Key benchmark indices hovered between gains and losses near the flat line in early trade. The barometer index, the S&P BSE Sensex was currently down 12.70 points or 0.05% at 27,572.57. The market breadth indicating the overall health of the market was strong. Metal and capital goods stocks gained.
Data after market hours yesterday, 12 January 2015, showed rebound of industrial output in November 2014 and the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose in December 2014.
In overseas markets, most Asian markets rose after data showed China's exports climbed more than estimated in December 2014. US stocks ended lower yesterday, 12 January 2015, led by another sharp decline in energy shares as oil prices tumbled about 5% and concern grew ahead of corporate earnings season.
Foreign portfolio investors bought shares worth a net Rs 244.95 crore on Monday, 12 January 2015, as per provisional data.
Oil extended losses amid speculation that US crude stockpiles will increase, exacerbating a global supply glut that's driven prices to the lowest in more than 5-1/2 years. 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.
At 9:31 IST, the S&P BSE Sensex was down 12.70 points or 0.05% at 27,572.57. The index declined 30.50 points at the day's low of 27,554.77 in early trade. The index rose 84.92 points at the day's high of 27,670.19 in early trade.
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The CNX Nifty was up 3.65 points or 0.04% at 8,326.65. The index hit a high of 8,356.30 in intraday trade. The index hit a low of 8,321.85 in intraday trade.
The BSE Mid-Cap index was up 40.18 points or 0.38% at 10,526.36. The BSE Small-Cap index was up 48.70 points or 0.43% at 11,340.20. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 997 shares advanced and 545 shares declined. A total of 56 shares were unchanged.
Sesa Sterlite rose 0.32%. The company after market hours yesterday, 12 January 2015 in a clarification with regard to news item titled "HZL, Sesa Sterlite and Cairn India to be merged with the Vedanta Group said that the media reports were on the basis of an interview by the Press Trust of India with its Chairman Emeritus, Mr.Anil Agarwal/Chairman, Vedanta Resources Plc. Sesa Sterlite said its management evaluates various strategies from time to time to create value for shareholders. The company added that at this point of time there is no definite proposal for any merger and no such event or negotiations have taken place. Sesa Sterlite said it has simplified its corporate structure and it will always explore ways that can further help simplify the corporate structure of the group. At various points, the company receive solicited and unsolicited comments from various experts on restructuring and related questions, Sesa Sterlite said. If there is any such event which is considered by the Board of Directors of the company, as in the past, the company will make appropriate announcement to the stock exchange, Sesa Sterlite said.
IndusInd Bank rose 1.48% ahead of its Q3 results today, 13 January 2015.
Asian Paints gained 3.61%. The company after market hours yesterday, 12 January 2015, in a clarification with regard to news item titled Asian Paints in talks for Rs 2500-crore project in South said the company has been exploring the possibility of setting up a paint manufacturing plant and is in talks with some of the southern states of the country since the last four to five years. It usually takes three to four years for the company for setting up a paint manufacturing plant including acquisition of land, obtaining all necessary environmental and other clearances and approvals, Asian Paints said. The final capacity of the proposed paint plant will be dependent on the location and area of the land allotted to the company, it added. The cost of setting up a manufacturing plant of a capacity in the range of 4 lakh KL to 6 lakh KL, subject to various factors would be approximately Rs 2000 crore to Rs 2500 crore, Asian Paints said. Since the company has not been allotted the required land and pending other approvals, as may be required for setting up the said manufacturing facility, the company has not made any announcements in this regard, Asian Paints said. As soon as the required land is allotted to the company and necesssary approvals for setting up of the paint plant are granted by the concerned state government, the company will promptly make appropriate disclosures including the location and the details of the investment, it added.
As regards the company's greenfield venture in Indonesia is concerned, the company vide its letters dated 22 August 2014 and 1 October 2014 had made announcements that the company had made an application for investment approval for setting up a greenfield paint manufacturing facility in Indonesia. The Badan Koordinasi Penanaman Modal (BKPM), the investment coordinating Board of Republic of Indonesia had approved the investment application and issued a principal license for setting up manufacturing facility. The company had further informed that the further steps to be taken for setting up the greenfield operations in Indonesia will be subject to necessary regulatory and other approvals, Asian Paints said.
Regarding the company's proposed acquisition of 51% stake in Kadisco Paint and Adhesive Industry Share Company, Ethiopia, (Kadisco) the company had made announcement dated 22 October 2014, wherein the company had stated that, Berger International, Singapore (indirect subsidiary of the company) had signed the share purchase agreement and other definitive agreements and documents to acquire 51% stake in Kadisco. The company had further stated that the acquisition would be subject to regulatory approvals, Asian Paints said.
Reliance Industries (RIL) declined 0.18%. The company after market hours yesterday, 12 January 2015 in a clarification with regard to news item titled Reliance announces Rs 1 lakh cr investment in 12-18 months said that this is just a reiteration of the statement, inter alia made by its Chairman in his speech at the fortieth annual general meeting of the company held on 18 June 2014. He said at that time In the past 37 years, we invested Rs 240000 crore and in this current three years' investment cycle, we will be investing over Rs 180000 crore. We are currently at the mid-point of the largest investment programee in Reliance's history. The next two years, 2014-15 and 2015-16, will see us focussed on executing and progressively bringing these projects on-stream in petrochemicals, refining, retail, and Jio.
RIL further said that the Chairman has mentioned clearly at the Summit inauguration function referred to in the subject newspaper report that the company will invest over Rs 100000 crore in the next 12-18 months in contributing to the Make-In-India and Digital India initiatives.
On macro front, India's Index of industrial production (IIP) increased at five-months high pace of 3.8% in November 2014, recovering from the sharpest pace in three-years at 4.2% recorded in October 2014. The manufacturing sector's output growth rebounded to 3.8% in November 2014, snapping the largest decline in the last five-and-a-half years at 7.4% recorded in October 2014.
The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months. An increase in inflation food items contributed entirely to the inflation rise in November 2014. The IIP and CPI data was announced after market hours yesterday, 12 January 2015.
The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon tomorrow, 14 January 2015.
Most Asian markets rose after data showed China's exports climbed more than estimated in December 2014. Key benchmark indices in China, Hong Kong, Indonesia and Taiwan were up by 0.26% to 0.74%. Key benchmark indices in Japan, Singapore and South Korea were off 0.12% to 1.91%.
China's exports climbed more than estimated last month as stronger demand from abroad helps bolster growth. Overseas shipments rose 9.7% in December from a year earlier. Imports fell 2.4%, leaving a trade surplus of $49.61 billion, the customs administration said in Beijing.
US stocks ended lower yesterday, 12 January 2015, led by another sharp decline in energy shares as oil prices tumbled about 5% and concern grew ahead of corporate earnings season.
Meanwhile in Europe, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. 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.
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