was up 45.35 points or 0.4% at 11,472.13, outperforming the Sensex.

The market breadth indicating the overall health of the market was negative. On BSE, 1,343 shares declined and 1,340 shares advanced. A total of 125 shares were unchanged.

The total turnover on BSE amounted to Rs 2651 crore by 13:15 IST.

Bharat Heavy Electricals (Bhel) lost 2.54% to Rs 289.45. The stock reversed direction after scaling 52-week high of Rs 299.50 in intraday trade.

NTPC fell 1.01% to Rs 142.50. The stock turned ex-dividend today, 4 February 2015, for an interim dividend of Rs 0.75 per share for the year ending 31 March 2015.

Adani Enterprises gained 2.9% to Rs 659.90 after hitting a 52-week high of Rs 664.65 in intraday trade.

Canara Bank rose 2.71%. The state-run bank during market hours today, 4 February 2015, reported 60.24% rise in net profit to Rs 655.97 crore on 11.82% rise in total income to Rs 12227.86 crore in Q3 December 2014 over Q3 December 2013.

Canara Bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.42% as on 31 December 2014, compared with 2.31% as on 30 September 2014 and 2.39% as on 31 December 2013.

The bank's ratio of gross NPAs to gross advances stood at 3.35% as on 31 December 2014, compared with 2.92% as on 30 September 2014 and 2.79% as on 31 December 2013.

Provisions and contingencies fell 19.98% to Rs 841.33 crore in Q3 December 2014 over Q3 December 2013. The provisioning coverage ratio as on 31 December 2014 stood at 59.44%.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 9.87% as on 31 December 2014, compared with 10.19% as on 30 September 2014 and 9.83% as on 31 December 2013.

Realty stocks logged sharp gains. DLF (up 5.03%), Indiabulls Real Estate (up 2.88%), Housing Development and Infrastructure (up 7.57%), D B Realty (up 2.84%), Sobha (up 1.36%), Unitech (up 4%), Godrej Properties (up 0.53%), Oberoi Realty (up 0.88%) and Parsvnath Developers (up 1.93%) edged higher.

Tyre stocks fell across the board. Apollo Tyres (down 2.33%), CEAT (down 1.25%), JK Tyre & Industries (down 1.39%) and TVS Srichakra (down 1.03%) declined. Goodyear India rose 0.07%.

MRF shed 0.91% to Rs 40,225. Shares of MRF turned ex-dividend today, 4 February 2015. for final dividend of Rs 44 per share for the year ended 30 September 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.705, compared with its close of 61.68 during the previous trading session.

Brent crude oil futures edged lower in volatile trade. Brent for March settlement was off 4 cents at $57.87 a barrel. The contract had jumped $3.16 a barrel or 5.8% to settle at $57.91 a barrel during the previous trading session.

The outcome of a monthly survey released today, 4 February 2015, showed a solid expansion in India's services sector activity in January 2015. The HSBC India Services PMI Business Activity Index edged up to 52.4 in January 2015, from 51.1 in December 2014. According to survey responses, the latest increase in the services activity reflected further growth of new business during the month. Indian service providers were the most upbeat regarding the 12-month outlook for activity since mid- 2014. Panel members attributed optimism to anticipated improvements in demand and new commercial initiatives. Input costs faced by Indian services firms rose for the second straight month in January, having fallen for the first time in more than five-and-a-half years in November. The rate of cost inflation picked up to the sharpest in six months, although it remained muted in the context of historical data. Prices charged in the Indian service economy also increased for the second consecutive month in January.

Prime Minister Narendra Modi yesterday, 3 February 2015, said that his priority was for India to establish global benchmarks in areas such as governance, transparency and taxation. Interacting over dinner with participants of the BlackRock India Investor Summit, he said that the priority of the government is growth and to create jobs. The Prime Minister said infrastructure development is one of the best routes to create jobs for the youth. He said India requires both expansion and upgradation of its infrastructure. He said the Railways could become a growth engine for the economy. The Prime Minister said the goal of Affordable Housing for all by 2022, would in itself, provide a huge boost for the economy. In terms of the education system, he said the best in the world should be there in India as well. The Prime Minister said he believes in a fair, predictable and consistent tax system, and in economic policies that will drive growth.

The Reserve Bank of India (RBI) left its benchmark lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review yesterday, 3 February 2015, as the central bank is awaiting further evidence to gauge whether the disinflationary process is continuing. Earlier, the RBI had surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy.

Asian share markets tracked US market higher today as revived risk sentiment dented the US dollar and sovereign bonds. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.2% to 1.98%.

China's Shanghai Composite fell 0.96%. The HSBC China services purchasing managers index fell to a six-month low at 51.8 in January from 53.4 in December, HSBC Holdings PLC said Wednesday, pointing to a slowdown outside the nation's factory sector. Despite the fall in the index, service activity was still expanding from the previous month, although at a slower rate.

The HSBC Hong Kong Purchasing Managers Index contracted in January, a signal of the city's deteriorating output at the start of 2015 amid China's economic slowdown. HSBC said Wednesday that January's manufacturing PMI fell to 49.4 from 50.3 in December. A reading below 50 indicates a contraction in manufacturing, while a reading above that indicates an expansion.

Trading in US index futures indicated a flat opening of US stocks today, 4 February 2015. US market ended higher for second day in a row on Tuesday, 3 February 2015, led by energy shares as oil prices extended their recent rally, while higher-than-expected January car sales also bolstered the advance.

In Europe, Greece's Finance Minister Yanis Varoufakis reportedly said yesterday, 3 February 2015, that Athens was working on a road map to lessen the burden of his country's hefty debt pile, and he hoped to have an agreement with Greece's creditors by the beginning of June. That's a sign Greece's new government was moving closer in its negotiations with its creditors to easing the terms on the country's 240 billion-euro bailout in 2012.

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First Published: Feb 04 2015 | 1:15 PM IST

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