After a sharp setback in shares of Bank of Baroda after the state-run bank's weak Q3 results, key benchmark indices extended losses in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently off 300.88 points or 1.01% at 29,380.89. The market breadth indicating the overall health of the market was positive. BSE Small-Cap and Mid-Cap indices were, both, in green.
Coal India dropped as the divestment of up to 10% government stake in the state-run firm through the stock exchanges mechanism began. Power generation stocks gained on renewed buying. NTPC gained ahead of its Q3 December 2014 results today, 30 January 2015. Realty stocks edged higher on reports the finance ministry has floated a draft cabinet note to amend the Foreign Exchange Management Act to permit overseas funds in real estate investment trusts (REITs).
Earlier, the Sensex and the 50-unit CNX Nifty, both, reversed direction after hitting record high at the onset of the trading session.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1723.77 crore yesterday, 29 January 2015, as per provisional data.
In overseas markets, Japan led Asian equity markets higher, with electronics maker Toshiba Corp.'s shares rising on its sharp earnings growth. US stocks registered broad-based gains yesterday, 29 January 2015, amid a rebound in global crude oil prices.
At 11:15 IST, the S&P BSE Sensex was down 300.88 points or 1.01% at 29,380.89. The index lost 328.07 points at the day's low of 29,353.70 in mid-morning trade, its lowest level since 27 January 2015. The index jumped 162.39 points at the day's high of 29,844.16 at the onset of the trading session, a record high for the index.
The CNX Nifty was down 86.30 points or 0.96% at 8,866.05. The index hit a low of 8,861.70 in intraday trade. The index hit a high of 8,996.60 in intraday trade, a record high for the index
The market breadth indicating the overall health of the market was positive. On BSE, 1,228 shares gained and 1,108 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 8.34 points or 0.08% at 10,779.42. The BSE Small-Cap index was up 22.46 points or 0.2% at 11,401.21. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1411 crore by 11:15 IST, compared with turnover of Rs 906 crore by 10:15 IST.
Coal India lost 3.04% to Rs 363.75. The stock was volatile. The stock hit high of Rs 364 and low of Rs 360.50 so far during the day. Bids were received for a total of 1.80 crore shares amounting to 5.71% of the base issue size for divestment of the government's 5% stake in the state-run coal major. The government has put on block 31.58 crore shares of Coal India, constituting 5% equity with an option to sell additional up to 31.58 crore shares through the stock exchanges mechanism. The floor price for the offer for sale (OFS) of Coal India's shares has been set at Rs 358 per share. The OFS commenced today, 30 January 2015 at 9:15 IST and will close at 15:30 IST.
The government has reserved 20% of the size of the sale for retail investors. Retail investors will be offered a discount of 5% to the bid price entered by them in accordance with the Sebi OFS circulars.
Power generation stocks gained on renewed buying. Reliance Infrastructure (up 5.61%), Tata Power Company (up 1.88%), CESC (up 0.69%), Reliance Power (up 3.08%), NHPC (up 0.25%), Jaiprakash Power Ventures (up 2.96%), Adani Power (up 2.52%) and JSW Energy (up 1.25%) edged higher.
NTPC gained 3.7% to Rs 147.10 ahead of its Q3 December 2014 results today, 30 January 2015. The stock hit a high of Rs 147.35 and low of Rs 142 so far during the day. As per reports, NTPC has restricted the building of three new solar power projects to domestic manufacturers. Only Indian companies will be allowed to bid for the projects, which will have a combined 750 megawatts (MW) capacity, reports indicated. Indian subsidiaries of foreign manufacturers would be free to participate in NTPC's future solar projects, reports added.
Among power finance companies, shares of REC (up 2.28%) and Power Finance Corporation (up 3.06%) gained.
Bank of Baroda lost 8.03%. The bank reported 68.12% fall in net profit to Rs 333.98 crore on 11.16% rise in total income to Rs 11808.34 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours.
Realty stocks edged higher on reports the finance ministry has floated a draft cabinet note to amend the Foreign Exchange Management Act to permit overseas funds in real estate investment trusts (REITs). DLF (up 3.73%), Indiabulls Real Estate (up 6.48%), Housing Development and Infrastructure (up 9.86%), D B Realty (up 6.12%), Unitech (up 4.48%), Oberoi Realty (up 2.37%), Sobha (up 0.23%), Godrej Properties (up 0.52%) and Parsvnath Developers (up 5.73%) gained.
At present, foreign investment in real estate assets, specifically completed commercial real estate properties, whether rent yielding or not, is not permitted under FEMA. The FEMA had been amended in 2005 to allow foreign direct investment in development of townships, construction of residential and commercial premises, roads and bridges.
Finance minister Arun Jaitley had announced real estate investment trusts (REITS) and infrastructure investment trusts in his budget in July 2014 to enable developers and banks to reduce their debt.
LIC Housing Finance shed 0.04%. With respect to media report titled LIC likely to exit mutual fund JV with Nomura, LIC Housing Finance during market hours today, 30 January 2015, said the company is not having any such information regarding this media report.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.7475, compared with its close of 61.875 during the previous trading session.
Brent crude oil futures edged lower. Brent for March settlement was off 4 cents at $49.09 a barrel. The contract had gained 66 cents a barrel or 1.36% to settle at $49.13 a barrel during the previous trading session.
The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review next week. The sixth bi-monthly monetary review from the RBI is scheduled on Tuesday, 3 February 2015. The central bank may focus on the details of the upcoming Union Budget 2015-16 which is scheduled on 28 February 2015, before taking a call on further monetary policy easing. The RBI 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. 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 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
Japan led Asian equity markets higher today, 30 January 2015, with electronics maker Toshiba Corp.'s shares rising on its sharp earnings growth. Key benchmark indices in Singapore, Japan, Hong Kong, South Korea and Indonesia rose by 0.04% to 0.91%. Key benchmark indices in China and Taiwan fell by 0.43% to 0.78%.
Japan's industrial output rose a seasonally adjusted 1% in December from the previous month, government data showed today, 30 January 2015 signaling the economy may have started to recover slowly following last year's consumption tax hike. The rise in December came after a 0.5% fall in November.
Taiwan's economy expanded more slowly in the fourth quarter, as falling oil prices hurt petrochemical exports, though demand for electronics remained strong. Taiwan's gross domestic product rose 3.17% from a year earlier in the final quarter of 2014, the lowest rate in five quarters, and 1.17% from the previous quarter, an initial official reading showed today, 30 January 2015. The economy expanded 3.63% in the third quarter of 2014.
Trading in US index futures indicated that the Dow could fall 59 points at the opening bell today, 30 January 2015. US stocks closed higher yesterday, 29 January 2015 as an upturn in oil prices and a rally in Apple and Boeing shares helped offset some disappointing earnings and lingering questions over US monetary policy.
In economic news, the number of people who applied for US unemployment-insurance benefits plunged 43,000 to 265,000 in the week that ended Jan. 24, hitting the lowest tally in 14 years, according to Labor Department data released yesterday, 29 January 2015.
Separately, pending home sales cooled in December, which the National Association of Realtors attributed to fewer homes available for sale and a slight rise in prices. The pending home sales index fell 3.7% during December, though the year-on-year gain was 11.7%, the highest since June 2013.
The US Commerce Department releases its first estimate of fourth-quarter GDP today, 30 January 2015.
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