A range bound movement was witnessed as key benchmark indices hovered in negative zone in afternoon trade. The barometer index, S&P BSE Sensex, was currently off 82.13 points or 0.29% at 28,451.84. The market breadth indicating the overall health of the market was positive.
Bank stocks edged lower. Bank of India tumbled after poor Q3 numbers. Metal and mining stocks declined. Reliance Power rose after the company said it has signed a memorandum of understanding with the Government of Rajasthan to develop 6,000 megawatts (MW) of solar power projects in Rajasthan over the period of next 10 years.
Foreign portfolio investors sold shares worth a net Rs 371.27 crore yesterday, 11 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 147.49 crore yesterday, 11 February 2015.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week at the onset of the trading session.
In overseas markets, Asian stocks were mixed. US stocks were flat at close yesterday, 11 February 2015, after seeing high intraday volatility as investors eyed negotiations between Greece and its international creditors.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher as conflict in Ukraine escalated.
At 13:16 IST, the S&P BSE Sensex was down 82.13 points or 0.29% at 28,451.84. The index fell 127.72 points at the day's low of 28,406.25 in early afternoon trade, its lowest level since 10 February 2015. The index jumped 151.91 points at the day's high of 28,685.88 in early trade, its highest level since 6 February 2015.
The CNX Nifty was down 14.55 points or 0.17% at 8,612.85. The index hit a low of 8,599.25 in intraday trade. The index hit a high of 8,681.40 in intraday trade, its highest level since 6 February 2015.
The BSE Mid-Cap index was up 74.39 points or 0.71% at 10,617.50. The BSE Small-Cap index was up 107.26 points or 0.97% at 11,166.65. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,416 shares rose and 1,179 shares fell. A total of 136 shares were unchanged.
Reliance Power (RPower) rose 1.21% at Rs 58.50. RPower during market hours today, 12 February 2015, said that the company and the Government of Rajasthan (GoR) signed a memorandum of understanding (MoU) to develop 6,000 megawatts (MW) of solar power projects in Rajasthan over the period of next 10 years.
Bank stocks declined. State Bank of India (down 1.99%), Punjab National Bank (down 1.86%), Kotak Mahindra Bank (down 0.98%), Bank of Baroda (down 1%), Canara Bank (down 1.83%), ICICI Bank (down 1.27%), Yes Bank (down 0.93%), IndusInd Bank (down 0.62%), Axis Bank (down 0.55%) and Federal Bank (down 0.86%) edged lower.
HDFC Bank fell 0.17% at Rs 1,056.75. The stock hit a high of Rs 1,065.65 and a low of Rs 1,054 so far during the day. Shares allotted by HDFC Bank to institutional investors under Qualified Institutional Placement (QIP) were admitted for trading on the bourses today, 12 February 2015. A total of 1.87 crore shares will be admitted for trading. HDFC Bank had priced the issue of shares to institutional investors at Rs 1,067 per share.
It may be recalled that HDFC Bank had early this month raised Rs 2000 crore from the QIP issue. The private sector bank had also raised about $1.27 billion from issue of American Depository Receipts (ADR) early this month.
Bank of India fell 6.33% at Rs 226.30 after net profit fell 70.40% to Rs 173.38 crore on 9.95% increase in total income to Rs 11947.45 crore in Q3 December 2014 over Q3 December 2013. The result was announced during trading hours today, 12 February 2015.
Bank of India's ratio of net non-performing assets (NPAs) to net advances stood at 2.50% as on 31 December 2014, compared with 2.32% as on 30 September 2014 and 1.75% as on 31 December 2013. The bank's ratio of gross NPAs to gross advances stood at 4.07% as on 31 December 2014, compared with 3.54% as on 30 September 2014 and 2.81% as on 31 December 2013.
Provisions and contingencies rose 12.61% to Rs 1580.72 crore in Q3 December 2014 over Q3 December 2013. The provisioning coverage ratio as on 31 December 2014 stood at 56.62%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.68% as on 31 December 2014, compared with 10.97% as on 30 September 2014 and 10.84% as on 31 December 2013.
Metal and mining stocks declined. Hindustan Zinc (down 4.46%), Sesa Sterlite (down 1.2%), JSW Steel (down 1.32%), Tata Steel (down 1.89%), NMDC (down 0.43%), and Steel Authority of India (down 0.96%) edged lower. Hindalco Industries (up 1.5%) and National Aluminium Company (up 0.71%) edged higher.
Jindal Steel & Power (JSPL) dropped 2.88% at Rs 146.75. The stock hit a high of Rs 154.80 and a low of Rs 145.70 so far during the day. The Delhi High Court yesterday, 11 February 2015, reportedly granted relief to JSPL by asking the Centre to review its decision to change end-use norm for the coal blocks allotted to the company. A bench of Justices Badar Durrez Ahmed and Sanjeev Sachdeva segregated the blocks - Utkal B1 and Utkal-B2 in Odisha and Gare Palma IV/6 in Chhattisgarh - from the auction process on the ground that the Centre, while changing the end-use from steelmaking to power generation, failed to consider the adverse impact on the steel industry. JSPL had been allotted Utkal-B1 for operating a steel unit and Gare Palma IV/6 for a sponge iron industry. The allocations were among the 204 allotments cancelled by the Supreme Court. In its plea, JSPL had contended that change of end-use prohibits the company from bidding for those coal blocks, threatening the company's investments of over Rs 24000 crore to set up units as per the original end-use close to these mines.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.4275, compared with its close of 62.26 during the previous trading session.
Brent crude oil futures edged higher as conflict in Ukraine escalated. Brent for March settlement which expires today, 12 February 2015, was up 33 cents at $54.99 a barrel. The contract had lost $1.77 a barrel or 3.13% to settle at $54.66 a barrel during the previous trading session. Brent for April settlement was up 96 cents at $56.88 a barrel.
Meanwhile, macroeconomic data to be released by the government in the coming days is likely to show deceleration in industrial production growth in December 2014 and acceleration in inflation in January 2015. The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.5% in January 2015 from 5% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil CPI data for January 2015 at 17:30 IST today, 12 February 2015.
The rate of inflation based on the wholesale price index (WPI) is seen accelerating to 0.4% in January 2015 from 0.1% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI data for January 2015 at 12.10 noon on 16 February 2015.
Growth in industrial production is seen decelerating to 1.5% in December 2014 from 3.8% expansion in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will industrial production data for December 2014 at 17:30 IST today, 12 February 2015. All these projections for CPI, WPI and industrial production are based on the old series data with 2004-05 as base year. It may be recalled that 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.
Asian stocks were mixed today, 12 February 2015. Key indices in Singapore, Indonesia, and South Korea were down 0.09% to 0.9%. Key indices in China, Taiwan, Hong Kong and Japan rose 0.36% to 1.85%.
Trading in US index futures indicated that the Dow could fall 3 points at the opening bell today, 12 February 2015. US stocks ended with small losses yesterday, 11 February 2015, as investors eyed negotiations between Greece and its international creditors.
In Europe, eurozone finance ministers after a meeting held in Brussels, Belgium, yesterday, 11 February 2015, failed to agree on new financing steps for debt-stricken Greece. After more than six hours of negotiations, the ministersalong with the heads of the International Monetary Fund and the European Central Bankpledged to keep talking in the coming days with the hope of coming up with a plan at their next meeting. In an unusual development for their get-together, the ministers failed to agree on a joint statement. Greek Finance Minister Yanis Varoufakis reportedly said after the meeting that he still hoped that a deal on new financing for his debt-stricken country could be found by next week.
Meanwhile, a summit meeting of European Union (EU) leaders is scheduled in Brussels today, 12 February 2015.
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