High volatility was witnessed as key benchmark indices extended initial gains in morning trade. The high volatility on the bourses materialised after election trends showed that the Aam Aadmi Party (AAP) was heading for a landslide victory in Delhi assembly elections and that the party will be able to form the next government in the state. The barometer index, the S&P BSE Sensex, was currently up 204.34 points or 0.72% at 28,431.73. The market breadth indicating the overall health of the market was quiet strong, with more than two gainers for every loser on BSE.
DLF dropped on weak Q3 results. Mangalore Refinery and Petrochemicals (MRPL) rose after the company said that its board of directors at a meeting yesterday, 9 February 2015, approved acquiring a major stake in ONGC Mangalore Petrochemicals (OMPL).
On the political front, election trends showed that the Aam Aadmi Party (AAP) was heading for a landslide victory in Delhi assembly elections and that the party will be able to form the next government in the state. As per the leads available so far, AAP was leading in 56 seats and the Bharatiya Janata Party (BJP) was leading in 8 seats. The Congress party was leading in just 1 seat. Counting of votes of Delhi assembly elections is underway with final results due later in the day today, 10 February 2015. A party needs 36 seats to form government in the 70-member Delhi assembly.
Meanwhile, according to the advance estimates of National Income, 2014-15 from the Ministry of Statistics & Programme Implementation released after trading hours yesterday, 9 February 2015, India's Gross Domestic Product (GDP) growth is likely to accelerate to 7.4% in 2014-15, from 6.9% growth in 2013-14 and 5.1% growth in 2012-13.
Foreign portfolio investors sold shares worth a net Rs 660.30 crore yesterday, 9 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 469.55 crore yesterday, 9 February 2015, as per provisional data.
Earlier, the Sensex and the 50-unit CNX Nifty, both, bounced after hitting 3-1/2-week low at the onset of the trading session.
In overseas markets, Asian stocks were mixed. US stocks fell yesterday, 9 February 2015, dragged down by a sell-off in European markets, as investors were unnerved by the deepening standoff between Greece and its creditors.
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In the foreign exchange market, the rupee strengthened past 62 against the dollar as key equity benchmark indices in India gained.
Brent crude oil futures edged lower after the International Energy Agency (IEA) said the United States will remain the world's top source of oil supply growth until to 2020.
At 10:20 IST, the S&P BSE Sensex was up 204.34 points or 0.72% at 28,431.73. The index jumped 295.38 points at the day's high of 28,522.77 in early trade. The index fell 182.90 points at the day's low of 28,044.49 in early trade, its lowest level since 16 January 2015.
The CNX Nifty was up 59 points or 0.69% at 8,585.35. The index hit a high of 8,613.35 in intraday trade, its highest level since 6 February 2015. The index hit a low of 8,470.50 in intraday trade, its lowest level since 16 January 2015.
The BSE Mid-Cap index was up 98.27 points or 0.95% at 10,342.27. The BSE Small-Cap index was up 97.63 points or 0.89% at 10,911.54. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quiet strong, with more than two gainers for every loser on BSE. On BSE, 1,321 shares rose and 528 shares fell. A total of 49 shares were unchanged.
Mangalore Refinery and Petrochemicals (MRPL) rose 2.49% after the company said that its board of directors at a meeting on 9 February 2015, approved acquiring a major stake in ONGC Mangalore Petrochemicals (OMPL). MRPL was holding 3% of the paid up equity of OMPL, which has been increased to 46% by purchasing fully paid up equity shares from individual shareholders, MRPL said in a statement. MRPL is a subsidiary of the state-run ONGC, which held 71.63% stake in MRPL as at 31 December 2014.
Meanwhile, ONGC said in a separate announcement said that it already holds 46% of paid up share capital of OMPL. Consequently, subsequent to the acquisition of 43% stake in OMPL by MRPL as above, OMPL has now become a subsidiary of ONGC.
Shares of ONGC fell 0.63%.
DLF dropped 2.54% on weak Q3 results. DLF's consolidated net profit fell 9.29% to Rs 131.79 crore on 19.7% decline in total income to Rs 2079.82 crore in Q3 December 2014 over Q3 December 2013. The company announced Q3 results after market hours yesterday, 9 February 2015. DLF's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 20% to Rs 918 crore in Q3 December 2014 over Q3 December 2013.
In a post-result statement, DLF said that the company witnessed continued interest from actual users in the super luxury & luxury segment during the quarter. The company expects sales volume of residential products to reach normal volumes in the next 12-18 months. Rental business which is a leading indicator of demand continues to grow at targeted pace, DLF said. The realty major said that the outlook in the office leasing business is much better given the current demand-supply situation. As rate of inflation abates, further reduction of interest rates will lead to better GDP growth rates leading to more demand in both the residential and commercial segments of real estate, DLF said. DFL further said that the company remains committed to its medium term goals as articulated in February 2013 although the timelines of its implementation have been adversely impacted due to slower GDP growth and uncertainties due to the Sebi (Securities & Exchange Board of India) restrictions.
In the foreign exchange market, the rupee strengthened past 62 against the dollar as key equity benchmark indices in India gained. The partially convertible rupee was hovering at 61.96, compared with its close of 62.175 during the previous trading session.
Brent crude oil futures edged lower after the International Energy Agency (IEA) said the United States will remain the world's top source of oil supply growth until to 2020, defying expectations of a more dramatic slowdown in shale output growth. Brent for March settlement was off 65 cents at $57.69 a barrel. The contract had advanced 54 cents or 0.93% to settle at $58.34 a barrel during the previous trading session.
On macro front, according to the advance estimates of National Income, 2014-15 from the Ministry of Statistics & Programme Implementation released after trading hours yesterday, 9 February 2015, India's Gross Domestic Product (GDP) growth is likely to accelerate to 7.4% in 2014-15, from 6.9% growth in 2013-14 and 5.1% growth in 2012-13. The advance estimate for 2014-15 is based on a new method of calculating GDP, which the Ministry of Statistics & Programme Implementation unveiled on 30 January 2015. The Ministry of Statistics & Programme Implementation also released GDP growth for Q3 December 2014. It said the economy expanded 7.5% in Q3 December 2014, which was lower than a revised 8.2% growth in Q2 September 2014. The revised GDP growth figure for Q1 June 2014 stands at 6.5%.
The Ministry of Statistics & Programme Implementation revised the way it measures GDP on 30 January 2015. It brought forward the base year used in national economy calculations by seven years to 2011-12 from 2004-05. It also switched from using production costs to market prices. Changes in the base year are made every five years.
Finance Minister Arun Jaitley yesterday, 9 February 2015, said that the overall economic situation in the country is looking better and basic parameters of Indian economy are moving in the right direction. Jaitley said that current account deficit will be under control and he will try to keep fiscal deficit also within the prescribed limit. The Finance Minister said that the growth rate would be better than the last year as per the old system. The Finance Minster was making the opening remarks at the First Meeting of the Parliamentary Consultative Committee attached to his Ministry to discuss 'Suggestions for the Budget'. Jaitley's comments came before the release of the latest economic data from the Ministry of Statistics & Programme Implementation.
Regarding bringing back the black money stashed abroad, the Finance Minister said that India will soon become part of international consortium where the focus would be on automatic transfer of information which would in turn help the government in getting easy access to such foreign accounts of Indian residents.
Asian stocks were mixed today, 10 February 2015. Key indices in Taiwan, Japan, Indonesia, and South Korea were down 0.12% to 0.8%. Key indices in and China, Hong Kong and Singapore rose by 0.02% to 0.84%.
China's consumer inflation slipped to a five-year low in January, which will likely give the central bank more scope for further policy easing. China's consumer-price index rose 0.8% in January from a year earlier, slower than a 1.5% year-over-year rise in December, data from the National Bureau of Statistics showed today, 10 February 2015.
US stocks fell yesterday, 9 February 2015, dragged down by a sell-off in European markets, as investors were unnerved by the deepening standoff between Greece and its creditors.
In Europe, the probability of Greece leaving the euro zone has risen several notches as Greece has taken an increasingly hard line over its government debt. Prime Minister Alexis Tsipras on Sunday, 8 February 2015, ruled out extending Greece's bailout deal and said some of the reforms imposed by lenders would be reversed. European Commission President Jean-Claude Juncker raised tensions further yesterday, 9 February 2015, by saying Greeks should not expect the euro zone to accept their latest terms.
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