A range bound movement was witnessed as key benchmark indices retained positive zone in mid-afternoon trade. The gains for the benchmark indices were minuscule. The barometer index, the S&P Sensex, was currently trading above the psychological 29,000 mark, having alternately moved above and below that level in intraday trade so far. The market breadth indicating the overall health of the market was negative. The Sensex was currently up 12.20 points or 0.04% at 29,012.34. Global crude oil prices surged overnight.
Prime Minister Narendra Modi yesterday, 3 February 2015, said that the priority of the government is growth and to create jobs. Meanwhile, the outcome of a monthly survey released today, 4 February 2015, showed expansion in India's services sector activity in January 2015.
Wockhardt jumps after good Q3 outcome. Bank shares were mixed. Canara Bank gained after the state-run bank reported strong Q3 result.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit 2-week low in mid-morning trade as these two key benchmark indices reversed direction after a firm start.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 264.35 crore yesterday, 3 February 2015, as per provisional data.
In overseas market, European shares edged lower as investors eyed the release of the bloc's retail sales data later in the global day. Asian shares edged higher amid receding fears over Greece. US stocks surged yesterday, 3 February 2015, as equities kept pace with surging crude-oil prices.
In the foreign exchange market, the rupee edged lower against the dollar.
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Brent crude oil futures edged lower after a sharp surge during the preceding trading session. The recent rebound in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. The rebound in crude oil prices comes after a steep slide in prices over the past few months. India imports about 80% of its crude oil requirements.
At 14:16 IST, the S&P BSE Sensex was up 12.20 points or 0.04% at 29,012.34. The index fell 133.14 points at the day's low of 28,867 in mid-morning trade, its lowest level since 21 January 2015. The index jumped 133.48 points at the day's high of 29,133.62 in mid-morning trade.
The CNX Nifty was up 5.55 points or 0.06% at 8,762.10. The index hit a low of 8,716.40 in intraday trade, its lowest level since 21 January 2015. The index hit a high of 8,792.85 in intraday trade.
The BSE Mid-Cap index was up 20.84 points or 0.19% at 10,789.07. The BSE Small-Cap index was up 46.84 points or 0.41% at 11,473.62. Both theses indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,391 shares declined and 1,370 shares advanced. A total of 124 shares were unchanged.
Wockhardt rose 3.14% to Rs 1,219.55 after good Q3 results announced during trading hours. The stock hit a high of Rs 1,250 and a low of Rs 1,154.15 so far in intraday trade. On a consolidated basis, Wockhardt's net profit rose 14.06% to Rs 347.25 crore on 4.03% increase in total income to Rs 1376.03 crore in Q3 December 2014 over Q3 December 2013.
NMDC was down 0.64%. The company announced during trading hours that it has awarded a contract worth Rs 356.85 crore on water packages relating to the company's 3 million tonnes per annum steel plant at Nagarnar, Jagdalpur in Chhattisgarh. All the awarded works in respect of the integrated steel plant are being taken up on war footing so that the timelines for commissioning of plant can be met. The contracts are very crucial as this will provide water linkage for operation of the plant, NMDC said.
Larsen & Toubro (L&T) was down 0.97% at Rs 1,706. The stock hit a high of Rs 1,731.05 and a low of Rs 1,704.30.
Bank shares were mixed. Among private sector banks, Kotak Mahindra Bank (down 0.64%), City Union Bank (down 0.81%), ICICI Bank (down 0.91%), Federal Bank (down 1.15%) and Axis Bank (down 3.75%), edged lower. Yes Bank (up 1.30%), HDFC Bank (up 1.29%), IndusInd Bank (up 0.13%) and ING Vysya Bank (up 0.07%), edged higher.
Among public sector banks, United Bank of India (down 2.44%), Central Bank of India (down 2.35%), Union Bank of India (down 1.24%), Vijaya Bank (down 1.01%), State Bank of India (SBI) (down 0.92%), Bank of India (down 0.56%), Bank of Maharashtra (down 0.48%), IDBI Bank (down 0.36%), Allahabad Bank (down 0.32%), Dena Bank (down 0.18%), Indian Bank (down 0.11%) and Punjab and Sind Bank (down 0.08%), edged lower. UCO Bank (up 0.14%), Andhra Bank (up 0.27%), Corporation Bank (up 0.45%), Bank of Baroda (up 0.81%) and Syndicate Bank (up 1.07%) and Punjab National Bank (PNB) (up 1.10%), edged higher.
Canara Bank rose 3.82% to Rs 455.55. The state-run bank during market hours today, 4 February 2015, reported 60.24% rise in net profit to Rs 655.97 crore on 11.82% rise in total income to Rs 12227.86 crore in Q3 December 2014 over Q3 December 2013.
Canara Bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.42% as on 31 December 2014, compared with 2.31% as on 30 September 2014 and 2.39% as on 31 December 2013.
The bank's ratio of gross NPAs to gross advances stood at 3.35% as on 31 December 2014, compared with 2.92% as on 30 September 2014 and 2.79% as on 31 December 2013.
Provisions and contingencies fell 19.98% to Rs 841.33 crore in Q3 December 2014 over Q3 December 2013. The provisioning coverage ratio as on 31 December 2014 stood at 59.44%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 9.87% as on 31 December 2014, compared with 10.19% as on 30 September 2014 and 9.83% as on 31 December 2013.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.745, compared with its close of 61.68 during the previous trading session.
Brent crude oil futures edged lower in volatile trade. Brent for March settlement was off 14 cents at $57.77 a barrel. The contract had jumped $3.16 a barrel or 5.8% to settle at $57.91 a barrel during the previous trading session.
The outcome of a monthly survey released today, 4 February 2015, showed expansion in India's services sector activity in January 2015. The HSBC India Services PMI Business Activity Index edged up to 52.4 in January 2015, from 51.1 in December 2014. According to survey responses, the latest increase in the services activity reflected further growth of new business during the month. Indian service providers were the most upbeat regarding the 12-month outlook for activity since mid- 2014. Panel members attributed optimism to anticipated improvements in demand and new commercial initiatives. Input costs faced by Indian services firms rose for the second straight month in January, having fallen for the first time in more than five-and-a-half years in November. The rate of cost inflation picked up to the sharpest in six months, although it remained muted in the context of historical data. Prices charged in the Indian service economy also increased for the second consecutive month in January.
Prime Minister Narendra Modi yesterday, 3 February 2015, said that his priority was for India to establish global benchmarks in areas such as governance, transparency and taxation. Interacting over dinner with participants of the BlackRock India Investor Summit, he said that the priority of the government is growth and to create jobs. The Prime Minister said infrastructure development is one of the best routes to create jobs for the youth. He said India requires both expansion and upgradation of its infrastructure. He said the Railways could become a growth engine for the economy. The Prime Minister said the goal of Affordable Housing for all by 2022, would in itself, provide a huge boost for the economy. In terms of the education system, he said the best in the world should be there in India as well. The Prime Minister said he believes in a fair, predictable and consistent tax system, and in economic policies that will drive growth.
The Reserve Bank of India (RBI) left its benchmark lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review yesterday, 3 February 2015, as the central bank is awaiting further evidence to gauge whether the disinflationary process is continuing. Earlier, the RBI had surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy.
European shares edged lower today, 4 February 2015, as investors eyed the release of the bloc's retail sales data later in the global day. Key benchmark indices in UK, Germany and France were down by 0.14% to 0.39%.
Greece's Finance Minister Yanis Varoufakis reportedly said yesterday, 3 February 2015, that Athens was working on a road map to lessen the burden of his country's hefty debt pile, and he hoped to have an agreement with Greece's creditors by the beginning of June. That's a sign Greece's new government was moving closer in its negotiations with its creditors to easing the terms on the country's 240 billion-euro bailout in 2012.
Asian share markets tracked US market higher today as revived risk sentiment dented the US dollar and sovereign bonds. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.30% to 1.98%.
China's Shanghai Composite fell 0.96%. The HSBC China services purchasing managers index fell to a six-month low at 51.8 in January from 53.4 in December, HSBC Holdings PLC said Wednesday, pointing to a slowdown outside the nation's factory sector. Despite the fall in the index, service activity was still expanding from the previous month, although at a slower rate.
The HSBC Hong Kong Purchasing Managers Index contracted in January, a signal of the city's deteriorating output at the start of 2015 amid China's economic slowdown. HSBC said Wednesday that January's manufacturing PMI fell to 49.4 from 50.3 in December. A reading below 50 indicates a contraction in manufacturing, while a reading above that indicates an expansion.
Trading in US index futures indicated that the Dow may slide 25 points at opening bell today, 4 February 2015. US market ended higher for second day in a row on Tuesday, 3 February 2015, led by energy shares as oil prices extended their recent rally, while higher-than-expected January car sales also bolstered the advance.
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