After extending intraday gains in mid-morning trade, key benchmark indices pared gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 138.01 points or 0.49% at 28,259.90. The market breadth indicating the overall health of the market was strong. Chinese stocks tumbled, with a wide sell-off sweeping across the financial sector as investors turned jittery over the latest move by securities regulators to clean up the margin-trading business.
India's Prime Minister Narendra Modi on Friday, 16 January 2015, called for making India a $20 trillion economy from a $2 trillion economy today. Speaking at an event, Modi also said that the government is committed to achieving the 4.1% fiscal deficit target announced in the Union Budget 2014-15.
Shares of pharmaceutical companies edged higher. FMCG stocks were mixed. Tata Communications edged higher after the company announced that it has made an investment for purchasing significant capacity in Seaborn Networks' cable system between Brazil and US. Gateway Distriparks galloped after an investor requested the company to effect initial public offer (IPO) of its subsidiary.
Earlier, the Sensex hit 6-week high and the 50-unit CNX Nifty hit its highest level in more than six weeks as these two key benchmark indices extended initial gains in mid-morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1099.93 crore on Friday, 16 January 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds.
Brent crude futures edged lower after sharp rally in previous session.
In overseas markets, Asian stocks edged higher after a rebound in the US stocks at the end of last week. US stocks ended higher on Friday, 16 January 2015, on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high.
At 12:15 IST, the S&P BSE Sensex was up 138.01 points or 0.49% at 28,259.90. The index rose 212.17 points at the day's high of 28,334.06 in mid-morning trade, its highest level since 8 December 2014. The index rose 106.30 points at the day's low of 28,228.19 in morning trade.
The CNX Nifty was up 37.05 points or 0.44% at 8,550.85. The index hit a high of 8,570.95 in intraday trade, its highest level since 5 December 2014. The index hit a low of 8,538.85 in intraday trade.
The BSE Mid-Cap index was up 84.19 points or 0.79% at 10,717.30. The BSE Small-Cap index was up 96.21 points or 0.85% at 11,406.14. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,690 shares advanced and 976 shares declined. A total of 81 shares were unchanged.
FMCG stocks were mixed. Dabur India (up 3.79%), Marico (up 3.71%), Tata Global Beverages (up 2.01%), Nestle India (up 1.44%), Colgate-Palmolive (India) (up 0.58%), Emami (up 0.31%) and Britannia Industries (up 0.01%) edged higher. Godrej Consumer Products was down 0.31%.
FMCG major Hindustan Unilever was down 1.58%. The company is scheduled to announce its Q3 results today, 19 January 2015.
Shares of pharmaceutical companies edged higher. Wockhardt (up 2.37%), Glenmark Pharmaceuticals (up 2.02%), Torrent Pharmaceuticals (up 1.85%), Piramal Enterprises (up 1.46%), Cipla (up 1.45%), Sun Pharmaceutical Industries (up 1.2%), Apollo Hospitals Enterprise (up 1.19%), Ranbaxy Laboratories (up 1.17%), Dr Reddy's Laboratories (up 0.86%), Aurobindo Pharma (up 0.83%), Lupin (up 0.54%), Stride Arcolab (up 0.53%) and Divi's Laboratories (up 0.24%), edged higher.
Tata Communications rose 1.90%. The company announced during trading hours that it made an investment for purchasing significant capacity in Seaborn Networks' cable system between Brazil and US. Seaborn Networks is the developer and operator of the first express submarine cable between the United States and S Paulo, Brazil.
Gateway Distriparks galloped 8.08% after an investor requested the company to effect initial public offer (IPO) of its subsidiary.
Gateway Distriparks (GDL) on Saturday, 17 January 2015 said that Blackstone GPV Capital Partners (Investor) has sent a letter dated 16 January 2015 to the company (GDL) and the company's subsidiary company - Gateway Rail Freight (GRFL) requesting the company to effect an initial public offer (IPO) of GRFL in accordance with the terms of the Share Subscription & Shareholders Agreement (SSHA) dated 9 November 2009. The company will respond to the request from the investor in due course, GDL said. This will have no impact on the operations or profitability of the company, the company said.
Mahindra & Mahindra Financial Services fell 6.64% after consolidated net profit declined 14% to Rs 157 crore on 12% growth in total income to Rs 1522 crore in Q3 December 2014 over Q3 December 2013. The Q3 result hit the market on Saturday, 17 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar as foreign investors stepped up purchases of the nation's bonds. The partially convertible rupee was hovering at 61.69, compared with its close of 61.87 during the previous trading session.
Brent crude futures edged lower after sharp rally in previous session. Brent for March settlement was down 23 cents at $49.94 a barrel.
Crude-oil futures rallied Friday, 16 January 2015, notching their first weekly gain in eight weeks as the International Energy Agency said collapsing crude prices would cut into supply growth from oil producers outside of the Organization of the Petroleum Exporting Countries. Brent crude gained $1.90 a barrel, or 3.93%, to $50.17 a barrel during the previous trading session on Friday, 16 January 2015.
Asian stocks were mostly higher. Key benchmark indices in Japan, Singapore, South Korea and Taiwan were up by 0.14% to 0.89%. Key benchmark indices in Indonesia and Hong Kong were off by 0.01% to 2.07%.
In mainland China, the Shanghai Composite index was off 7.54%. Brokerage shares slumped after China's securities regulator last week banned three brokerages from opening new margin trading accounts, putting a temporary halt on what has proved a major engine of the market's super-bull rally.
On Friday, 16 January 2015, US stocks ended higher on signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high. US gasoline prices fell again in December, leading consumer prices to post their biggest decline in six years, while a gauge of underlying inflation was flat. The data could make the Federal Reserve cautious about raising interest rates.
In Europe, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country on 25 January 2015. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
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