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Volatility to the fore

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Capital Market
Last Updated : Apr 14 2015 | 12:01 AM IST

Volatility ruled the roost as key benchmark indices recovered from lower level soon after erasing a lion's portion of intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 29,000 mark, having alternately moved above and below that mark so far during the trading session. The Sensex was currently up 96.29 points or 0.33% at 28,975.67. The market breadth indicating the overall health of the market was strong. Small-cap stocks were in demand. Among the gainers from the constituents of the BSE Small-Cap index, gains ranged from 2% to about 20% for quite a few stocks. In overseas markets, Chinese stocks surged.

Index heavyweight Reliance Industries (RIL) rose in volatile trade. Auto stocks edged lower.

On the macro front, data released by the government after trading session on Friday, 10 April 2015, showed a pick up in industrial production growth in February this year.

Meanwhile, Prime Minister Narendra Modi yesterday, 12 April 2015, said that the highest priority for the government is creating world class infrastructure.

Earlier, the Sensex and the 50-unit CNX Nifty, had, both, hit their highest level in more than four weeks in early afternoon trade as these two key benchmark indices extended intraday gains.

The stock market remains closed tomorrow, 14 April 2015, on account of Dr. Baba Saheb Ambedkar Jayanti.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 362.79 crore on Friday, 10 April 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 135.18 crore on Friday, 10 April 2015, as per provisional data.

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

Brent crude oil futures edged higher.

In overseas markets, European stocks edged lower. Chinese stocks led gains in Asian stocks. US stocks edged higher during the previous trading session on Friday, 10 April 2015, after US conglomerate General Electric said it plans to sell assets and buy back up to $50 billion of its stock.

At 14:21 IST, the S&P BSE Sensex was up 96.29 points or 0.33% at 28,975.67. The index jumped 162.24 points at the day's high of 29,041.62 in afternoon trade, its highest level since 13 March 2015. The index fell 35.44 points at the day's low of 28,843.94 in morning trade.

The CNX Nifty was up 30.05 points or 0.34% at 8,810.40. The index hit a high of 8,827 in intraday trade, its highest level since 13 March 2015. The index hit a low of 8,762.10 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,609 shares gained and 1,056 shares fell. A total of 141 shares were unchanged.

The BSE Mid-Cap index was up 41.02 points or 0.37% at 11,134.04. The BSE Small-Cap index was up 103.15 points or 0.87% at 11,949.48. Both these indices outperformed the Sensex.

Index heavyweight Reliance Industries rose 1.62% to Rs 918.40. The stock was volatile The stock hit high of Rs 918.70 and low of Rs 898.60 so far during the day. Reliance Industries (RIL) after market hours on Friday, 10 April 2015, announced successful commissioning of PET resin (polyethylene terephthalate) capacity at Dahej, Gujarat. The plant consists of two lines with a combined manufacturing capacity of 650 KTA. The plant has been built with Invista Technology for Continuous Polymerization and Buhler AG Technology for Solid State Polymerization. This is one of the largest bottle-grade PET resin capacity at a single location globally. This consolidates RIL's position as a leading PET resin producer with a global capacity of 1.15 MMTPA. PET resin from the new capacity would find application in packaging for water, carbonated soft drinks, pharmaceuticals and other food & beverages, RIL said in a statement.

Auto stocks edged lower. Tata Motors (down 1.05%), Maruti Suzuki India (down 0.26%), Mahindra & Mahindra (M&M) (down 2.21%), Eicher Motors (down 0.56%), Bajaj Auto (down 0.63%), Hero MotoCorp (down 0.21%) and TVS Motor Company (down 0.93%) declined.

Ashok Leyland rose 0.73% to Rs 76 after scaling a record high of Rs 76.60 in intraday trade today, 13 April 2015.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.41, compared with closing of 62.32 during the previous trading session.

Brent crude oil futures edged higher. Brent for May settlement which expires on 15 April 2015 was up $1.37 a barrel at $59.24 a barrel. The contract had risen $1.30 a barrel or 2.29% to settle at $57.87 a barrel during previous trading session. Brent for June settlement was up $1.34 a barrel to $60.29 a barrel.

On the macro front, index of industrial production (IIP) increased 5% in February 2015 compared with the revised growth of 2.8% in January 2015, government data released after market hours on Friday, 10 April 2015 showed. The IIP growth for January 2015 has been scaled up to 2.8% at the first revision compared with 2.6% reported provisionally. Meanwhile, the growth in November 2014 was also been revised sharply upwards to 5.2% at its second and final revision compared with -3.9% at the first revision and 3.8% released provisionally.

The mining sector output rebounded 2.5% in February 2015, snapping decline for last two months. Meanwhile, electricity generation rose at improved pace of 5% in February 2015. However, the manufacturing sector's output jumped at nine months high pace of 5.2% in February 2015 contributing to the overall growth in the industrial production.

IIP increased 2.8% in April-February FY2015 compared with the 0.1% fall in the corresponding period of the previous year

Inflation based on the consumer price index (CPI) is expected to remain steady at 5.4% in March 2015, as per the median estimate of a poll of economists carried out by Capital Market. CPI inflation stood at 5.4% in February 2015. The government will unveil data on CPI for March 2015 after trading hours today, 13 April 2015.

Inflation based on the wholesale price index (WPI) is expected to remain in negative zone in March 2015. WPI inflation is expected at negative 2.2% for March 2015, as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation was negative 2.1% in February 2015. The government will unveil data on WPI for March 2015 at 12:10 IST tomorrow, 14 April 2015.

Prime Minister Narendra Modi today, 13 April 2015, said in Germany that generating jobs for India's youthful population is a key to harnessing India's demographic advantage. Modi said that India needs to quickly and significantly ramp up manufacturing capabilities, the government has unveiled the "Make in India" initiative, Modi said. Modi is currently on an official visit to European countries. Modi said that the government has pledged a stable and transparent tax regime, reducing corporate taxes and implementing a single Goods & Services Tax in 2016. Modi yesterday, 12 April 2015, said that the highest priority for the government is creating world class infrastructure. At the inaugural session of Hannover Messe Germany, the world's largest industrial fair, in Germany, Modi also said that the government resumed long stalled projects and allocation of resources. This is adding new momentum to our economy, he said. Earlier, Modi on 11 April 2015, made a strong pitch for India's permanent membership at the United Nations Security Council, and expressed confidence that the world would soon recognize and accept India's capabilities.

In overseas markets, European stocks edged lower today, 13 April 2015. Key indices in UK, France and Germany were off 0.12% to 0.3%.

Asian stocks edged higher today, 13 April 2015 following the positive lead from Wall Street on Friday, 10 April 2015. Key benchmark indices in China, Singapore, Taiwan, Hong Kong and South Korea rose by 0.3% to 2.73%. Key benchmark indices in Indonesia and Japan fell 0.01% to 0.86%.

China's exports fell sharply in March while imports slumped once again, suggesting to economists that the world's second largest economy is being hit with sluggish demand at home and abroad. China's exports slid 15% from a year earlier in March while imports dropped 12.7%, according to data released today, 13 April 2015 by the General Administration of Customs.

Japanese core machinery orders fell 0.4% in February on a seasonally adjusted basis from the previous month, government data showed today, 13 April 2015. The fall followed a 1.7% decline in January.

Trading in US index futures indicated that the Dow could fall 43 points at the opening bell today, 13 April 2015. US stocks ended the session higher on Friday, 10 April 2015 after US conglomerate General Electric said it plans to sell assets and buy back up to $50 billion of its stock.

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First Published: Apr 13 2015 | 2:17 PM IST

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