Weakness during the latter part of the trading session pulled key benchmark indices lower. The decline in percentage terms in the barometer index, the S&P BSE Sensex, was much higher than the decline in the 50-unit CNX Nifty. The market breadth indicating the overall health of the market turned negative from positive in late trade. The Sensex was provisionally off 137.52 points or 0.5% at 27,447.75. The CNX Nifty was provisionally off 23.60 points or 0.28% at 8,299.40. Global crude oil prices slumped. India stands to benefit from a rout in global crude oil prices given that the nation meets 80% of its crude oil requirements from imports.
Macroeconomic data released after trading hours yesterday, 12 January 2015, showed a lower-than-expected acceleration in inflation based on the consumer price indices last month. Finance Minister Arun Jaitely yesterday, 12 January 2015, said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so.
IndusInd Bank dropped in volatile trade as the bank's gross non-performing assets (NPAs) rose on absolute basis in Q3 December 2014. Realty stocks dropped. Oil exploration firms declined along with fall in crude oil prices.
Earlier, the Sensex had hit one-week high in early trade and Nifty had hit its highest level in more than a week in mid-afternoon trade.
In overseas markets, European stocks edged higher as gains in retailers outweighed a decline in energy companies. Asian stocks were mixed. US stocks edged lower for the second day in a row yesterday, 12 January 2015, as a renewed assault on oil prices eroded investor confidence ahead of the start of fourth-quarter earnings season.
Meanwhile, foreign portfolio investors bought shares worth a net Rs 244.95 crore yesterday, 12 January 2015, as per provisional data.
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In the foreign exchange market, the rupee edged higher against the dollar.
Global crude oil prices extended losses after a steep slide in prices yesterday, 12 January 2015, 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.
As per provisional figures, the S&P BSE Sensex was down 137.52 points or 0.5% at 27,447.75. The index slumped 260.69 points at the day's low of 27,324.58 in late trade. The index rose 84.92 points at the day's high of 27,670.19 in early trade, its highest level since 6 January 2015.
The CNX Nifty was down 23.60 points or 0.28% at 8,299.40, as per provisional figures. The index hit a low of 8,267.90 in intraday trade. The index hit a high of 8,356.65 in intraday trade, its highest level since 5 January 2015.
The total turnover on BSE amounted to Rs 3981 crore, higher than Rs 3019.46 crore yesterday, 12 January 2015.
The BSE Mid-Cap index was up 6.59 points or 0.06% at 10,492.77, outperforming the Sensex. The BSE Small-Cap index was off 39.99 points or 0.35% at 11,251.51. The decline in the index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,541 shares declined and 1,381 shares rose. A total of 93 shares were unchanged.
Realty stocks dropped. DLF (down 2.78%), D B Realty (down 2.47%), Unitech (down 5.29%), Housing Development & Infrastructure (HDIL) (down 2.53%), Godrej Properties (down 0.71%), Parsvnath Developers (down 0.82%), Oberoi Realty (down 1.02%) and Prestige Estates (down 0.16%) edged lower.
Oil exploration firms declined along with fall in crude oil prices. ONGC (down 2.37%), Cairn India (down 0.4%) and Oil India (down 3.05%) dropped. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Reliance Industries (RIL) declined 0.7%. 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.
IndusInd Bank edged lower in volatile after reporting strong Q3 results. The stock was off 1.06% at Rs 822.55. The stock hit high of Rs 849 and low of Rs 818. IndusInd Bank's net profit jumped 28.91% to Rs 447.19 crore on 16.15% rise in total income to Rs 3047.70 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 13 January 2015.
The bank's provisions and contingencies declined 22.31% to Rs 98.01 crore in Q3 December 2014 over Q3 December 2013. The bank's provisions and contingencies surged on a sequential basis. Provisions and contingencies jumped 33.89% to Rs 98.01 crore in Q3 December 2014 over Q2 September 2013. The provision coverage ratio (PCR) stood at 70.04% as on 31 December 2014. The ratio of Current and Savings Accounts (CASA) deposits stood at 34% as on 31 December 2014, higher than 33.9% as on 30 September 2014.
On absolute basis, gross non-performing assets (NPAs) edged up to Rs 672.66 crore as on 31 December 2014, from Rs 654.54 crore as on 30 September 2014 and Rs 625.84 crore as on 31 December 2013. The ratio of gross NPAs to gross advances declined to 1.05% as on 31 December 2014, from 1.08% as on 30 September 2014 and 1.18% as on 31 December 2013. The ratio of net NAPs to net advances declined to 0.32% as 31 December 2014, from 0.33% as on 30 September 2014. The ratio of net NAPs to net advances edged up on year-on-year basis. The ratio of net NAPs to net advances edged up to 0.32% as 31 December 2014, from 0.31% as on 31 December 2013.
IndusInd Bank's net interest income (NII) rose 18% to Rs 861.37 crore in Q3 December 2014 over Q3 December 2013. Net interest margin (NIM) edged up to 3.67% in Q3 December 2014, from 3.65% in Q3 December 2013. The NIM was 3.63% in Q2 September 2014. The bank's core fee income jumped 22% to Rs 522.27 crore in Q3 December 2014 over Q3 December 2013.
As on December 31, 2014 the total advances were at Rs 63847 crore and total deposits were at Rs 69376 crore, showing a year-on-year growth of 21% and 23% respectively.
Reliance Communications dropped 1.86%. With respect to news titled "RCOM to Outsource Call Centre Ops to Vertex India," Reliance Communications clarified during market hours that as a part of the regular and ongoing business activities and in order to render specialised and customised services efficiently to its customers, the company has outsourced its captive call centre services to Vertex India vide long term contract between the parties.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.125, compared with its close of 62.165 during the previous trading session.
Brent crude oil futures extended losses after a steep slide yesterday, 12 January 2015, 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. Brent for February settlement was off $1.62 a barrel at $45.81 a barrel. The contract had lost $2.68 a barrel or 5.4% to settle at $47.43 a barrel during the previous trading session, its lowest finish since March 2009. Brent for March settlement was off $2.08 a barrel at $46.62 a barrel.
Reserve Bank of India (RBI) Deputy Governor Dr. Urjit Patel yesterday, 12 January 2015, said that the dramatic fall in oil prices is a boon for India. It saves, on an annualised basis, around $50 billion, roughly, which is one-third of India's annual gross POL imports of about $160 billion, Patel said in a speech at an event in Mumbai. The welcome development enhances disposable income (which will increase consumer demand for other goods and services), reduce input cost for businesses (which will increase margins and help to enthuse investment demand) and aid government finances by reducing the energy subsidy burden in the budget, Patel said.
India's index of industrial production (IIP) increased at five-months high pace of 3.8% in November 2014, recovering from the sharpest pace of decline in three-years at 4.2% recorded in October 2014, data released by the government yesterday, 12 January 2015, showed. 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 on 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.
Finance Minister Arun Jaitely yesterday, 12 January 2015, said that the government has taken major steps to improve the investment climate in the last several months and it will continue to do so. Speaking at the Seminar Invest in India Summit 2015 - Financing for Future Growth, held on the sidelines of Vibrant Gujarat, in Gandhinagar, Jaitely said that in the near future, the nationwide goods and services (GST) tax could become a reality and further improve the investment climate.
On the political front, the Election Commission (EC) yesterday, 12 January 2015, announced that the assembly election will be held in Delhi on 7 February 2015 and counting of votes will take place on 10 February 2015. With the declaration of the poll schedule, the Model Code of Conduct will come into force with immediate effect, the EC said. The last government in Delhi was headed by the Aam Aadmi Party (AAP) but Chief Minister Arvind Kejriwal resigned 49 days after assuming office.
European stocks edged higher in volatile trade today, 13 January 2015, as gains in retailers outweighed a decline in energy companies. Key benchmark indices in France, Germany and UK were up 0.65% to 0.74%.
UK's inflation dropped by worse than expected 0.5% in December.
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 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.
Asian stocks were mixed today, 13 January 2015. Key benchmark indices in China, Hong Kong, Indonesia and Taiwan were up by 0.19% to 0.79%. Key benchmark indices in Japan, Singapore and South Korea were off 0.11% to 0.64%.
China's exports rose 9.7 %in December from a year earlier on the back of stronger overseas demand, data released by the General Administration of Customs today, 13 January 2015, showed. The growth was higher than 4.7% rise in November. December imports fell 2.4% from a year earlier after a 6.7% fall in November. China's trade surplus narrowed to $49.61 billion in December from $54.47 billion in November.
Trading in US index futures indicated that the Dow could gain 58 points at the opening bell today, 13 January 2015. US stocks ended lower yesterday, 12 January 2015, led by another sharp decline in energy shares as oil prices tumbled and concern grew ahead of corporate earnings season.
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