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Sensex retains positive zone

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Capital Market
Last Updated : Jan 29 2014 | 11:59 PM IST

Key benchmark indices hovered in positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 88.58 points or 0.43%, off 56.59 points from the day's high and up 37.81 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Gains in Asian stocks underpinned sentiment on the domestic bourses.

Index heavyweight and cigarette major ITC edgd lower. Reliance Industries (RIL) reversed intraday gains in volatile trade. NTPC gave away almost entire initial gains triggered by the company reporting good Q3 result after market hours on Tuesday, 28 January 2014. Many capital goods shares were in demand on renewed buying.

Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices trimmed initial gains in morning trade. Key benchmark indices recovered from lower level after trimming initial gains in mid-morning trade.

Foreign institutional investors (FIIs) sold shares worth a net Rs 1267.35 crore on Tuesday, 28 January 2014, as per provisional data from the stock exchanges.

The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire tomorrow, 30 January 2014.

Asian stocks edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets.

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At 12:15 IST, the S&P BSE Sensex was up 88.58 points or 0.43% to 20,772.09. The index jumped 145.17 points at the day's high of 20,828.68 in early trade, its highest level since 27 January 2014. The index rose 50.77 points at the day's low of 20,734.28 in early afternoon trade.

The CNX Nifty was up 30.25 points or 0.49% to 6,156.50. The index hit a high of 6,170.45 in intraday trade, its highest level since 27 January 2014. The index hit a low of 6,146.45 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,269 shares gained and 944 shares fell. A total of 151 shares were unchanged.

The total turnover on BSE amounted to Rs 741 crore by 12:15 IST, compared with Rs 553 crore by 11:15 IST.

Among the 30-share Sensex pack, 20 stocks gained and rest of them declined.

Index heavyweight and cigarette major ITC fell 0.78% to Rs 324.60. The stock hit high of Rs 328.30 and low of Rs 324.25 so far during the day.

Reliance Industries (RIL) reversed intraday gains in volatile trade. The stock was off 0.1% at Rs 844.95. The stock hit high of Rs 852 and low of Rs 844.50 so far during the day.

NTPC gave away almost entire initial gains triggered by the company reporting good Q3 result after market hours on Tuesday, 28 January 2014. The stock was up 0.08% at Rs 128.80. The stock hit a high of Rs 131.80 and low of Rs 128.55 so far during the day. The company's net profit rose 10.18% to Rs 2861.28 crore on 18.21% increase in total income to Rs 19554.07 crore in Q3 December 2013 over Q3 December 2012.

NTPC's board of directors at its meeting held on 28 January 2014 recommended an interim dividend of Rs 4 per share for the year ending 31 March 2014. The date of payment/dispatch of dividend shall be 10 February 2014, NTPC said.

Many capital goods shares were in demand on renewed buying. ABB (up 0.5%), Bharat Heavy Electricals (Bhel) (up 2.4%), BEML (up 1.67%), L&T (up 1.06%), Siemens (up 1.58%) gained.

Walchandnagar Industries lost 3.3% after the company reported net loss of Rs 33.30 crore in Q1 December 2013, higher than net loss of Rs 16.92 crore in Q1 December 2012. Walchandnagar Industries' net sales declined 12.7% to Rs 143.72 crore in Q1 December 2013 over Q1 December 2012. The Q1 result was announced after market hours on Tuesday, 28 January 2014.

OnMobile Global lost 11.35% after the company reported consolidated net loss of Rs 8.37 crore in Q3 December 2013 as against net profit of Rs 20.64 crore in Q3 December 2012. OnMobile Global's consolidated net sales rose 28% to Rs 225.47 crore in Q3 December 2013 over Q3 December 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) declined 32.5% to Rs 29.50 crore in Q3 December 2013 over Q3 December 2012. EBITDA excluding forex declined 25.4% to Rs 29.50 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Tuesday, 28 January 2014.

In the foreign exchange market, the rupee edged higher against the dollar, tracking gains in the Asian currency markets after Turkey stunned investors with a huge hike in interest rates to support its currency lira. The partially convertible rupee was hovering at 62.12, compared with its close of 62.51/52 on Tuesday, 28 January 2014.

Turkey's central bank raised its repurchase rate to 10% from 4.5% and boosted other key borrowing costs at a late-night emergency meeting on Tuesday, 28 January 2014. Turkey's currency's slide to a record low coupled with Argentina's devaluation of the peso and concern over China's economy ignited a rout in world equity markets at the end of last week.

The Reserve Bank of India has not raised interest rates to fight off the recent global emerging market sell-off, but to tamp down inflationary pressures, Governor Raghuram Rajan said today, 29 January 2014. "I think for (some) time we have been saying very clearly we are focused on preserving the value of the rupee, in the domestic context," he told analysts on a conference call a day after the central bank unexpectedly raised its key rate by 25 basis points. "Preserving it in the domestic context will preserve it in the international context. Preserving in the domestic context means bringing inflation under control. Once we do that, we believe investor confidence naturally follows," he said.

Dr. Rajan said he would have liked to see a greater reduction in core inflation. The Reserve Bank of India (RBI) raised its main lending rate viz. the repo rate by 25 basis points to 8% after Third Quarter Review of Monetary Policy for 2013-14 on Tuesday, 28 January 2014, to rein in high consumer price inflation.

Asian stocks edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets. Key benchmark indices in Hong Kong, China, Japan, Indonesia and South Korea rose by 0.6% to 2.7%. In Singapore, the Straits Times index fell 0.69%. Stock markets in Taiwan are closed untill 4 February 2014 for the Lunar New Year holiday.

Industrial output in South Korea increased 3.4 percent in December from November, the biggest gain since June 2009.

Trading in US index futures indicated that the Dow could advance 72 points at the opening bell on Wednesday, 29 January 2014. US stocks edged higher on Tuesday, 28 January 2014, as earnings at companies from Pfizer Inc. to D.R. Horton Inc. topped estimates.

The Conference Board's index of US consumer confidence rose to 80.7 in January from a revised 77.5 in December, the New York-based private research group said on Tuesday, 28 January 2014.

Federal Reserve officials have been scrutinizing US economic data to determine the timing and pace of reductions to asset purchases. The central bank, which concludes a two-day meeting today, 29 January 2014, decided at its December gathering to begin cutting its monthly bond buying by $10 billion to $75 billion.

US President Barack Obama on Tuesday, 28 January 2014, vowed aggressive action on helping the US economy, saying he would bypass Congress on key issues including creating a new retirement-savings program and raising the minimum wage for workers on new federal contracts. In his State of the Union address, Obama said the economy has grown for four years, that corporate profits and stock prices have "rarely been higher," and wealthy Americans have benefitted. But he said average wages have hardly budged, and inequality has deepened. "America does not stand still," he said. "And neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do," Obama said.

In his speech, Obama called on Congress to raise the minimum wage for all workers, fix the immigration system, and expand the Earned Income Tax Credit. He said that he would make it easier for states to build factories that use natural gas and that Congress should fund building of fueling stations.

Republicans slammed the president for his pledge to go solo to help narrow the economic gap. "Instead of our areas of common ground, the president focused too much on the things that divide us - many we've heard before - and warnings of unilateral action. The president must understand his power is limited by our constitution," House Speaker John Boehner said in a statement

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First Published: Jan 29 2014 | 12:22 PM IST

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